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Leadership; Political Economy; Strategy; Entrepreneurship.

Masters in Business Administration (MBA); MPhil in Strategic Leadership.

On 5 February 2016, South African entrepreneur Jannie Van Eeden faced a dilemma about whether to expand his current businesses or not. He had to choose between focusing exclusively on hospitality and tourism or dividing his time and resources between the tourism business and expanding his existing logistics business. Expansions to his logistics business would entail investing in a warehouse and supplying fresh produce to the lodges in the wider area of Lake Malawi where he was based. Van Eeden realised that he needed to take into account the political economy of Malawi in unpacking the contextual variables related to his decision. Various stakeholders’ roles are illustrated in the case, for example the government’s role in enabling entrepreneurial businesses as well as the investments made by foreign organisations and international donors.

Development of leaders who can take contextually intelligent decisions. Insights into conducting Political Economy analysis to enable doing business in Africa.

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 7: Management Science.

The subject area is international business and strategy. The case allows scope for the following areas: internationalisation, market strategy, emerging market multinational companies, and doing business in Africa.

The primary target audience for this teaching case is postgraduate business students such as Master of Business Administration (MBA), or postgraduate management programmes. The case is primarily designed for use in courses that cover strategy or international business.

This case centres on the international growth strategy of FMBcapital Holdings Group (FMB), the Malawian commercial banking firm. The case finds the founder and current group chairman, Hitesh Anadkat, in 2016, as he and the FMB board are about to decide on the next move in their Southern African strategy. Since opening the first FMB branch in Malawi and becoming the country's first commercial banker in 1995, Anadkat and his team have ridden a wave of financial deregulation across the region to successfully expand into neighbouring Botswana, Zambia, and Mozambique. Now, an opportunity to gain a foothold in Zimbabwe means the leaders must decide (1) whether they want to continue to grow the FMB footprint across the region, or focus on their integration and expansion efforts within existing markets; and (2) how they will realise this strategy.

International expansion – identifying the need to expand into new markets; identifying the combination of internal strengths and external conditions that make international expansion viable; and identifying and analysing each possible new market(s) and the decision-making process involved.

Political, social and economic factors in Africa – understanding how these external institutional factors present constraints, risks and opportunities for internationalisation and hence shape strategy; understanding that these factors may vary significantly across countries on the continent (in spite of their geographic proximity) and in some cases, within a single country; and understanding that by selecting markets with extreme socially and politically volatile contexts, the risk of a worst-case scenario transpiring (in which institutional forces trump business strategy) is appreciable.

Combination of resource- and institutional-based approaches – recognising that successful internationalisation requires capitalising upon both internal resources and institutional mastery.

Choosing expansion strategies – assessing the type of new market entry (e.g. greenfield or acquisition of existing operations) and its adequacy for penetrating a new market.

Using networks and local partners – to substitute and enhance the benefits that originally flow from a small (and sometime family-established) business, with an emphasis on acquisition of skills and networks in foreign countries.

Regional integration – optimising business operations through a sharing or pooling of resources and improved capital flow between subsidiaries, in some instances by taking advantage of economies of scale (this extends to enhancing the reputation and awareness of a brand across a wider region).

Family businesses – identifying the value that can be gained through establishing a family business with the support of many “close” stakeholders while also noting the limitation that exist as expansion and growth is required.

Expected learning outcomes: To respond to the case question, students would analyze macro- and microeconomic differences to determine HC Securities’ preferred global strategy and appropriate market entry mode. The case demonstrates how instability in a local market, in this case Egypt, can force a company to go global. It also demonstrates how two superficially similar markets, Singapore and Hong Kong, provide different opportunities for HC Securities and require different global strategies: Singapore provides a jumping-off point to its predominantly Muslim neighbors Malaysia and Indonesia, whereas Hong Kong gives access to China and could provide a new customer base of Asian investors willing to invest in Africa and the Middle East.

Brief overview of the case: The case introduces the Egyptian investment company HC Securities, which is facing challenges related to Egypt’s political instability and economic slowdown. HC Securities’ CEO, Mr. Choucri, feels expansion to one of the Asia-Pacific countries could help with the company’s growth and stability. He identifies Hong Kong and Singapore as the most compelling locations because of their sophisticated economies and growth potential in the investments industry. This case provides information about each market, allowing students to respond to the question “What should Choucri do to assure a market-based solution for his company?”

Student level and proposed courses: The case is appropriate for use in undergraduate courses in international business or strategic management.

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

International Business.

