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Entrepreneurship.

This case is designed for teaching entrepreneurship at master’s level. Depending on students’ interests and exposure levels however, it can be applied to teaching undergraduate entrepreneurship courses that are taken after at least the two basic entrepreneurship courses.

Nigeria’s tomato industry is one of the most dysfunctional in the entire nation’s economy. Although the country is West Africa’s largest tomato producer, nearly half of the produced tomatoes rot on the way to the market, which makes Nigeria heavily reliant on imported tomato paste. Amidst growing concerns among stakeholders of the need to address the dysfunction of the tomato industry, Tomato Jos emerged as the earliest social impact venture in the tomato paste industry. Nigeria’s changing macro-economic conditions clearly call for a tomato processing industry and the entry of Tomato Jos is well timed. Within a span of two years, the company successfully raised $600,000 in equity, debt and grant financing that has catered for start-up expenses and expansion to 150 hectares of farmland. The company plans on raising an additional $25m to cater for their planned Stage III growth. Amidst growing excitement over the entry of Tomato Jos in the industry with a social enterprise, Africa’s top business tycoon, Aliko Dangote, announced entry into the tomato processing industry with a major tomato processing facility in the same region as Tomato Jos. The Dangote Group of companies is seen as very tough competition to contend with, due to their sheer size, political leverage and financial capital. This case study primarily teaches how multiple aspects of start-up entrepreneurship may be handled rather than being taught separately as is often the case in mainstream business education. Entrepreneurs in the field rarely confront real challenges in this way. This case study introduces a practice of teaching a collection of key aspects of entrepreneurship, their nuances and inter-relationships in an integrated fashion.

The overarching objective of this case is to teach students how to interpret the shifts in industry position resulting from the entry of an important competitor within the larger context of growing a social venture. At the end of the case study analysis, students will be able to analyze the effects of changing forces and conditions in a country’s business environment on a start-up social enterprise; interpret the shifts in a venture’s industry position after the entry of an important competitor; identify appropriate funding sources and financing strategies to fuel the growth of a social enterprise; identify areas of a start-up’s business model that need improvement and/or iteration to support faster growth; and develop an effectuation-based strategy for a growing venture.

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CSS 3: Entrepreneurship.

At the end of the case discussion, the students should be able to: evaluate the factors influencing entrepreneurship in an African context; discuss the relevance of developmental entrepreneurship in an African context; assess an enabling environment and ecosystem for stimulating entrepreneurship; analyse and resolve practical issues in starting a business under challenging conditions; understand how accelerator programmes work in an African context; appreciate how partnerships can be leveraged to foster entrepreneurship; evaluate relevant business models and their challenges to grow enterprises; and understand the social entrepreneurship journey of a founder.

In March 2019, Elena Gaffurini, managing partner of DEV Mozambique (DEV), sat down to evaluate the business. DEV, based in Maputo and launched in 2015, was a consulting and services company supporting entrepreneurial development in Mozambique, by training and supporting small businesses in agricultural-related sectors to improve food security. Gaffurini – a self-proclaimed purpose-driven person – now questioned whether DEV’s impact on social and economic development was significant enough to justify the effort she and her team put into it and whether DEV should reconsider its current business model to create more impact.

Postgraduate: MBA and Executive Education.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

New product development (NPD), entrepreneurship and strategic management.

Advanced undergraduate, MBA/MSc in Marketing and Management course that cover the topics on NPD.

