Search results

In January 1996, the chief financial officer must fashion a response to a raider who claims that a major business segment of the company should be sold because it is not earning a satisfactory rate of return (ROR). The case recounts the debate within the company over the use of a single hurdle rate to evaluate all segments of the company versus a risk-adjusted hurdle rate system. The students’ tasks are to resolve the debate, estimate weighted-average costs of capital (WACC) for the two business segments, and respond to the raider. Because the case was prepared to serve as part of an introduction to estimating investors’ required rates of return, it would best follow one or two class sessions introducing techniques for estimating WACC. Although the numerical calculations required are light, some of the subtleties about the use of risk-adjusted hurdle rates will require time for the novice to absorb. The case can be used to pursue a variety of teaching objectives, including (1) extending risk return (i.e., mean variance) analysis to corporate finance; (2) surveying classic arguments for and against the use of risk-adjusted hurdle rate systems; (3) assessing the assumptions and limitations of risk-adjusted hurdle rate systems; (4) exercising the estimation of segment WACCs; and (5) considering possible organizational barriers to the implementation of risk-adjusted hurdle rates.

Corporate social responsibility, sustainability and business ethics.

This case has been designed for undergraduate students, with two target audiences. The first is business and management students following modules in corporate social responsibility (CSR), sustainability and business ethics. Here the accent is on allowing the students to explore and debate how CSR agendas are emerging within a specific sector of the retail economy. The second is students pursuing fashion, clothing, textile, retailing and consumer studies degrees and here the focus is on how some of the leading fashion goods retailers are addressing CSR. More generally the case can also be used on “Contemporary Issues” modules within general business and management programmes.

This small case offers an exploratory review of the emerging CSR issues currently being publicly addressed by the world's leading fashion goods retailers. It includes a brief introduction to CSR; a brief thumbnail sketch of the fashion goods industry; details of the method of enquiry; a description of the CSR issues currently being publicly addressed by the top ten fashion good retailers on their corporate web sites; and some critical reflections on the CSR agendas being pursued by these retailers. The case study is novel in two ways. First, it focuses upon what is an emerging market issue rather than on emerging markets per se though a number of the issues raised in the case have major implications for emerging economies. Second, it addresses the CSR issues being addressed by a number of the leading fashion goods retailers and as such it a not a case which relates to individual decision making. While the case is principally focussed upon the retail sector it ranges across the whole of the supply chain.

The paper provides an accessible review of the CSR issues and agendas currently being pursued by the leading fashion goods retailers and as such it will be of interest to academics, students and practitioners who are interested in both the fashion industry and corporate sustainability.

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

Organizational behavior, human resources, culture, international business, international entrepreneurship and emerging market studies.

MBA and MSc students (and some advanced-level undergraduates) in an MBA module being taught face-to-face in an emerging market context. MBA courses such as managing cultural diversity, cross-cultural management, organizational behavior, human resource management, international business and business in emerging markets. The exercise is also relevant to teaching the subject of assignment- and dissertation-writing, given the element of data collection and analysis.

This exercise is designed to be an MBA class exercise in which students try to answer the question: what are the national cultural characteristics of the typical executive or manager in my country? Are these behaviors as the textbooks describe, or have they changed, especially with economic development?

The example of country chosen for the class exercise can be any emerging market country, especially one undergoing significant change. Much of the research on cross-cultural management conducted in emerging markets was carried out 20 or 30 years ago and the changes in emerging markets have been dramatic since then. It is highly likely, when reaching the results of this exercise, that the culture of the chosen country has indeed changed dramatically, becoming more like a typical developed or “emerged” country. Much of the original cross-cultural management research was also based on a similar group – employees of US-based high technology companies, arguably similar to the sample to be involved in our exercise here.

National cultural characteristics can be described and defined in ways which will allow for comparisons, to gain useful insights – and these behaviors are not good or bad, just real and different.

Cultures can change or stay the same, due to certain demographic, economic and social influences, which we can study and measure.

If we proactively interview colleagues and other contacts to test our understanding of these national culture constructs, we can gain more insights and awareness (rather than just listening to a lecture).

Teaching notes, student assignment.

The learning outcomes of this study are as follows:

1. comprehending foundational dimensions of brand equity and criteria to compare the use of traditional and new media in leading brand communication appropriateness and performance;

2. understanding and evaluating implications of leading brand communications during times of crises; and

3. creating recommendations for leading brand communication preparedness and response to crises.

