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As CEO of not-for-profit adoption agency The Cradle, Julie Tye had taken the organization from the brink of dissolution in 1992 to a position of financial stability and health by 2007. One of the innovative steps Tye took in 2002 was to introduce an online learning venture that provided education for families preparing to adopt. The Cradle launched Adoption Learning Partners (ALP), using donated funds and government grants when possible and subsidizing the rest. The income generated by ALP grew from zero in 2002 to approximately $50,000 per month in 2007. But ALP's major market (parents preparing to adopt internationally) was forecasted to decline 50% over the next three years; the Web site was outdated; and new competitors were entering the market. ALP had built a reputation as a pioneer in adoption e-learning by providing high-quality, effective online courses. But without the infusion of at least $400,000, ALP risked losing its leadership position and, possibly, its viability. ALP needed a significant investment of time, talent, and funding. Tye had an MBA, a keen business sense, and fourteen years of experience in healthcare administration and the social services field. Even with her leadership, did The Cradle have the appetite to take on such a demanding strategy? In the end, would it be worth the investment?

Students will: learn quantitative techniques for valuing a social enterprise, which includes both economic and social value; learn alternative legal structures available to social enterprises and evaluate which structures make sense relative to various capital structures; and identify sources of capital available to social enterprises and evaluate their appropriate usage.

Reflect on the influence of different lifecycle stages on the strategy of a family business; evaluate the impact of family, industry and company dynamics on the evolution of a family firm; assess the impact of ownership, governance and succession considerations on the sustainability of a family firm; and develop decision-making skills to overcome specific dilemmas and secure the family business longevity.

Five industries, three generations and one family business. What started off as an entrepreneur’s ambition, Almajid Limited has proven itself to a sustainable source of revenue and a diverse portfolio of businesses for multiple generations of a Saudi Arabian family. This case study offers an exclusive opportunity to follow the tumultuous journey of a Saudi family business and analyze the different phases of its evolution over seven decades and three generations. In particular, the case aims to highlight the complexities surrounding the management of a family firm and illustrate how various lifecycle stages stemming from a number of areas (e.g. family, company, industry, ownership and governance) simultaneously influence the family business strategy. Being deeply embedded in the context of Saudi Arabia, the case unveils the unique challenges of managing a family business in a conservative cultural setting. The case study is divided into four parts, with each of them putting the emphasis on a different lifecycle area of significance for the evolution of the family business. Each part culminates with the identification of an area-relevant dilemma that needs to be addressed for the family firm to be able to move into the next stage of its development. Part A focuses on the family area or axis, the Part B on the industry axis, Part C on the company axis, while Part D is based on the sustainability axis, which embraces as many as three dilemmas in relation to the ownership, governance and succession in the family firm. Moreover, each part incorporates a timeline of critical events that contributed to the emergence of a specific dilemma and a culturally-rooted anime that helps the readers visualize the story, picture somebody else’s reality, and empathize with the key protagonists of the case to achieve optimal decision-making.

Graduate audience: Master of Business Administration or Master of Global Entrepreneurial Management.

Teaching Notes are available for educators only.

CSS 11: Strategy.

Students should be able to appreciate the exigencies of managing social enterprises in a largely profit-oriented economic domain; understand the interplay of choice and trade-offs in business management and be equipped to make optimal choices; and appraise new, creative and profit-making approaches for sustaining social enterprise.

Daniel Mensah and his team were to deliberate on options available for ensuring financial sustainability of HealthKeepers Network (HKN), a not-for-profit organization focused on community health and grassroots capacity development. As the economy of Ghana moved towards middle-income status, funding from global organizations had begun to decline. To ensure HKN’s continuity, Mensah needed to re-engineer HKN’s finances and consider options available for ensuring cash inflows to support the organization’s operations. Each of the available options involved specific setbacks or challenges for HKN to overcome to achieve financial sustainability. Mensah and his team were to engage in a brainstorming session analyse the available options and map the way forward for HKN.

This case is suitable for undergraduate and graduate-level programmes in business management.

Teaching Notes are available for educators only.

CSS 3: Entrepreneurship.

The case describes the efforts of a small Brazilian publishing house to export its products to foreign markets. In fact, after several years of losses, the firm has undergone substantial restructuring and hired a new CEO, reaching modest profitability. The challenge faced by the new management team includes, in addition to keeping the firm financially healthy, to develop an international orientation, to mobilize the resources, and to develop a new strategy to go international.

The case uses primary and secondary sources, including articles from business magazines and newspapers, company site, and data from Brazilian trade organizations, Brazilian federal government, International Trade Center, International Publishers Association, and an interview with the new CEO of the firm, in charge of developing its international activities. The use of different sources permitted triangulation.

The case is designed for use in undergraduate and graduate programs in courses related to international marketing, international business, entrepreneurship, and international entrepreneurship.

The case can be used to discuss the role of networks in the internationalization of the firm and the issue of distance to foreign markets (Ghemawat, 2001), using Ghemawats CAGE model. The case can also be utilized to examine barriers to the internationalization of smaller firms (Leonidou et al., 2007; Kahiya, 2013).

