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Ethical Entrepreneurship; Internationalization of small and medium enterprises (SMEs).

Bachelor and Master courses in International Management and Entrepreneurship.

A German medical scientist developed a product which was able to absorb alcohol in blood and consequently reduced the alcohol-level. He tested it with the participation of 170 volunteers at a private party. The product was consumed after alcohol consumption and the result was an alcohol reduction by 20-70 per cent. In addition, the volunteers had either no or only small symptoms of a hangover. The students shall discuss the different business models the medical scientist could implement by taking into account ethical issues. To give them necessary working data, the case includes European environmental data (including information about the European food industry and the functional drink market), an insight into the European legal issues of starting a business in the food segment (including definitions of “food”, “food supplement” and “health claim regulation” and how these factors impact entrepreneurial decisions), current events in the European food branch and examples of possible competitors. The case is built on a real product development and on current information and facts.

To become involved with entrepreneurial thinking and entrepreneurial decision-making. To debate ethical issues in the entrepreneurial process. To become aware of the complexity of internationalization in the field of SME as well as to reflect upon and sketch appropriate strategies.

Teaching note.

After reading the case, the students shall be able to explain the concept of insider trading and differentiate between illegal insider trading and legal insider trading, business ethics, financial institutions, financial markets and accounting; to interpret the legal framework for prevention of insider trading; to identify the role and significance of the market regulator, Securities and Exchange Board of India (SEBI), in detecting financial crimes such as insider trading; to demonstrate the association between information, stock trading and stock prices within the framework of efficient markets; and to appraise the ethical dilemma in a family-owned firm, where the family members of the promoter group are alleged to have indulged in a financial crime.

The case revolves around allegations of insider trading against the promoter and the promoter group of the family owned and controlled firm, Lux Industries Limited. On January 24, 2022, the SEBI, the regulator of securities markets in India, accused Udit Todi, the Executive Director of Lux Industries Limited, of engaging in insider trading through a chain of 14 connected parties. Udit Todi was also the son of the Managing Director, Pradip Kumar Todi, and the nephew of the Executive Chairman, Ashok Kumar Todi. In its interim order, SEBI alleged a breach of insider trading regulations by a group of 14 connected entities that had built up long positions starting from May 21, 2021, before the quarterly financial results (Q4) and the annual results of the financial year (FY) 2021 in the equity shares of Lux Industries Limited, with its registered office in Kolkata, India, were announced. Subsequently, they squared off the long positions to make a profit of ₹29.43m. To restore the confidence of the investors, the Executive Chairman, Ashok Kumar Todi, needed to review the matter expeditiously and impartially. Taking into consideration the family ties of the accused, it was not going to be an easy task, yet, it had to be done. The case highlights the role of the regulator, SEBI, in unearthing financial frauds such as insider trading in an emerging market such as India.

Postgraduate programs in management, Executive education programs.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance

The case deals with the Supreme Court's decision of August 31, 2012, ordering Sahara to refund Rs. 24,000 crores and interest to SEBI, so as to refund to the real investors. Despite unambiguous orders, Sahara did not comply fully and kept on prolonging the matter using number of pretexts, ultimately resulting in Roy's arrest. The case has been primarily written for easy understanding of facts, principles of corporate governance, and further developments, as mentioned in judgment, which runs into hundreds of pages. It depicts the legal journey of the fight between a company and the financial regulator in the country.

Organizational innovation, leading change, customer service management in professional service firms.

Advanced undergraduate, MBA/executive education.

This case describes the human resource (HR) dilemma faced by BDO Hungary in 2010, an international audit and tax consulting partnership, operating in the country since 1989. In order to continue its past growth story and to reach closer to “Big Four” BDO has to enter new business segments, offer more services to its existing customers and seize higher value-added business potentials. The new strategy, however, is challenged by its incumbent, traditional core business: auditing, which is highly regulated by ethical, legal, and professional standards including non-advertisement regulations to which the resulting organizational culture and HR routines are congruent. The case is described from the perspective of the Equity Partner, HR Director and Executive MBA student, who is tasked with a new HR plan for training and development and is charged with implementing it successfully. How best to adjust current training and development policies to the best meet new strategic growth goals? How to develop existing human capital? How to make employees more commercially oriented in such a conservative, risk averse, and highly regulated environment? How to improve their customer service and the sales skill?

