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Innovation, privatisation and property development.

Undergraduate and MA level property development courses; modules covering privatisation within undergraduate, MBA and MA level management programmes.

This paper presents the genesis and motivating factors that stimulate a managing director of a housing development (D&B Private Limited Company) to introduce innovation as a strategic solution to the challenges which hinder his firm's growth. The recently launched Ten Malaysian Plan and the Sustainable Programme for Corporate Malaysia are identified as the two stimulating events that triggered the initiation and subsequent implementation of innovation into Design and Build Sdn Bhd. Innovation has been recognized as an endeavor that impacts positively and significantly the performance of the firm that innovates. There was a major focus on factors that enhance innovation of a firm: structure, culture, resources and how to address or react to external factors such as government regulation on innovation, environmental uncertainty and market competition. The quest to be an innovative firm has led to major changes in the structure, culture and review of the firm intangible resources. Coupled with some corporate responsibilities, Design and Build Sdn Bhd has been recognized for its unique performance resulting from the competitive advantage derived from this very idea of innovations.

Students are expected to be able: to present a basic understanding of the motivations and driving force behind the housing developer's keen interest to innovate, to present the multiple benefits of adopting innovation in the housing industry, to highlight the internal and external factors which positively influence innovation among housing developers?, to present how housing developers are able to manage challenges facing their companies through innovation.

Teaching notes.

After completing this case, students should be able to: identify and compute relevant cash flows in relation to a real estate project and compute the net present value (NPV). Determine the target return or cost of capital (by looking at historical economic indicators). Design or formulate a sensitivity analysis to determine the drivers of the project value. Evaluate real estate and other investments taking qualitative and quantitative factors into consideration. Demonstrate the computation of a break-even rate to determine the minimum or maximum revenue or cost required for a project to be viable.

This case study is about the Golden Beak Securities Pension Fund that wanted to invest in a Hostel Project in one of the universities in Ghana. Most universities in Ghana faced an acute shortage of on-campus accommodation. Also, the Government of Ghana, in 2017, implemented a programme to make Senior High School in Ghana free. This was expected to increase the number of students who will enter the existing universities. The project was therefore seen as strategic, as it would help ease the pressure of on-campus accommodation while providing diversification for the pension fund. As part of the investment committee’s (IC) quest to improve the skill set available to it, especially in relation to real estate investments, Esi Abebrese was appointed as one of the members of the IC of GSB. Her main task was to collect information on key macroeconomic variables, as well as granular information on project costs and revenues and conduct investment appraisal. Esi was scheduled to make a presentation to the IC on the 15th of October 2019 following which the Committee will debate and make a decision. The project had an estimated cost of GH¢52m with a total number of 3,424 student beds and ancillary facilities. Undertaking the project required moving funds from investments in money market securities with one of the banks in Ghana. The investments in the money market securities were currently yielding about 16% a year. The determination of the cost of capital was critical and Esi and Nana eventually settled on a long-term weighted average cost of capital of 14%. This was after considering the trend of inflation, monetary policy rates, treasury rates, stock market returns and a report on returns on commercial real estate properties in Ghana. An exit capitalisation rate of 20% was also estimated for the purposes of determining the value of the property at the end of the investment horizon. Esi also obtained estimates of cost and revenue for the project and proceeded to carry out a feasibility analysis on the project. This consisted of an NPV analysis and sensitivity analysis on various factors to determine the drivers of the project value. The IC had to take several factors (both quantitative and qualitative) into consideration before making a decision. Esi believed that these factors included the diversification of the fund’s assets, the return on investment, potential oversupply of hostel accommodation, the social responsibility of providing student accommodation and the impact of any prolonged shutdown of the university.

Masters/advanced undergraduate.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 1: Accounting and Finance.

Strategic marketing/marketing management.

Undergraduate and post graduate courses in the principles of marketing, strategic marketing, strategic management, services marketing and hospitability management.

