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This case is designed to provide learners with strategic decision-making skills. It also introduces the various nuances of establishing a technopreneurial venture and creating and sustaining a competitive advantage. The setting allows learners to comprehend the significance of assessing the business environment and the advantage of being a first mover in any business sector. The case allows a rare glimpse into the strategic decision framework of a scale-wise relatively much small tech firm that is competing with global giants and creating waves, and winning accolades for its performance. The case also allows learners to understand the analysis and decision-making parameters studied by a company while selecting a product. After working through and discussing this case, learners should be able to identify the strategic decision framework in which Aeron undertakes a product selection decision; analyze the conditions in the operating environment that made Aeron possess a competitive advantage; and design the product choice strategy for Aeron.

This case is about the journey of two friends, Abhijeet Bokil and Ashwani Shukla, who started a company together in Pune, India, in 2008 and achieved great success. The case discusses their tryst with different products and industrial sectors. It unfolds the journey of their startups and their finding the desired product category. It also discusses the various hurdles they face while establishing the business. The journey was tough as it occurred in the unpredictable background of the dynamic international technology and policy environment. The common challenges to entrepreneurship were present throughout their journey. The team encountered various financial and technological trials during these years. The case explains how excellent strategic choices made the team overcome those challenges. The biggest dilemma faced by the team was to select between two of their products. The one who gave them visibility and success or the new upcoming one with more entry barriers. The case deals with the issue of product selection in the sectors of telematics and weather monitoring.

The case is appropriate for courses in Business management, Strategy management programs & innovation and Entrepreneurship management courses. The case would suit BBA and MBA students learning various management models.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

Capital structure theory.

The case is meant for teaching and class discussion, and uses only secondary data based on published sources. The interpretation and perspectives presented are based solely on the secondary data.

This paper aims to help current and future managers understand capital structure theory and the various equity and debt finance options available for raising capital. It also examines the financial analysis and strategic management of black swan events. After the class discussion, students will understand how to financially and strategically manage a company during black swan events and also have a deep dive into capital structure analysis of a large company.

MBA/postgraduate/undergraduate courses on corporate finance or advanced corporate finance. Executive/management development programs and short duration Massive Open Online Courses on investment decision-making and advanced corporate finance. MBA/postgraduate/undergraduate courses on corporate strategy and economic environment and planning.

In a typical strategy course, growth strategies like mergers and acquisitions (corporate strategy) are introduced in the second half of the course. To analyze the case, students will use strategies such as Porter’s five forces and resource-based view and will discuss why firms pursue mergers as a growth strategy, along with sources of synergies and risks in mergers. Finance theory used includes analyzing a given discounted cash flow analysis and perform a comparable multiples analysis to find the value of a merger target.

The industry and financial information in the case comes from publicly available sources, including company 10K reports, business press reports and publicly available industry reports. The information about Lockheed Martin’s strategy comes from interviews with Peter Clyne, former vice president for Lockheed Martin’s IS&GS division. He then held the same position for Leidos Holding Corp., after the IS&GS division was divested and incorporated into Leidos.

This case is an interdisciplinary case containing aspects of strategy and finance. Lockheed Martin made a strategic move in 2016, to divest its Information Systems & Global Strategies Division (IS&GS), which engaged in government consulting, primarily in the defense and aerospace industries. Lockheed wanted to reassess its decision to divest consulting, given the high growth rates expected in this business, particularly in cybersecurity consulting. On the other hand, if Lockheed decided to maintain its hardware focus, it wanted to expand its offerings. In addition to a strategy analysis, two possible target firms can be analyzed: Fortinet and Maxar.

This case raises a broad set of issues related to the evaluation of M&A transactions across two different industries and corporate strategy, as it relates to strategic fit of the potential targets and LM’s current capabilities. It is appropriate for the core course in strategy at the MBA or senior undergraduate level. It can also be assigned to specialized courses in Mergers and Acquisitions. It is not appropriate for a lower level strategy or finance course, as it requires students to have prior knowledge of basic finance valuation techniques.

The case will help learners to analyse how effective handling of an extended marketing mix of 7Ps (product, price, place, promotion, physical evidence, participants and processes) makes a startup profitable in its initial years of inception; understand the significance of the online marketing strategies like digital marketing and social media marketing implemented by firms to attain a competitive edge amongst established local and global competitors; examine the strategic challenges faced by a business enterprise while entering an emerging market; analyse the growth strategies of a startup relative to various market constraints; and propose long-term strategies for sustainable growth for a startup operating in the wearables market.

