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HSBC (The Hong Kong and Shanghai Banking Corporation Limited) Holdings Plc. is a part of various trade finance consortia which aimed to digitise the traditional paper-based trade finance process. It had successfully executed multiple trade finance pilots using a blockchain based platform Voltron and was launching its Contour blockchain trade finance platform as a service to its clients. The trade finance market was estimated to be USD 18 trillion on an annual basis and HSBC had a 12% share in the trade finance transactions worldwide. This case revolves around the challenges facing banks/consortia while porting the traditional trade finance process to the blockchain based system. The crux is how the banks form the consortia, implement blockchain and facilitate trading globally given that it is a new technology and will require bringing all the stakeholders involved in the trade finance value chain to the blockchain based platform. HSBC is facing some decision questions on the formation, governance and management of the consortium, on the interoperability between consortia and on how to price its services to its customers.

The first three years of operation of the West Kendall Baptist Hospital (WKBH) in Miami, Florida provided a “poster child” for efficient and cost effective healthcare delivery to the West Kendall community that it served. The hospital leadership and management team exemplified a quality-oriented staff that moved as a cohesive and dedicated organization. WKBH exceeded every budget prediction and showed a profit in year 3, well before expected. Then came the winds of regulatory change. With the passage of the Affordable Care Act (ACA) and the attendant imposition of new reimbursement metrics, the picture at WKBH changed almost overnight. By the first quarter of 2016, WKBH started to lose money in excess of budget predictions despite its increased patient admissions, careful financial planning, expense reductions, quality service, and excellence in patient care delivery. A serious financial crisis was looming with little relief in sight. The hospital management team began to search for solutions.

The research methodology includes collecting quantitative data: original financial statements and financial data from WKBH, as well as qualitative data: interviews of hospital administrators and historical information.

Graduate capstone course in a finance course; masters in health administration; and/or the MBA program.

While it is clear that the ACA was designed with all good intentions, it has created substantial and perhaps, unanticipated financial burdens for caregivers. These issues are not only faced by WKBH. Most hospitals could relate to one or more of the four questions examined as part of this learning process. Graduate MBA students worked with the hospital to identify, define, focus, and resolve difficult quantitative and qualitative issues faced by the hospital as a result of major changes in the regulatory environment with the passage of the ACA. This case focuses upon the current reimbursement environment that has only recently emerged as a result of the implementation of the ACA.

Organizational behavior, human resources, culture, international business, international entrepreneurship and emerging market studies.

MBA and MSc students (and some advanced-level undergraduates) in an MBA module being taught face-to-face in an emerging market context. MBA courses such as managing cultural diversity, cross-cultural management, organizational behavior, human resource management, international business and business in emerging markets. The exercise is also relevant to teaching the subject of assignment- and dissertation-writing, given the element of data collection and analysis.

This exercise is designed to be an MBA class exercise in which students try to answer the question: what are the national cultural characteristics of the typical executive or manager in my country? Are these behaviors as the textbooks describe, or have they changed, especially with economic development?

The example of country chosen for the class exercise can be any emerging market country, especially one undergoing significant change. Much of the research on cross-cultural management conducted in emerging markets was carried out 20 or 30 years ago and the changes in emerging markets have been dramatic since then. It is highly likely, when reaching the results of this exercise, that the culture of the chosen country has indeed changed dramatically, becoming more like a typical developed or “emerged” country. Much of the original cross-cultural management research was also based on a similar group – employees of US-based high technology companies, arguably similar to the sample to be involved in our exercise here.

National cultural characteristics can be described and defined in ways which will allow for comparisons, to gain useful insights – and these behaviors are not good or bad, just real and different.

Cultures can change or stay the same, due to certain demographic, economic and social influences, which we can study and measure.

If we proactively interview colleagues and other contacts to test our understanding of these national culture constructs, we can gain more insights and awareness (rather than just listening to a lecture).

Teaching notes, student assignment.

The Employee Provident Fund Organization (EPFO), established by the Government of India is one of the World's Largest Social Security Organizations. The purpose of EPFO is to ensure social security for Industrial workers and their dependents. EPFO maintains more than 15 crore accounts of its members. Traditionally EPFO had been functioning as a legacy organization, administered and managed by Indian bureaucracy. Operational processes were riddled with over emphasis on rules and regulations, but were weak on transparency, accountability, effectiveness and efficiency. The 120 EPFO offices established all over the country operated in silos. Consequently, the very purpose of social security and welfare of the industrial employees suffered, while all other stake holders enjoyed significant controlling power. Recent interventions at EPFO were focused on process reengineering and ICT enablement to make EPFO more customer-centric. The case documents the transformation of EPFO from a bureaucratic, opaque organization to a customer centric, stakeholder friendly, transparent and accountable organization through IT enabled operations.

