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The objective of writing this case study is to allow management students to engage with the complexities of mergers and acquisitions (M&As) in the insurance sector in an emerging economy like India. Upon completion of this case study, the students will be able to critically evaluate the business environment of the insurance sector of a developing economy like India, analyse the impact of M&As on the insurance industry of India, appraise the post-merger consequences and strategies to deal with these consequences, assess the applicability of market power and growth theories in the context of M&As and develop a strategic action plan for handling post-merger challenges.

On 3 September 2021, the Insurance Regulatory and Development Authority of India (IRDAI) approved the “Scheme” related to the merger of the non-life insurance division of Bharti AXA General Insurance Company Limited (“Bharti AXA”) with ICICI Lombard General Insurance Company Limited (“ICICI Lombard”). Earlier, on 21 August 2020, the boards of the companies had approved entering into definitive agreements through a scheme of arrangement. The merger received approvals from different regulatory bodies as mandated (Gandhi et al., 2023). Bhargav Dasgupta, managing director and Chief Executive Officer of ICICI Lombard, stated, “This is a landmark step in the journey of ICICI Lombard, and we are confident that this transaction would be value accretive for our shareholders” (FE Bureau, 2020). However, the merger posed a dilemma for Dasgupta and the management regarding crop insurance owing to its impact on profitability. Crop insurance historically had high claim ratios nearing 135% for ICICI Lombard for financial year 2018. The company ceased to underwrite this product from 2019 onwards (TNN, 2019). However, ICICI Lombard had to fulfil the three-year commitment made by Bharti AXA to the state governments of Maharashtra and Karnataka towards crop insurance. It was a scheme initiated by the Government of India, covering farmers against losses due to cyclonic rains, rainfall deficits and other unforeseen calamities. Dasgupta faced a challenge in managing the interests of the farmers and the company’s shareholders while balancing profitability, which had already been impacted by the COVID-19 pandemic. This case study delves into post-merger complexities in the financial sector non-life insurance industry in emerging countries like India.

This case study is suitable for undergraduate and post-graduate management students and executives from the insurance industry.

Teaching notes are available for educators only.

CSS 11: Strategy.

The Farmcrowdy case pursues the following aims: familiarizing students with the concept of business models for agricultural businesses and explaining the key decisions and activities within a business model; recognizing different opportunities for business model innovation by farmers and stakeholders in the agricultural sector; identifying concepts and tools from the business world that can be used in farming and other agribusiness-related ventures; highlighting opportunities for agribusiness firms to engage in business model innovation; and developing a business model canvas that highlights key components of a business model.

Agriculture stands as the leading driver of economies in most African countries. Most people depend on this sector directly or indirectly for their livelihoods on a daily basis. However, due to challenges like climate change and its variability, high initial startups capital, poor pricing, pest attacks, among other factors, people are gradually opting out of this sector. This has implications for employment, food and human security issues for farmers, their families and the society at large. Individual farmers that opt to remain in this sector are often met with challenges accessing technology in adapting to the challenges aforementioned. This decreases their resilience to the impact of climate change and its variability, pest and disease attack, securing loans to expand farming operations, among others. This raises the risks associated with investment in this sector as one cannot be assured of a fixed return on investment at the end of each crop cycle. Investors who opted to manage this risk associated with investment in the agriculture sector had challenges getting an official database of farmers to invest in as well as knowing whether individual farmers are experienced enough and committed to fixed agreements. It is against this backdrop that Onyeka Akumah founded Farmcrowdy in Nigeria with the aim of empowering farmers and connecting investors to right farmers with an assured return on investment at the end of every crop growing or animal-rearing season using online technological packages. The Farmcrowdy business model allowed Nigerians to venture into farming and other agricultural ventures at the touch of a button while empowering local farmers and boosting food production, creating employment for all stakeholders in the agricultural value chain. With ensuing challenges and competitors in the agro-technological industry, Farmcrowdy aims at extending their business model to other West African countries like Ghana. A few suggestions are made to help improve Farmcrowdy business model. First, they can add novel activities to the business model. Second, they can change one or more parties that perform business model activities. Finally, they can link business model activities in new ways like the development of model farms as a training ground for new farmers and the development of a go-back-to nature campaign to end-users of the products from farms. This case can be used by different audiences. The case can be used for teaching students at the graduate level, especially in the development of executive courses on innovation and entrepreneurship, strategy, agricultural technology and innovation. A wealth of supporting materials is available to the Professor, including videos and background information.

PhD, Doctor of Business Administration, Executive MBA

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CSS 3: Entrepreneurship

After working through and discussing this case, learners should be able to:1. evaluate the financial condition of Ellerine Holdings Limited (EHL) at the time of the merger proposal and use it to make inferences about the company’s ability, at that time, to function effectively as a going concern;2. identify the conditions within EHL and in the operating environment that may have made it necessary for EHL to seek to change its business strategy;3. determine whether the acquisition price offered to EHL by African Bank Investments Limited (ABIL) was fair; and4. compute the value accretion/loss expected to be realised by the existing shareholders of ABIL and EHL under the merger proposal.

