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Finance, General Business Management.

Postgraduate/MBA Second Year.

The university-owned Universal Computing Limited (UCL) was contemplating on the future of its internet services business. Internally, the internet services department had put up a proposal on how to revamp the business. Concurrently, UCL received a joint venture proposition from a foreign telecommunication entity with which it had some business relation. The proposal was for UCL to cede its internet services department and the associated licence to the venture while the partner will finance the venture. Professor Ben Msomi, the UCL’s Managing Director knew that he had to make one of the two proposals a good sell to the board of directors’ meeting in two-weeks’ time probably before suggesting UCL to exit the internet services business.

Overall, the case aims at gaining an understanding of the sources of value of business and valuation of business. Specifically students are expected to learn how to: evaluate of the effect of various courses of action on the value of a business; apply different valuation methods – balance sheet, discounted cash-flows and market multiples in different context; establish appropriate rate for capitalization in business valuation; and handle assumptions and risks in business valuation,

Overall, the case aims at gaining an understanding of the sources of value of business and valuation of business. Specifically students are expected to learn how to: evaluate of the effect of various courses of action on the value of a business; apply different valuation methods – balance sheet, discounted cash-flows and market multiples in different context; establish appropriate rate for capitalization in business valuation; and handle assumptions and risks in business valuation,

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

This case brings out the role of institutions and corporate governance issues in regulatory/policy organisations in the telecom sector. Spectrum is a critical input for mobile services, the economic growth driver. The Indian government, like other governments, attempted to move to a more flexible spectrum governance regime and introduced trading to ensure that more spectrum became available for commercial services. Despite its efforts, the government's framework was restrictive. The spectrum trading deal between the two private telecom operators-RCom and Reliance Jio-failed. RCom was fighting to remain solvent by selling spectrum, and Reliance Jio needed it for its growth.

After completion of the case study, students will be able to evaluate the journey of launching a business in an emerging market context and judge how opportunities and challenges can be navigated to build sustainable enterprises; assess the relevance of individual attributes and process skills that are necessary for entrepreneurial agency to transform social structures through entrepreneurial action; formulate an argument highlighting the role of the entrepreneurial ecosystem in growing a competitive business in an emerging market context; make an informed decision and critique how accelerators and incubators affect the development of ideas and access to finance in South Africa; and propose various strategic options available for technology entrepreneurs, considering the challenges they face in emerging economies.

In April 2023, Queen Ndlovu, CEO and founder of QP Drone Tech, a provider of drone business solutions, was considering options to fulfil her original dream of manufacturing drones in South Africa. She had encountered obstacles to achieving the same in 2019, and had decided to focus on providing commercial drone consulting services. However, her dream had not extinguished, and in 2022, she decided to restart her efforts. She found practical support from The Innovation Hub, an incubator that was supporting her business, which enabled her to enhance the prototype of her drone. She then had to think about how she would manufacture drones locally by ensuring she had access to production infrastructure, funding, partners and customers. Would she be able to gain a competitive advantage that would differentiate her from competitors? Or should she reconsider whether she should be manufacturing in the first place, as there are risks and benefits for smaller businesses in this regard.

This case is intended for discussion in postgraduate diploma in business and Master of Business Administration courses.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

This case describes the events following an incident of a rape in a taxi associated with Uber, by its driver. Uber was an application based taxi operator. The events raised several issues for government systems and processes, such as need for regulation of new formats of business like application based taxi services, integrated databases, checks against forgery and holistic approach towards women safety. The case also brings out how an e-commerce business raises regulatory concerns.

The case describes how Radio Mirchi dealt with competition in the Bangalore FM radio market. Radio Mirchi's market share in Bangalore started declining within a few months of its successful launch, following the entry of new competitors in the market. The case discusses strategies adopted by the company to regain its market share and become the market leader. It describes the initial product offering of the channel, why it felt the need to redesign its product mix, and eventually how the company changed its product offering. The focus of the case is on the dilemma faced by the organization while shifting to a new product and service design in the face of emerging competition. The case highlights the importance of continuously monitoring the market environment and developing a keen understanding of the consumers' behaviour for an organization to gain and sustain its leadership position in the marketplace.

