Search results

The primary teaching objective is to discuss the capital raising efforts of a firm under financial distress. It also provides supporting data to calculate cost of capital, DuPont/modified DuPont values and Altman’s Z-Score that can appropriately be incorporated into the discussion. Case-B provides information and data of the company’s recent performance and to changes in bankruptcy law in India. Overall, this case study provides ample scope to discuss, understand and provide the solution to the following key corporate finance themes as follows: 1. Analyzing accounting statements and examine potential earnings quality issue. 2. Predicting default and bankruptcy using qualitative analysis, financial ratios, traditional and modified DuPont models and Altman’s Z score model. 3. Examining the capital raising efforts of a distressed firm, which has already defaulted on borrowings. 4. To explore the impact of changes in regulation on the turnaround efforts of the firm as well as on the promoters of the firm.

Since 2005, Amtek Auto moved at a breathtaking speed with the goal of reaching $10bn in sales, from the current level of about $1.2bn. The group had acquired more than a dozen companies spending about Rs.5,000cr. ($850m) during this period primarily through borrowed funds. However, the market and business expansion was not happening as expected. The company’s capacity utilization was just about 40% (approx.) during much of this period. The mounting fixed costs of operation and debt servicing grew to the level of unsustainability, led the firm to default on its borrowing. Now the company had to quickly recapitalize itself to run its operations and retain the premier position in auto component industry. The company and its promoters were considering various methods of debt restructuring, asset sale and further equity infusion.

Introductory and elective level corporate finance.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

The case highlights Mike Gilliland, who built a single organic foods store in 1987 in Boulder, Colorado, into Wild Oats Markets, a chain of natural foods stores that by 2001 had annual sales of $1 billion and stores in 38 states. The case includes a history of the natural foods business and explores why Gilliland's timing was so favorable. By the 1980s, when Gilliland got started, the natural foods business had grown and matured, consisting mostly of small specialty stores selling locally grown natural foods. Although the industry was created by the California counter-culturists, it was built into a national phenomenon by the second generation of leaders, including Gilliland and Whole Foods founder John Mackey. The natural foods industry was clubby and congenial until Gilliland sought to grow his business beyond Boulder, Colorado, expanding into four states, including California. Mackey responded by moving into Boulder. Whole Foods became the nation's number one natural foods seller by the early 1990s. Whole Foods went public in 1992, and Wild Oats, in 1996. Whole Foods's success had begun to erode Wild Oats's market share, hurt sales growth, and depress the stock price. Gilliland favored taking Wild Oats in a new direction, modeled after Henry's Marketplace, a San Diego chain that Wild Oats had purchased in 2000. Henry's approach was to offer a product mix that appealed to a broader range of people than did the natural foods stores. Henry's competed effectively with Whole Foods because it had a different customer base; the stores were cheap to build if the company wanted to expand; and the company had showed sustained growth since its founding in 1943. But the Wild Oats board of directors disagreed, opting instead for continuing on the same path. The board also expressed an interest in replacing Gilliland. He now had to weigh his options and contemplate leaving the company he had nurtured for the past twenty

This case can be used to examine the importance of long-range planning. Entrepreneurs tend to be reactive; they often succeed because they seize opportunities when they become available. The ability to recognize an opportunity and to seize it is an important entrepreneurial strength, but it can prove fatal if not balanced with proactive strategic planning.

The learning outcomes are to understand the definition of public value and the strategic drivers behind public value creation, understand the nature of social innovation in the public sector, identify the critical opportunities and challenges involved in sustaining innovation in the public sector and identify the role that non-profit organizations can play in supporting and sustaining social innovation.

This case puts participants in the shoes of a global health innovator’s leadership team as the organization approaches a funding crisis. The organization, VillageReach, is on a quest to expand across the public health system of Mozambique and experiences a funding dilemma. The case reveals the challenges of working with governments to achieve large-scale, systemic change. It explores the conundrum of using international donor funding to embed new practices in government service delivery. Ultimately, it asks participants to choose between the pursuit of new, small-scale innovative projects and the large-scale rollout of a national programme.

This teaching case is written for courses focused on social entrepreneurship, social innovation and social change. It can also be used in courses focused on non-profit management and public sector innovation. Specifically, the teaching case is suitable for two audiences: social enterprise and non-profit managers focused on strategy, development and operations (the case focuses on an enterprise that relies primarily on donor funding) and health-care managers and administrators. Generally, the case is suitable for undergraduates in their final year of study as well as graduate-level business and public administration courses, including MBA, MPH, MPA, EMBA and Executive Education courses.

Teaching Notes are available for educators only.

CSS 3: Entrepreneurship.