From a pedagogical point, the case may fulfill following objectives: First, to understand Vodafone’s position in the current environment. Does the environment present the elements that are necessary for them to thrive (as analyzed using a PESTEL framework)? Second, to understand the resources needed to build competitive advantage in an emerging market context (as analyzed using the Porter five forces model); and third, to understand the competitive challenges of conducting business in a highly (and sometimes capriciously) regulated industry.

The Indian Telecommunication sector is one of the fastest growing industries in the world. There are nine telecom operators who are pioneering this growth; however, five private companies: Bharti, Idea, Reliance, Aircel and Vodafone make up 78.86 per cent of the market. These five companies have the opportunity to increase their market share by expanding the services provided to rural India; however, the Indian Tax Authorities have caused some hesitation. Aside from being known as heavy handed and unpredictable, the authorities have also demanded that Vodafone pay them billions in taxes. These court cases have challenged the way that other telecom operators look at investing. The arrival of Reliance Jio as a new player in the Indian wireless space with deep pockets has not helped the already fierce competitive landscape. Reliance Jio is forcing all wireless companies including Vodafone to reevaluate their India strategy.

This case could be used in both MBA and executive education programs.

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.

Ethical Entrepreneurship; Internationalization of small and medium enterprises (SMEs).

Bachelor and Master courses in International Management and Entrepreneurship.

A German medical scientist developed a product which was able to absorb alcohol in blood and consequently reduced the alcohol-level. He tested it with the participation of 170 volunteers at a private party. The product was consumed after alcohol consumption and the result was an alcohol reduction by 20-70 per cent. In addition, the volunteers had either no or only small symptoms of a hangover. The students shall discuss the different business models the medical scientist could implement by taking into account ethical issues. To give them necessary working data, the case includes European environmental data (including information about the European food industry and the functional drink market), an insight into the European legal issues of starting a business in the food segment (including definitions of “food”, “food supplement” and “health claim regulation” and how these factors impact entrepreneurial decisions), current events in the European food branch and examples of possible competitors. The case is built on a real product development and on current information and facts.

To become involved with entrepreneurial thinking and entrepreneurial decision-making. To debate ethical issues in the entrepreneurial process. To become aware of the complexity of internationalization in the field of SME as well as to reflect upon and sketch appropriate strategies.

Teaching note.

The learning outcomes of this paper are as follows: to understand the characteristics of a natural monopoly such as telecommunications sector and impact of “network externality”; to understand the role of a regulator in maintaining a balance between competition and consolidation of telecom sector; to understand the importance of first-mover advantage in telecom sector and coping mechanism of late entrants; to understand different pricing mechanisms of “natural monopolies” that can be adopted to remain profitable; to understand social cost of price floor in telecommunications sector.

Indian telecom sector is going through a downturn where most of the private sector telecom service providers have reported huge losses, failed to pay adjusted gross revenue (AGR) dues and reported decline in average revenue per user over a period of 3–4 years. Fierce competition in the sector leads to rock bottom calling and data charges. Bharti Airtel benefitted for being the first mover in terms of market share but with entry of JIO in 2016, the service providers have entered a price war. As a result, service providers have requested Mr. R.S. Sharma, Chairman of Telecom Regulatory Authority of India (TRAI) to come up with a floor on calling charges and requested the government for a bailout package. Currently, Mr. R.S. Sharma, Chairman TRAI is facing a dilemma whether to regulate and come up with a floor on calling and data charges or leave the sector for market correction. Mr. Sharma can also recommend to amend the definition of AGR. Telecommunications sector exhibit the characteristics of a natural monopoly where there is a need of a regulator to introduce “competition for the sector” and “competition in the sector.” In India, TRAI is the regulatory body responsible for introducing “competition for the sector” by auction and “competition in the sector” by deregulating calling and data charges, maintaining at least three private and one public service provider, decreasing “switching cost” of the customers, etc. The case deals with the issues of why there is a need of a regulator in natural monopolies, how different chairmen of TRAI have successfully introduced competition “for” and “in” the sector, and how Indian telecom sector went through a downturn? What should TRAI do to maintain competition in the sector?