On 16 August 2020, Dr Barbara Jensen Vorster, Senior Executive Manager, Communications and Marketing of the Gautrain Management Agency (GMA), in Midrand South Africa, considered her dilemma of adapting their communication approach during COVID-19 and beyond the current crisis. The GMA relied on traditional media and the crisis created an opportunity to rethink their entire communications approach. It was important to the GMA communications team to keep the Gautrain commuters connected even though they might not be using the Gautrain during the lockdown of COVID-19. Jensen Vorster believed that a brand should be adaptive and continue even when a service is not running. Jensen Vorster had to lead her communications team when they were all working from home, and they had to keep commuters informed of the requirements during the different levels of lockdown in South Africa. Their various campaigns during this time purposefully communicated with commuters and the various “staying home” initiatives with the intention of lifting spirits. The communication outreach during the COVID-19 pandemic switched over to social media communications out of necessity; however, was that ideal communication during a crisis? While most of the case focuses on this external communication, the case pays attention to some internal communication initiatives by Jensen Vorster with her own team and for the Gautrain’s staff. The question is whether brands should shift from traditional media to new media campaigns during the 21st-century crises? Students will get the opportunity to compare the use of traditional and new media during crisis times. How might they approach their brand communications during COVID-19 and in preparation for future crises?

Marketing and Business Communications and Leadership courses for MBA or executive education programs.

Masters level MBA.

The team of authors conducted face-to-face interviews prior to and during the lockdown in South Africa; the interviews were conducted online through Zoom. Interviews included Dr Barbara Jensen Vorster, Senior Executive Manager, Communications and Marketing of the Gautrain Management Agency and Kesagee Nayager, the Marketing and Communications Executive Manager at Bombela Concession Company. Viwe Mgedzi, Executive Manager for Knowledge Management, provided documents supporting the case. The researchers also conducted desktop research of secondary data, including media and press articles on the companies. The @Gautrain Twitter feed was very important for the researchers to investigate as part of the secondary data research, to triangulate the interview data.

For example, see one of the Twitter feeds on 17 March 2020, 5:37 pm.

The following Twitter feed on the Gautrain’s status confirmed the interview data: https://twitter.com/TheGautrain/status/1239938937885466633

The main resources of this case study were the interviews and the media articles to offer objective references. The authors used the following two newspaper articles to triangulate the information they gained from the interviews:

BusinessTech, March 18, 2020, accessed March 8, 2021 at https://businesstech.co.za/news/lifestyle/382707/south-african-coronavirus-cases-jumps-to-116-as-a-gautrain-exec-tests-positive/

Timeslive, www.timeslive.co.za/news/south-africa/2020-03-17-staff-in-self-isolation-after-executive-tests-positive-two-gautrain-stations-chemically-decontaminated/

Teaching notes are available for educators only.

CSS 7: Management science; CSS 8: Marketing.

The Arbor City Community Foundation (ACCF) was a medium-sized endowment established in Illinois in the late 1970s through the hard work of several local families. The vision of the ACCF was to be a comprehensive center for philanthropy in the greater Arbor City region. ACCF had a fund balance (known collectively as “the fund”) of just under $240 million. The ACCF board of trustees had appointed a committee to oversee investment decisions relating to the foundation assets. The investment committee, under the guidance of the board, pursued an active risk-management policy for the fund. The committee members were primarily concerned with the volatility and distribution of portfolio returns. They relied on the value-at-risk (VaR) methodology as a measurement of the risk of both short- and mid-term investment losses. In its report for the investment committee, the ACCF risk analytics team recommended the daily VaR at 95% confidence as a measure for short-term risk and reported the corresponding numbers. It is now the task of the investment committee to interpret these figures. The case questions guide the executive students to a critical evaluation of both the reported VaR figures as well as of the VaR methodology.

Understanding the concept of value at risk (VaR); Interpreting the results of VaR calculations; Evaluating the appropriateness of VaR calculations; Critical discussion of the VaR methodology.

After reading the case, the students shall be able to explain the concept of insider trading and differentiate between illegal insider trading and legal insider trading, business ethics, financial institutions, financial markets and accounting; to interpret the legal framework for prevention of insider trading; to identify the role and significance of the market regulator, Securities and Exchange Board of India (SEBI), in detecting financial crimes such as insider trading; to demonstrate the association between information, stock trading and stock prices within the framework of efficient markets; and to appraise the ethical dilemma in a family-owned firm, where the family members of the promoter group are alleged to have indulged in a financial crime.

The case revolves around allegations of insider trading against the promoter and the promoter group of the family owned and controlled firm, Lux Industries Limited. On January 24, 2022, the SEBI, the regulator of securities markets in India, accused Udit Todi, the Executive Director of Lux Industries Limited, of engaging in insider trading through a chain of 14 connected parties. Udit Todi was also the son of the Managing Director, Pradip Kumar Todi, and the nephew of the Executive Chairman, Ashok Kumar Todi. In its interim order, SEBI alleged a breach of insider trading regulations by a group of 14 connected entities that had built up long positions starting from May 21, 2021, before the quarterly financial results (Q4) and the annual results of the financial year (FY) 2021 in the equity shares of Lux Industries Limited, with its registered office in Kolkata, India, were announced. Subsequently, they squared off the long positions to make a profit of ₹29.43m. To restore the confidence of the investors, the Executive Chairman, Ashok Kumar Todi, needed to review the matter expeditiously and impartially. Taking into consideration the family ties of the accused, it was not going to be an easy task, yet, it had to be done. The case highlights the role of the regulator, SEBI, in unearthing financial frauds such as insider trading in an emerging market such as India.

