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Management Strategy.

Management Graduates and Post-Graduates.

Today, tourism is one of the fastest growing industries throughout the world. The tourism industry plays a very crucial role in the country’s economy, as it not only contributes towards the national income but also brings beneficial spillover directly or indirectly on the other industries. Tourism is the most important source of income for many emerging countries. India, a newly emerging economy, also depends, to a great extent, on tourist income. However, this sector continues to not make optimal contribution in India. In today’s competitive arena, the state tourism corporations must use all possible means to maximise growth and profitability through pegging up the rate of tourist arrivals. There is a general agreement in the tourism industry at the theoretical level about the imperative of a public – private partnership (PPP) in serving this objective. PPP aims to synergise the efforts of the two components in the general development of society and increase in competitiveness. The public–private partnership in tourism industry is at an emerging stage and could be developed in various ways. This case study highlights the key learning from Delhi Tourism’s experience on how PPP can be implemented in the tourism sector. This case study discusses an opportunity for Delhi Tourism which can alter the landscape of the tourism industry of India and also the rejuvenation of Delhi Tourism, a public sector corporation, through PPP.

The case will give a clear understanding of the dynamics and environmental factors governing a mixed economy like India. The reasons for the PPP can be analysed through the case. Students can understand the strategic choice of taking a private partner by a public sector in a very dynamic industry, i.e. the tourism sector.

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 study helps students to understand how public-private partnership (PPP) airports runs their business, how regulatory policies impact their business. The case also explains why the Cochin International Airport business model is so unique compared to any airport in India.

In 2016, Airport Economic Regulatory Authority released a new tariff regime for Cochin International Airport Limited (CIAL).CIAL has undergone challenges because of the tariff changes (changes every five years), which were implemented in 2017. This has impacted their business model. The CFO of CIAL was under pressure to share the impacts with the shareholders and to provide a way forward for the business. Cochin International was known to be one of the cheapest aeronautical tariff charging airports. The case discusses the issues of a public utility when it is under a regulatory price regime. The case explains different regulatory mechanisms (single till: the whole commercial revenue is cross-subsidized). The case discusses issues regarding Cochin International Airport, which is a public utility under PPP mode. Since 2016, regulator has changed the price regulatory regime from light touch (no price regulation only monitoring) to hybrid till regulation (a percentage of commercial revenue is cross-subsidized). The case explains what made Cochin International Airport so unique. It explores the challenges because of the regulatory regime, how it affects Cochin airport’s strategy for business. How should the management of CIAL to act on the above issue? What will be the impact? Will they need to change their business models?

The case is basically focused on MBA level students who are in their final year. There are various MBA courses in which this can be taught, which can be infrastructure management, infrastructure regulation, domain courses such as airport management. The student should have basic knowledge of economics, public utility and business strategy. The case helps them understand the impact of regulation, the role of the regulator and its impact on business strategy.

Teaching notes are available for educators only.

CSS: 10 Public Sector Management.

Rede Alta Velocidade, SA (RAVE), the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials and lenders that the project is worth undertaking. It must also make a recommendation on the appropriate organizational form for the enterprise. Specifically, it must determine the role of the Portuguese government in financing and operating the high-speed rail network, with options ranging from full development and management of the project by the public sector to completely private development and management. Lying in between these two polar cases were a variety of hybrid models, often referred to as public-private partnerships (PPPs). Using data in the case, students have the opportunity to perform a benefit-cost analysis of the project. They also must think carefully about the optimal role of the government in a major new infrastructure project.

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

• Understand the nature of a global public good

• Perform a back-of-the-envelope benefit-cost analysis of polio eradication

• Discuss the appropriate strategy for eradicating an infectious disease

• Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

• Discuss the role of private organizations in the provision of global public goods

Understand the nature of a global public good

Perform a back-of-the-envelope benefit-cost analysis of polio eradication

Discuss the appropriate strategy for eradicating an infectious disease

Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

Discuss the role of private organizations in the provision of global public goods

This case provides an opportunity to discuss the design and implementation of a Public Private Partnership project. It describes the Delhi Airport Metro Express Line project from conception to completion, and the subsequent dispute between the Public and Private partners leading to the Concession Agreement going into arbitration. Students discuss the reasons for failure and come up with suggestions for another metro rail project currently in the design stage.

