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The main learning outcomes that can develop from this case are as follows. These have been articulated for an approximately 90-min class discussion. Opportunity identification in times of crisis: at a macro-level, the case serves to illustrate the nature of identifying and exploiting opportunities in times of crisis. In particular, it shows how an agile small team and quickly respond to need and develop a sustainable and scalable business. Pivoting the business model: the case raises an interesting and important debate as regards what constitutes a “pivot”. While the classical interpretation would be a change in direction without a change in strategy, this case within the context of Covid-19 challenges this definition. Resource use and allocation: The case illustrates well how existing resources, networks and skills can be used in a very different business venture to alleviate immediate cash flow needs and potentially build another business venture.

This case study explores how two Cape Town-based entrepreneurs, Josh Meltz and Adam Duxbury, responded to the Covid-19 crisis and the subsequent lockdown in South Africa. The pair had built a successful swimwear brand – Granadilla Swimwear – and two other businesses: a function venue and a kombucha brand sold at a well-known food market. As the Covid-19 lockdown tool effect, the entrepreneurs saw not only declining revenue in their food and function venue business but were about to enter a six-month period of negative cash flow on their seasonal swimwear business. The entrepreneurs saw an opportunity to deliver food boxes of fresh fruit, vegetables, bread and other staples within the Cape Town metropolitan area. Their kombucha brand had a ready-made food processing and handling facility (including cold storage) and existing relationships with customers, suppliers and other vendors at the food market gave them ready access to a range of locally produced food products available immediately and on consignment. Meltz & Duxbury quickly launched an online shop and started marketing via Instagram. Within 48 h, they were delivering food boxes, with little risk and upfront capital investment. As the lockdown continued and other competitors entered the market, the team wondered at the longevity of the pivot and whether this was a business that would sustain itself or whether it was just a short-term fix for their immediate cash flow problems.

Undergraduate and postgraduate

Teaching Notes are available for educators only.

CSS: 3 Entrepreneurship.

Learning outcomes of this study are as follows: conduct a comprehensive organizational diagnosis to uncover the peculiarities of managing a family business; evaluate the spirit of innovation of the new generation to drive rejuvenation initiatives in the family firm; reflect on the concept of stealth innovation and its manifestation in the context of transgenerational entrepreneurship; and assess the effectiveness of managerial decision-making and provide recommendations for securing the sustainability of a family firm.

This case starts with the entrepreneurial beginnings of Jack Misakyan, who transformed the small blacksmith venture of his father into a large and profitable family enterprise with operations across different countries and industrial sectors. Since the establishment of Misakyan Technical Solutions (MTS), Jack relied on the help of his brothers, Ara and Hovik, who have joined the ranks of owners and managers to drive the expansion efforts of the family firm. Over the years, the brothers were successful in pursuing a strategy of continuous growth and diversification by taking advantage of opportunities in several industries and regions of the world. They opened branches in Kuwait, Syria, the United Arab Emirates and Armenia, and operated in industries of heavy-truck maintenance, pharmaceuticals, marine shipping, construction materials, quarry and restauration. Yet, four decades after its launch, the company was entering in a phase of stagnation and was in need for entrepreneurial rejuvenation. The members of the third generation, who have recently joined the family firm, believed that it was their obligation to restructure the operations and revive the entrepreneurial spirit in their fathers’ organization. Moreover, after several months of market analysis and investigation, two of the cousins came up with a new business idea that was pursued entirely in a stealth mode. By describing the strategic events and family dynamics that shaped the evolution of MTS over time, the case offers an opportunity to assess the effectiveness of managerial decision-making and provide recommendations for ensuring the longevity of the family enterprise.

Upper undergraduate classes.

Teaching Notes are available for educators only.

CSS 11: Strategy.