This case situates the directors of Ellerine Holdings, a furniture retail company that merged with African Bank Limited in 2007, reflecting on the events that led up to both entities being placed into business rescue in 2014 and asking whether the merger was the cause of the demise. If they had chosen an alternative partner, would the results have been different?

Masters Level students – MBA or Masters in Finance.

For instructors.The following material has been provided with the teaching note for instructors:- Teaching Note.- Johannesburg Stock Exchange News System (SENS) extract of related original filing.For students.The following supplementary material has been provided to accompany the case:- Financial information on the two companies (Excel spreadsheet).- Johannesburg SENS extract of related original filing.

CSS 1: Accounting and Finance.

Retailing.

Undergraduate and Master's level business and management courses.

This case looks at the second largest oil company in India (Bharat Petroleum Corporation Limited (BPCL)) and examines an innovative services marketing concept that they introduced into the market in India for the first time, namely, one-stop truck shops. These new format truck-stops were targeted at the highway-based truckers in India who earlier had to stop off at multiple locations to eat and re-fuel increasing their on-road time and reducing their efficiency, much to the chagrin of their truck-fleet owners.

Students will be expected to build their knowledge of retailing in developing markets using the example of BPCL as a learning tool. The case examines differences in consumer behavior in developed vs developing markets, paying particular attention to the required need to differentiate the retail approach to suit the market.

Teaching note (with photographs).

Human Resources Management (HRM), Industrial Relations and Strategic Management.

Post-graduate students or executive post-graduate students, Core course in Human resources Management (HRM), Industrial Relations or Strategic Management or in elective courses in Industrial Relations and Strategic HRM.

The Personnel manager of Asian Paints Ltd., Cuddalore (Tamil Nadu) factory, found himself in a Catch 22 situation when a Union leader of the manufacturing unit refused to work. The Union leader had been transferred from the Quality Assurance department to the Production department. The case describes the sequence of events and the backdrop in which the aforementioned situation had unfolded. Given the circumstances that prevailed in the factory, the personnel manager’s decision was likely to have significant impact on the factory’s output.

The student will be able to understand the industrial relations/Union issues in a company and the role of different stakeholders, namely, management, Union, workmen and the government in a conflict scenario. The student will learn the application of principles of natural justice and will be able to evaluate the Industrial Relations (IR) strategy adopted by the organizations to prevent labor unrest at the workplace. The student will understand the impact of critical management decisions on the organization’s performance in an uncertain global environment.

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CSS 6: Human Resource Management.

The learning outcome of this paper are as follows: enabling students to learn about business and marketing issues of the natural gas distribution industry. To expose students to organizational processes aimed at finding solutions to customer issues. To make them appreciate the aspects of service quality and SERVQUAL model. To make the students aware of the significance of market research for problem-solving. How to use market research findings to address the customer issues? Enabling the students to learn how cross-functional teams contribute to addressing marketing and customer issues. Students should appreciate how to study towards creating a customer-centric organization with an organization-wide commitment including that from the top leadership.

Abhay Shankar, Sr. Manager-Customer Service at Reliable Gas Company Limited a state government piped natural gas (PNG) distribution utility whose customer service department is concerned about the provision of best service to its PNG domestic customers. Domestic customers are low volume but largest in numbers and are considered to be a tough, demanding customer segment. A general opinion among the marketing team of the company is that they are trying their best to serve its customers and that their efforts are no less than their private sector counterpart global gas customer service efforts. Abhay is in dilemma on what to do to improve customer services?

Masters students.

Teaching notes are available for educators only.

CSS: 8 Marketing.

This case describes the challenges faced by Amul in organising dairy farmers into a co-operative and creating continuous opportunities for value addition. Participants in the case discussion are required to review the developments in the organisation and recommend a strategy for the future.

Industrial Marketing.

MBA students and participants of MDPs.

It involves marketing of air compressors in particular and industrial equipment in general. It tries to analyse strategies on the framework of market leader strategies to facilitate growth in a challenging business environment in view of the strengths and weaknesses of the firm. It aims to identify the organizational and business model changes that may be required to be implemented in transforming a firm from a marketer of capital goods to a marketer of projects.

To help students/participants evaluate and select marketing strategies for a market leader under challenging business environments as well as identify important organizational and business model changes involved in transition of any firm from selling products to selling projects.

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CSS 8: Marketing.

After reading the case study, the students will be able to analyze the impact of post-pandemic “new normal” customer behavioral change on a start-up aggregator operating virtually. Recognize the need for the service marketing strategy to prepare a service provider/aggregator to sustain a dynamic and volatile consumer environment. Understand the importance of competitors’ analysis as a primary step of service marketing strategy in influencing “new normal” consumer behavior. Examine the utility of customer engagement through website blogs, social media posts, videos and continuously updated information on the mobile application in influencing the “new normal” customer behavior, from skinner operant conditioning behavior and Rusbolt’s investment model perspectives.