Exploring the importance of training and development in improving customer service levels in professional service firms operating in emerging markets. Understanding the limitations and the possibilities of transferring international HR policies and standards across borders and cultural differences.

Teaching notes.

The case explores information technology (IT) company Mindtree’s journey of 20 years from the time it was founded in 1999 to be different from others, and how it became a target for acquisition by an Indian diversified conglomerate in 2019. It offers insights into developing organizational culture and values in an organization, threats faced by a company when promoters dilute their shareholding, and the strategies followed by the acquirer and the target firm. It also deals with the challenges in the acquisition of a knowledge service digital firm. After working through the case and assignment questions, students will be able to: identify the circumstances under which a company can become a target for hostile takeover; describe motivations of the acquirer firm in an acquisition; distinguish between acquisition and hostile takeover, and discuss salient features of Securities and Exchange Board of India (substantial acquisition of shares and takeover) regulations, 2011; list the defenses a target firm can adopt to ward off hostile acquirer; explore strategies followed by acquirer and target firms; analyze important ingredients of organization culture, and importance of cultural congruence in an acquisition; and discuss challenges faced by an acquirer in India, namely, legal, retention of clients and key people in the target firm particularly in hostile environment.

The case explores how ten IT professionals founded mid-tier IT services company Mindtree in 1999 in Bengaluru, India (home to Infosys and Wipro) to be different from others – by inserting themselves at a higher level in the value chain, being philanthropic as a part of broader business strategy to attract a certain kind of employee and customer. It developed a culture of equality, consideration and respect. Its attrition rate of 12 to 13 per cent was significantly lower than the Industries. Mindtree crossed annual revenue of US$1bn for FY 2019 and was growing at twice the industry’s growth rate. The most attractive part was that its proportion of revenue from digital services was about 50 per cent as compared to 25-35 per cent of other services vendors. With time, the share of promoters/founders declined and increased one investor’s shareholding of V. G. Siddhartha and his related entities. In early March 2019, the promoters’ stake was 13.32 per cent while Siddhartha had 20.32 per cent. Larsen and Toubro (L&T) one of India’s conglomerate entered into a share purchase agreement on March 18, 2019 with Siddhartha to acquire his 20.32 per cent stake. Immediately, L&T asked its broker to purchase up to 15 per cent of share capital of Mindtree at a price not exceeding INR 980 per share (each share of face value INR 10). This would trigger an open offer by L&T to purchase additional 31 per cent shares of Mindtree. The action of hostile takeover bid by L&T evoked emotional criticism from Mindtree founders. Mindtree efforts to defend itself could not materialize. L&T’s stake crossed 26 per cent on May 16, 2019. After Indian regulator SEBI’s approval, L&T’s open offer to buy shares from Mindtree shareholders commenced on June 17, 2019. The case examines motivation of the acquirer firm particularly when it is a conglomerate, and how a well-performing company became a target for hostile takeover. It looks at vulnerabilities of a target firm, and defensive steps a firm can take to fence itself against such takeover. The case also explores how organizational culture is built in a people-oriented business, namely, digital services, and what role it plays in a merger of two firms.

The case is suited for postgraduate students of management, as well as those undergoing executive courses in management.

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 11: Strategy.

Strategy/entrepreneurship/international marketing.

This case is recommended for use in courses on strategy, entrepreneurship, international marketing and joint venture for PGDM and Executive programmes.

International Football Academy (IFA), a leading football development firm, is gearing up to expand its operations to a new geographic market, India. The purpose is to further its international growth plans by establishing a lasting presence in developing markets. Their previous stints in China and Indonesia met with huge success. However, there was a stark difference between those geographies and the Indian market, in terms of political system, economic infrastructure, social framework, cultural practices, technological advancements, legal regulations, etc. In a country where 47 per cent of the 1.2 billion population considered themselves football fans (Nielson survey, 2010), it was ironical that the Indian football market remained one of the most untapped and fragmented of its kind. The question for IFA was: “Would India be another feather in our hat?”