Radio Mirchi is the flagship brand of Entertainment Network India Limited (ENIL). ENIL is the largest private FM radio broadcaster in India. ENIL was able to gain a stronghold in the market due to its strengths of innovativeness and creative content, large operating network, reach among listeners, high quality studio and strong advertisement sales capabilities. The case discusses Radio Mirchi's entry into the Kolkata market in 2003 amidst the competition from three other players—Red FM, Aamar and Power. Kolkata occupied a prime place in the company's growth plans. The case discusses the dilemma faced by the company on developing the entry strategy. Its top management has to decide on the market segment(s) it should target, and the design of the product.

The founding principle of contracts is the freedom of the parties. The parties are free to choose their terms and follow any modality of communication, oral or written. As they can freely make a contract, they can freely modify or unmake it. Written contracts have a clause, No Oral Modification Clause (NOM Clause), precluding oral modifications of the contract. Irrespective of it, business persons make oral agreements modifying the contract, and later, dispute its validity. If the parties are free to contract, why should the oral agreement not be binding? In a NOM Clause then, ineffective? The United Kingdom Supreme Court, in MWB Business Exchange Centres Ltd v Rock Advertising Ltd, explores this fundamental question on contract law.

The learning outcomes provide insights into how organisations have emerged out of such changes in the external environment, additional complexities that female entrepreneurs have to navigate in patriarchal societies and complexities of handing over control of a family business by the founding generation takes.

This case is about Rita Zwane’s dilemma as she was about to hand over the management and leadership of Imbizo Shisanyama Restaurant to her son. As founder and Chairperson of the enterprise, Zwane founded the business over 20 years ago and had seen it grow from being housed in a customised shipping container to annually turning over millions of rands per year. Her dilemma was borne out of the belief that many family businesses collapsed after being taken over by the second generation. While Zwane grudgingly admitted that Senzo’s involvement in the business had increased turnover and efficiencies, she was reluctant to let go. This raises a question of whether her dilemma was not only her concern on Senzo’s management abilities but also her difficulty in letting go. The case is suitable for management and change leadership courses on a post graduate level where theories such as attachment theory could be taught to demonstrate that the problem is not always the new leadership in transitioning businesses from the founding generation to second generation of leaders. This is particularly for small and medium-sized enterprises where Imbizo Shisanyama Restaurant is situated. Imbizo Shisanyama Restaurant was founded in 1997 during a period when the abolition of many apartheid laws saw an unprecedented urbanisation process leading to the mushrooming of informal settlements. It is this mushrooming of informal settlements that enabled the establishment of Imbizo Shisanyama Restaurant. The case will provide some insights into opportunities that opened up for Zwane in this pivotal period.

Post Graduate Level

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 3: Entrepreneurship.

They are as follows: to identify strategic growth opportunities for SMEs in the South African craft beer industry; to understand the complexities associated with operating a craft beer SME in the South African alcohol sector and analyse the SME’s strategic decision-making process that happens as a result; to understand the challenges and identify opportunities for entrepreneurship and growth in an emerging economy and niche segment; to develop a differentiation strategy for a small player in a competitive market; and to impart industry-specific knowledge and insight on the craft brewing industry.

The case is centred on the challenges that Hein Swart, managing director of Mitchell’s Brewery, is facing in sustaining business operations amid heavy regulations and increasing competition from existing craft breweries. In addition, there is the entry of a different type of competitor into the South African market that did not exist previously. The case narrative broadly presents several industry themes that interact with each other and create the existing complexities.

This case is targeted at postgraduate business school students with some work experience who want to build their critical thinking, business management and strategic decision-making skills such as Masters of Business Administration (MBA) and Executive MBA academic programmes, and also delegates on Executive Education programmes. The case is expected to be used as a case study for courses in entrepreneurship and strategic management; however, it can also be applied in strategic marketing courses.

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 3: Entrepreneurship

This case describes the growth of ReNew Power during its first decade of operation. Sumant Sinha, a first-generation entrepreneur and former banker, founded the company, which grew from a modest generator-cum-developer of wind energy-based electricity to one of India's largest companies in the renewable energy sector. With the entry of large, well-funded players such as Tata Power and Adani Green into the Indian renewable sector by the end of 2020, Sinha had to make a strategic decision: should ReNew continue to organically scale up its presence in an increasingly competitive yet expanding Indian renewable energy sector, should it diversify geographically, or should it pursue emerging opportunities for vertical or horizontal integration within the sector? The case provides an opportunity to discuss how alternative business models and competitive scenarios may facilitate or inhibit the growth of a player in the renewable energy sector.