Rafeeg is a mobile application-based home maintenance service providing company, conceived and founded in 2017 by Khamis Alsheryani – who, as an Emirati entrepreneur, has a prior record of accomplishing successful mobile applications and business ventures since 2004. The unique selling proposition of Rafeeg in the Abu Dhabi market is its functioning as the home maintenance services aggregator bringing its suppliers and consumers under-one-roof alongside maintaining ensuring high quality, punctuality and security at competitive prices. Rafeeg has collaborated with approximately 1,000 licensed suppliers using nearly 5,000 technicians and maintenance workers with a customer base of about 70,000 households. Although it is formally situated in Al Salam St, Abu Dhabi, United Arab Emirates (UAE), the company communicates with its consumers virtually. However, with the outbreak of the COVID-19 pandemic in the UAE in March 2020, Rafeeg witnessed a considerable decrease in service requests. Consumers’ psychological fear of the pandemics spread into their houses through the technicians and maintenance workers and the degree of hygienic practices the latter follows before their service provision acted as the major reason behind the fall in requests. Despite Alsheryani’s assurance on the provision of only those suppliers who are verified of their hygienic practices, negative COVID-19 test reports and their availability to the consumers as proof and regular temperature checks of the technicians, the consumer apprehensions remained stagnant and the loss of new service requests, as well as revenue, continued. The pandemic’s spread and consequent lockdown of services in the UAE affected Rafeeg’s business operations gravely, as projected by its sudden drop-in service requests – from 53,638 average monthly customer requests in January and February to approximately 10,000 in March and April. The sudden drop of 81% in new requests drove Alsheryani to develop a service marketing strategy in May to boost consumer behavior, encouraging them to resume their requests without further apprehensions. However, with the continuous rise in the pandemic and vaccines still under trial and research, Alsheryani contemplates the viability of the new marketing strategy. Alsheryani took measures in supplier training programs, excommunicating with suppliers who fail to comply with his strict safety regulations, developing the app with clearly stated, uniform, safety procedures and bearing the additional safety-related costs small suppliers provide quality work as part of the strategy. Despite so, will there be an increase in new requests? Will the bearing of additional costs on the suppliers’ behalf jeopardize its competitive advantage in UAE? Should he consider an alternate business model to adapt to the new normal environment?

This case is written for undergraduate students majoring in consumer behavior, consumer engagement approaches, digital marketing approaches using websites, mobile applications, social media communities and service marketing strategies. Students, through this case, can relate the importance of virtual space in engaging consumers and the importance of the latter in addressing the dynamicity of consumer behavior, especially affected by sudden environmental change, such as the COVID-19 pandemic. The case study also subtly highlights the importance of collaboration with suppliers in an aggregator business model to capture the essence of changing consumer behavior. This case study is appropriate for students having previous knowledge of Rusbolt’s investment model and skinner’s operant behavioral model of consumer behavior and their application in service marketing. Besides, students must be aware of the online business model and aggregator businesses in the service industry of the UAE. The case study purports to motivate critical analytical thinking among students and build their understanding of the importance of consumer behavior for business sustenance.

Teaching notes are available for educators only.

CCS 8: Marketing.

The learning objectives of using this case are as follows: to understand the concepts of organizational structure, organizational culture and organizational change; to expose students to the problems that may encounter organization when it intends to bring changes in culture; to stimulate students’ understanding of the necessity to build positive organizational culture; to advance students’ knowledge about oil and gas industry; to develop students’ understanding of using Levin’s model of cultural change; and to illustrate the challenges that an organization might face while changing its existing culture.

This case teaches about the importance of boosting positive organization culture to accept organizational change. Stardust was established in 2013 as Petronas Carigali Sdn Bhd’s subsidiary. The company was established to manage small and marginal field in Malaysia which was under the oil and gas field that had smaller reservoir and lasted for four to five years. On 2014, Stardust was given an opportunity to take over one of the fields to manage. However, during the process of handing over the facility and field from the parent to the new company, the tanker caught fire in one of its pump in the pump room. The fire resulted substantial damage to the pump room; two out of four pumps were totally damaged. It delayed the oil production for more than a month. Total estimated damage due to the fire incurred RM19m losses. Direct cost included replacing two new 400 kW pumps, repairing the damaged pump room with new manifolds and painting, and cost of shutdown production for 40 days. Investigation was initiated to identify the causes of the fire which revealed that human error, mostly peoples’ negligence was one of the major reasons along with location, equipment and procedure. The Health, Safety and Environment department of the company was given the task to create ‘Living Safety’ culture among the crew. Being the head of this department, Tarmizi found it very challenging to inculcate the culture ‘Action Today, Perfect Day Tomorrow’ and was thinking how to instill this culture with zero failure by the end of the calendar year which is December 2016. The time was running fast as the parent company emphasized to handle the situation urgently and to ensure that the similar incident will not happen in the future. If it re-occurs, it will jeopardize the trustworthiness of Stardust with the other parties involved and also the parent company might not allow the company to operate other facilities, which will put the company at stake to remain competitive in the oil and gas business.

This case is suitable to use in advanced undergraduate level, MBA and MSc to teach organizational behavior and organizational theory courses.

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CSS 7: Management Science.