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The case is particularly relevant for students studying elements of business strategy with an interest in strategic decision-making, competitive strategy, and growth strategy. The case leverages several strategic frameworks taught throughout business courses and illustrates a real-world application of these frameworks to support sound strategic decision-making. Furthermore, the case examines the relevance of sustainable competitive advantage and the linkages to the appropriate growth strategy for a business. It is recommended that this case be taught once students have covered the applicable theory and frameworks in class.

This case is designed for business administration students, in particular MBA, EMBA, speciality Masters, or executive education students.

MWEB is a leading first-tier South African internet services provider, with an operating history spanning over 22 years. The MWEB brand is a household name across South Africa, seen as one of the pioneers of the internet industry and accredited with bringing the internet to ordinary consumers across the country. The state of competition in the market, however, has intensified and MWEB's traditional operating model has not evolved fast enough to meet the changing landscape. The market is in the midst of a price war, to which MWEB has responded by reducing market pricing and offering attractive deals, undercutting all its competitors. The results have been positive; sales have increased and churn has reduced, but competitors have already started to follow. The dilemma facing CEO Sean Nourse and his management team is how to accelerate growth in a highly commoditised market with intense competition while ensuring the long-term profitability of the business. The case encourages the consideration of the strategic decision-making process by analysing the competitive landscape, evaluating the options, and reaching a decision on the most viable growth strategy for the business.

To analyse the competitive landscape and the forces at play

To conduct a competitor analysis, appraise long-term profitability in the industry, identify profitable strategic positions, and determine how MWEB may achieve and protect its competitive advantage

To identify and analyse the key parameters that, in combination, represent a company's business model

To critically analyse the contextual factors that are presented as business challenges, evaluating and understanding the impact and scale of these challenges

To critically assess relevant growth strategy alternatives for MWEB and analyse the viability of the alternatives presented

To conduct an informal valuation to determine a purchase price for an acquisition target for the business

The case includes links to video clips on textile and apparel manufacture to familiarize students with the textile manufacturing process. The case also provides links to audio and video clips of the case protagonist discussing the strengths and weaknesses of the cluster at IK.

The case offers opportunities for the learner to analyze the situation from three cases as follows: industry, cluster (broadly location) and firm. Specific teaching objectives are as follows: How to identify and analyze the drivers of competitiveness of a cluster. Assess the strength of clusters using Porter’s Diamond framework. Map the linkages between players of a cluster as follows: across firms, industries and public organizations. Benchmark and compare clusters to identify opportunities for upgrading competitiveness.

The case describes the challenge facing Mr Nikunj Bagdia, the owner and chief executive of Ken Enterprises Private Limited (Ken), a textile manufacturing unit located in the town of Ichalkaranji (IK), in October of 2019. IK boasts the largest number of cutting-edge air-jet looms in India and Ken is IK’s largest exporter of woven textile fabrics. However, IK lags the textile and apparel manufacturing cluster of Tiruppur, in another region of the country. The case enables a microeconomic analysis of the business environment of industrial clusters and a cluster mapping exercise, which helps identify opportunities for enhancing IK’s textile cluster. As the case closes, Nikunj is trying to prioritize opportunities that could emerge from the analyzes.

Masters/MBA level courses on competitiveness, strategy for economic development and microeconomics of competitiveness.

CSS 11: Strategy.

With Method standing at number seven on Inc. magazine's list of the 500 fastest-growing companies in 2006, cofounder Adam Lowry is searching for a biodegradable cleaning cloth to expand Method's line of “green” household products. Sustainable design principles have been a guiding force in Method's strategy, and being biofriendly is critical. So is sourcing in the United States. But only China can manufacture the corn-based cloth Lowry has in mind, and there is no way to certify that the product is free of genetically modified organisms. Lowry has to balance his firm's fundamental commitment to environmental sustainability against the fact that some retailers refuse to carry products containing GMOs.

This case presents turnaround alternatives for a UK-based company, Carpets International (CI), a manufacturer focused on woven carpets and suffering from the ageing equipment and resulting product quality issues during the late 1990s. The case profiles CI’s position in the UK marketplace as well as highlights the growing international competition from Europe and Mexico. Comparisons between customer’s preferences for carpeting in the USA vs the UK are included. Additionally, the case introduces first-mover advantages in the application of innovational ideas applied to a mature industry in another country.

This case study was written by the CEO of the company as the lead author. The case is not disguised.

This case is appropriate for undergraduate strategic management/business policy classes.

Finance.

This case can be taught in the Finance area as a part of the course on “Valuation” in a postgraduate program. MBA/EMBA/MBF.