Learning outcomes are as follows: to understand the need for a small business to expand geographically; to evaluate the business dynamics and challenges faced by an entrepreneur during the business life cycle; and to analyze the geography and create a growth strategy for small business setup in a phase where competition is moving from a moderate to an intense stage.

Polymatic Plastics & Packaging (PPP), a proprietorship firm of Mr Shantanu Kalia at Ludhiana, Punjab, India, was formed in 2016 and is involved in the manufacturing of bubble packing and stretch films. Growing business and competition have created both unique challenges as well as propositions for PPP. While growth in business is encouraging Shantanu to secure more contracts for his manufacturing unit, increased competition within Ludhiana is also creating a dilemma to either compete on home turf with USPs ranging from product quality, pricing and superior turn-around-time or explore additional geographies and expand horizontally.

The case is suitable for courses on entrepreneurship and geography strategy in graduate business programs. The case is also suitable for executive program for budding entrepreneurs seeking to explore specific service/product as a potential business proposition and building their business around it.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

The central lesson to be learned from studying the case is to understand the challenges and constraints posed by contextual conditions in designing contracts in public–private partnerships (PPP) for financing and delivering health care in emerging economies such as India.

Perverse incentives, along with contextual conditions, led to extensive opportunistic behaviors among involved agencies, limiting the effectiveness of otherwise highly regarded innovative design of the program.

India’s “Rashtriya Swasthya Bima Yojana” or National Health Insurance Program, launched in 2007 provided free health insurance coverage to protect millions of low-income families from getting pushed into poverty due to catastrophic health-care expenditure. The program was implemented through a PPP using standardized contracts between multiple stakeholders from the public and private sector – insurance companies, hospitals, intermediaries, the provincial and federal government.

Teaching Notes are available for educators only.

CSS: 10 Public Sector Management.

The case helps to introduce some of the elements of strategic management process, which are vital for competitive advantage, particularly for the public utility services such as MSWM. It intends to achieve the following objectives: analyse the external environment for MSWM industry in India; analyse the internal organizational environment for a firm’s strategic competitiveness; introduce the concept of value and value chain understand the role of Stakeholder groups; understand the concept of public–private partnerships (PPP); and understand the role of technology in sustaining a competitive advantages.

This case focuses on entrepreneurial venture of Gaurav Sharma and his team who intend to transform the landscape of Municipal Solid Waste Management (MSWM) industry in the country. THANKYOU (letsthankyou.com) is a Jaipur, India-based enterprise offering waste management solutions across different verticals. It was founded in 2016, following an opportunity in the waste management industry unleashed by the Government of India’s (GOI) new MSWM 2016 rules making it mandatory for the waste generators to manage (segregate, process, transport and disposal) their own waste. After initial examination of MSWM service scenario in the country, Gaurav and his two team members realize that a lack of integration among the multiple entities of waste management value chain is the root cause of the current poor state of affairs. So, they come up with an online marketplace, which offers a one-stop solution for the waste management of general households, residential settings and corporate. With initial projects implemented in the decentralized mode offering unit-level services such as door-to-door waste collection, on-demand waste pick-up and waste audits for corporate, the company has eventually got an opportunity of working on a centralized MSWM project for a leading hotel. Indeed, the company has the first mover advantage of entering the government controlled MSWM industry. However, to move forward, the THANKYOU team must address some fundamental issues in the industry: How to integrate the informal and formal sectors involved in waste management to achieve economies of scale? How to make land-filling the least preferred option of waste management? How to use technology to enhance the efficiency of MSWM value chain?

The case can add value to a course on strategic management at the post-graduate level. It highlights the role of external and internal environment analyses in the formulation of business strategy, ultimately leading to a firm’s strategic competitiveness. In a strategic management course, the case can be used to discuss introductory topics such as the analysis of internal and external environment; value creation by leveraging internal resources and capabilities; analysis of a firm’s dependence on its stakeholder groups; ascertainment of the profitability driver for a firm’s business model; and the concept of PPP.