The case highlights the key factors facing firms, when expanding into emerging markets. The students are expected to think through the various dimensions to decision-making, which includes Why (expand), Where (which market), When (right time), What (thrust of strategy) and Who (partners). It also compels the students to appreciate the various challenges involved in exporting a product, which is as unique as “football training”.

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 11: Strategy

International business, Accounting and Finance.

Undergraduate and Postgraduate levels (advanced financial accounting, international accounting, other accounting and business courses with an international setting.

The case uses the Asia Pulp & Paper Company’s (APP) entry into the international debt market to highlight the consequences of different business practices between the East (in this case, Indonesia) and the West. On the one hand, it shows that APP was set up as the “front” to access international debt capital; on the other, it reveals the naïvety of Western lenders who parted with their funds without conducting a thorough background research on the financial viability of the company they invested in. The APP debacle is a poignant reminder for market participants and business/accounting students that the divergence of the business settings across countries can make business contractual arrangements tenuous and corporate financial information irrelevant to its users. It also exposes the unique ways of how some Asian countries conduct their business affairs.

The following are the expected learning outcomes: comprehend the impact of differences in culture and ethnic origin on business practices; evaluate the impact of cultural nuances on the legality of contracts in the international business setting; understand the impact of currency fluctuation on the financial position of multinational firms; and be more cautious in conducting business and entering into contracts with foreign firms.

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

CCS 1: Accounting and Finance.

The case study illustrated strategic, marketing, financial and operational challenges faced by Netflix in India's growing SVoD market. This case is appropriate in courses such as Strategic Management, Business Strategy, Marketing Management and International Marketing for postgraduate MBA students, other graduate-level management programs and undergraduate-level students. The case was developed to raise awareness among students, to understand the complex nature of the technology-driven industry, to survive in the highly competitive market, to set up a company that serves the huge Indian market. This case delves into the dynamics of marketing on the Indian market, characterized by unorganized players such as local cable television; torrent downloads and organized and established players, low digitalization rates, language barriers, low internet penetration, lack of infrastructure, price-sensitive consumers. Due to up-gradation in technology, internet penetration, an increase in smartphone users, and the market has undergone a notable amount of change, due to a lot on new entrants, competitions, substitutes. The case states various obstacles, for a multinational company while entering the market such as India and how they are required to strategize, mold their marketing mix, need to analyze en-cash their strength, overcome their weakness, take maximum advantage of opportunities and modify their strategies to face huge challenges. The specific learning outcome of the case will help students to understand the strategy that multinational companies can adopt to sustain, compete in emerging countries such as India and within that emerging market such as streaming videos on demand (SVoD). This case will help students to understand the importance of internal and external resources, which help multinational companies to make strategies based on these resources. The case study offers learners the opportunity to explore the strategy in a dynamic environment. This case also highlights the critical issues that should be addressed by multinational companies when entering into a foreign market. The case highlights the importance of analyzing the competitive environment in which it’s going to compete and sustain. It can be used to introduce Ansoff’s growth matrix, internal and external factor analysis and porter’s five forces in the delivery of course for both regular and executive programs. The case should be offered in the middle term periods of the course. Additionally, the case could be used in marketing courses to indicate the importance of scanning the business environment in marketing activities for any organization. The case illustrates the strategies that companies can undertake to expand the market, introduce new products, as per the requirement of business environment and concerns linked with innovating approaches to support the organization to satisfy a larger number of price-sensitive consumers from varied backgrounds.

