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Kolkata Port (KoPT) had achieved a turnaround from having made a loss of Rs 7.5 crores (cr) in the year 2000–01 to a net surplus of Rs 465.1 cr in the year 2006–07. A variety of initiatives had been taken during the intervening years with a focus on tariff rationalization, revenues from alternate sources, infrastructure development and productivity improvements. While these had yielded results, there was a fundamental issue of operational complexity and inability to compete due to the locational disadvantage. KoPT was a riverine port with two locations, 232 kms and 115 kms upstream on the Hooghly with draft limitations.

Two significant studies having implications for future strategies of KoPT had recently been submitted in March and November 2007. The top management of the port, including the Chairman who was responsible for driving many of the initiatives, was concerned that it may not be possible to achieve long term sustainable growth continuing with the strategies used so far. A well thought out future roadmap, breaking away from the present thinking, was essential sustained growth.

The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous implications for all the stakeholders. This case study aims to make students understand the components of the fraud triangle, the impact of financial fraud on various stakeholders, the role of venture capitalist (VC) investors and the importance of good corporate governance in start-ups. The case study presents an excellent opportunity for students to discuss the consequences of ignoring good governance in the pursuit of growth in a start-up. After analyzing the case study, the students shall be able to explain the concept of the fraud triangle and to be able to identify the motivation, opportunity and rationalization of financial irregularities in a start-up; analyze the impact of financial irregularities on various stakeholders; comprehend the business model of VCs and evaluate its influence on VC-funded start-ups; and appraise the importance of good corporate governance in start-ups.

The case study revolves around the confession of financial irregularities made by one of the cofounders of GoMechanic, a start-up headquartered in Gurugram, India. On January 18, 2023, Amit Bhasin confessed to financial irregularities in the company’s financial statements, leading to laying off 70% of the workforce of the company. GoMechanic had earlier raised close to US$62m [1] from maverick global investors including Sequoia Capital, Tiger Global, Orios Venture Partners and Chiratae Ventures, and was negotiating to raise Series D financing from the Japanese multinational SoftBank with aspirations to be a unicorn (start-up with a valuation of over $1bn). The confession led to a debate about the consequences of the “growth at all cost” culture being followed by start-ups as well as VCs. GoMechanic was not an isolated instance of a lack of governance in the start-ups. The confession had consequences not only for the GoMechanic but for the entire start-up ecosystem of India, which was the third largest in the world. Bhasin stated that the founders take full responsibility for the situation, and they were working on a plan which was most viable under the circumstances. However, it was not going to be easy to regain the confidence of the investors.

The case study is best suited for senior undergraduate- and graduate-level business school students and in executive education programs in courses such as corporate governance and ethics, private equity and entrepreneurial finance.

Teaching notes are available for educators only.

CSS 1: Accounting and finance

One of the major reasons of layout-related difficulties faced by manufacturing industries is non-value-adding and redundant work. Plant layout study aims at economic production with larger volumes and variety as well. Method studies focus on the effectiveness with efficiency by a systematic critical scrutiny of work being done. The intention is to identify logical sequence of activities highlighting and eliminating the unnecessary mudas. Time and motion study is a combination of time study and motion study analysing and eliminating any unnecessary movement for productivity optimization of that job or process. Thus, through the elimination of unnecessary motions, times for performing the processes may be reduced and productivity increased. The intention is to subdivide the different operations of a job or process into measurable elements. Hence this case has been developed based on the primary data. The primary data was collected using Industrial Engineering Studies like layout study, method study and time and motion study. This case has been classroom tested with MBA students in their Lean Management Course.

Arin Synthetics Ltd. (ASL) though had installed modern machinery in its facility, process efficiency and optimization were a concern. Top Brass at ASL believed that ASL was overstaffed and its processes had creep as far as efficiency is concerned. This case focuses on ways to improve the process efficiency to rationalize the manpower at ASL. Presence in large growing global markets put cost pressure on ASL, thus mandating improvement in the efficiency of its processes through manpower rationalization. This case, therefore, discusses one of the highly staffed process of waste collection. Could ASL achieve reduction in the manpower in waste reduction without affecting the overall process? Was there a strategic mistake in the thought process of disposing of the waste generated by the manufacturing complex?