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

GMR Infrastructure Limited (GMRIL) had to make a decision on its continued role in the 555.48 km Kishangarh Udaipur Ahmedabad (KUA) Expressway Project, India's then longest road public-private partnership (PPP) project. GMR had terminated the contract citing NHAI's failure in fulfilling Conditions Precedent (CP) of providing (i) environment clearance (EC), (ii) revised toll free notification and (iii) 80% of required land. The case intends to educate the reader on the concessionaire-authority dynamics in typical Indian infrastructure PPPs. Taking into account its internal strategy, the extant unfavourable investment climate, the Central Government's steps to revive private interest in the highways sector and NHAI's quick turnaround in fulfilling CP, GMR had to decide how to respond.

After completion of the case study, the students will be able to gain knowledge on public–private partnerships (PPPs) in emerging markets; understand how to apply the sensing element of the dynamic capabilities framework in analysing context, especially in emerging market context; and understand how to apply the dynamic capabilities framework to the process of developing brand equity.

On 20 March 2020, in Johannesburg South Africa, Dr Barbara Jensen Vorster, the head of corporate communications and marketing at the Gautrain Management Agency, was considering her dilemma of how to manage stakeholders at a time when the patronage guarantee was under question. The nature of the Gautrain PPP transport contract entailed a revenue guarantee that was called a patronage guarantee. How did they build their Gautrain brand equity during the Gautrain PPP patronage guarantee controversy? This case study highlights the perspectives of multiple stakeholders which places the Gautrain brand equity under strain. The Gautrain brand identity was created to project an integrated, overarching brand position for the construction project and later the operating company. The logo illustrated Africanisation, and the slogan “For People on the Move” represented a modern collaborative approach. Upholding the status of the brand is an important quest for the corporate communications and marketing team, and therefore the issue around the patronage guarantee must be addressed. This case study illustrates contrasting views about the Gautrain being elitist versus the rapid rail train enabling economic prosperity. The pro-prosperity versus pro-economic development values were at the heart of the different opinions around the patronage guarantee. Students are therefore confronted with their own values while the case study aims to drive an awareness or consciousness around these issues in an emerging market.

This case study is appropriate for advanced undergraduate and Master of Business Administration courses focused on marketing, communications and/or stakeholder management, such as in business and society courses. At both levels, the case study will be valuable in generating discussion on communications models and how to manage stakeholders ranging from government to community representatives. In courses where dynamic capabilities theory is taught, this case study will offer a specific application of this model in the context of brand communications and building brand equity in times of controversy.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

Infrastructure finance.

II MBA/Executive MBA (Project Finance, Infrastructure Finance).

It is generally believed that the economy of India is on the threshold of achieving significant growth in the coming years. The availability of adequate infrastructure facility will play a key role in realizing this growth potential. To accelerate the process of creating infrastructure capacity, the Government of India has opened up many infrastructure sectors for private sector investment. Creation of international standard airport facilities is an important component of such new infrastructure creation. This case study presents the initial development and financing closure of Bengaluru International Airport Limited (BIAL), the first major private sector airport in India. In retrospect, it is generally felt that BIAL was an important milestone in the privatization of airports in India. The blueprint for the greenfield PPP airport in Hyderabad was closely modelled on the BIAL project. The experience gained in the development of BIAL also played a major role in subsequent brownfield PPP airport expansion projects in Mumbai and Delhi.

The goal of this case study is to illustrate the complexities that exist in the process of infrastructure development and financing. This following are the expected learning outcomes:

• The importance of using an appropriate project structure.

• The prevalence of early returns to project sponsors as compared to lenders.

• The process of achieving financial closure.

• Analyzing project risks and returns.

The importance of using an appropriate project structure.

The prevalence of early returns to project sponsors as compared to lenders.

The process of achieving financial closure.

Analyzing project risks and returns.

Teaching notes.