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A financial analyst for Procter & Gamble must report on the prospects and implications of a new teeth-whitening product. Beyond a realistic profit-and-loss forecast and baseline net present value, he must determine which pricing and marketing strategy is most likely to maximize value for shareholders.

This case study will allow students to understand and analyse the process for conducting equity valuation by building a three-statement financial model, to understand and apply the workings of discounted cash flow (DCF) valuation methodology and its components, to apply the concepts related to the calculation of the weighted average cost of capital in the determination of discounting rate, to understand the terminal value calculation and assumptions thereof and to analyse the intrinsic valuation for the target company using the traditional multi-stage DCF model for investment decision-making.

In July 2019, Kapil Agarwal, an equity analyst operating out of Mumbai, India, was carefully looking over the financials of Asian Paints, a leading paints company in India. As an equity analyst, Kapil was constantly on the lookout for fundamentally strong but undervalued companies that could create long-term wealth for his equity fund. To decide upon the right valuation of Asian Paints, Kapil conducted fundamental analysis using the DCF method on the basis of available financial information. This case study puts students in an investment analyst role wherein they forecast financial statements and conduct DCF valuation for Asian Paints to discover potentially undervalued stocks for investment decision-making.

This case study is designed for use in an undergraduate or postgraduate programme in business management, particularly in a course on business valuation or investment management or security analysis.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

International marketing, national competitiveness, strategic decision-making, wine.

Undergraduate and MBA.

The nationally important Georgian wine industry by 2008 was in a deep recession due largely to the continuing 2006 Russian wine embargo, prior to which Russia had been the largest export market for Georgian wines. Second World War-era Georgian wineries such as Shavteli (disguised), in the historic Racha-Lechkumi wine-producing region, were disadvantaged due to aging facilities, lack of tourist infrastructure, and inadequate capital to make needed changes to compete in the global markets for emerging economy wines. All nearby wineries faced continuing operating deficits, high inventory levels, and could lose much of their aging wine inventory to oxidation if they could not quickly sell more wine or convert the wine to brandy. To avert becoming another defunct producer, Shavteli needed a strategy. Industry observers were divided about whether Shavteli and its sister Georgian wineries should continue operating independently, seek government support, or form a marketing association to create new export demand. Students need to prepare a strategic plan for Shavteli and the Georgian wine industry.

Students should develop well-supported recommendations for competitive strategies in an emerging economy. Students should use strengths, weaknesses, opportunities, and threats and country competitiveness analyses to ascertain vision and mission, segmentation, targeting, positioning, and alliance strategies for international markets.

Teaching notes.

After completion of the case study, students will be able to understand the putty industry, consumer behaviour for putty, comparative advantage of putty to different industries and within industry and market entry strategy for newly introduced product.

Putty market in India grew at a compound annual growth rate of 15% over the period FY07–FY20. Many organized and unorganized players entered the putty market since its introduction. Putty was invented by cement companies to increase offtake of cement which otherwise declined owing to reduced use of marble. Painters are purchasing putty to be used before the paint to improve the texture of the walls and to fill cracks. Therefore, to take advantage of distribution channels and dealers’ network, paint companies introduced putty. Consumers, who use putty to improve aesthetics of their home, have very less knowledge about putty. They depend on painter or contractor for it. XYZ colourant company wanted to enter the white putty market to use the market opportunity along with coloured putty for economic project where cost is the constraint. This case study culminates with the probing question about the peculiarity of industry where two different industries are involved for the same product. This case study is designed to understand the target consumers’ behaviour and the entry decisions of the company to the growing market.

This case study is designed for use in second-year management programmes, especially for the students of strategic management and marketing strategy courses.

Teaching notes are available for educators only.

CSS 11: Strategy.

The learning outcomes of the study are to analyze the launch of a new business line for Trend at the commercial and market levels; identify the potential of the green consumer in Peruvian emerging market; and apply strategic tools to analyze the viability of launching a new business line in a new market.

José Luis Galindo planned to launch a new line of toilets in the Peruvian market called EcoTrend, based on the analysis of the responsible consumption trend and the presence of a new green consumer. Therefore, he carried out a series of studies and estimates to define the feasibility of the value proposition of his ecological toilet. However, Galindo doubted if these studies and estimates were enough to carry out the launch and commercial success of the EcoTrend line. Galindo, founder and current general manager of a company called Cerámica Industrial Trend S.A.C, is broadly knowledgeable about the construction sector in Peru and has more than 30 years of work experience in the ceramic bathroom fixtures industry. Throughout his professional career, Galindo has managed three of the leading bathroom fixture companies in Peru. However, it was when he started Trend, a company focusing specifically on the manufacture of toilets, that his dream of becoming an entrepreneur came true. Trend is focused on its one-piece toilet line. These toilets are characterized by their high-quality workmanship, which is achieved through the efficient and distinctive production process of Trend’s workforce. The workforce stays on its toes due to constant, thorough training, a key to Trend’s market competitiveness. In addition, the new EcoTrend line sowed in Galindo uncertainty in the commercial viability because the product was new in the market and was going to bring a great challenge.