Himachal Futuristic Communications Ltd. (HFCL) discontinued all of its old products and entered into manufacturing of telecom products for mobile telephony and turnkey projects. This complete change in product line was like a re-birth for the company. HFCL grew tremendously between FY 2012 and FY 2015. Its sales grew from Rs 2,638m in FY 2012 to Rs 26,129m in FY 2015, an increase of 114 per cent CAGR (compound annual growth rate). HFCL stock price increased from Rs 11.75 in March 2012 to Rs 19.90 in September 2014 because of this tremendous growth. The stock price came down to Rs 13.35 in March 2015, as the market was sceptical about HFCL sustaining this growth. In March 2015, Choudhary, an equity analyst, was wondering how to value this high growth company. If somehow he could ascertain the intrinsic value of the stock properly, he would be able to appropriately advise his clients about the HFCL stock.

The case learning objectives are as follows: to scan the competitive landscape of telecom equipment manufacturing industry and gauge the competitive advantages enjoyed by HFCL; to size the potential market of the industry and predict the level of sustained profitability for HFCL; to develop multiple scenarios based on key drivers and compile projected financial statements for each scenario; and to value the company using the scenario-based discounted cash flow technique by assigning probabilistic weights to each scenario.

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 1: Accounting and finance.

Marketing Management, Marketing Strategy and Marketing Communication.

The case is targeted at students of post-graduation and under-graduation programs in Business Administration, specializing in Marketing Management or Marketing Strategy.

Mukesh Ambani’s announcement about the launching of Reliance Jio at the 41st Annual General Meeting (AGM) of Reliance Industries Limited (RIL) in June 2015 sent shock waves in the telecom industry. Everyone, including the customers, competitors and the entire telecom industry, was excited to know whether Reliance Jio would be able to make a dent or fizzle out like a weak firecracker. Was it time for the top players to be worried and pull their socks up or will it be an inconsequential ripple in the ocean? Mukesh Ambani saw the telecom sector from a new viewpoint and proposed a complete set of solution in the form of Reliance Jio SIM card that addressed the different needs of customers through various applications. This has spread rumors of a merger between Idea and Vodafone in India, which can have a huge impact on Reliance Jio and the telecom sector in general. The profitability indicator that was earlier determined as the average revenue per user (ARPU) will continue to dominate. The companies will be scrambling to find different ways to increase the ARPU to maximize the returns. This would also lead to a downsize in the cost in such a way that their operations do not suffer and profitability is also not negatively affected.

To better understand the entry strategy of firms in highly volatile business situations. To know about the competitors and their contribution to the operational and strategic changes of a new entrant. To understand the proceedings associated with marketing communication for establishing a product in a highly competitive market. To know about the impact of joining hands with the competitors on a new entrant.

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 8: Marketing.

Governance challenges in reverse value chain.

Women employment system in textile and clothing industry.

The textile and clothing firms, often frustrated by frequent labor issues, used an innovative employment scheme – Sumangali scheme – to employ young female workers from poor families in rural areas, aged between 18 and 25 years, as apprentices for three years who would stay in dormitories located in the vicinity of the factories, draw low wages with minimum benefits. But the scheme was criticized by labor unions and Europe- and US-based non-governmental organization (NGOs) on the grounds of alleged violation of labor rights such as freedom of association, freedom of movement, exploitative working conditions, low wages with minimum or no benefits, long working hours and abusive supervisors. Their public campaign against the alleged employment practices has put tremendous pressure on the global buyers to take steps to ameliorate the situation. In the wake of campaign by NGOs, few buyers have even terminated the relationship with the manufacturers. Others have warned action against those erring manufacturers. The actions by global buyers, NGOs against some of the women employment practices raised several questions in the minds of manufacturers. They were wondering why US- and Europe-based NGOs were up in arms to dump an employment scheme unmindful of socio-economic realities in India? Is it a clever ploy that developed nations use some private, voluntary, corporate social responsibility norms to stop companies purchasing textile and clothing products from a developing country like India on the grounds of violation of labor rights? As per the International Labor Organization (ILO) Convention No. 81, it is the responsibility of central/state governments to inspect and monitor labor employment practices in an industry. Then why NGOs and other private groups volunteer to become watch dogs of labor practices and launch campaigns against mills? Would it not undermine the role of government in ensuring industrial harmony? Even if NGOs' actions are justified on the grounds of moral and ethical principles, what role should they play when it comes to management–worker relationship? In the Indian context, only the government can interfere if the relationship turns sour? Should NGOs need to use a different set of ethical standards which are more relevant and contextual to the socio-economic environment in India?