Founded in 2016, Boat Lifestyle is a Delhi-based Indian startup in fashionable consumer electronics. In the past five years, Boat earned remarkable profits and emerged as one of the most promising startups through its innovative products offerings and promotion. Aiming at its target customer segment, the millennials, it promoted its products through social media marketing such as influencer marketing and brand tie-ins with sports teams and music events. The case focuses on the dynamics of the Indian wearables market that is facing tough competition from global and local players. To ensure continued growth prospects, while maintaining a tight focus on product differentiation, quality, and customer satisfaction, there is a greater need for Boat to rethink its market development and growth strategies regarding new innovations and adopting long-term orientation like diversification and global expansion.

The case aims for teaching business management students at the Undergraduate, Postgraduate, and Executive education level. In addition, the case can be related to the Strategic Management course curriculum and Marketing course curriculum.

Teaching notes are available for educators only.

CSS 11: Strategy

Mahindra Trucks and Bus Division (MTBD) of Mahindra & Mahindra is at an interesting stage of its evolution. Having gone through a bad patch with a product that was not quite up to the mark, it appears to have got the product right by early 2018 and truck sales had been going up in the country for the previous four years. While Mahindra & Mahindra as a company is a large firm with revenues of more than USD 15 billion, MTBD itself is a small player (INR 2400 crore, USD 350 million) within the firm and in an Indian truck industry that is dominated by goliaths, Tata Motors and Ashok Leyland that between them had more than 81% market share and a customer mindset that was loath to leave the comfort of a known brand. The case provides data on product specifications, prices, marketing communication, channels, positioning, the context and competition. The intention is to use the case to go through the steps involved in evaluating and developing and creating a marketing plan for MTBD to increase its market share from the 4% in 2018 to an intended 8% in 2022.

In January 2012, Ellen Kullman, CEO and chairman of DuPont, must decide whether to retain or sell the company's Performance Coatings (DPC) division. This is an introductory case on valuing a leveraged buyout. The case focuses on a publicly listed corporation's decision to divest a large division and asks students to compare the division's value if it remains under DuPont's control or is sold to an outside party. The transaction size of approximately $4 billion is too large for potential strategic buyers in the industry, making private equity (PE) firms the most likely bidders. The case provides a base-case adjusted present value (APV) model of DPC as a stand-alone company and gives students specific assignments to adjust it to reflect the division's potential value under PE ownership (e.g., EBITDA growth, multiple arbitrage, and increased leverage).

The case is designed to illustrate and discuss the differences between a public company's valuation based on unlevered free cash flows and a PE sponsor's valuation based on residual (levered) cash flows.

This case has been successfully taught in a second-year elective course covering entrepreneurial finance and private equity and in an advanced undergraduate course on corporate finance. It is appropriate for use in classes on private equity, advanced corporate finance, or deal valuation.

Upon completion of the case study, students should be able to understand how changes in a macro environment affect the competitive landscape in an emerging market; acquire a granular understanding about the logistics industry in an emerging market and the various business models developed to service customer needs; determine the attractiveness and challenges of doing business in a fragmented but sunrise industry in an emerging market; and identify the drivers for growth and profitability in the logistics business.

Manisha Sharaf (she/her) and her co-founders conceived the idea of Truck Hall in 2011 to ride with the tide created by booming public investments in the infrastructure and transportation sector. Truck Hall aimed to improve the efficiency of the logistics industry in India by extensively using technology. However, the market research showed that technology-driven services in logistics faced many challenges owing to low internet penetration in the country, weak network connectivity during transportation and the low literacy rates of the truck drivers who were central to this industry. Between 2015 and 2018, Truck Hall experimented with several business models including load board, brokerage and integrated transporter with the sole purpose of achieving profitable growth in a highly fragmented industry with razor-thin margins. This case documented the dilemma faced by a startup in a high-growth but largely unorganized and unregulated industry in a developing economy. Should Truck Hall continue with the current business model of being a niche player or should it vertically integrate and control major segments of the value chain? Should it compromise on growth to become profitable or first scale up?

This case study can be used at the undergraduate, graduate and executive levels.

Teaching notes are available for educators only.

CSS 11: Strategy.