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This case brings out the role of institutions and corporate governance issues in regulatory/policy organisations in the telecom sector. Spectrum is a critical input for mobile services, the economic growth driver. The Indian government, like other governments, attempted to move to a more flexible spectrum governance regime and introduced trading to ensure that more spectrum became available for commercial services. Despite its efforts, the government's framework was restrictive. The spectrum trading deal between the two private telecom operators-RCom and Reliance Jio-failed. RCom was fighting to remain solvent by selling spectrum, and Reliance Jio needed it for its growth.

The case study uses a strategic foresight method, scenario-planning, to examine the strategic options for a financial services firm. As such, it covers the fields of strategy, environment of business, innovation, digital disruption and organizational change as they relate to the firm’s ability to adapt to changes in the environment of business in an emerging market context.

The case was developed with master's-level students in mind, particularly those seeking a master of business administration, masters in strategic foresight or related management degrees.

The case of NEDBANK, a longstanding and successful financial services firm based in South Africa is confronted with major challenges from competitors because of technological change in the industry as well as having to expand their market penetration across Africa. A rising regulatory burden, tough economic conditions and the need to access low income markets, provide a significant organizational development challenge as a decades-old bank, known for a relational approach to banking, has to navigate the new domains of “fintech”, micro-lending and public sector banking.

Students will gain comprehensive insight into the industry environment in emerging markets, understand the strategic management challenge before financial services firms in this environment and be able to consider the alternative strategic interventions that may be used to ensure corporate sustainability amid these challenges. Simultaneously, the case provides a comprehensive view into the use and application of scenario-planning for 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.

CSS: 11: Strategy

A secondary research method was used to collect data for this case. The authors have made use of newspaper articles and articles by experts published in the public domain.

This case discusses the dilemma faced by Amazon Prime Video in India regarding content. Amazon Prime Video attained success and rapid growth in India ever since its entry into the Indian over the top (OTT) market in 2016. However, the pursuit of attractive and bold content landed Amazon Prime Video in a legal tangle in India. Amazon Prime Video was accused of hurting the religious and political sentiments of Indians by broadcasting bold shows like Tandaav, Family Man, Mirzapur, Family Man 2, etc. Litigations against Amazon Prime Video were filed in the Indian courts by members of religious and political organizations. Protests and online campaigns on Twitter caught the attention of internet influencers in India. The key dilemma faced by the protagonist in this case is whether to continue streaming attractive content that may be controversial and may occasionally hurt the religious/political sentiments of some Indians or stream only safe content that may be deemed as boring by its young target audience.

Undergraduate and postgraduate students studying marketing management and international business courses in business management and commerce streams can use this case.

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.

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.

Case A uses the context of unfair, non-transparent process of spectrum allocation by the Indian government to private operators that led to Supreme Court (SC) cancel 122 licenses. It gives scope to discuss the relationship between policy and regulatory agencies and their effectiveness, role of other institutes outside telecom sector such as the Prime Minister Office, Empowered Group of Ministers and the Comptroller & Auditor General of India.

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.

Case B assesses the options available to the government and private operators in light of the SC judgment. It provides scope for examining the dimensions for auction design by illustrating the subsequent exercise undertaken by the Telecom Regulatory Authority of India.

The pandemic induced lockdown lead to supply and manufacturing disruptions that were swiftly dealt with by the Indian Pharma Industry through successful industry-government collaboration. By May 2020 production was back to normal and exports were higher than the same period in May 2019. The case deals with the processes that enabled this to happen, the policy responses and the changes that happened in the period from March 2020 to August 2020.

Describes the history of the tobacco industry and its emergence as an extremely effective marketer and non-market strategist. After years of success, both publicly and politically, the leaders of the tobacco industry are faced with mounting political pressure and the financial threat of litigation from class-action lawsuits. The leaders face an industry-wide strategic decision of whether to acquiesce to government demands in exchange for immunity, focus on judicial success, or develop a new course of action.

To evaluate the formulation and implementation of non-market strategies in the context of regulatory, legislative, and legal institutions. To understand how various aspects of the non-market environment interact and how these environments not only change over time, but change market competition within an industry. Further, to formulate and decide between firm-specific and industry-wide strategies. Finally, to appreciate and reflect upon the potential conflict between non-market strategies and ethical concerns.