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After completion of the case study, the students will be able to understand the complexity of diversification and market expansion strategies in a growing consumer-driven market context, apply strategic frameworks to analyze the Indian oral care market, analyze brand positioning principles to develop a marketing strategy for Aquawhite and evaluate and identify the pros and cons of the various decisions taken during market diversification.

This case study seeks to examine the market expansion dilemmas faced by Aquawhite, a brand in the oral health-care sector, and the role of key decision-makers in addressing these challenges. This case study aims to provide insights into the complexities of brand extension and market expansion strategies in the context of a developing consumer-driven market. This case study is structured as a qualitative analysis based on publicly available information, including Aquawhite’s historical data, market trends and industry reports. Additionally, insights from relevant interviews with key stakeholders within the company have been considered to present a comprehensive view. This case study highlights the dilemmas faced by Aquawhite as it navigates market expansion. It reveals the critical role of Nikhil Nanda, the managing director in addressing these dilemmas and shaping the brand’s future. This case study emphasizes the need for a strategic approach that balances market dynamics with brand identity.

This case study is suitable for use in undergraduate and postgraduate-level courses on marketing management and strategic management. This case study provides insights into brand development, market entry and expansion strategies. It can be used to discuss the marketing mix, segmentation and targeting, as well as competitive analysis.

Teaching notes are available for educators only.

CSS 8: Marketing.

Financial Services Marketing, Financial Inclusion, Emerging Market Studies.

The case is suitable for graduate management students in courses such as general management and marketing courses. It is also suitable for a specialised rural marketing course and marketing of financial services. In business schools outside India, the case can be used in a course on marketing strategies for emerging economies. The case is suitable for executive development programmes for the areas pertaining to rural banking, marketing of banking services and financial inclusion programmes.

The case analyses the financial inclusion initiative by Odisha Gramya Bank, a regional rural bank set up after amalgamation of three banks in the state of Orissa, India. The topic of financial inclusion has been the attraction from bankers, policymakers and academia in light of linkage between formal financial system and inclusive growth. To harness the fortunes at the bottom of pyramid, the case looks into the development of financial inclusion, business strategies and strategies for various customer segments.

To introduce students to analyse and compare various financial inclusion options. The case is useful to comprehend the various methods of financial inclusion. To analyse the evolution of regional rural banks and Odisha Gramya Bank after its amalgamation. To appreciate the issues faced by Odisha Gramya Bank. To understand various market segment and to evaluate its potential. To suggest appropriate strategies for each market segment. To appreciate how technology can be harnessed for business correspondents. To recommend the roadmap for financial inclusion to Mr Sidharthan, Chairman, Odisha Gramya Bank.

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 8: Marketing.

The first company under the Amara Raja Group was established in 1984, i.e. Amara Raja Electronics Limited (AREL) followed by Amara Raja Batteries Limited (ARBL). Its founder leveraged the presence of his family in Renigunta, a rural village in South India, and chose to start the industry there to create employment opportunities. Preference is given to local population in all ARG enterprises. Despite its strong people orientation, the HR department/function at ARG got strengthened only after Jaikrishna strived to make it central to business. The department's evolution has been demarcated in three phases. The first and second phase saw few initiatives, and during the third phase the HR department was structured according to the Dave Ulrich Strategic HR Model. While this structure had been successful until now, certain sections in ARG still doubted its sustainability.

This case describes the innovations of a medical practitioner over six decades of practice. It provides an opportunity to the participants to analyse the motivation, processes, constraints and outcomes or innovating efforts of individuals as opposed to corporates. During his career Dr. Shah has experimented with novel methods of treatment, applications of known solutions and new product formulations. At the fag end of his career Dr. Shah is wondering whether the innovating efforts were worth their white.

