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In the wake of the December 2015 Paris COP21 (Conference of Parties), and India's announced renewable energy commitments, Reliance Power is reviewing its renewable energy investments to arrive at a long term strategy for the role of renewable energy in its power generation portfolio and the financing of renewable projects. The case reviews the Indian government's policies to promote renewable energy; the evolution of the renewable energy sector; and Reliance Power's financing of renewable energy investments. The case requires identification of alternative long term strategies and their financing implications. This case serves as an introduction to renewable energy from the perspective of Reliance Power, a large private power generator of the country. These projects also provide a learning opportunity for Reliance Power to deal with fast evolving renewable technologies.

Financial management, corporate finance, strategic management, managerial accounting and project management.

The case is suitable for courses such as MBA, Bachelor level business courses (in finance, business strategy) and training programs for working executives.

The case study deals with financial and strategic appraisal of a unique coal-to-liquid project. India imported about two thirds of its crude oil requirements resulting in huge outflow of precious foreign exchange. As a result, it became necessary for the country to look for alternative sources of energy. The coal-to-liquid (CTL) technology of coal gasification offers a credible alternative source of fuels as proved by Sasol of South Africa. The Government of India short-listed Global Synfuels Company (name changed) as one of the selected few companies to build a CTL project. While the project is strategically important to the company and highly desirable for the country, there are serious doubts about the commercial viability of the project because of which the company is in dilemma whether to go ahead with the project. The case study presents this decision dilemma in a very interesting way and will be useful for teaching courses in corporate finance and strategic management.

The case can be used to engage participants to make a SWOT analysis for a new business opportunity, discuss environmental and financial issues facing a company, use DCF techniques to evaluate the project viability, carry out scenario analysis of the project to the changes in variables as well as challenge the participants to generate strategies for the success of a new project. Participants would also develop a better understanding of: environmental issues involved in CTL projects and new technologies to deal with such issues; and the employment impact of large projects such as the CTL.

Teaching notes are available; please consult your librarian for access.

The learning outcomes of this study are to identify and discuss ways in which energy consumption in a residential educational institute can be reduced by improving demand-side energy management for sustainable development; summarise the challenges that an institute faces in transitioning to a more environmentally friendly mode of operations concerning energy management; illustrate the difference between operating expense and capital expenditure methods used for solar rooftop projects from the perspective of Goa Institute of Management (GIM); and analyse different project proposals for solar rooftop power generation energy using capital budgeting techniques.

Dr Ajit Parulekar, director at GIM, was evaluating the steps taken over the past few years for sustainable energy management to understand their impact and consider ways in which to take the environmental sustainability agenda forward. One of the projects that he was considering was the rooftop solar power plant. GIM had received proposals from several different vendors and evaluated three proposals out of these. He needed to decide on the capacity of the rooftop solar power generation and the type of contract that he should get into for the implementation of the project. This case study describes the differences and highlights the advantages and disadvantages of all the mentioned models with respect to GIM.

This case study is suitable for post-graduate level management students, as well as for undergraduate-level finance and management students.

Teaching notes are available for educators only.

CSS4: Environmental management.

corporate policy and strategy – mergers and acquisitions.

Post graduation (MBA and other management degrees). It includes courses on Strategic Management, Business Environment and International Business.

Markets are becoming highly connective, accessible and communicative and reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case paper presents insights on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. This case synchronizes the gap between strategic planning and outcome of actions. The study exclusively evidences the reaction of stocks of all attached parties against acquisition announcement and compares with market performance.

Strategic mapping of business negotiations, while in-organic choices, further the impact of economic, political, legal and regulatory factors on cross-border mergers and acquisitions (M&A), deliberate deal financing mechanism and leadership diplomacy. It proposes from the viewpoint of corporate in-organic alternatives and to strengthen the upcoming research field of strategy & policy.

Global M&A market, shareholding pattern, income statement and balance sheet of Cairn India Ltd, financial figures of Vedanta Resources, tabular data on stock and index performance, deal structure and teaching note.

MBA/MS level programs.

Social entrepreneurship, sustainability and business strategy.

The case discusses about how social entrepreneur Katerina Kimmorley founded Pollinate Energy with five of her friends to provide solar lights to the urban slum dwellers in Bengaluru, the capital city of Karnataka, a state in the Southern part of India. The company recruited people known as “Pollinators” for distributing their solar lights to the communities on installments making it affordable to them. To scale-up its sustainable energy initiatives and expand its global reach, Pollinate Energy merged with the US-based solar energy company Empower Generation in 2018 to form Pollinate Group. Since the company was making losses and was a nonprofit organization, the new CEO of Pollinate Group Sujatha Ramani and the senior management team had to tackle the challenge of scaling up the company while financially empowering women microentrepreneurs from marginalized communities.

Study Pollinate Energy’s business model and explore ways in which it can be made sustainable. Discuss the personality traits of Kimmorley which contributed to her success. Discuss how the merger with Empower Generation will help Pollinate Group in expanding its global reach. Explore ways in which the venture can be scaled up further.

Pollinate Group focused on women empowerment to tackle the gender inequality challenge. The company provided equal opportunities for men and women, thereby removing discrimination from access to opportunities, sources, services and promotion of equal rights.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

The case, while acknowledging the difficulty of managing a family business in view of the accompanying human issues, emphasizes that sound business practices and procedures, and clarity with regard to the goal, remain the key; a firm is a complex, interconnected system and management needs a systems viewpoint; and technology can only support underlying business processes if there is clarity with respect to these.

