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Alexandre Tombini, the governor of the Central Bank of Brazil, faced a difficult situation in July 2015. Inflation was in the double digits, well above the target rate of 4.5%, and unemployment had increased from around 4.5% a year prior to nearly 8%. Any actions Tombini took to control inflation would most likely exacerbate unemployment, at least in the short run. To further complicate matters, Tombini's office was not independent of the executive branch of Brazil's government, and Tombini faced the possibility that any of his actions that were not aligned with the priorities of the current administration could cost him his job.

This case follows classes on fiscal and monetary policy in normal times and is the first class in a sequence on macroeconomic challenges–in this case, stagflation–high inflation and high unemployment. Students are pushed to consider why macroeconomic stabilization involves such acute and unpleasant tradeoffs during episodes of high inflation and unemployment. Students use the IS/LM AD/AS model as a reference.

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.

After completion of the case study, the students will be able to analyze the role of industry in strategic decision-making, examine the information and make judgments with the use of different models such as political, economic, social, technological, environmental & legal (PESTEL) and Porter’s five forces and formulate a marketing strategy for the future move of Diwan & Co. using the Company, Competitors, and Customers (3Cs) model.

This case study is about young entrepreneur Mr Mansha Ram, who was working in the battery industry and was contemplating launching a new product. A gap was found after extensive research. The research showed that there is a gap between sustainable, reliable and cost-efficient batteries in the market that must be filled. To discuss this opportunity, a meeting was called where all managers talked about their concerns, considering the cost constraint as well as shifts in Pakistani battery industry trends. Ram was a key person who had to decide whether to launch the product or not. Should he go for a new initiative and launch lithium-ion batteries or capitalized on existing technology, which was lead acid batteries? Which path should he take considering all the macroenvironmental factors, electric vehicles or renewable energy?

This case study can be taught in the final year of undergraduate classes and the first year of MBA classes. This case study is particularly designed for students to understand how a company makes decisions while keeping in view the macro- and microbusiness environment. Even if some businesses do not have cost constraints, these businesses still face the impact of other factors on their businesses, for that purpose, the case study will provide insights into why a comprehensive industry analysis is important. Furthermore, this case study keeps in view the competitiveness of the market and its impact on the decision-making of companies.

Teaching notes are available for educators only.

CSS 8: Marketing.

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?

After completion of the case study, students are expected to demonstrate understanding of the process of strategy formulation (which include conducting situational analysis) and strategy implementation.

Perusahaan Azan, which trades under the brand name Roti Azan for its fresh bread and Azan for its dry bread or rusks, was established as a family business in 1968 by Haji Abu Bakar bin Ali in his hometown in Kuala Pilah, in the state of Negeri Sembilan in Malaysia. In the mid-1980s, the management of the business was passed on by Haji Abu Bakar to one of his sons, Haji Mohd Ghazali bin Haji Abu Bakar. Haji Ghazali was named managing director in 1985 and officially inherited his father’s company in 1987. By 2004, Perusahaan Azan breads had started to penetrate major grocery stores nationwide, and later the business began to expand internationally in 2010, with Oman and Iraq among the first countries it ventured into. The company sold both its fresh and dry bread in local stores; however, in the international market, only dry bread types were sold, specifically wholemeal rusks and long rusks, which had longer shelf lives. Post-pandemic, by 2022, the company had exited the retail fresh bread market and had focused only on its contractual fresh bread and retail dry bread markets. He thought about the main strategic choices he had of going forward, either to revive its retail fresh bread segment or venture into a coffee shop business. The former was the bread and butter of the company in the last 50 years. However, he knew that re-entering this market was getting more difficult, as it requires competing head-to-head with the giant breadmakers. There were also issues of rising costs and high wastage. For the latter coffee shop project, the company did not have experience in directly “serving” the customers, with its businesses so far had been mainly in production. He pondered on the best decision to undertake to sustain the company’s profitability into the next generation. Few family businesses can pass this crucial stage. He knew he had to act fast to ensure that the company’s plans for the future could be successfully implemented. The case study is suitable for use in teaching courses in strategic management, organisational management and integrated case study for advanced undergraduates and postgraduates in the programmes of business administration, Muamalat administration and accounting.

The case study is suitable for use in advanced undergraduate students in management, business administration, Muamalat administration and postgraduate students in MBA, Master in Muamalat Administration or other related master’s programmes with a course in strategic management, organisational management and integrated case study.

Teaching notes are available for educators only.

CSS 11: Strategy.

The case is derived from secondary sources, including publicly available reports and information about all companies directly or indirectly engaged in the industry. No primary sources were available.

This teaching case is designed for students to demonstrate their mastery of industry-level analysis in the emerging space tourism industry. It allows students to understand what constitutes the industry within the broader space sector and to apply analytical tools such as PESTEL and Porter’s Five Forces, with the option to discuss strategic groups. Students gain insights into how the industry is evolving within its broader environment and how companies could respond or differentiate themselves. Information is also provided for students to consider the broader social impact of a relatively new industry from the perspective of sustainable development.

The case is written for undergraduate and graduate students enrolled in strategic management courses. The case placement is ideally in conjunction with industry-level analytical frameworks such as Porter’s Five Forces, PESTEL analysis, strategic groups (optional) and industry life cycle. Most strategic management textbooks cover these concepts in the first few chapters. For example, “Strategic Management, 14th edition” by Hill, Schilling and Jones (2023) covers these topics in chapter 2. Given that space tourism is an embryonic industry dependent on technological innovation, instructors might also use this case in innovation or entrepreneurship-related courses. This case could also be used to address critical issues, such as sustainability, in tourism management courses.