Operations management, Productivity and performance, Quality management, Lean management.

The case explores Ayesha’s reasoning, who is also a financial expert, regarding how she approaches the question of Riba (interest) so that she can maximize her financial returns and remain true to her religious identity. The discussion in the case revolves around alternate rationalizations as to why Riba (interest) continues to remain important for many Islamic investors.

Historically, the prohibition of Riba (interest) prevented the exploitation of the poor borrower who was charged exorbitant interest rates by wealthy lenders. In the modern day, a banking system which operates in a regulated setup and charges market-based interest rates, the rationale regarding the exploitation of the poor seems less compelling. Furthermore, other economic realities such as inflation and currency fluctuations further lend support to protecting one’s investments through prudent financial decisions. In this case the authors approach this decision regarding the prohibition of Riba (interest) in Islam from the point of view of the protagonist, Ayesha Bhatti, who is religiously conscious and is faced with certain personal investment choices.

The case focuses on one of the core issues of Islamic finance (IF), that of the prohibition of charging Riba (interest) on debt and the reasons behind this ruling. The relevance of this prohibition to modern day financial markets is essential to understand IF.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

This case is based on using the fraud triangle, theoretical aspects like rationalization and motivation for understanding the financial pressures and corporate greed lead to accounting fraud. Building on the corporate governance’s weakness, the case explores the challenges and the changes that the company has to make to survive.

The case study has been entirely based on published resources. The case explores out the reasons why the companies commit accounting fraud using the motivations, financial pressures and the opportunities exploited due to a weak governance system.

The case deals with a RMB 2.2bn accounting fraud at Luckin Coffee Inc. (L.K.), a US-listed Chinese company, which led to a steep fall in its share price by more than 80% in April 2020. The company’s CEO had to resign in light of the accounting fraud, which involved fabricating the transactions in 2019, the same year it got listed on the NASDAQ stock exchange. The case is a classic example of greed, corporate ambition and flaws in the corporate governance that led to the fraud while framing a course of action for the company moving forward. The case allows the learners to dive deep into the facts to find out why the fraud happened and its repercussions for the company and its various stakeholders. The case can be useful in Accounting, Corporate governance or Ethics modules for both undergraduate and postgraduate students.

The case can be used for both postgraduate and undergraduate financial accounting or corporate governance modules or the executive development programmes explicitly dealing with ethical challenges and accounting fraud.

This case uses concepts from Korten’s strategies of development-oriented four generations of non-government organizations (NGOs) and social psychology such as stereotypes, prejudices and actions to explain the social phenomenon. In furtherance, the case presents Aristotle’s approach to creating a message for masses that include use of ethos, pathos and logos. Stood’s (2017) narrative, engagement and technology (NET) model of social leadership was used to analyse the characteristics of social leaders.

Prima facie the case was developed from primary sources i.e. interviewing with Ashish Thakur. Literature from secondary sources was obtained to make teaching notes. List of references is presented towards the end that depicts the use of textbooks, research papers, websites and blogs. This case was tested in the classroom with MBA students learning business communication.

The case dealt with the challenges of an NGO that included conducting respectful last rites of unclaimed dead bodies. As the NGO grew, Ashish Thakur, the initiator of Moksh started facing resource management challenges, namely, volunteer induction, fundraising and managing non-human resources. These issues are deeply embedded in several social stereotypes about dead bodies. Learning covers strategies of four generations of NGO development, a NET model of social leadership, breaking social stereotypes related to dead bodies and last rites (necrophobia), designing social communication and opportunity to assess faulty rationalizations and do critical thinking around the socio-religious practices.