To understand evolution of apparel global value chain and workforce development challenges in India; to explore the link between consumer activism and corporate social responsibility; to explore the challenge of addressing issues such as alleged human rights violation and labor exploitation by independent suppliers located in India; to explore the challenges faced by global buyers in contextualizing, operationalizing and realizing certain human rights along the supply chain located in India; and to explore sustainability challenges of women employment in textile and clothing mills in India.

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

Sustenance of women employment system in India's textile and clothing industry and its associated challenges.

Finance, General Business Management.

Postgraduate/MBA Second Year.

The university-owned Universal Computing Limited (UCL) was contemplating on the future of its internet services business. Internally, the internet services department had put up a proposal on how to revamp the business. Concurrently, UCL received a joint venture proposition from a foreign telecommunication entity with which it had some business relation. The proposal was for UCL to cede its internet services department and the associated licence to the venture while the partner will finance the venture. Professor Ben Msomi, the UCL’s Managing Director knew that he had to make one of the two proposals a good sell to the board of directors’ meeting in two-weeks’ time probably before suggesting UCL to exit the internet services business.

Overall, the case aims at gaining an understanding of the sources of value of business and valuation of business. Specifically students are expected to learn how to: evaluate of the effect of various courses of action on the value of a business; apply different valuation methods – balance sheet, discounted cash-flows and market multiples in different context; establish appropriate rate for capitalization in business valuation; and handle assumptions and risks in business valuation,

Overall, the case aims at gaining an understanding of the sources of value of business and valuation of business. Specifically students are expected to learn how to: evaluate of the effect of various courses of action on the value of a business; apply different valuation methods – balance sheet, discounted cash-flows and market multiples in different context; establish appropriate rate for capitalization in business valuation; and handle assumptions and risks in business valuation,

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 1: Accounting and Finance

Operations Research and Operation Management.

Undergraduate/MBA/Postgraduate.

The case depicts an opportunity for students to be exposed to optimization techniques using linear programming (LP). This case intends to: generate the LP model (identification of objective function and constraints); apply MS-Excel solver to arrive at an optimal solution; analyse manufacturing scenarios; and plan decision dependencies.

VBK Fibreo Tech Industries was a manufacturer of fibre reinforced plastic (FRP) products for industrial and domestic applications. Despite being a new entrant, it managed to exhibit great performance and attract a loyal base of customers. This case brings to light the problem that the company was facing that is demand exceeding capacity. The protagonist of the case Madhav, the Production Manager, was tasked to solve the problem of “product mix”. He was in a dilemma on how to fulfill customer orders while minimizing losses for his company. He knew that while losses were inevitable in the current scenario, they could be minimized with appropriate planning. Students are expected to use data and facts from the case and exhibit to formulate LP, by identifying the objective function and the constraints. They are also encouraged to use MS-Excel solver to find the optimal product mix and understand the decision dependencies.

This case can be used to teach LP in an undergraduate/postgraduate-level course on operations research. Students are exposed to the creation of a mathematical model for optimization and along with devising the implementation plan.

Teaching notes are available for educators only.

CSS 9: Operations and logistics.

Entrepreneurship, Corporate sustainability, CSR, Supply chain.

Master's courses: Entrepreneurship, Strategic management.

In 2002, potential risks deriving from emerging normative demands in the CSR debate prompted Axel Springer (AS) to rethink their supply chain strategy for Russian wood. Being one of the first movers in CSR in the publishing business, AS realized that current practices could spark future public discussion that might put pressure on AS, a key player in these supply chains. In early 2002, AS and one of their main suppliers, Stora Enso, started a joint initiative to redesign the supply chain processes in two of the major Russian logging regions to improve their social and ecological performance. Sometime later, other major players in the publishing sector as well as critical reviewers from several non-governmental organizations (NGOs) were invited to participate in the design of the new voluntary sustainability initiative called “Tikhvin Chalna project”, the second phase of which was accomplished by the end of 2006.

Learn that organizations (specifically high-brand owners) are responsible for practices within their entire supply chains (social as well as environmental performance).

Explore proactive corporate sustainability, CSR strategies are market but also institutional driven; Strategizing involves forming and transforming the rules, norms and standard models of customers as well as institutions such as NGOs or governmental bodies. Whether the initiator of such strategy is successful in increasing or manipulating demands is dependent on its resources and capabilities as well as on its network position. The case supports students in understanding resources being used to successfully transform or create institutional arrangements.

Discover that the value of a business' relationships and its network position.

Teaching note, Video files