Depending on the scope of the course, different teaching objectives could be oriented toward entrepreneurship, management sciences, strategy and green marketing. The case can be used to teach higher level undergraduate marketing and management courses.

Teaching notes are available for educators only.

CSS 8: Marketing.

Marketing.

The case is intended for students pursuing post-graduate program in management and studying courses like marketing, brand management and product management.

This case discusses marketing decisions taken by Royal Enfield Motors Ltd for its popular motorcycle brand Enfield. Starting from the genesis of the brand and the company, this case deliberates the stage when it faced the dilemma of whether to shutdown, sell-off or revive the business. The situation was the outcome of unfavourable environmental forces and inappropriate strategies adopted by the company. This case notes how the company evolved its marketing mix to revive the brand.

The case study has been documented with the aim of helping students to: understand the making of an aspirational brand, analyse how a static offer and positioning can become obsolete in a dynamic marketplace, appreciate how pertinent marketing-mix improvements may lead to the revival of a decaying brand and company, learn about the risks associated with entering into a new market segment at the cost of an existing segment, analyse the viability of the business strategy in light of the competition from international players.

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 learning outcomes are to get an understanding of the greeting cards (GCs) industry – appreciate the evolution of the industry and the changes that have been impacting the industry; analyze the external environment situation and assess the current strategy of Archies; analyze the existing strategy of Archies and apply the knowledge of strategic frameworks to the current business context of Archies; and create a new strategy for the company to overcome its current challenges.

The case highlights the situation faced by Archies Limited, a company, which pioneered the growth of the social expression industry in India and developed the market for GCs, a quintessentially Western concept in the Indian market. While it experienced phenomenal growth for two and a half decades, in the past 10 years, things have become more difficult for the company. Based on secondary data, this case presents various facts related to the case and seeks answers related to possible strategies that the firm may explore in the future.

Undergraduate and postgraduate management course in the area of strategic management. The level of difficulty can be from medium to high depending on the learning level.

Teaching Notes are available for educators only.

CSS 11: Strategy.

Entrepreneurship, finance, technology and innovation, general management.

This case is suitable for students in finance, entrepreneurship and general management. The case seeks to understand the challenges of funding in technology startups and how they vary from product to service areas.

Availability of capital, short term and long term, is a major constraint faced by entrepreneurs. In India, in the technology sector, services companies have been able to innovate and grow whereas product-based companies that survived the challenges of funding have been scarce. Aluru Karthik Prasanth is presented in the case as a young entrepreneur with passion and drive to pursue the commercialization of an idea he developed during his undergraduate studies in engineering. Leaving behind the beaten paths ofMTech and employment, he decides to pursue MS entrepreneurship at IIT Madras. As he starts with his program, he analyses the challenges faced by previous technology start ups, Karthik has a dilemma – deciding whether to follow a product idea or change his plans to a technology service.

A detailed analysis of the case would help students address the following questions in entrepreneurial decision making: should an entrepreneur in technology in India pursue a product idea or service idea?. What are the pros and cons of each choice in financing? How can an entrepreneur pursue a product idea and minimize his/her risks? How does an entrepreneur's personal attributes influence his/her course? (e.g. family background, need for control) What are the challenges and opportunities in each kind of funding: debt, venture, angel, etc. in the Indian context?

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

Human Resources Management (HRM), Industrial Relations and Strategic Management.

Post-graduate students or executive post-graduate students, Core course in Human resources Management (HRM), Industrial Relations or Strategic Management or in elective courses in Industrial Relations and Strategic HRM.

The Personnel manager of Asian Paints Ltd., Cuddalore (Tamil Nadu) factory, found himself in a Catch 22 situation when a Union leader of the manufacturing unit refused to work. The Union leader had been transferred from the Quality Assurance department to the Production department. The case describes the sequence of events and the backdrop in which the aforementioned situation had unfolded. Given the circumstances that prevailed in the factory, the personnel manager’s decision was likely to have significant impact on the factory’s output.

The student will be able to understand the industrial relations/Union issues in a company and the role of different stakeholders, namely, management, Union, workmen and the government in a conflict scenario. The student will learn the application of principles of natural justice and will be able to evaluate the Industrial Relations (IR) strategy adopted by the organizations to prevent labor unrest at the workplace. The student will understand the impact of critical management decisions on the organization’s performance in an uncertain global environment.

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 6: Human Resource Management.

Micromax is an Indian consumer electronics company which began by selling mobile phones. In early 2014, Micromax ranked third in the mobile handsets category in India, behind Nokia and Samsung. The case is set in 2014, a watershed year for Micromax. It has to make decisions related to the future direction of the company. There are various options available, such as expanding into other consumer electronics and consumer durables categories, expanding outside India, etc. Micromax had recently introduced premium smartphones, and there had been a gradual shift in its target segment from rural to more upmarket consumers. Micromax aspired to be considered among the best brands in the world; however, the company was unsure of how to move forward. Its leadership had to decide on the right positioning for Micromax.