This case illustrates that commercialization of a new product requires a proper strategic direction to make it a reality. The case fact is positioned in livestock feed industry centered on commercialization of a newly developed urea-molasses mineral block (UMMB) or called Nutriblock. Dr Wan, a Senior Principal Research Officer of Malaysian Agricultural Research and Development Institute (MARDI), developed food supplement for ruminants which contained urea, molasses, vitamins, minerals and other nutrients. Dr Wan believed that the UMMB was a better quality food supplement compared to products in the markets because it contained 12 raw feed ingredients and an anthelmintic medication. After almost 10 years of research, in 2003, Dr Wan completed his research and, thus, wanted to get a suitable way to commercialize this product. He had two options: commercializing the technology through licensing of intellectual property right (IPR), or to transfer it as a public domain. The Business Development Unit(BDU) was responsible for the former option, whereas Centre for Promotion and Technology Transfer (CPPT) was in charge for the latter. At the beginning of2006, MARDI decided to commercialize the Nutriblock through licensing the IPR to March Avenue Technology Sendirian Berhad (March Avenue), a newly formed company. March Avenue was formed byKarthiir, a lawyer and Ma Irwan, an electrical engineer. The operation was going smoothly for the first two years. However, problem started in 2008 when Karthiir left the company due to some disagreement with Ma Irwan. Since then, March Avenue failed to achieve its sales target that seriously affected its profit level. Moreover, it suffered from internal management problem. The company finally closed down at the end of 2009. By this four year of operation, March Avenue failed to pay any royalty to MARDI. This circumstance forced Dr Wan to think seriously about his next move regarding choosing the right way of commercializing his Nutriblock. MARDI requested him to give his opinion by January 15, 2010 about whether to give another chance to BDU to commercialize this technology through IPR or to go for public domain under CPPT?

Using this case, students can learn that new product development and its commercialization requires proper strategic directions. It illustrates the importance of managing the commercialization of a new product effectively. NPD involves many stages, and it is important to manage every stage properly. This is because a “high-quality product” and/or a “new to the market” product are not enough to succeed in the market. In other words, producing a “product that meets market needs” must be combined with appropriate strategies.

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Sustainable development; business, government, and society.

The case is designed to be taught to students at MBA and MA level.

In February 2009, Justin Smith, manager of the good business journey at Woolworths, a leading South African department store, was a worried man. Woolworths had launched its five-year sustainability strategy just under two years before. After undertaking an impact assessment, Smith was concerned that the original targets – which covered transformation, social development, the environment and climate change – had been set without a clear understanding of exactly what it would take to achieve them. Woolworths had recently identified ten key risk areas that impacted on the achievement of its original goals. If the sustainability goals were not reached, Woolworths could lose credibility among its shareholders, staff, and consumers. What did Woolworths need to do to ensure that it achieved its sustainability goals? And had the company been too ambitious in the targets it had set initially, he wondered?

To examine the differences, if any, between sustainable development in South Africa and other developing nations and sustainable development in developed nations; to impart an understanding of sustainability in its broadest sense; to investigate the challenges in implementing sustainability strategies in business; to look at ways of measuring the success of sustainability strategies; and to explore whether and how sustainability strategies should differ across industry sectors and across companies.

Teaching notes.

What started as a FMCG distributor in 1967 in Kenya as Export Finance Company, is now a dynamic global conglomerate across 48 countries and 5 continents — Export Trading Group. ETG was taken over by the then CFO Mahesh Patel after exit of the founding stakeholders. It was then when the company shifted its focus to being a key regional player. In the next 35 years, the company grew systematically. Business focus evolved when Patel saw an opportunity in logistics in remote sub-Saharan Africa. This was followed by business expansion with supply chain diversification and significant infrastructure investments. All the different businesses amalgamated under a single group for better operations and ease of scaling up. They were later divided into six separate verticals for better management. Vamara (FMCG vertical) was launched in 2018 as the company moved towards digitalisation — externally and internally. ETG plans to focus on new business opportunities and continue to diversify across geographies and portfolios.

This case focuses on the scaling up of the business. The students/the users of the case will be able to understand the following:1. to analyse the present state of the business to identify the actions necessary for scaling up;2. awareness of the leadership styles demonstrated by the entrepreneurs to grow the business;3. the concept of pivoting for business expansion; and4. organisation building and life cycles for business growth.