Financial accounting to assess stewardship: the case requires students to evaluate Thompson’s stewardship of McDonald’s, in part based on the company’s financial accounting information. Financial reporting performs an important societal role by helping control agency problems that arise from the separation of ownership and management. Since external stakeholders cannot “observe directly the extent and quality of managerial effort on their behalf […] the manager may be tempted to shirk […] blaming any deterioration of firm performance on factors beyond his/her control” (Scott, 2014, p. 23). However, although financial reporting helps hold managers accountable to shareholders, accounting information is not fully informative about managerial effort. For example, while net income provides useful information regarding the CEO’s stewardship, it is also “noisy,” due to recognition lags and other factors (Scott, 2014, p. 364). Efforts undertaken by Thompson in a particular period, such as marketing expenditures, might reduce current earnings, yet boost future profitability. Additionally, Thompson’s predecessor’s past efforts might have positive or negative effects on current earnings. Evaluating stewardship effectively involves considerable judgment, in addition to knowledge of financial accounting. The implication of poor firm performance is that the CEO is ineffective at formulating and implementing strategies and policies to enhance firm value (Dikolli et al., 2014). Specifically, it appears that missing earnings benchmarks matter more for relatively inexperienced CEOs. Don Thompson’s tenure of 33 months at McDonalds is 42 percent lower than median CEO tenure documented in academic research, where the median tenure of chief executives documented in large sample empirical studies is about 57 months (Dikolli et al., 2014). The evidence suggests that the longer a CEO serves, the less likely he is to be dismissed for performance-related reasons. This appears to be the result of the resolution of uncertainty about CEO’s ability and leads to subsequent declines in the level of monitoring by the Board of Directors. Performance evaluation and bias: a significant body of research explores the extent to which female managers are assessed differently than their male counterparts (Powell and Butterfield, 2002). For example, female CEOs face more threats from activist investors than male CEOs. Therefore, even after women achieve the highest managerial rank, they experience more professional challenges than their male counterparts (Gupta et al., 2018). However, the question of whether black CEOs are assessed differently is more challenging to answer empirically as a result of a smaller sample size (only one percent of S&P 500 companies are run by black CEOs). Our case attempts to develop the inference that if female CEOs are subject to bias, analogous forces are likely at work when black CEOs are assessed. Recent evidence further suggests that business students sometimes demonstrate bias in making assessments (Mengel et al., 2018). The authors discuss these findings – as well as strategies for including them in the case discussion – in the “Teaching Strategy” section herein below.

The case was written from the public record surrounding the appointment of Don Thompson and McDonald’s company filings. The record includes articles from The New York Times and The Wall Street Journal, as well as local and industry publications.

The case examines the role of financial accounting in evaluating CEO performance in the context of the appointment of McDonald’s first African-American chief executive and his subsequent two-and-a-half years on the job. The case deepens students’ understanding of the link between financial reporting and stewardship, while highlighting the subjectivity inherent in assessing managerial performance, particularly over relatively short time periods. As students analyze the case, they must consider the extent to which a firm’s results are attributable to luck vs skill. We use “skill” to refer to CEO effort and other controllable factors, while “luck” refers to exogenous factors, such as macroeconomic conditions. Assessing stewardship is of practical significance. It allows pay to be better aligned with performance and empowers stakeholders to identify when a change of leadership may be warranted. The case may also be used to spur reflection, in an applied context, on the importance of being alert to unconscious bias, even when evaluating seemingly objective financial reporting data. Recent research, discussed herein, suggests that business students sometimes exhibit bias when making assessments.

The case should be included in discussions of corporate governance, executive compensation and the role of accounting information in efficient contracting. It is appropriate in intermediate financial accounting courses for undergraduates, introductory graduate accounting courses, or other courses with an element of financial statement analysis. Standard introductory accounting textbooks offer helpful supplementary reading for students. Horngren et al.’s (2014) book, Introduction to Financial Accounting (12th ed.), Pearson, London, provides an overview of the income statement and its role in assessing performance (see Chapter 2) as well as a useful discussion on evaluating the components and trends of a business (see Chapter 12). More advanced students may benefit from the in-depth discussion of earnings quality, operating income and non-operating income found in Chapter 4 of Intermediate Accounting (9th ed.), McGraw Hill Education, New York by Spiceland et al. (2018).

This case was researched using publicly available sources, including Mercury Systems financial filings and press releases, news stories about the seasoned equity offering, financial information from Bloomberg and industry information from IBISWorld Industry Reports and articles related to seasoned/secondary equity offerings, intangible asset valuation and the use of revolving lines of credit. Quotes are taken from Mercury financial reports and press releases and express the (optimistic) opinions of company executives.

Mercury Systems, a technology company in the aerospace and defense industry, announced a six million share seasoned stock offering in June 2019. This resulted in a 6% stock price decrease. A stock price decrease is a typical event when a firm announces the issuance of new common shares, but with Mercury Systems, there were concerns about how much money the firm needed to fund its strategy of growth through acquisitions. If internally generated funds were not sufficient, should the firm issue debt or have another seasoned equity issue? Students will look at the objectives and success of the most recent seasoned equity issue, determine future funds needs and how the firm should finance these needs.