A hedge-fund strategist had two decisions to make. First, what was the path of core euro zone long-term interest rates likely to be over the next year? Was the dramatic decline in German long rates over the past few years an aberration that would soon be reversed, or was it part of the “new normal” that would persist for some time? Second, how would periphery long rates evolve relative to core rates? That is—the spread between long rates in the likes of Greece, Spain, and Ireland and those in Germany—how would they evolve over the next year? Was the dramatic divergence in euro zone long rates likely to persist, or would the coming year see a continuation of the modest reconvergence that has occurred since mid–2012? He knew many factors influenced long-term interest rates; he would have to use his entire toolkit to address this issue. The evidence was in no way clear-cut. Some factors pointed toward lower German rates, some toward higher, some toward a widening of euro zone spreads (even a dissolution of the euro zone as we know it?), and some toward reconvergence.

This case was developed from both primary and secondary sources. Primary sources were interviews. The secondary sources include legal opinions and journal articles.

In 2012, Scot and his co-owner, both experienced groomers, planned to open their own grooming business. Scott talked with his accountant about the best legal entity for their situation, and the accountant advised Scott that a limited liability company (LLC) would be the best choice. The accountant steered Scott to Legal Zoom, an online legal resource that helps people form business entities, including LLCs. A few years after starting their business, Scott and his co-owner reached an impasse: Scott wanted to expand the business; his co-owner did not. Scott talked with an attorney and learned that the standard form LLC operating agreement from Legal Zoom did not cover this kind of situation. How is an LLC formed? What are the consequences of a flawed LLC formation? What kinds of duties do accountants owe business owners?

This case was written for use in an undergraduate introductory business law course, an introductory accounting course or an accounting ethics course. The focus of the case supports classroom discussion for online and face-to-face instruction regarding business entity formation and fiduciary duties. Educators who use critical thinking in lessons to apply information about the roles of accountants and attorneys working with business owners can use this case to explore and discuss the impact ethical decisions can have on business owner clients.

Through evaluating and examining this case, students will be able to:

• understand what an LLC is and explain how one is formed;

• recognize the consequences of flawed LLC business entity formation; and

• articulate the roles of accountants in the formation of an LLC.

This case involves the issues within an organization of growth, expansion, change, and a possible shift of focus from hobby to profit. The case also deals with important factors, which could potentially impact any company's operation. The owners are seeking to address two key issues. The first is a valuation issue prompted by one of the shareholders wishing to sell her interest in the railcar LLC. The second issue is one of expansion. A potential investment ($60,000-$135,000) would permit the company to lease the railcar to other operators who could run the railcar on Amtrak certified tracks nationwide but would remove the shareholders from the day to day operations of the train. The critical decision is whether the owners should invest more money in the business or maintain their current business model and operational structure.

In 2014, after nearly 150 years as one of Portugal's most wealthy and powerful families, the Espirito Santo family completely lost control of its empire, which included Banco Espirito Santo, Portugal's largest bank by market capitalization and second-largest private-sector bank in terms of assets, along with stakes in numerous financial, non-financial, privately held, and publicly traded companies. During the European financial crisis of 2010 to 2014, many of the family's companies required capital investment. To avoid family equity dilution, the family's patriarch, Ricardo Espirito Santo Silva Salgado, engaged in a creative money-go-round structure whereby Banco Espirito Santo would legally raise short-term commercial paper with high interest rates and sell them to third parties that were partially owned by the Espirito Santo family. These third parties then would sell that paper back to the bank's retail clients as safe investments similar to Portuguese deposits. The plan failed, and the house of cards that was the Espirito Santo empire collapsed. Students will consider whether Salgado and the board of Banco Espirito Santo acted appropriately or if they failed their fiduciary duties to the non-family shareholders of the bank.

Upon completion of this case study analysis, students should be able to: perform a detailed diagnosis of an entrepreneurial venture, applying relevant strategic management tools and techniques; evaluate the effectiveness of managerial actions and decisions at different stages of organizational lifecycle; and demonstrate the importance of strategic adaptation of organizations through the deployment of viable decision-making skills.

This case describes the story of Multimedia Ventures, a small business located in the UAE that provides media solutions to cleaning and hygiene-related technology sectors. The company was founded through a partnership arrangement and later transformed into a family enterprise. The case study illustrates the firm operations from its grass root stages to being a well-known name in the cleaning industry, both within the Middle East and beyond. Since its establishment in 2008, Multimedia Ventures has embarked on a path of continuous growth with the ambition of globalizing activities to offer various media solutions to customers worldwide. To achieve this objective, the company engaged in collaborations with many international partners to facilitate the exchange of expertise and increase the scale of operations. Yet, the Managing Director of Multimedia Ventures, Mr Arjun Khatri, was currently faced with two difficult strategic decisions that were critically important for the future development of his enterprise.

Undergraduate courses.

Teaching Notes are available for educators only.

CSS 11: Strategy.

Strategic management.

Undergraduate, MBA, executive MBA.

The decision analysis case in the context of family-managed mid-market business of Vikas Spool Private Limited focuses on the efforts and challenges of a market leader in sustaining growth in a B2B industry, which has a derived demand. The case charts way to the historical foundation of India's largest spool manufacturer and captures the dilemma in comprehending the growth model in an industry stricken by low barriers to entry/exit, high bargaining power of customers and suppliers, high substitutes and intense global competition. The organization has to decide whether it needs to enter the rigid non-bottle household plastic packaging industry or not to achieve the targeted growth of INR 1 billion by 2015?

The case analysis aims to make students learn: the challenges in sustaining growth in a labor-intensive industry marked by low barriers to entry, low profit margins because of intensive competition, low economies of scale and no clear brand differentiation; how to negotiate a choice between intra industry participation; how a firm locked in an industry environment characterized by commoditization and intense competition should plot its growth path to retain market position; how to evaluate growth options based on financial implications and analysis.

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