Accounting and finance, entrepreneurship and business strategy.
The case is suitable for the following courses: post graduate programs in entrepreneurship; executive training programs for middle and senior level employees; and MBA/post graduate programs in management in strategic management.
The case deals with an entrepreneurship venture whose initial business model appeared to be faltering with the founder wondering about the future of the company. After Ommune Solutions' (founded 2010) initial business plan failed, the company started offering IT outsourcing services to Indian customers. However, the company was spending more that it was earning and the CEO generated additional revenues through independent consulting. By 2012 a customer relationship management (CRM) tool was also ready for release. The company was another IT start up yet to find a firm footing. The CEO wondered whether he should continue to build the company and, if so, in which direction?
Expected learning outcomes
These include: the use of SWOT analysis as a tool to aid strategic decision making along with Porter's five competitive forces model and the BCG matrix; using cost benefit analysis for evaluating business decisions; understanding the complexities involved in a strategic planning process; and identifying unnecessary cost and increasing revenue generation for expansion and maximizing profitability.
The case provides insight on challenges faced by a venture at an early stage in the business environment and the venture is analyzed in depth. It gives students a perspective on decision making and adapting to scenarios where initial business plans appear not to have succeeded.
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The authors acknowledge the support received from Mr Santosh Singh Rathore, the CEO and founder of the company Ommune IT Solutions. Also they are deeply grateful for the ground work done on this case by Abhay Joshi a member of the MBA Class of 2013, Faculty of Management Studies (FMS), University of Delhi, India and Akhil Khanna, Investment Planner, New Delhi.
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