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On completion of the case study, students will understand the following learning objectives: the characteristics of quantitative easing (QE) and when it may be appropriate to implement QE; how QE differs from a conventional bond purchasing programme; the impact of direct financing of the fiscus by the central bank on its independence; how the macro-economic and political environments affect and influence national economic policy; the difference between traditional and unconventional monetary policies and potential implications for an economy like South Africa. The learnings from this case study can be used in other global economic environments, particularly in emerging markets. This case study provides valuable insights into decision-making, institutional independence, policy coordination, deficit financing, causes and consequences of price inflation, risks relating to monetary instability and the correct application of monetary policy.

After the announcement of the COVID-19-related lockdown in March 2020 and the subsequent slow-down of economic activity in South Africa, the South African Reserve Bank (SARB) had to consider appropriate macro-economic tools to ensure both price and financial stability in South Africa. The macro-economic policy tools had to be considered in light of the South African economic context, which included acknowledgement of South Africa’s debt crisis and slow economic growth. The central bank responded by introducing the following measures: reducing interest rates to a record low of 3.5% to give consumers financial relief and to promote spending in the economy; purchasing government bonds in the secondary markets to stabilise financial markets; facilitating the loan guarantee scheme that was aimed at providing financial relief to small- and medium-sized enterprises; relaxing the capital and liquidity adequacy requirements that commercial banks are required to meet; and ensuring availability of liquidity to banks through facilities such as the weekly repo auctions. However, despite introducing these interventions, the SARB faced calls from politicians, analysts and academics to do more. Various commentators argued that the SARB could introduce QE and directly finance government spending by purchasing government bonds. Some commentators argued that the reluctance of the SARB to pursue these suggestions was a result of the close alignment and relationship between the SARB and National Treasury. The dilemma faced by Governor Lesetja Kganyago of the SARB was threefold, namely, whether it was appropriate for the central bank to pursue the initiatives and, if so, whether the bank could pursue them without compromising its independence, and if the introduction of those initiatives would not adversely affect the ability of the central bank to fulfil its mandate of price stability and financial stability. In this regard, the governor and his executive team were required to consider the long-term implications of introducing the initiatives on consumer price inflation, independence of the SARB and the appropriate use of monetary policy tools to fulfil the central bank’s mandate. But the question was: What policies should the governor favour?

This case study is based on various macro-economic theories. Therefore, it would be useful to teach this case study in macro-economic courses in the following programmes: master’s in business administration, bachelor of commerce, bachelor of economic sciences and business science studies, as well as on executive education programmes, which consider macro-economic policy. In general, students who undertake economics, business and general management, finance, legal, commerce and banking studies could learn from this case study.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

South Africa had formally introduced a policy of inflation targeting (IT) in February 2000. By December 2001, the governor of the South African Reserve Bank, after reading the latest statistics, was concerned with the disappointing economic data. Economic activity had slowed drastically, to the point that the country appeared to be heading for a recession. The gloomy statistics forced the governor to consider whether the country had pursued the right policy. Persistently high unemployment, one legacy of the apartheid era, meant that South Africa did not have the luxury of waiting for new policies to bear fruit. With the inflation forecast to exceed the mandated target, the governor would have to tighten monetary policy, which would further restrict investment. Was it is time for South Africa to change course?

The writing of this case study was triggered by the numerous media reports in 2020 that talked about the EU nations losing its solidarity. EU being a very appropriate example of economic, monetary and customs union while teaching theories of economic integration and international relations, the post-pandemic approach of EU leadership to rebuild the crisis-ridden member nations seemed an excellent material for developing a teaching case study.

The case study was written based on secondary data and published information available. Enough desk research was undertaken to build the characterisation of the protagonists and due diligence done to chronologically report all facts of the case as the story developed. It was decided to build the epilogue into the case study so that the case analysis had enough depth.

The case is set in 2020 when the global economy was reeling under the massive impact of a lockdown and the aftermath. The case study examines the model of economic union in international business and the various challenges that governance of an association of nations such as the 27 member EU can throw up. It examines the conflict of interest that can arise among member nations during critical circumstances such as the pandemic and its massive tolls.

EU had established itself as a critical international trade player and had already proven their might as a united entity to the world trade partners, given the fact that they were not only a customs union but also a monetary union. In this scenario when the pandemic threw them into the whirlwind of lockdown-induced crisis, the united front of the mighty EU all but crumbled. As the worst-hit economies of Italy and Spain struggled to pull themselves back to normalcy, EU experienced one of its worst solidarity crises.