Netflix has been optimistic about the potential growth of the Indian market. It will grow slowly and gradually and become profitable. The SVoD market in India has been price sensitive. There are no plans for cheaper prices. Netflix had a long way to go. The pricing model of Netflix was a hurdle in its growth, but the future of Netflix in India was bright. There have been numerous challenges in terms of government regulations, pricing structure and an increase in the number of competitive players on the market. Netflix believed that Indian audiences enjoyed “Bollywood” film productions but watched low-quality soap opera content on television. Television audiences were a massive untapped market for their brand of original, exclusively produced content. Can Netflix come up with a marketing and growth strategy, or else they might be looking to lose market share and revenue. Should a new product such as Amazon and MI fire stick be introduced in the existing market like their competitors? Should they enter the existing market with existing products, or should they seek a new market in India, such as the rural market, the Pyramid market, the Tier II market and the City III market? Should they diversify into a new market with new products? How Netflix should plan its market communication if it wants to launch a new product or if it wants to reposition its existing product. Netflix had to rethink its strategies and also needed to address these issues so that they could travel smoothly on Indian roads. High marketing budget and aggressive promotions helped Netflix India to make a profit in its first year.

Postgraduate MBA students, other graduate-level management programs and undergraduate-level students.

Teaching notes are available for educators only.

CSS 11: Strategy.

Decision-making seems simple, but, in reality, it is not an easy task to decide the cause for its profound result or consequence, leading to inevitable failures. Therefore, a leader must recognize whether there is something incorrect so as to avoid bad results. A good leader is a person who carefully reviews and analyzes aspects of a problem, knows the strengths and weaknesses of his organization and evaluates what the advantages or risks are. It cannot be denied that the appropriate options will reap many benefits to the business. For such important things, this paper will discuss the dilemma of Viettire, a tire distributor company in Vietnam. Accordingly, its CEO was worried about what strategic option he should adopt to approach the Myanmar market while ensuring a strategic fit to its company’s resources and capabilities and also to the overall market demands of the tire industry environment in both countries. However, with different ideas, the expansion strategies in this new market become controversial. The General Director and Founder of Viettire were wondering how Viettire could expand its existing business into Myanmar. To expand the company to new emerging market in Myanmar, Hoang Nguyen – CEO of Viettire – had conducted a strategic analysis of external environment factors to define the opportunities and threats when doing business in Myanmar by using Porter’s five forces model, S.W.O.T and competitive advantages analysis. The results indicated that Myanmar’s business environment is highly risky for foreign investors because of uncertain political, economic, social reforms in the process. Among three options, namely, exporting, licensing and wholly owned, however, Option 2 is illustrated as the best strategy for its dilemma.

Postgraduate/Graduate Business level.

As for a market mechanism, what produces, how and for whom, is not the business’s demand but the consumer’s demand. The business sells only what the market needs, not what it has. In the period of increasingly competitive conditions, stabilizing and expanding markets are a prerequisite for survival. If stability is seen as a “defensive” way, expansion is a “defensive attack” like trying to hold on the “pie” that the market gives to itself. This strategic action is to strengthen regular, close relationships with existing customers and establish new customers. As a result, the potential market is transformed into a target market. Hence, decision-making of which market, which method is the issue that a leader has to think the choice to avoid risks. Mr Hung, Viettire’s co-owner, suggests that Myanmar should be taken into account as a company’s new entry, thus exploring this potential market to increase the company’s growth and profitability. In the progress, Viettire’s marketing team had been doing a thorough tire market investigation in Myanmar. It was concluded that this emerging country, especially Yangon City, was the most suitable for those who were willing to embark on an overseas investment expansion. They believe this was a good opportunity to gain market share compared with other entrants and competitive rivals; if Viettire hesitated to invest, others definitely had jumped in with a first-mover advantage. However, the CEO, Mr Hoang, was worried about what strategic option he should adopt to approach this new market while ensuring a strategic fit to its company’s resources and capabilities and also to the overall market demands of the tire industry environment in both countries.

Understand the basic decisions that firms contemplating foreign expansion must make: which markets to enter, when to enter those markets and at what scale. Recognize the current strategic decisions an organization is facing: positioning, portfolio and market expansion approach. Learn how to develop an effective strategic plan. Be familiar with different strategies for competing globally and their pros and cons. Evaluate various strategic options and decisions in accordance with a company’s resources and capabilities.

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 11: Strategy.

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.