This case invites students to assess the impact that Brexit, the withdrawal of the United Kingdom from the European Union, might have on a New York–based hedge fund's portfolio and, specifically, its UK assets. The case is designed to prompt students to make market assumptions and investment hypotheses based on a combination of numerical data and qualitative information. It requires no numerical computations; instead, it asks the student to interpret both markets' short-term reactions to the Brexit vote and strategy shifts from UK and European business leaders in order to evaluate longer-term implications for the economies of the United Kingdom, Europe, and the world.

This study enables one to critique the importance of adapting and innovating during challenging times to sustain and grow a business and also emphasizes the need for businesses to be flexible, resilient and willing to make necessary changes to stay relevant and thrive in dynamic and unpredictable environments.

In the competitive world of India’s quick-service restaurants industry, Shilpa Bhatt Bahuguna, the young entrepreneur behind “Pizza Italia,” aimed to secure the top spot in Uttarakhand. Despite facing setbacks by closing six out of the eight outlets during the COVID-19 pandemic, Bahuguna’s focus on product quality and localization had garnered word-of-mouth publicity for her brand. Now, with a limited budget for promotions, Bahuguna sought below-the-line strategies to ensure profitability and success for new outlets. Her determination to establish Pizza Italia as an indigenous brand and her plans for global expansion through franchising reflected her vision for growth and impact in the market. With her entrepreneurial spirit, Bahuguna remained poised to achieve even greater success in the future. Bahuguna aimed to leverage her product quality and word-of-mouth promotion to capture the market. She planned to expand her brand globally and open new outlets in Uttarakhand and London. However, Bahuguna was challenged to promote her brand on a limited budget, favoring “below-the-line” strategies.

This case study is appropriate for an undergraduate- or graduate-level program in marketing management.

Teaching notes are available for educators only.

CSS 11: Strategy

The primary objectives of the case study are to get the participants exposed to the issues of working capital which even profitable companies face on a day-to-day basis; give the participants an understanding of how to balance the, at times, conflicting objectives of increasing profits and sales through favorable credit terms; and expose them to the impact of increase in inventory levels and average collection period on margins in a period of slow growth. They will also learn about the concept of factoring and its uses.

The case study is about a group of companies engaged in education, steel fabrication and oil businesses owned by a single proprietor. The company was based in Fatehnagar which was part of Hyderabad district in the state of Telangana, India, and the case study traces the origins of the group from 1960s to 2021. The group was invested the surplus cash flows from the oil business to initiate and expand other businesses during this period. The economic downturn due to the COVID-19 pandemic had hit the company, particularly its oldest business – Noble Chemical Agency. The oil business was facing issues related to its growth and profitability, and the uncertainty around COVID-19-related restrictions had only augmented the fears of the management. The case study looks at issues and the dilemma which the owner of the company faced. The case study highlights various issues related to working capital management, especially related to receivables management and inventory levels faced by businesses during the slow-growth phase. It demonstrates how working capital management issues, if not resolved in time, can lead to insolvency of even a successful company with a sound business model.

The case study is meant for teaching in postgraduate management programs (Master of Business Administration and Postgraduate Diploma in Management) in the following courses: corporate finance/financial management course in the first year (the case study should be taught towards the end of the course); and management accounting courses in first year (the case study should be positioned in the middle of these courses). The case study can also be used to highlight issues related to working capital and small business management in a Management Development Programme (MDP) course for “Finance fundamentals for non-finance executives”.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous implications for all the stakeholders. This case study aims to make students understand the components of the fraud triangle, the impact of financial fraud on various stakeholders, the role of venture capitalist (VC) investors and the importance of good corporate governance in start-ups. The case study presents an excellent opportunity for students to discuss the consequences of ignoring good governance in the pursuit of growth in a start-up. After analyzing the case study, the students shall be able to explain the concept of the fraud triangle and to be able to identify the motivation, opportunity and rationalization of financial irregularities in a start-up; analyze the impact of financial irregularities on various stakeholders; comprehend the business model of VCs and evaluate its influence on VC-funded start-ups; and appraise the importance of good corporate governance in start-ups.

The case study revolves around the confession of financial irregularities made by one of the cofounders of GoMechanic, a start-up headquartered in Gurugram, India. On January 18, 2023, Amit Bhasin confessed to financial irregularities in the company’s financial statements, leading to laying off 70% of the workforce of the company. GoMechanic had earlier raised close to US$62m [1] from maverick global investors including Sequoia Capital, Tiger Global, Orios Venture Partners and Chiratae Ventures, and was negotiating to raise Series D financing from the Japanese multinational SoftBank with aspirations to be a unicorn (start-up with a valuation of over $1bn). The confession led to a debate about the consequences of the “growth at all cost” culture being followed by start-ups as well as VCs. GoMechanic was not an isolated instance of a lack of governance in the start-ups. The confession had consequences not only for the GoMechanic but for the entire start-up ecosystem of India, which was the third largest in the world. Bhasin stated that the founders take full responsibility for the situation, and they were working on a plan which was most viable under the circumstances. However, it was not going to be easy to regain the confidence of the investors.

The case study is best suited for senior undergraduate- and graduate-level business school students and in executive education programs in courses such as corporate governance and ethics, private equity and entrepreneurial finance.

Teaching notes are available for educators only.

CSS 1: Accounting and finance