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Page 1 of 4 LAST (Family) NAME:_____________________________________FIRST (Given) NAME:______________________________________ STUDENT NUMBER:_______________________________________ UNIVERSITY OF TORONTO Faculty of Arts & Science & Rotman School of Management DECEMBER 2018 EXAMINATIONS RSM464H1F Duration: Take-home due 21/12/18 Aids Allowed: Take-home Exam Reminder: Fill out your name and student number on the top of this page. Special Instructions: There are two partsto this exam: Part A consists of a case analysis worth 50 marks and Part B consists of two essay questions, worth 25 marks each. Part A: Please analyze the case using the following format. 1.What are the issues of concern and/or interest? Please identify a maximum of three issues. 2.What theories and/or case evidence support your assessment in Q1? 3.What action ideas do you recommend to address the issues in Q1? 4.What implementation steps are needed to make what you recommended in Q3 work?
Page 2 of 4 The Hudson Bay Company (HBC)* HBC is the world’s oldest continuously operating company. In 1670, Britain’s King Charles II gave Prince Rupert a charter for the purpose of “…the discovery of a new Passage into the South sea and for the finding of some Trade for Furrs Mineralls and other considerable Commodityes …” Rupert had a monopoly on trade throughout a vast area, i.e., all the land drained by rivers flowing into Hudson Bay. The first trading post was created in Moose Factory (1673), followed by Fort Albany (1674), Fort Severn (1680) and York Factory (1684). HBC traders established relationships with Indigenous Peoples who transport European goods to their trading partners who live further inland. In 1779, HBC changed its strategy by establishing its first inland trading post in Saskatchewan, near what is now known as Le Pas. Previously, HBC conducted business from the trading posts on Hudson Bay. HBC realized that to meet the competition, it would have to get closer to its fur suppliers. Around 1800, the HBC point blanket was introduced and continues to be made today. Its status as a Canadian symbol and unofficial HBC logo continues. However, its history is controversial, as many believe, based on evidence, that some British administrators used them to spread small pox in an attempt to wipe out the Indigenous peoples. Just before Confederation, HBC falls under some intense scrutiny from the British government. The British government investigated the Company’s monopoly and trading practices. Discussions were ongoing about the transfer of land from Britain as well as compensation for HBC. However, the British colonies of the Province of Canada (Ontario and Quebec), Nova Scotia and New Brunswick joined together to form the Dominion of Canada before HBC’s compensation claims had been addressed. In 1870, HBC surrendered much its land to the Crown. In return, HBC got £300,000 cash, kept 120 posts, and got land concessions. HBC gave up its rights to Rupert’s Land, but