This case focuses on the critical success factors of “Scandic” hotel chain by highlighting its road to becoming the leading hotel chain in the Baltic region. This case covers a wide range of situations in which strategic marketing decisions were made, for example, the Scandic Sustainability Fund, supporting initiatives to promote sustainable social development. Special attention is devoted to how the case company's business philosophy is implemented to identify and differentiate its customers, in order to sustain a customer centric strategy and develop long lasting relationships.

Following analysis of the case students should be able to: first, understand how marketing strategies can be utilized to effectively differentiate organizations from their competitors by capitalising on distinctive strengths, leading to the delivery of better value to stakeholders; second, understand how marketing strategy deals with the interplay of “the strategic three Cs” (customer, competition and corporation) in better satisfying customer needs; third, appreciate how companies operate within a given environment and the benefits of developing an environmental strategy.

Teaching note including lecture plan.

Rural Marketing, Sales and Distribution Management, Salesperson Motivation, Channel Management.

The case can be used in sales management, channel management and rural marketing courses offered to graduate students of MBA degrees. In the sales management courses, the emphasis is on understanding the typical tasks that the rural salesperson is required to conduct. The case can be used to design a suitable motivation-mix for a rural salesperson after analysing their approach towards work. In a rural marketing course, the case can be used to understand the sales and distribution management of fast-moving consumer good products in rural India. The case can be used in channel management courses to design an appropriate channel structure in the rural market in India and utilized for managing the distributors’ salesforce for effective and improved market coverage in rural areas.

Candy Confectioneries Private Limited started its operations in 1995, and was one of the largest confectionery players in India with a market share of 20 per cent. The company had achieved sales of Rs 20bn in 2014 and had 15 confectionery brands in the market. The company was also trying hard to establish itself in the snacks category. The company had nationwide operations, and it was important for the company to expand into the rural market. It served its markets through a comprehensive urban and rural distribution setup. In the rural distribution network, the rural sales representatives (RSRs) played a key role and perhaps were one of the most critical factors in covering the rural market. The RSR system was typical to suit the requirement of product-market coverage with its limitations. The case broadly profiles eight RSRs who were engaged to cover a specific territory in the State of Bihar in India. It also describes their approaches to work and complexities emerging thereof in achieving the best results for the organization.

The case has the following learning objectives: Understanding the design of sales and distribution channel structure followed for distribution and selling of confectionery products in rural India. Examining whether the existing system is adequate to achieve the goals of the firm. Evaluating the performance of each salesperson and identifying common factors to formulate the salesforce policies. Arriving at a suitable motivation-mix for the rural salesperson.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 8: Marketing.

Aster Retail (AR) is the retail pharmacy division of the Aster Dr Moopen's Healthcare (ADMH) Group. The group delivers healthcare services across the Middle East, India and the Far East, with a portfolio of hospitals, clinics, diagnostic centres and retail pharmacies. AR, under the leadership of Chief Executive Officer (CEO) Jobilal Vavachan, is well known for its people-centric approach, unique culture and innovative human resource (HR) practices. AR has won multiple awards for HR practices, service quality and business performance. In a recent corporate restructuring (2018), “Aster Primary Care” was carved out by combining the group's Clinics and Retail businesses. This case discusses the evolution of AR's HR journey and the challenges associated with integrating culturally diverse businesses without compromising the values of ADMH and its promise, “We'll Treat You Well.”

The HR President of Lupin and the Head of Learning and Development, were looking with satisfaction at the latest attrition figures. The annualized attrition rate for managers had been showing a steady decline, and was pegged at 1% for the first quarter of 2010–11, much lower than the industry average of 35%¹. It had been a long, arduous journey and figures were looking decent for now. However, the HR President knew that this was just the beginning. With competition intensifying in the industry, the war for talent was going to heat up further. He wondered how they were going to manage talent in an industry which was fast-growing, insular and obsessed with domain knowledge.