Postgraduate programs in management, Executive education programs.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance

The learning outcomes are as follows: to teach the concept of mutual fund as whole, how mutual fund works and who are the investors; discuss how any asset management company can work and what is their investment process; discuss how mutual funds are affected by changes in economic outlook/macro-economic variables; discuss the alternative risk-adjusted measures of performance evaluation, such as the Sharpe ratio, Treynor, Jensen’s alpha and measure of risk-adjusted performance; and discuss which index to use as a benchmark and how to improve funds’ performance.

In April 2019, Khaldoon Bin latif, Chief Executive Officer (CEO) of Faysal Asset Management, reflected on the changes that had occurred during his two and a half years at Faysal. He was quite pleased with the recent performance of Faysal Funds and the company’s relationship-oriented approach to money management for individuals with high net worth. Yet, he wanted to ensure that both the investment-process and performance-evaluation measures that he had implemented at Faysal would continue to provide superior returns. Latif also wanted Faysal to outperform the relevant indices, not only on an absolute basis, but also on a risk-adjusted basis. He pondered which indices and models Faysal should use in the future based on their performance.

Undergraduate/graduate

Teaching Notes are available for educators only.

CSS 1: Accounting and Finance.

Learning outcomes are as follows: Students will be able to demonstrate the need to understand the uncertainty faced in a crisis; demonstrate how dynamic capabilities allow an organisation to respond effectively in a time of crisis and deep uncertainty; explore how strong dynamic capabilities are required to maintain continuity of operations by enabling a shift in the current business model; and evaluate methods of mobilising resources to address needs and possible opportunities presented in a crisis.

Gordon Institute of Business Science (GIBS), a South African-based business school and the one of the top ranked business schools in Africa, faced a crisis in the midst of the COVID-19 pandemic. With the announcement of a national lock down, under strict conditions, and the immediate closure of the GIBS campus, the Academic Programmes had to radically shift their mode of delivery to enable students to continue with their respective programmes. When the situation was further exacerbated by the breaking of the undersea cable, the Executive Director of Academic Programmes, Professor Louise Whittaker faced the difficult decision on what to do next. The case illustrates the need for strong dynamic capabilities to foster organisational agility and to respond effectively in times of deep uncertainty or crises.

The case is positioned at a postgraduate level and would be ideal as a teaching case for business students on a Master of Business Administration programme, a specialised Master in Philosophy programme or selected executive education programmes for general managers or senior executives.

Teaching Notes are available for educators only.

CSS: 11 Strategy.

Labour relations management, business management, HRM, focusing on the labour relations of Chinese enterprises.

This case is designed for students in schools of business or management, undergraduate MBA or executive MBA classes. Students should already have a basic knowledge about Chinese labour relations, HRM, and organizational development.

In 2004, a deal transformed Anhui Xuanjiu Group from a state-owned enterprise (SOE) to a private company. Li Jian, the Chairman of Xuanjiu Group, focused on creating happiness for employees. Thanks to Li Jian's efforts, Xuanjiu emrged from its crisis which was formed in the planned economy system. After several years of development, the labour relations management of Anhui Xuanjiu Group became a model among private enterprises in China.

Students can gain new insights into labour relations in China. The case provides an example of building friendly labour relations to avoid labour disputes. It provides a set of measures for retaining and motivating workers.

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 Ivey Business School recently decided to outsource its printing to ProPrintR. Barbara Pokropek, Ivey Executive Development (IED), was faced with managing IED's outsourced printing jobs. There had been an increasing number of quality issues with the binder that ProPrintR prepared for IED's executive classes. While binder material errors may not sound like a big deal, for IED these materials are part of their branding and can lead to executive student dissatisfaction. This case describes the evolution of the current situation and challenges students to consider how to manage the situation.

The situation described in this critical incident is real, only the name of the print provider has been changed. Barbara Pokropek was interviewed and she provided the data and examples described. Ms Pokropek reviewed and provided input to revise the manuscript.

This case is intended for undergraduate core operations management classes. It can be used to discuss supplier relations and supply management. As such there are multiple dimensions to the case: importance of clearly delineating the work needed, defining performance expectations and metrics for a supplier, selecting quality tools to help measure performance, and centralized vs decentralized supply management.