This case presents financial and macroeconomic data for the United States between 2007 and 2013, a period covering the financial crisis and Great Recession of 2007–2009 and the slow economic recovery from 2009 onward. During this period, the Federal Reserve had set the federal funds rate, its primary monetary policy instrument, near zero and was using additional monetary policy tools to stimulate the economy. One of these additional tools was quantitative easing (QE).

Students will use the data provided in the case to examine how financial markets reacted to QE actions by the Federal Reserve and to analyze the potential impact of QE on the macroeconomy.

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

• Apply the event study methodology to analyze economic effects

• Recognize how macroeconomic news affects the prices of financial securities

• Describe the connections between the prices of financial securities and the macroeconomy

• • Debate the relative costs and benefits of quantitative easing and the optimality of Federal Reserve policy

Apply the event study methodology to analyze economic effects

Recognize how macroeconomic news affects the prices of financial securities

Describe the connections between the prices of financial securities and the macroeconomy

• Debate the relative costs and benefits of quantitative easing and the optimality of Federal Reserve policy

The data for this case were obtained primarily through a series of in-person interviews in Penang between the authors and Pete Browning (a pseudonym) from 2017 to early 2019. The authors also consulted secondary data sources, including publicly available material on BMax and “Company B”.

This case examines a key decision, or set of decisions, in the life of a small- to medium-sized management consultancy group, namely, whether they might expand their operations in Southeast Asia, and if so, where. These key decisions came in the wake of their having already established a very modest scale presence there, with an operating base on the island of Penang just off the north western coast of Peninsular Malaysia. The initial establishment of a Southeast Asian branch had been somewhat spontaneous in nature – a former colleague of one of the two managing partners in the USA was on the ground in Malaysia and available: he became the local partner in the firm. But the firm had now been eyeing expansion within the region, with three markets under particular consideration (Singapore, Indonesia and Thailand) and a further two (Vietnam and China) also seen as possible targets, though at a more peripheral level. The questions facing the decision makers were “was it time they expand beyond Malaysia?” and “if so, where?”

This case could be used effectively in undergraduate courses in international business. The key concepts on which the case focuses are the factors affecting market entry, particularly the choice of market and the assessment of potential attractiveness such markets offer.

The theoretical basis of the teaching note is grounded in theory associated with macroeconomics and foreign direct investment (FDI); in particular why FDI is important to a developing country.

A secondary research methodology was used for the research and writing of this case study. Data (news articles and relevant readings) was obtained via the internet.

The case highlights the interrelated factors (civil society infrastructure, local and political unrest and community instability) that led to global mining company Rio Tinto announcing the halt of its operations and force majeure at its only South African business, Richards Bay Minerals (RBM). RBM was the largest business and employer in the province. Following the destruction of some of its equipment, civil unrest such as blocking of roads and intimidation of staff and the murder of one of their executives, Nico Swart, RBM management consequently announced all supplier contracts and operations would be halted until it was safe for work to be resumed.The case allows students to consider the interrelated factors that multinationals operating in developing countries are subject to in terms of different sub-national institutions and the potential impact of a large multinational ceasing operations in a local economy, both directly and indirectly. It concludes with considerations of what needs to be in place for RBM to continue operations.

This case can be used in undergraduate- and graduate-level courses, in management development programs or in short executive education courses focusing on the environment of business, macroeconomics and FDI.

On completion of the case study, students will understand the following learning objectives: the characteristics of quantitative easing (QE) and when it may be appropriate to implement QE; how QE differs from a conventional bond purchasing programme; the impact of direct financing of the fiscus by the central bank on its independence; how the macro-economic and political environments affect and influence national economic policy; the difference between traditional and unconventional monetary policies and potential implications for an economy like South Africa. The learnings from this case study can be used in other global economic environments, particularly in emerging markets. This case study provides valuable insights into decision-making, institutional independence, policy coordination, deficit financing, causes and consequences of price inflation, risks relating to monetary instability and the correct application of monetary policy.