Shamika was a lawyer by profession and had a successful career with leading law firms in India, North America and Hong Kong. She was passionate about beauty and skincare and developed a keen interest in that business. Shamika extensively researched brand management, supply chain and production. She had a burning desire to be an entrepreneur in the skincare business. So, she founded the brand “d’you”.The skin care industry in India had seen massive growth. There was a huge increase in people’s interest in cosmetics because of the rapid rise of the middle class. The skincare industry was dominated by firms offering various herbal products. Multiple product categories and a large amount of information confused the end-consumers. Shamika identified an opportunity to offer a skincare product to eliminate the need for a consumer to use multiple serums and compete with products of repute from the international market.South Korea was the top manufacturing hub for skincare products for all leading international brands. Shamika approached many manufacturers there to produce a unique formulation for her. It was challenging to get them interested because of the lack of big orders and the language barrier. Phoenix Cosmetics, a top R&D lab, agreed to partner with Shamika.In spite of severe opposition from her family, Shamika established d’you. She had to figure out customs duties, imports and food and drug regulations. She had to get specialists on board early to avoid time and cost overruns. To be cost-effective, Shamika innovated her promotion strategy. A special airless pump packaging from South Korea was finalised for the product.The pandemic outbreak, national lockdown and pressures of trying to run the business alone were very taxing for Shamika. She struggled to manage the timelines with various agencies, engage with Phoenix and maintain a steady flow of imports from South Korea.After the relaxation of lockdown, Shamika launched “Hustle”, an age- and gender-neutral solution to the skincare woes, in October 2020. She extensively used digital marketing and social media for product promotion and set high service standards. Hustle was recognised in micro beauty awards as the best serum in India. The leading fashion magazines reviewed it very positively. The sales zoomed up.Shamika initiated discussions with venture capitalists (VCs) to scale up. VCs, though positive, were surprised that she had no prior background in skincare. She strategised to create new products with Phoenix, who now desired to collaborate with her after the success of Hustle.Shamika felt the need to expand her team because of the workload stress. She followed the rolling business plan, allowing an immediate course correction because of the dynamic business scenario. She desired to delegate day-to-day operations to the professionals. She would mainly focus on strategising. Shamika was raring to grapple with the challenge of scaling up the business.

This case can be used in courses on organisation behaviour and human resource management in postgraduate and graduate management programmes. It can also be used in general and development management courses and during executive education programmes to teach entrepreneurial leadership and organisation theory.

Teaching notes are available for educators only.

CSS 6: Human resource management

(i) To determine the push and pull factors for a developing country SME to internationalize via exports. (ii) To evaluate the use of social networks in the internationalization journey of Yew Chian Haw (YCH). (iii) To analyse how a developing country SME adapts to local conditions in order to sustain and grow the business in a foreign country.

Yew Chian Haw (YCH) was a small and medium enterprise (SME) producing herbal and healthcare products in Penang, Malaysia. This case study traced the company's internationalization journey, focusing on how the owner used his social networks based on common ethnic ties and language to penetrate the external markets by establishing trading companies in each of his export destinations, from Singapore to Hong Kong and later to Taiwan and China. These internationalization activities also helped him cultivate deeper local networks and enhance his business opportunities in each investment destination. The social network approach has important implications for SME firms such as YCH. The network strength helped to overcome entry barriers to foreign markets and enabled YCH to tap into local complementary resources such as local networks to sustain the internationalization process. Yew’s successful internationalization journey prompted him to focus on the external market for his company’s herbal soup products. But now he must decide whether to continue the internationalization journey in the existing external markets he has penetrated or to expand towards other markets such as Northeast Asian markets like Japan and Korea, as these countries have high income and purchasing power. However, Yew has no extensive social network in both countries, especially in terms of ethnic ties and common language. Yew therefore, had a dilemma: should he just continue expanding the existing external markets he has successfully penetrated, or should he move forward and seek to enter new markets where his current social networks may be weak or non-existent?

This case study is relevant for DBA, MBA, Master and undergraduate (International Business and Business Economics) students

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CSS 5: International Business

International Strategy

Undergraduate or graduate capstone course in strategy or international management course.

