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After completion of the case study, the students will be able to understand the different risks associated with a business, focusing on price risk and the importance of price risk management in business; understand and evaluate the products available for hedging price risk through exchange-traded derivatives in the Indian scenario; and understand and evaluate the different strategies for price risk management through exchange-traded derivatives in the Indian scenario.

The case study pertains to a small business, M/s Sethi Jewellers. The enterprise is being run by Shri Charan Jeet Sethi and his son Tejinder Sethi. The business is located in Jain Bazar, Jammu, UT, in Northern India. The business was started in 1972 by Charan Jeet’s father. They deal in a wide range of jewelry products and are well-established jewelers known for selling quality ornaments. Tejinder (MBA in marketing) was instrumental in revamping his business recently. Under his leadership, the business has experienced rapid transformation. The business has grown from a one-room shop fully managed by Tejinder’s grandfather to a multistory showroom with several artisans, sales staff and security persons. Through his e-store, Tejinder has a bulk order from a client where the client requires him to accept the order with a small token at the current price and deliver the final product three months from now. Tejinder is in a dilemma about accepting or rejecting the large order. Second, if he accepts, should he buy the entire gold now or wait to buy it later at a lower price? He is also considering hedging the price risk through exchange-traded derivatives. However, he is not entirely sure, as he has a few apprehensions regarding the same, and he is also not fully aware of the process and the instruments he has to use for hedging the price risk on the exchange.

The case study is aimed to cater to undergraduate, postgraduate and MBA students in the field of finance. This case study can be used for students interested in commodity derivatives, risk management and market microstructure.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

The financial success of dairy farms depends critically on the price of their main output, milk. Large volatility in the price of milk poses a considerable business risk to dairy farms. This is particularly true for family-run dairy farms. The question then arises: how can a farm owner hedge the milk price risk? The standard approach to establish a price floor for a commodity such as milk is to purchase put options on commodity futures. At the Chicago Mercantile Exchange, farmers can buy put options on the price of a variety of milk products. However, the price a farm receives for its milk depends on many factors and is unique to the farm. Thus, a farmer cannot directly buy put options on the price he receives for the milk his farm produces. Instead the farmer needs to determine which of the options available for trade at the Chicago Mercantile Exchange offer the best hedge for his own milk price. The assignment in this case is to examine historical data on several prices of milk products and the milk price received by a family-run dairy farm in California. Students need to find the price that is most closely correlated to the farm's milk price and to then choose options with the appropriate strike price that serve as the best hedge for the farm's price risk.

The objective is to expose students to an interesting but simple finance application of linear regression analysis. To solve the case, students must run several simple linear regressions, then use the best regression model they find to make a prediction for the dependent price variable and analyze the prediction interval in order to achieve the desired objective outlined in the case. By completing the case, students will acquire a good understanding of their regression model and its usefulness.

Risk managers have more tools than ever to help protect their companies from risk. Complex financial instruments, intricate mathematical models, and access to massive amounts of data can help the risk manager structure a multifaceted strategy to decrease volatility and protect the company from a catastrophic event. However, these tools have their own risks that can complicate a risk manager's job.

Analyzing corn price volatility helps students understand four best practices for risk managers, regardless of the specific risks they face or the strategies they employ: quantify the company's exposure; understand the nature of the risk; understand how the hedge works in practice; and separate hedging and speculation.

Small to medium-sized enterprises, SMEs, play a critical role in the global economy. They comprise 90% of the global firm population and employ more than 50% of the labor force in the private sector. This case study examines issues related to sustainable supply chain management and social entrepreneurship in the SME context. Being small does matter and the efficiencies of small to medium-sized companies struggling for competitive advantage in the global marketplace warrants consideration. Philosopher's Wool Co., located in Inverhuron, Ontario, Canada, is a woolen producer and woolens product manufacturer that partners with other Ontario wool producers and American wool processors and distributors. Its sustainable vertical supply chain system increased local woolen farmers' revenues contrary to the “conventional” price wisdom in the Canadian woolen industry and turned by-product cost into profitable end use. It also effected social change in its local business community and in global customer relations through resource efficiency and socially responsible employee and consumer policies. However, the struggle to maintain a foreign distribution network and remain competitive and profitable was problematic. Students are challenged to solve the problems of an SME operating in a global economy.

This case was primarily researched using academic research papers, industry reports (Egg Industry Center and others), and finance databases including Standard and Poor’s Capital IQ. Regarding the cost and investment budgets, the case relies mainly on an experiment conducted by the Coalition for Sustainable Egg Supply, updated by the authors of this case.

Eggs produced by cage-free birds, while more expensive than conventionally produced eggs, are gaining in popularity among consumers who want only eggs that are produced more humanely. A number of major distributors, including Whole Foods, McDonalds and Starbucks have pledged to sell only cage-free produced eggs by 2025. Several states including California, Oregon and Michigan have passed laws limiting conventional egg production. The case provides costs and industry information and needed to project free cash flows and risk-adjusted opportunity cost of capital and perform break-even capital budgeting analysis of the two egg production alternatives.

This case is appropriate for graduate corporate finance courses. It is particularly appropriate for agribusiness finance courses. A preliminary exercise was used during the fall 2018 in a land grant university, just after the “Prevention of Cruelty to Farm Animals Act,” also known as Proposition 12, was passed in California in favor of cage-free egg production. The exercise was revised and used in the fall 2019 in the same class. This extended version of the case, was classroom tested in the fall 2020 in an agribusiness finance graduate class, with agricultural economics and business students enrolled.

Market development.

This case is intended to be used in strategic management, operations management for both undergraduate and graduate courses. It can also be used for value innovation and market development.