EU’s president Angela Merkel and ally French President Emmanuel Macron with support from the EU Council’s President Charles Michel stepped forward to resurrect the badly hit economies. They viewed this as the best opportunity to bring about a united front by coming together at Brussels for a summit when lockdown eased up in July 2020. It was to be a show of unity to jointly bail out the severely affected member nations by grants rather than loans. The summit, however, snowballed into bitter arguments and open bickering between the wealthy and not-so-wealthy members, and they could not agree upon the issue of debt vs aid. The fact that the EU was an agglomeration of 27 nations, which were far from homogenous in socioeconomic status, not to speak of divided political ideologies, only added dimensions to the dispute. Negotiations repeatedly hit roadblocks. Can the EU leaders lead their bitterly divided house to a consensus?

The case is suitable for graduate and post-graduate levels. Management courses where international business studies, international trade blocs and global leadership are part of curriculum can use the case to teach concepts of “Regional economic integration”, “Economic and Political union” and theories of “International relations” and “Negotiation”. It can also be ideally used in an executive management programme on “Global Leadership” to highlight the complexities of “governance of international associations” and “consensus building amidst diversity”.

This paper aims to first, identify the external and internal factors that a company needs to analyze when formulating its digital platform strategy. Based on the framework of PESTNPG (political economic social and culture technological population and globalization) and internal analysis a company should analyze both internal and external factors to formulate its digital platform strategy. For companies from emerging markets the institutional-based market created by national or local governments is important for digital platform strategy. Second dynamic capability theory and its linkages to digital platform strategy. The dynamic capabilities view is considered as a primary theoretical lens in the strategy literature to analyze a company’s strategies to achieve sustainable competitive advantages. To carry out a successful digital platform strategy companies need to build strong dynamic capabilities to capture or create opportunities and reconfigure their resources simultaneously. Third the advantages and disadvantages of different digital platform strategies (i.e. an independent digital platform and online–offline integration platform) and the possible consequences and risks of different strategies. It is important to evaluate different types of digital platform strategies that require different capabilities in terms of business structure product structure revenue structure organizational structure and technology architecture. A company needs to link these capabilities to a digital platform strategy to enable the integration (or separation) of online business with offline business. It also increases the accuracy and efficiency of online business. Fourth key points of digital platform strategy implementation. Companies need to identify key profit models for their digital platform to promote business growth and financial returns. It is equally important to increase customer value by leveraging its digital exhibition platform and to learn to use digital technology to foster organizational dematerialization.

Zhejiang Meorient Commerce & Exhibition Inc. (hereinafter referred to as “Meorient”) was a leading company in the exhibition industry in China. The unexpected outbreak of COVID-19 plunged Meorient into a state of emergency that forced it to fight for survival. Further, China had launched a national strategy of Digital China, which created new market opportunities for Meorient. As a result, Meorient gradually developed and launched its digital exhibition services in 2015. Meorient suffered significant losses in 2020 due to COVID-19 and had to formulate a new strategy based on a digital exhibition platform in 2021. Chairman Pan Jianjun had two options. One was a purely digital platform strategy without the original offline exhibition business. The other one was an online and offline integration strategy. Which option was the best way forward for Meorient? Pan had to make a choice. Some of the top management team members believed Meorient should completely transform into a digital platform company and provide comprehensive online digital exhibition services. Over the previous 20 years, Meorient had accumulated a large amount of data from domestic and foreign exhibitors and professional buyers and had gradually developed a digital exhibition platform. It was one of the companies that pioneered digital transformation within China’s exhibition industry. More conservative thinking held that Meorient's strategy should focus more narrowly on the integration of online and offline exhibition businesses. Toward the post-pandemic era, China’s national strategy of “Digital China” accelerated the development of digital infrastructures. During such critical transitional period, Meorient had to choose wisely if it was to sustain its profits or even survive.

The case is aimed at students in undergraduate, MBA, short course executive, EMBA or other executive education programs, especially where digital transformation is featured subject matter.

Teaching notes are available for educators only.

CSS 11: Strategy

Following are the learning outcomes: to understand how the tools and frameworks of strategic analysis can be applied to understand the evolution of value creation and capture in the FMCG industry; to analyze the core competencies of a company and understand their relevance in this fast-changing industry; to understand how to evaluate the pros and cons of a certain strategy and business model; and to develop strategic recommendations.

The case series traces the developments in China’s FMCG industry from the early 2010s to 2017, in general, and the efforts of Beijing WinChannel Software Technology Co., Ltd. (WinChannel) and its affiliated company, Huixiadan, in their attempt to apply new digital technologies to transform the traditional trade channel, in particular. The decision point of Case A, in early 2015, is how WinChannel can help improve the reach and efficiency of the traditional trade channel and wonders if the emerging online/mobile B2B FMCG platforms are the right solution for the increasingly digitized FMCG retail industry in China. The decision point of Case B, at the end of 2017, is how could Huixiadan’s business model be sustainable and what it should do to withstand the competitive threats even as it tries to exploit opportunities in the traditional FMCG industry in China.