The case deals with the issue of managing telecommunications sector (a natural monopoly) by a regulator in the context of India. The regulator had successfully introduced “competition in the sector” and “competition for the sector.” This led to sharp increase in subscriber base and decrease in calling and data charges. Presently, fierce competition in the sector has left the service providers cash crunched. The case deals with the dilemma faced by the chairman of the regulatory body in India on whether the regulator should come up with a price floor or market correction. Study level: MBA, Executive MBA.

Teaching Notes are available for educators only.

CSS 10: Public sector management.

Human Resource Management & Social Entrepreneurship.

The target audiences for the case study are undergraduate and postgraduate (e.g. BSc, MSc as well as MBA) students and also management trainees and executives who are interested in understanding the social capital enhancing practices, policies and strategies adopted by the world’s largest commercial employer to ensure complete satisfaction and contentment of 1.7 million employees and their family. Even senior management teams could be targeted in executive education programs, as this case discusses time tested practices, policies and strategies which have been sparsely discussed so far and hence can be expected to provide insights to senior corporate managers. The case also demonstrates the application of different frameworks on social capital and corporate social responsibility which can be used by the participants in their firms to assess the social capital.

Indian Railways (IR) remains the world’s largest commercial employer, with approximately 1.7 million employees, which conveys the huge magnitude of social capital inventory accrued. This social capital, especially people side of IR, played a very crucial role in running the organization successfully for more than a century. As an organization, IR has guaranteed heavy importance for its employees while making decisions on strategic level. But recently, IR was moving towards automation and was cutting on cost incurred for its employees. IR was already exhibiting decreasing trend in the number of employees employed in the organization. These initiatives were resisted by IR employees due to fear of job losses and insecurity. In 2013, Chief Personnel Officer’s (CPO) of different zones have to rethink about their HR practices to assure confidence for employees on the security of their jobs and sustain the social capital accrued by IR over years. The objective of this case study is to describe the social capital accrued by IR over the years by offering livelihoods for nearly 1.7 million families across the country. Teaching note applies the frameworks on social capital in literature in the context of IR. Teaching note also discusses how CPOs of IR can pursue the change initiatives among the employees without affecting the social capital accrued so far.

Case study’s primary objective is to apply frameworks available in literature on social capital and corporate social responsibility to understand the social capital accrued by IR over decades. The case study attempts to answer the following assignment questions which forms the learning objectives of this case study: How do the existing frameworks on social capital measurement explain the social capital accrued by IR over decades? How can a firm assess its accrued social capital? How can one demonstrate the same using the case of IR? How can IR pursue change initiatives when it comes to its employees without affecting the social capital accrued over time?

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:10 Public sector management.

In the wake of the December 2015 Paris COP21 (Conference of Parties), and India's announced renewable energy commitments, Reliance Power is reviewing its renewable energy investments to arrive at a long term strategy for the role of renewable energy in its power generation portfolio and the financing of renewable projects. The case reviews the Indian government's policies to promote renewable energy; the evolution of the renewable energy sector; and Reliance Power's financing of renewable energy investments. The case requires identification of alternative long term strategies and their financing implications. This case serves as an introduction to renewable energy from the perspective of Reliance Power, a large private power generator of the country. These projects also provide a learning opportunity for Reliance Power to deal with fast evolving renewable technologies.

Public sector management, policy-making, sustainable development, post-Communism.

The case is designed to be used with undergraduate-level and MBA/MPA students. With undergraduate levels, the case can be used on the subject strategic management. In MBA/MPA programs, this case can be used in subjects such as strategic planning for public administration. Here, it can be stressed as being about the problems faced by a country on the long road toward democracy. Issues to be discussed in class include: environmental scanning, competitiveness, public policies and strategic agenda.

At the most general level, the case allows for the analysis and evaluation of the strategy and performance of the Albania from 1928 to 2014 along economic, political and social dimensions, using the techniques of country analysis (see Country Analysis Framework, HBS No. 389-080). Depending on time limitations and the particular objectives of the individual instructor, the case can be used to explore all phases of the nation's development or, alternatively, to focus on a specific era, such as Albania, in the way toward a free market economy. The case provides a setting in which to explore the diamond model as a tool for analyzing competitiveness and setting the economic policy agenda. In the Albania case, we highlight diamond analysis in an emerging economy. Albania also highlights the transition from a planned economy to a market economy, and the importance of a cross-border regional integration in competitiveness.

The case is written to serve a number of purposes: Understanding the problems and challenges to sustainable development, especially in a post-communist emerging economy like Albania. The transition/changes that all policymakers have to go through in their efforts for sustainable development of the country. To discuss production factors and the importance of a growth model based on the production factors.

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