In March 2007 C. James Prieur, CEO of insurance provider Conseco, was faced with a crisis. The front page of the New York Times featured a story on the grieving family of an elderly woman who had faithfully paid for her Conseco long-term care (LTC) policy, only to find that it would not pay her claims. Her family had to pay for her care (until her recent death), which unfortunately resulted in the loss of the family business. The family was now very publicly pursuing litigation. For a company that depended on thousands of employees, investors, and independent agents who sold the insurance plans, this reputational risk was a serious threat. On top of this immediate crisis, all signs in the industry were pointing to the fact that the LTC business itself was not viable, yet over the years Conseco had acquired a number of LTC insurance providers. Students are asked to analyze not only what Prieur’s priorities should be in addressing the immediate crisis but also the risks inherent in the LTC industry and how this might affect Conseco’s success as a business moving forward

After reading and analyzing the case, students will be able to:

• Analyze the risks in the long-term care insurance industry

• Distinguish the various types of risk that caused a company’s crisis and recognize the potential for contagion

• Brainstorm how the risks faced by Conseco could have been avoided or better contained

• Recommend the first steps C. James Prieur and the Conseco leadership team should take to rectify the New York Times article crisis

Analyze the risks in the long-term care insurance industry

Distinguish the various types of risk that caused a company’s crisis and recognize the potential for contagion

Brainstorm how the risks faced by Conseco could have been avoided or better contained

Recommend the first steps C. James Prieur and the Conseco leadership team should take to rectify the New York Times article crisis

Reflect on the influence of different lifecycle stages on the strategy of a family business; evaluate the impact of family, industry and company dynamics on the evolution of a family firm; assess the impact of ownership, governance and succession considerations on the sustainability of a family firm; and develop decision-making skills to overcome specific dilemmas and secure the family business longevity.

Five industries, three generations and one family business. What started off as an entrepreneur’s ambition, Almajid Limited has proven itself to a sustainable source of revenue and a diverse portfolio of businesses for multiple generations of a Saudi Arabian family. This case study offers an exclusive opportunity to follow the tumultuous journey of a Saudi family business and analyze the different phases of its evolution over seven decades and three generations. In particular, the case aims to highlight the complexities surrounding the management of a family firm and illustrate how various lifecycle stages stemming from a number of areas (e.g. family, company, industry, ownership and governance) simultaneously influence the family business strategy. Being deeply embedded in the context of Saudi Arabia, the case unveils the unique challenges of managing a family business in a conservative cultural setting. The case study is divided into four parts, with each of them putting the emphasis on a different lifecycle area of significance for the evolution of the family business. Each part culminates with the identification of an area-relevant dilemma that needs to be addressed for the family firm to be able to move into the next stage of its development. Part A focuses on the family area or axis, the Part B on the industry axis, Part C on the company axis, while Part D is based on the sustainability axis, which embraces as many as three dilemmas in relation to the ownership, governance and succession in the family firm. Moreover, each part incorporates a timeline of critical events that contributed to the emergence of a specific dilemma and a culturally-rooted anime that helps the readers visualize the story, picture somebody else’s reality, and empathize with the key protagonists of the case to achieve optimal decision-making.

Graduate audience: Master of Business Administration or Master of Global Entrepreneurial Management.

Teaching Notes are available for educators only.

CSS 11: Strategy.

Upon completion of this case study analysis, the course audience is expected to achieve four learning outcomes. In particular, students should be able to conduct a comprehensive organizational diagnosis to uncover the peculiarities of managing a family business; analyze the specific challenges faced by family-owned enterprises in the context of emerging markets; evaluate the succession management practices in family organizations and design a profile of a successful successor; assess the effectiveness of managerial decision-making and provide recommendations for securing the sustainability of a family firm.

This case study unveils the tumultuous story of Vishwanath Shetty, an ambitious entrepreneur who transformed his small venture into a profitable family business with operations in Middle East, Asia and Africa. Since the early establishment of Qontrac International in 1989, he relied on the ownership and management participation of several members of his and his wife’s families. Over the years, Vishwanath was successful in pursuing a strategy of continuous growth and geographic diversification by taking advantage of the business opportunities in several regions and opening up branches in Oman, the United Arab Emirates (UAE), Ghana and India. Yet, almost three decades after its launch, the company was confronted with a number of family, growth and succession management challenges that endangered its survival in the long run. The Shetty family experienced a serious rift due to financial reasons, the performance of the two branches managed by siblings declined, and the old firm structure and management style did not fit well with the newly enlarged and geographically dispersed Qontrac International. To deal with these organizational issues, Vishwanath was faced with an additional dilemma of securing the support of a suitable intra-family candidate who could join the family business and become his successor. By describing the strategic events and family dynamics that shaped the evolution of Qontrac International over time, the case provides an opportunity to assess the effectiveness of managerial decision-making in the context of family firms and provide viable recommendations for ensuring firm survival and longevity.