It can be used with MBAs, EMBAs and senior executives.

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.

This case, developed from a wide variety of publicly available information, presents ethical and economic issues arising from the development, marketing, and pricing of a biotech drug. Genentech developed TPA, the first genetically engineered drug that could be used in clot-dissolving therapy for heart attack, and marketed it as Activase. Public outrage focused on the disparity between the drug's $10 direct manufacturing cost and what Genentech charged for its drug. Activase/TPA was priced at $2200 a dose, raising immediate concerns about its affordability and therefore availability to those who needed it. Additional issues arise from other events, including concern over related-party relationships between the company and organizations which researched and recommended TPA, as well as aggressive marketing of TPA to physicians and the company's refusal to participate in an international drug study to compare TPA with competitor drugs.

Public sector management, policy-making, sustainable development, post-Communism.

The case is designed to be used with undergraduate-level and MBA/MPA students. With undergraduate levels, the case can be used on the subject strategic management. In MBA/MPA programs, this case can be used in subjects such as strategic planning for public administration. Here, it can be stressed as being about the problems faced by a country on the long road toward democracy. Issues to be discussed in class include: environmental scanning, competitiveness, public policies and strategic agenda.

At the most general level, the case allows for the analysis and evaluation of the strategy and performance of the Albania from 1928 to 2014 along economic, political and social dimensions, using the techniques of country analysis (see Country Analysis Framework, HBS No. 389-080). Depending on time limitations and the particular objectives of the individual instructor, the case can be used to explore all phases of the nation's development or, alternatively, to focus on a specific era, such as Albania, in the way toward a free market economy. The case provides a setting in which to explore the diamond model as a tool for analyzing competitiveness and setting the economic policy agenda. In the Albania case, we highlight diamond analysis in an emerging economy. Albania also highlights the transition from a planned economy to a market economy, and the importance of a cross-border regional integration in competitiveness.

The case is written to serve a number of purposes: Understanding the problems and challenges to sustainable development, especially in a post-communist emerging economy like Albania. The transition/changes that all policymakers have to go through in their efforts for sustainable development of the country. To discuss production factors and the importance of a growth model based on the production factors.

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

In February 2018, Jerome Powell had taken over as chair of the FOMC. At first glance, the macroeconomic conditions inherited by Powell appeared favorable for continued stability: unemployment and inflation were low, and the economy had been steadily growing for nearly a decade. Yet despite the appearance of stability, the economy faced significant risks that required the Federal Reserve's attention. Was an uptick in inflation imminent, and if so, should Powell raise rates to limit any inflationary pressure? Or was the economy still operating below capacity, and if so, should the Federal Reserve take a more accommodative stance? To gain perspective, Powell needed to look back at the past fifty years of monetary policy in the United States.

This case presents financial and macroeconomic data for the United States between 2007 and 2013, a period covering the financial crisis and Great Recession of 2007–2009 and the slow economic recovery from 2009 onward. During this period, the Federal Reserve had set the federal funds rate, its primary monetary policy instrument, near zero and was using additional monetary policy tools to stimulate the economy. One of these additional tools was quantitative easing (QE).

Students will use the data provided in the case to examine how financial markets reacted to QE actions by the Federal Reserve and to analyze the potential impact of QE on the macroeconomy.

After reading and analyzing the case, students will be able to:

• Apply the event study methodology to analyze economic effects

• Recognize how macroeconomic news affects the prices of financial securities

• Describe the connections between the prices of financial securities and the macroeconomy

• • Debate the relative costs and benefits of quantitative easing and the optimality of Federal Reserve policy

Apply the event study methodology to analyze economic effects

Recognize how macroeconomic news affects the prices of financial securities

Describe the connections between the prices of financial securities and the macroeconomy

• Debate the relative costs and benefits of quantitative easing and the optimality of Federal Reserve policy

Macroeconomics: fixed exchange rate regime, external and internal devaluation, international competitiveness, comparison to ongoing eurozone periphery problems.

The main audience for this case is undergraduate students in economics and business or graduate students in business or political science related studies. More particularly, the case suits a class on applied macroeconomics or general economic policy.

The case investigates economic development in Latvia since it gained independence, the key focus is overheating in 2004-2007 and consequential extraordinary economic crisis of 2008-2009. This case gives a great starting point to discuss ongoing problems in peripheral eurozone (PIGS) in terms of internal versus external devaluation.

Students are expected to learn the differences between external and internal devaluation as well as a country's international competitiveness factors. Also, class discussion of similarities and differences between Latvia and PIGS should make students more aware of two types of devaluation.

Teaching notes are available. Please consult your librarian for access.