Faced with increased competition at home, Sainsbury's decided to expand its international operations by entering Egypt. Sainsbury's initially created a joint venture with an Egyptian food retailer, but quickly increased its commitment by opening over 100 stores in Egypt. Sainsbury's dream of capturing the Egyptian food market faded as quickly as it was started. Due to declining profits, Sainsbury's eliminated its exposure in Egypt by selling its interests to its Egyptian partner. Sainsbury's first developing-country venture could be regarded as an object lesson in how not to operate. The company failed to properly investigate its market and its partners, and showed insensitivity to local conditions. Moreover, entering the Egyptian consumer business sector may have been ill-advised. Egypt, with a low gross domestic product (GDP) per head of about $1,300 and a population of 65 million, while having growth potential, is a daunting market. Why a poor and frequently disorganized country was perceived as having excellent growth potential was not addressed by Sainsbury's in its headlong rush to invest. The case should be interesting for students because it highlights a situation where a firm's international expansion efforts failed after the firm had success expanding internationally previously. Numerous reasons are presented in the case for Sainsbury's failure. The case highlights the multiplicity of issues which a company faces when it “goes global.” While Sainsbury's withdrew from Egypt, the case affords students the opportunity to evaluate whether they would have made the same decision by providing a discussion of the alternatives suggested by Sainsbury's Chairman.

The Sainsbury's case is capable of addressing several important teaching objectives: the case is an appropriate vehicle to demonstrate what can happen to a firm as it expands globally; students will gain more knowledge concerning why companies expand into foreign markets and the impact of cross-country differences in market conditions; the case presents the multifaceted complexities involved in globalization efforts and issues faced by companies concerned with global competition and global strategy; students should apply the concepts and tools of industry and competitive analysis; students should gain a better understand how to manage globally; students should gain an understanding of the challenges of globalization and global competition; students should gain a better understanding of the evolution of strategy as industry conditions change and new opportunities arise. As with any case study, students should learn to translate good analysis into appropriate recommendations for action.

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This case has multiple theoretical linkages at the micro-organizational behavior level (e.g. job enrichment), but it is best analyzed and understood when examined at the organizational level. Students will learn about shared entrepreneurship, high performance work systems, shared leadership and virtuous organizations, and how they can develop a sustainable competitive advantage.

The case was prepared using a qualitative approach. Data were collected via the following ways: literature search; organizational documents and published historical accounts; direct observations by a research team; and on-site audio recorded and transcribed individual and group interviews conducted by a research team (the authors) with organization members at multiple levels of the firm.

John Lewis Company has been in business since 1864. In 1929, it became the John Lewis Partnership (JLP) when the son of the founder sold a portion of the firm to the employees. In 1955, he sold his remaining interest to the employee/partners. JLP has a constitution and has a representative democracy governance structure. As the firm approaches the 100th anniversary of the trust, it is faced with multiple challenges. The partners are faced with the question – How to respond to the environmental turmoil?

This case has environmental issues – How to respond to competition, technological changes and environmental uncertainty and an internal issue – How can high performance work practices provide a sustainable competitive advantage? Both issues can be examined in strategic management courses after the students have studied traditionally managed companies. This case could also be used in human resource management courses.

Social entrepreneurship/social innovation.

This real case targets license and master’s students as part of an ongoing course on social entrepreneurship, social innovation, in one word, on entrepreneurship.

Mlouma is a platform based on Web, SMS, USSD, mobile application and call center. This social enterprise keeps farmers in contact with food buyers by displaying real-time market prices and localizations. The service will improve the efficiency of the agriculture supply chain, helping farmers to get a better price for their product. By introducing information and communication technology, Mlouma provides innovative solutions to the market failure by creating more value for producers and consumers.

This case shows the importance of the entrepreneurial orientation of social enterprises to adapt to its context and discuss theory of social entrepreneurship.

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CSS 3: Entrepreneurship.