This case is intended to be used for the students of the social leadership or social entrepreneurship, social psychology, business communication or communication skills, organizational behaviour, advertising and social media.

Students apply the new Institute of Management Accounting (IMA) ethics standard to “contribute to a positive ethical culture” and advice to “actively seek to resolve an ethical issue.” By learning and practicing how to voice concerns students gain confidence in this approach to resolve ethical issues. In addition, most students are inspired by the moral courage of the chief financial officer (CFO) and report an increased resolve to have moral courage.

The case was based on the CFO’s published account of his experience and supplemented with an interview. It has been gradually refined in an ethics course for accounting students over several years and evaluated from a sample of students who completed the course.

The CFO of a mining company was pressured to pledge collateral that was already pledged on another loan. The CFO courageously refused his supervisor’s request and resigned his position immediately (flight). In its ethics guidelines, the IMA requires its members to actively seek to resolve ethical issues internally before disassociating from the organization (fight). In addition, ethics writers Gentile (2010) and Badaracco (2001) suggest ways to communicate ethical concerns. In this case, accounting students learn how to resolve ethical issues using the ethics guidelines and suggestions by analyzing and writing about the experience of the CFO.

The case is used in a graduate ethics course. It may also be used in undergraduate accounting courses.

Human Resource Management/Change Management.

MBA 1st Year students or in Executive Programs on managing change.

This case describes the dynamics of managing employees and productivity in a difficult scenario of low demand and a global recession. Soon after Trident Chemicals acquires Noble Chemicals, restructuring is undertaken to align production as per the market requirements. This gives rise to a whole gamut of issues ranging from a potential problem with the union to how employees would be incentivized in the changed scenario. A change in the working styles and organizational culture only adds to the complexity for the management. The issues seek an early and sustainable resolution as the company is losing money every day. The management has to pay attention to the employee needs as also meet the business challenges embedded in the context.

To help participants to look into the factors that impact complex change processes; to highlight factors responsible for inducing changes in strategy and culture; and to introduce to participants employee reactions towards complex change efforts in organizations.

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

Strategic Management and Organization Theory and Design.

Advanced undergraduate and MBA students taking courses in Strategic Management and Organization Theory and Design.

By the end of 2011, five years short of its centennial anniversary, UMW Holdings was one of the biggest corporations in Malaysia, registering revenues of RM13.5 billion (US$4.5 billion), and net profit after tax of RMI billion (US$0.33 billion). By that time, it had 110 subsidiaries, operating in four core businesses of automotive assembly and distribution of Toyota lines of products, automotive components and lubricants original equipment manufacturing (OEM) and replacement equipment manufacturing (REM), heavy equipment, and oil and gas drilling service. In September 2011, the company had targeted its Toyota automotive business to contribute to 50 percent of its revenues, while the other 50 percent would come from its other three businesses, by the year 2015. However, as of the first quarter of 2012, Datuk Syed Hisham Syed Wazir, the Group CEO and his management team realized that, at 72 percent, the automotive business was still the main contributor to the Group's revenues. As the company's Toyota assembly operation was limited exclusively to the Malaysian market, plus in the face of greater competition within the automotive industries, the company needed to set strategies to achieve its 50:50 plan. The case stimulates discussion on strategy formulation of a mature corporation, involved in diversified business portfolio.

Understanding the process of industry analysis, as well as the formulation and implementation of business-level and corporate strategies, enables case analysts to extend the concepts to many business situations.

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

This case is one of a pair of cases used in a merger negotiation. It is designed to be used with “British Petroleum, Ltd.” (UVA-F-1263). One-half of the class prepares only the British Petroleum (BP) case, and one-half uses this case. BP and Amoco are considering a merger, and are in the process of negotiating a merger agreement. Macroeconomic assumptions, particularly forecasting future oil prices in an uncertain environment, and assumptions about Amoco's ability to reduce exploration and production costs make Amoco's future cash flows difficult to predict.