SomPack had survived low-cost Asian competition starting the mid-1990s, a revolt by some extended family to try and bring it down with the help of a competitor, the Turkish banking crisis of 2001, and the global economic crisis of 2008 all the while watching its suppliers, competitors and customers collapse. A focus on cost-cutting and internal discipline by the successor, who had been promoted to CEO in 2004, had exacerbated internal discontent somewhat and had led to issues with production planning, but everyone understood that times were tough. Several large customers who had left were asked to return because the alternatives had been worse. By 2012, SomPack was considering expansion into new products in collaboration with its international partners. Then one day, in July 2013, it suddenly collapsed. Could the entire approach have been wrong? What should management have done instead?

Undergraduate, graduate business 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 7: Management Science.

This case describes the growth of ReNew Power during its first decade of operation. Sumant Sinha, a first-generation entrepreneur and former banker, founded the company, which grew from a modest generator-cum-developer of wind energy-based electricity to one of India's largest companies in the renewable energy sector. With the entry of large, well-funded players such as Tata Power and Adani Green into the Indian renewable sector by the end of 2020, Sinha had to make a strategic decision: should ReNew continue to organically scale up its presence in an increasingly competitive yet expanding Indian renewable energy sector, should it diversify geographically, or should it pursue emerging opportunities for vertical or horizontal integration within the sector? The case provides an opportunity to discuss how alternative business models and competitive scenarios may facilitate or inhibit the growth of a player in the renewable energy sector.

Pricing of natural gas in India suffers from asymmetry because of the presence of limited suppliers having byzantine contracts. The oligopolistic market combined with price regulation results in welfare losses, and market failure. We argue that for the sake of long-term development of natural gas sector in fast developing economies like India, the long-run marginal cost (LRMC) seems to be the most suitable pricing policy. In the case analysis, we present a theoretical framework of calculating LRMC while acknowledging that the conditions necessary for a ‘first-best world’ rarely exist. We conclude that it is very much possible to gradually move from the existing ad-hoc pricing mechanism to a more robust LRMC regime that takes into account not just the production cost but also a scarcity premium as well as any externalities resulting from the natural-gas fuel cycle. The outcome based on our model compares very well with the one from the Rangarajan Committee's formula that got the government's nod recently for fixing of price of indigenously produced natural gas, to be effective from 01st April 2014.

Entrepreneurship.

The portable solar cooker case is appropriate for upper division undergraduate and graduate students in entrepreneurship, international, strategy or sustainability courses.

xCRUZA, a small industrial design studio in Buenos Aires, Argentina, has experienced limited success and expansion since the company was founded in 2005. Focusing on eco design principles, xCRUZA has maintained an eclectic design mix pertaining to product development in children's toys, medicine, and cleaning products. Challenged by a struggling Argentine economy, a population not focused on environmental concerns, and a general lack of capital availability, the founders of xCRUZA chose to design, develop, market and sell a portable solar cooker. The cooker was originally designed by two of the founders while studying engineering at university. While innovative and award winning in design, xCRUZA's solar cooker has proven to be a challenge to the founders' success both in getting their product to market and fulfilling the mission of the studio.

The learning objectives for the case include: to explore the challenges of an entrepreneurial start-up dedicated to eco design and sustainability principles, to examine market opportunities and consider approaches to selling in dissimilar markets, generate a discussion on strategies that xCRUZA has and can employ, to analyze the mission and direction of xCRUZA. Are they on the right track?

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

Deutsche Bahn AG (Deutsche Bahn hereafter) was the former German railroad monopolist until deregulation in 1996. It was a well-known company that operated in worldwide markets for transport and logistics at the time of the case (late 2013). The case “Deutsche Bahn AG: a former monopoly off track?” focuses on the opportunities and challenges faced by Deutsche Bahn with regard to its position in the German individual transportation market. On the one hand, Deutsche Bahn is facing external problems. Increasing competition in short- and long-distance traffic threatens its strong business position. The competition emerged from a growing long-distance bus market and the increase in private railway companies. During the last few years before 2013, Deutsche Bahn has lost several public tenders for individual passenger travel in Germany. On the other hand, Deutsche Bahn has internal problems that endanger its image as a service company. A lack of service quality and the technical condition of its trains has led to rising numbers of customer complaints. In addition, staffing and punctuality problems have exacerbated the situation. One of the main technical issues the company faces is that ordered trains have not been delivered on time. Given the focus on Deutsche Bahn’s domestic challenges, its international business activities are tackled only briefly. While regulatory and political events have an impact on Deutsche Bahn, these are not the main subjects of the case.

This case has been written from public sources. Consequently, no company release is provided. None of the information has been disguised in any way.

The case is intended for use in a 90-minute strategic management class attended by students at the end of their undergraduate studies or in postgraduate study. Although the case relates to issues in strategic management, the special regulatory environment and some of the issues covered could make the case a useful complement in other classes as well, such as classes in supply chain management (procurement) or the management of public companies. Therefore, students should have basic knowledge in developing strategies, management, marketing, human resource management, and finance.

Strategic Analysis and Strategic Management, Railroad Logistics, Deregulation of a former Monopoly, Stakeholder Theory.