Discusses the challenges that internal departments face as organizations grow and expand. The Field Museum in Chicago, Illinois, grew significantly over a short period of time, creating considerable problems in the finance department, as staff and systems failed to keep pace with the evolving demands placed by the museum departments. These problems resulted in outdated policies and procedures, unhappy users, and frustrated employees. The finance department needed big changes but had to make them while maintaining vital functions, improving morale, and instituting new policies and procedures. Discusses several key nonprofit management issues, including change management, the role of leadership in a crisis, the challenge of informal personnel networks and knowledge management, and key financial issues facing nonprofit organizations.

MBA, advanced undergrad, entrepreneurship and technology commercialization classes.

Entrepreneurial diversity, equity and inclusion, medical device innovation, and models of business accelerators.

The first half of the case explores Kathryne Cooper’s professional and personal journey and the ways her life experiences inform the goals she helps set for The West Coast Consortium for Technology & Innovation in Pediatrics (CTIP). As an African-American woman codirector of a medical device accelerator focused on the pediatric market, Cooper was acutely aware of the lack of diversity in the tech industry. The second half of the case explores the medical device market and the need for organizations such as CTIP. Cooper implemented a revised application process and system to encourage applications from underrepresented minority founders. CTIP was in a unique position to support concept stage products and nontraditional founders. The case concludes with a description of seven companies that have applied to join CTIP’s portfolio. Students are instructed to consider, as Cooper, which companies to support and what type of support to offer.

Explore the ways personal backgrounds inform leadership positions. Analyze how ventures are evaluated from a grant-funded accelerator (in contrast to an investment-fund accelerator). Examine the wide range of support that nontraditional founders require in the underserved pediatric market.

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

A model to support diversity of gender and race in entrepreneurship.

CSS 3: Entrepreneurship.

The purpose of this study is to use design thinking principles to understand the failure of the ‘new’ European Super League, and also understand how it could be redesigned.

This case has been developed from secondary sources, including news reports, social media sites, annual reports and websites of the Union of European Football Associations and the European football clubs. This case was classroom-tested with post-graduate management students in a design thinking course in May 2021 at an Indian business school, S.P. Jain Institute of Management & Research, in Mumbai, India.

In April 2021, a new football league – the European Super League, is announced as a breakaway rebel league, in direct competition with United European Footballers Association's Champions League. It is backed by the top 12 European clubs and officials in European football, besides the US investment bank, JP Morgan. The new league is touted as one intended to save football. It is, however, denounced by fans and shunned almost universally. The league, which has been planned for the past three and half years, faces collapse. Why did the European Super League fail? How could the founders design a new league?

This case could be used in an undergraduate or MBA classroom or an executive education programme in a design thinking course. It can also be used to teach marketing courses such as marketing strategy, new product development and consumer behaviour.

This case draws upon the literature on appropriate leadership behaviors that Yahoo’s Founders or CEOs could have adopted. It discusses the process of environmental analysis that would have an impact on Yahoo!’s strategy. It discusses and depicts the levels of environmental analyzes that Yahoo! as a firm ought to have undertaken in mapping its competitive environment. Further, this case discusses transformational leadership factors and those behavioral traits that exemplify each of these factors. Finally, the four elements of aspiration in discussing future firm direction are identified. These include an appropriate vision translated into a clarifying mission reflected in specific objectives grounded in explicit value statements.

This case is based on secondary data sources that include official company records, online reports and commentary, newspaper reports, public interviews and books. All such information has been appropriately referenced.

Yahoo!, in its 22 years of existence, has demonstrated remarkable tumult. It has witnessed a succession of six CEOs, exhibited a roller coaster trajectory in its stock price and, for the most part of its existence, played “catch-up” with its strategic competitors. It has also struggled to define its core purpose, its industry category and its very essence of being. In early 2016, CEO Marissa Mayer announced that Yahoo! would be willing to sell its core internet business and that its board would “engage on qualified strategic proposals.” However, the board also reiterated that turning around Yahoo! to prosperity continued to remain a top priority. What went wrong, so terribly wrong, with Yahoo! in an otherwise lucrative industry? Does Yahoo! suffer from a fundamental, essential malaise which, if addressed, could restore it to wealth and vibrancy? This case focuses on the period 1994, the inception of Yahoo!, to early 2016. The acquisition of Yahoo! by Verizon, completed in 2017, is not to be considered for purposes of this case study.

This case is particularly suited to be taught in a capstone strategic management course for MBA/Master’s level business students, after they have been exposed to core courses in Marketing, Business Law, Accounting, Supply Chain, Corporate Finance. It may also be taught in an advanced strategy course for undergraduate business students, typically in their final year of study. Finally, this case can be used to teach senior management in executive management programs.

This case is meant for MBA students as a part of their leadership/information technology and system curriculum. It is suitable for classes in both offline and online mode.

Human resources management/information technology and systems.