This case is appropriate for undergraduate and graduate students in corporate finance electives. Typically, topics such as seasoned equity offerings are not covered in introductory courses, so this is recommended for finance electives. Even in advanced finance courses, sometimes there is insufficient time to cover seasoned equity offerings.

This case aims to introduce students to the social sector financing (internal and external) landscape, and its nuances. It specifically provides material to enable critical evaluation and decision-making around financing a for-profit social enterprise and its associated challenges.

The case highlights the fundraising options available to a social enterprise in an emerging economy like India. EnglishHelper Technologies Private Ltd. (EH) commenced operations in 2011 as a subsidiary of its parent Boston-based company, to provide technology-based learning solutions primarily to the underserved segments of the country’s population. Sanjay Gupta, co-founder and CEO, EH Inc., wanted to explore funding options suitable for the company’s next growth stage. The existing funding sources of equity from its parent company, grants and revenues (mainly from product sales to government schools) had worked well for EH in the initial years of its growth. But its financial performance was being impacted, and, additionally, further scaling up would require sources that could give a much larger quantum of funds and add support to EH’s operations. EH would also need to revisit its revenue model to strengthen its financial sustainability, by drawing lessons from the other prevalent ones in the ed-tech sector and make it more effective. The case encourages students to assess the various funding alternatives, internal and external, for a social sector private company with a for-profit model like EH, to enable it to achieve its scaling-up plans while serving its social mission.

The case is relevant for both undergraduate and postgraduate students and can be used in business administration programs.

CSS 1: Accounting and finance.

Teaching notes are available for educators only.

The case describes the performance evaluation system that has been put in place by Ravi Kumar, the MD to ensure that Oystar Hassia is able to design, deliver, service, sell its packaging machines seamlessly in all parts of the world. The performance evaluation system is periodic, regular, able to take track the progress of the people within the system. The benefits accrued from performance evaluation system are also detailed in this case.

Corporate finance, strategic financial management, financial innovation and financial engineering.

The case is suitable for graduate level management students.

In early April 2011, Mr Ramakrishnan, the CFO of Tata Power Ltd and members of his team were busy re-evaluating fundraising options for financing Tata Power's capital expenditure requirements, for refinancing of debt, for working capital related to current projects and for liquidity to support potential acquisition bids. The team had the task of evaluating different innovative funding options as the challenge was to strike a fine balance between maintaining the owners' equity without dilution of control and avoiding any adverse impact on credit rating that could increase the cost of capital; these constraints reduced flexibility for fund raising. Keeping in mind the global market scenario and estimating the investor appetite were factors critical to the structuring of a funding instrument.

The case will help students to be comfortable in thinking about evaluating markets, financial instruments and weigh rating considerations and regulatory constraints for taking capital structure decisions.

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

▪ Identify and explain the factors that contribute to the success of a restaurant business.

▪ Analyse different sources of entrepreneurial finance.

▪ Identify and explain local entrepreneur’s expectations from a funding agency.

▪ Evaluate investment decision-making criteria for entrepreneurial funding agencies.

Kartikey Rajput, the promoter of a food park Urban Chowk, was waiting for the Covid regulations in the country to be relaxed. The entrepreneur in him found a business opportunity to provide hygienic food with a beautiful ambience and floated a food park (Urban Chowk) with the support of his wife Nikita Agrawal in 2017 and the second edition amidst Covid in 2020. The business model was well-appreciated by food vendors as well as customers. Rajput could see future growth potential in urban India. But his aggressive business plan to open five food parks in different cities in the next three years was disrupted due to the Covid pandemic. The expansion required huge investments, and post-pandemic challenges were plenty. The decision to go beyond Ahmedabad required the selection of cities besides the major challenge of the financing choice. The new cities might have huge footfall potential but finding the right location at the right price was a different challenge. Rajput was also concerned with the sources of getting the required finances. The entrepreneur was contemplating and evaluating the alternative sources of finance available to a start-up.

This case is appropriate for a graduate and post-graduate level programme in the courses like entrepreneurial finance, entrepreneurship and strategy. This case can also be used in an executive programme on management and Management Development Programmes (MDPs) on entrepreneurship or entrepreneurial finance.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.