This case focuses on market development by Patanjali, a fast-growing organization crossing US$1bn of sales in five years of time span and declaring a target of doubling this figure in the financial year 2016-2017 (to reach US$1,500m). The prime focus of Patanjali is the health food segment based on herbal and Ayurveda science through the use of organically grown agricultural produce by integrating the associated value chains while radically benefitting all the stakeholders in a two-way process as suppliers as well as buyers/consumers. The fundamental context of the case is associated with the value chain development in terms of value addition on the basis of the organizational and leadership values in all the elements of the value chain of Patanjali products starting from suppliers to customers. The case emphasizes the role of the Patanjali Food & Herbal park in the value chain. Patanjali Food & Herbal Park is constantly striving for nation building more than profit accumulation. They have created a sustainable business benefiting all the stakeholders. The backbone of the Patanjali Food & Herbal Park lies in robust backward linkage and forward linkage. The context of the case presents an account of how the values based integration of the value chain is a strategic advantage and safeguards an organization from business environment threats.

The context of the case presents an account of how values based integration of the value chain is a strategic advantage and safeguard an organization from business environment threats. The case has a deep-rooted theoretical association with models like Porter’s Five Forces model on the one hand and also exemplifies how an organization can use blue ocean strategy through value-based value innovation. The context of the Black Swan perspective also emerges in the narration.

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.

Sara Lee Corporation's acquisition binge in the 1980s and 1990s left the company with a portfolio of vastly different businesses operating independently of one another. It had experienced rapid top-line growth, but at the same time cash flows had declined. Sara Lee ignored both internal and external warning signs until a major transformation plan became necessary. This case examines the company's multiple turnaround attempts. The learning objective of the case is to analyze “early stage” turnaround efforts by examining how the company found itself in decline, evaluating its attempts to improve its performance, and assessing the turnaround plan.

(1) Learn to identify a specific challenging moment when reading and analyzing a turnaround plan; (2) address the implementation problems of an early stage turnaround and discuss exit options; (3) evaluate when a change of long-held beliefs and decades-long strategy by a company is warranted; (4) evaluate Sara Lee's marketing strategies in light of the disappointed retail and wholesale customers; and (5) show the similarities in traits between turnaround managers and high-growth entrepreneurs.

Crisis management, Strategic management.

This case study can be used for teaching MBA and pre-experience Masters students as part of a strategic management course.

This case study tells the story of Kirov non-ferrous metals processing plant located in Kirov (USSR, presently the Russian Federation). Founded in 1956, this company had long been one of the USSR's leading manufacturers in the industry of non-ferrous metals processing. The situation changed dramatically in the first half of 1990s. During those years, instead of state-planned economy, Russia saw the formation of market economy. It was the first time when the company (as a result of privatization, it became a joint-stock company with a small number of pure portfolio investment owners) was faced with the need to look for marketing outlets for its products on its own. At the same time, after having been privatized, the company could not receive government investments anymore. Due to all these conditions, in 1995, capacity utilization in this company fell to 16 per cent, and it appeared to be on the verge of bankruptcy.

The main learning objectives of the case study are: to develop students' skills to analyze complex managerial situations; to help students in understanding the logic of company's strategic choice, depending on the stage of the market life cycle (especially, in case of mature markets); and to provide the training for the students' ability to justify management decisions using the example of companies in B2B markets.

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

The case delves into supply, demand, price gouging, hoarding and capabilities of the firm. The theories/concepts and a short overview are covered below. These theories and concepts are then referenced as appropriate in the “Answers to Discussion Questions” section as follows: Supply Demand Theory; Price Gouging, Speculation and Hoarding; Resources, Capabilities and Activities; Friedman’s and Porter’s view of goals of a firm; Corporate Social Responsibility.

The case was motivated after a discussion with Mr Matthew Roberts, who is the Chief Operating Officer of SPR Industries. Several subsequent interviews were conducted with Matt. Matt also became the chief protagonist of the case. Matt provided multiple quotes and anecdotes. The protagonist Matt and the focal organization (SPR Industries) are disguised. The financial figures have also been disguised using a multiplier. However, the material facts of the case are authentic.

This case sheds light on the impact of the COVID pandemic on a small business in the personal protective equipment industry. The students will get an understanding of the supply and demand forces in a market. Furthermore, the case bears out how unpredictable situations such as the pandemic lead to speculation and price gouging opportunities but not in all products affected by it. The case explores the corporate social responsibility (CSR) of firms regarding price gouging in their products. Students will also get an appreciation of how an industry and its participants change in response to such black swan events as the COVID pandemic. Finally, the case presents a small enterprise’s decision choices â?? Should they maintain the status quo, become a sub-broker or become a wholesaler.

This case is designed to target undergraduate students of strategic management or entrepreneurship. It could be appropriate for upper level courses such as Strategic Management, Small Business Management and maybe even Family Business Management. It could be taught in the latter half of the course after the basic concepts have been covered. This case could bring together many of the concepts into a real-life setting.

The case study analyses competition in the automobile industry in Zimbabwe, a developing economy. From that perspective, it discusses Puzey and Payne’s business operations; a company with a long-standing history in the country’s automobile industry. Since its establishment during the Colonial era, the company endured a prolonged period of rapid car and spare parts sales decline in 2012. Following a management buyout deal in 2013, the decline in sales proved to be its real dilemma and it required strategic decisions to diffuse the impact of the “grey markets”. Government policies added to the company’s problems.

The case study follows a qualitative research approach. Information about Puzey and Payne’s business operations was gathered from archived materials, through qualitative conversations as well as company artefacts. Published materials in newspapers and magazines were used to provide background information.

The case study is appropriate for both undergraduate and postgraduate students studying International Business Management.