Upper-level undergraduate audience Graduate audience (in Master of Global Entrepreneurial Management program).

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Strategy.

The case and discussion questions posed will allow the instructors the opportunity to introduce critical strategic concepts from strategic, nonprofit management and social enterprise literature. Specifically, (1) strategic transformation: countering drift and anticipating future trends and crises; (2) types of leadership: transactional versus transformational; (3) hybridity and mission drift; and (4) nonprofit funding models, the starvation cycle and the overhead myth.

Both primary and secondary sources have been used to prepare the case. The first two authors had the opportunity to interview Thomas Tighe, Direct Relief’s (DR) President and CEO in July of 2019. The interview lasted one hour and was transcribed by one of the authors and reviewed by the other two authors for accuracy. In addition, the authors conducted nonparticipant observations in DR’s headquarters in Santa Barbara (California). Given the longevity and media exposure of the organization, extensive internal and external archival data was also available for the analysis.

This real and undisguised case is based on DR, a +70-year-old humanitarian $1.2bn nonprofit organization headquartered in California (USA). From its headquarters in Santa Barbara, DR responds to emergencies and delivers medical support for vulnerable people affected by poverty, natural disasters and civil unrest in all 50 US states, six US territories including Puerto Rico and US Virgin Islands, and in more than 90 countries.

The case presents Thomas Tighe, DR’s President and CEO, reflecting in late 2018 on the transformation and growth that the organization had experienced since he started his tenure in 2000. Specifically, he is considering the most effective way to allocate an unrestricted recent cash donation. Should DR spend that money on traditional fundraising, reducing its efficiency rate, or should DR take a long-term approach and use the funds to build long-term capabilities? In addition, the case outlines the history and evolution of DR over its more than 70 years of existence, the CEO’s background and motivations, as well as a detailed description of the organization’s revenue portfolio. Students will have an opportunity to learn about a unique nonprofit named among “the world’s most non-for-profit organizations” by Fast Company; DR was also included in the Charity Navigator’s list of the “10 Best Charities Everyone’s Heard of.” In addition, in January 2009, DR was designated as a Verified-Accredited Distributor by The National Association of Boards of Pharmacy, which placed it as the first nonprofit to receive this designation to deliver prescription medicines to all 50 US states. Throughout Tighe’s tenure, DR had been lauded for its fundraising efficiency. The unique distinction to DR’s efficiency is its tradition of adopting new technologies and modern business practices for humanitarian purposes.

Students will learn how DR, under the leadership of Thomas Tighe, reinvented and reinforced the organization’s traditions to retain high levels of efficiency in the face of an ever-larger organizational scale, public scrutiny and demand for humanitarian support across the world. Students will witness many strategic and operational tenets that they may be more familiar with from the for-profit world. The case also will help students to understand the concept of hybrid organizations and different nonprofit funding models.

The case has been written to be used in graduate Nonprofit Leadership Management and Social Entrepreneurship courses. Given the scope and implications, the case could also be used on an upper-level strategy course. To maximize students’ learning, the case should be introduced halfway into the course after students have a solid understanding of what nonprofits are and how they operate. If students are not familiar with some of the concepts introduced in the analysis, the proposed readings will prepare them for a more fruitful discussion.

Doug Scovanner, CFO of Target Corporation, was about to present his proposal at the November 2008 Board meeting. He was prepared to discuss immediate strategic actions which would provide support for working capital for the discount retailer. The retail community was about to suffer their worst fourth quarter in recent memory. Consumer spending had contracted, unemployment was rising and the deflated housing market had driven the economy into a recession. Although discount retailers had fared better than other industries during the second and third quarters, they were not immune to the overall economic downturn which had become a global crisis. To further complicate matters, Target's largest competitor, Wal-Mart, just posted third quarter growth even though Target was bracing for a busy holiday season. Scovanner anticipated further strain on working capital before year-end as cash flow tightened and the capital markets remained at a virtual stand-still.