The case discusses how Poppy Gustafsson (Gustafsson) (she), Cofounder and Chief Executive Officer of Darktrace plc, one of the world’s largest cyber-AI companies, is reinventing enterprise security by using artificial intelligence (AI) to detect and respond to cyberthreats to businesses and protect the public. Darktrace’s technology leverages the principles of the human immune system to autonomously defend organizations from cyberattacks, insider threats and AI warfare. In addition to leading a cutting-edge cybersecurity company, Gustafsson evangelizes gender diversity at Darktrace where 40% of employees and four C-level executives are women, a number nearly unheard of in the tech sector.The case chronicles the journey of Gustafsson and how she led the company to growth and success. Under her leadership, Darktrace has grown into a market leader in the AI cybersecurity space serving 5,600 customers in 100 countries, as of June 2021. Gustafsson not only redefined the cybersecurity space but also inspired women to pursue a career in the field of cybersecurity. She also collaborated with a social enterprise called WISE to encourage more girls to consider STEM careers.However, along the way, she faced several challenges including growing competition, procuring funds from investors, cybersecurity talent shortage and training personnel. Going forward, some of the challenges before Gustafsson would be to meet the changing cyber protection demands of customers; hire, train and retain highly skilled cybersecurity personnel; beat the competition in a saturated cybersecurity services space; sustain revenue growth; and post profits as Darktrace had incurred losses every year since its inception.

This case is designed to enable students to: understand the issues and challenges women face in the field of cybersecurity; understand the qualities required for a woman leader to lead a technology firm; study the leadership and management style of Gustafsson; understand the importance of transformational leadership in management; understand the role of Gustafsson in Darktrace’s growth and success; analyze the traits that Gustafsson possesses as a tech leader in an emerging cybersecurity space; understand the importance of gender diversity in cybersecurity; and analyze the challenges faced by Gustafsson going forward and explore ways in which she can overcome them.

CSS: 11 Strategy.

Fixed Income markets, Financial Markets and Institutions.

This case can be used in a postgraduate finance course such as an MBA and executive program for courses such as Fixed Income Markets and Financial Markets and Institutions.

In late August 2015, the sudden downgrade and eventual default of Amtek AUTO Ltd (Amtek) on its debentures upset mutual fund investors and regulators. Questions were raised about the credit rating agencies and their lack of timely action as well as about the independent credit analysis followed by fund houses to protect the interests of investors. One such investor, Suresh Nair, decided to gather all possible available information on Amtek to determine whether it was sheer negligence on the part of all parties involved or if Amtek was in fact in a situation of sudden distress. The case seeks to highlight the credit analysis process, while looking out for red flags to identify potential default or financial stress in a company.

To understand the credit analysis process through a fundamental analysis process. To analyze and interpret the financial position of the company through various financial ratios. Identifying “red flags” while evaluating a potential credit that pose as “risks” to credit assessment. Understanding the role and relevance of credit rating agencies in the bond market.

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

The case is suitable for MBA/MS students.

The famous Taj Mahal Palace and Towers became the centre of one of the most deadly terrorist attacks in the Indian sub continent on the night of 26 November 2008, which became famous as “26/11”. Terrorists created havoc shooting guests on sight and throwing grenades. The attacks lasted for three days but all of the four terrorists who entered Taj were killed. The terrorists had killed 160 people across Mumbai. Of these, 36 died at the Taj Mahal Palace and Towers, Mumbai. The dead included 14 guests, most of whom were foreign nationals. However, due to the selfless and extraordinary behavior of the employees and the staff of Taj, many guests were saved. They put forth an extraordinary example justifying the Indian code of conduct towards guests, “Atithi Devo Bhav” meaning “Guest is God”. In spite of knowing back exits and hiding spots, the employees did not flee, instead helping guests. The employees' behavior during the crisis saved the lives of nearly300 guests. This gesture of Taj employees was much talked about, but it was amusing even for the management to explain why they behaved in that manner. The condition of Taj after the attacks was so disastrous that it would have been profitable to leave the hotel as it was rather than reopening it. This, however, would have dented the Taj brand as a whole, as well as the spirit of all employees and staff who had behaved bravely. Taj started its restoration and reopened a part of the Taj Mahal Palace and Towers on 21 December 2008. It became operational by August 2010. The case provides an opportunity to closely examine employee behavior in an extreme crisis situation, and the possible reasons and motivation behind such exceptional behavior which ultimately helped to sustain the Taj brand. However, the scope of the case can also be extended to illustrate recovery efforts typical to service industries.

The case is designed to enable students to understand: the employees role in service delivery; the service profit chain; the relationship between profitability, customer loyalty, employee satisfaction and loyalty, and productivity; service failure; service recovery; and the service recovery paradox.

Teaching notes are available. Please consult your librarian for access.