Search results

Leadership, organizational behavior, entrepreneurship.

This case study is intended for undergraduate and graduate levels.

This is a leadership case about Agnes Jean Brugger, founder of the A.J. Brugger Education Project (also known as the A.J. Brugger Foundation (AJBF)) in San Juan del Sur, Nicaragua. It is the story of how and why she and Chris Berry co-founded this unique non-profit foundation in tandem with Piedras Y Olas: Pelican Eyes Resort (PEPO) in the late 1990s. The case focuses on how her identity and values shape the origins of AJBF and how the organization evolves in the context of the Nicaraguan and Anglo-American cultures. “Devoted to assisting Nicaragua through education and development of one of the country's most valuable and treasured resources: its young people”, the vision for AJBF was a cutting edge socially conscious venture that grew to meet the needs of the community that had captured Jean's heart and mind. The case ends in early 2009 on the precipice of the biggest economic down-turn the US economy has experienced in recent history. Standing at the edge of this cliff, Jean contemplates the numerous successful accomplishments of the foundation, while reflecting on the many leadership and organizational problems she, as Founder and Chair of the Board, faces.

The case will help participants to: evaluate and discuss leadership effectiveness, identifying responses to opportunities and challenges; explain cross-cultural identity from the Globe Study model and how it impacts organizational interactions; explore successful models of cross-cultural leadership through the lens of gendered theory; explore the ways in which social entrepreneurship can be seen as an extension of socially-minded leadership; describe how socially-minded entrepreneurship is different from traditional forms of entrepreneurship; describe social identity and evaluate its impact on leadership; and discuss the rich historical and community context that influences interpersonal and organizational dynamics.

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

The case highlights the ambitious growth strategy of Suzlon, an Indian company specializing in non-conventional (wind) energy. In 2007, Suzlon announced the acquisition of REpower of Germany, one of the top wind power companies in the world. It issued zero coupon and coupon bearing foreign currency (US dollar) convertible bonds (FCCB) amounting to $760 million to finance the acquisition. These bonds were listed in Singapore. Due to deteriorating business conditions the company experienced a sharp decline in profitability and stock price resulting in a debt overhang. At the same time, the Indian rupee depreciated from INR44 to INR55 leading to losses on largely unhedged, foreign currency coupon payments. The company had to restructure its capital structure to escape bankruptcy. Since FCCB holders did not agree to restructure the terms of the instrument, the company had to turn to senior lenders to restructure debt. Eventually Suzlon had to sell-off REpower to reduce leverage.

The case is based on interviews of market intermediaries and published information. The information relating to the restructuring has been taken from the information statement filed with the Securities Exchange Board of India and the Stock Exchanges. The timeline of events were constructed from the information available in company press releases. Financial statements and other details are from the documents filed with the regulators and supplemented with the information available in Prowess database. The stock price and stock market index data are from the websites of Bombay Stock Exchange and the National Stock Exchange of India. Exchange rates, inflation and interest rates have been taken from Bloomberg and the Reserve Bank of India website. Valuation inputs like multiples are from Prowess database and security analyst reports. Sources of information are documented appropriately in the case and instructor’s manual. Although we interviewed the investment bankers involved in the restructuring we have not included any private information in the case to preserve confidentiality.

This case can be used in a corporate finance course or in a module on debt restructuring in a corporate restructuring course or in the financing module in an advanced corporate finance course or in an International Finance course. It can also be used to teach an integrated approach to valuation and financing in a valuation course.

The case highlights the rationale for issuing FX convertible debt, parity conditions in international finance and the use of alternate valuation models.