After the announcement of the COVID-19-related lockdown in March 2020 and the subsequent slow-down of economic activity in South Africa, the South African Reserve Bank (SARB) had to consider appropriate macro-economic tools to ensure both price and financial stability in South Africa. The macro-economic policy tools had to be considered in light of the South African economic context, which included acknowledgement of South Africa’s debt crisis and slow economic growth. The central bank responded by introducing the following measures: reducing interest rates to a record low of 3.5% to give consumers financial relief and to promote spending in the economy; purchasing government bonds in the secondary markets to stabilise financial markets; facilitating the loan guarantee scheme that was aimed at providing financial relief to small- and medium-sized enterprises; relaxing the capital and liquidity adequacy requirements that commercial banks are required to meet; and ensuring availability of liquidity to banks through facilities such as the weekly repo auctions. However, despite introducing these interventions, the SARB faced calls from politicians, analysts and academics to do more. Various commentators argued that the SARB could introduce QE and directly finance government spending by purchasing government bonds. Some commentators argued that the reluctance of the SARB to pursue these suggestions was a result of the close alignment and relationship between the SARB and National Treasury. The dilemma faced by Governor Lesetja Kganyago of the SARB was threefold, namely, whether it was appropriate for the central bank to pursue the initiatives and, if so, whether the bank could pursue them without compromising its independence, and if the introduction of those initiatives would not adversely affect the ability of the central bank to fulfil its mandate of price stability and financial stability. In this regard, the governor and his executive team were required to consider the long-term implications of introducing the initiatives on consumer price inflation, independence of the SARB and the appropriate use of monetary policy tools to fulfil the central bank’s mandate. But the question was: What policies should the governor favour?

This case study is based on various macro-economic theories. Therefore, it would be useful to teach this case study in macro-economic courses in the following programmes: master’s in business administration, bachelor of commerce, bachelor of economic sciences and business science studies, as well as on executive education programmes, which consider macro-economic policy. In general, students who undertake economics, business and general management, finance, legal, commerce and banking studies could learn from this case study.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

In June 23, 2016, voters in the United Kingdom have just approved a referendum calling for leaving the European Union. The case describes the motives for European integration, the rise of separatist movements in the United Kingdom and elsewhere, and the referendum process itself.

The purpose of this case is to provide a contemporary counterpoint to a discussion of the economic and political motivations for the American Civil War. Dominant themes highlighted here are economic nationalism, political nationalism, cultural centrism and ethnocentrism, and populism.

This case is the second of a three-part series that follows the managerial, strategic, and communications decisions of the Swachh Bharat Mission (SBM) or Clean India Mission, the flagship programme of the Government of India to eliminate the practice of open defecation (i.e., not using a toilet) from 2014 to 2019. As of 2014, 550 million people in India practiced open defecation. This problem posed a massive public health hazard and economic drag for the country as well as a threat to global health. Written from an insider's perspective, the cases centre on the decisions made by a new Secretary of India's Ministry of Drinking Water and Sanitation, who was hired to manage SBM, and the team he assembled. Case B discusses the start-up challenges for SBM, including implementation in India's complex federal system, workplace culture, and the deep-rooted behaviour of open defecation in rural India and the managerial and communication strategies formulated to address them. The case concludes by framing the difficulties with slow-moving states and monitoring rigour that the leadership SBM, with a new team, strategic focus, and early momentum, faced as the mission entered its final two years.

The values-based leadership (VBL) themes lend the case to use in courses focussed on individual leadership approaches, personal-professional development, personal mastery, or individual agency in social change and social justice movements. The emerging market context adds a layer of complexity to the protagonist's journey, which may make the case especially relevant for use among students who work in this context or in courses that deal with volatility, uncertainty, complexity, and ambiguity (VUCA).

The primary target audience for this case is postgraduate students in a management or professional development program.

This case offers a leadership profile of lawyer Fadzayi Mahere as she pursues social change at the national level by running for political office in Zimbabwe in 2018. The case recounts Mahere's professional journey through human rights law and local activism, which eventually drives her to run as an independent for a position in the national election. She does this as a response to the dire state of the country: economic crisis, social instability, and political corruption that are making life increasingly untenable for most people. In spite of running a strong grassroots campaign, Mahere loses the election and is faced with the dilemma of whether or not to forego independence and join the dominant opposition party. The case therefore centres around the role of values in leadership, the role of narrative in shaping the decision to lead, and how these things impact a leader's strategy for affecting social change and achieving social justice.

Appreciate the systemic nature of social problems in an emerging market context and how this creates different opportunities for a leader to act on a problem

Understand how a leader's identity, in terms of values and experiences, shapes their motivations and informs their strategy for leading a change effort

Understand the dimensions of values-based leadership (VBL) – transformational, authentic, accountability, and ethical leadership – and how the actions of a values-driven leader reflect these

Identify the mechanisms that aspiring leaders practicing VBL can use to build an authentic narrative for key stakeholders to accept and embrace them

Recognise the different strategies a leader can adopt to achieve values-driven outcomes, while maintaining alignment with the different dimensions of VBL