Hundreds of thousands of would-be hoteliers have been popping up all around the world, hoping to rent their own homes and apartments to complete strangers through a service called Airbnb. The goal of Airbnb’s aspiring hosts was to use the company’s website to attract guests who were willing to pay the highest rates to stay in their homes for a short time. For Airbnb, the goal was to improve customer review performance so it could, in turn, increase profits. How could the company achieve its goal? Enter text mining, a technique that allowed businesses to scour Internet pages, decipher the meaning of groups of words, and assign the words a sentiment proxy through the use of a software package.

In order for text mining to be useful for Airbnb, its marketing professionals first had to gain access to customer review data on the company’s own website. The team then had to analyze the data to find ways to improve property performance. Was the team going to be able to leverage this large amount of data to determine a strategy going forward?

To evaluate Thomas Cook’s financial condition, students deploy financial analysis techniques including comparative analysis. The role of financial reporting in impressions management is considered in two respects: firstly, the use of separately disclosed items by companies; and secondly, the treatment of goodwill on acquisition.

The case draws on a range of public data from Annual Reports and secondary sources including the Department of Business Energy and Industrial Strategy investigation into the failure of Thomas Cook.

Thomas Cook Group plc’s (Thomas Cook) was one of the oldest travel firms, yet its apparently sudden failure on 23 September 2019 left 600,000 holidaymakers stranded and sparked the largest ever peacetime repatriation of British citizens at cost of £83m to the Department of Transport. Around 9,000 employees who had expected to be paid on 30 September were left unpaid.Could CEO Peter Frankhauser have addressed the challenges faced by Thomas Cook more effectively during his tenure or was the company locked into a flightpath to failure? The case highlights the importance of context when performing financial analysis and encourages students to evaluate the challenges posed by the current standards related to accounting for goodwill and corporate reporting of underlying performance.

This case can be used in undergraduate financial reporting and current issues in accounting courses/modules at the postgraduate level.

Strategic management.

Undergraduate, MBA, executive MBA.

The decision analysis case in the context of family-managed mid-market business of Vikas Spool Private Limited focuses on the efforts and challenges of a market leader in sustaining growth in a B2B industry, which has a derived demand. The case charts way to the historical foundation of India's largest spool manufacturer and captures the dilemma in comprehending the growth model in an industry stricken by low barriers to entry/exit, high bargaining power of customers and suppliers, high substitutes and intense global competition. The organization has to decide whether it needs to enter the rigid non-bottle household plastic packaging industry or not to achieve the targeted growth of INR 1 billion by 2015?

The case analysis aims to make students learn: the challenges in sustaining growth in a labor-intensive industry marked by low barriers to entry, low profit margins because of intensive competition, low economies of scale and no clear brand differentiation; how to negotiate a choice between intra industry participation; how a firm locked in an industry environment characterized by commoditization and intense competition should plot its growth path to retain market position; how to evaluate growth options based on financial implications and analysis.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

General management/Strategy: Problems with debt recovery industry in India Strategic positioning and core competencies: expansion plans.

The case can be used on an MBA program for a course in strategic management. It can be used to understand the concept of strategic positioning. It will give the students an opportunity to critically evaluate a firm’s strategic positioning in the competitive environment, enable them to understand how to create and capture superior value by differentiating as compared with other players in an industry and address expansion and growth strategies.

The case represents the success story of “Adhikrut Jabti evam vasuli”, a debt recovery agency that dared to use the unconventional strategy of employing women as recovery agents, against the stereotyped muscle-flexing male agents. Continuous focus on improving the processes and systems backed by an authoritative yet tactful approach of persuasion and patience has brought this recovery agency accolades and growth. But now Parag Shah the Managing Director is planning to expand its horizons and wonders whether he should go ahead opening up more branch offices across the country or whether he should convert his recovery firm into an Asset reconstruction company.

The case reinforces the importance of “Strategic positioning” of a firm due to well-planned differentiation in services. The case also addresses concepts of leadership, standardization, people skills and relationship management.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.