Emerging markets – marketing and business strategy; social entrepreneurship; opportunity identification; frugal innovation.

MBA; marketing management; specialis ed courses such as entrepreneurship and international marketing. Data rich case, but analytical difficulty is only moderate.

Reboot Systems was conceived as a reverse engineering/refurbishing company for used computers when Rahul Chowdhury and Subbarao came in contact with Anand Tater who had started a small business in the used computer market. The team recognised the potential of the refurbished computer market in India, which was largely unorganised with penetration of personal computers pegged at less than 5 per cent. They identified the opportunity to address the digital divide, caused by lack of affordability and accessibility, by providing inexpensive “as good as new” used computers to those who aspired to own a computer. Additionally, in extending the life of used computers on a large-scale through “frugal innovation”, they hoped to reduce the extent of e-waste generated in the economy. This case provides a rich description of an emerging market characterised by market heterogeneity, social-political governance with poor policy measures, unorganised markets, chronic shortage of resources and inadequate infrastructure. Entrepreneurs hoping to address social issues must tackle these problems at the grass-root level and come up with improvised solutions that address the unique needs of the heterogeneous and resource constrained market. Some of Reboot Systems pressing challenges were in building a viable strategic approach to the market and ensuring scalability in a sustainable way.

An understanding of the characteristics of an emerging market from a macro (environmental) as well as micro (industry specific) perspective, an appreciation of opportunity identification and improvisation in emerging markets as well as differentiating “frugal” innovation from the idea of “Jugaad”, an understanding of the role of strategic vision and mission in accomplishing social and business objectives, an understanding of how to develop sustainability and competitive advantage from a social as well as business perspective.

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

The case uses Carillion plc, a company which focussed on providing maintenance, facilities management and energy services to buildings and large property estates, in public and private sectors; infrastructure services for roads, railways and utility networks, with contracts including road and hospital construction and many strategic service contracts, e.g. free school meals. The case uses financial analysis techniques to explore whether the failure was foreseeable and questions the extent to which existing international financial reporting standards support or inhibit the decision usefulness they aspire to. The case uses only publicly available information.

This case can be used in undergraduate financial reporting and current issues in accounting courses/modules at the postgraduate level.

Jim Reynolds Jr. founded Loop Capital in 1997 as an investment bank specializing in bond sales for municipalities. Ten years later, with thirteen offices and almost 100 employees, Loop Capital was a national company and had brokered more than $800 billion of underwritings in equity, tax-exempt, and taxable fixed income markets. In the process of building its municipal finance and equity trading businesses, Loop Capital had developed close relationships with a number of government officials, large institutional money managers, and corporate executives. These customers began asking Loop Capital for help with other financial services, leading the firm to build corporate finance, tax-exempt, and taxable fixed-income platforms so it could offer a wider array of investment services. Municipal and corporate finance as well as equity, taxable, and tax-exempt trading were generating positive cash flow. In a field where failures were frequent, Loop Capital was thriving, and Reynolds saw great but untapped potential in the company's future. Over the past several years, Loop Capital had served as financial advisor to several municipalities that wanted to lease or sell public assets such as airports, toll roads, and seaports. Now he confronted several intriguing questions: Should he launch a $700 million infrastructure fund to invest in the types of deals the firm had helped structure? Did it make sense to invest in order to staff, market, and support the start-up of this new fund? If the fund was launched, should Loop Capital commit to the 1% investment likely to be required as the fund's general partner?

Learn how to start a new financial services firm/investment bank venture Learn how an investment banking firm becomes successful at doing a few things well Assess risks of expanding into a new line of business with a different business model Examine differences between investment banking and fund management, and between high-growth entrepreneurship and lifestyle entrepreneurship Examine the significance, if any, of being a minority entrepreneur