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To evaluate Thomas Cook’s financial condition, students deploy financial analysis techniques including comparative analysis. The role of financial reporting in impressions management is considered in two respects: firstly, the use of separately disclosed items by companies; and secondly, the treatment of goodwill on acquisition.

The case draws on a range of public data from Annual Reports and secondary sources including the Department of Business Energy and Industrial Strategy investigation into the failure of Thomas Cook.

Thomas Cook Group plc’s (Thomas Cook) was one of the oldest travel firms, yet its apparently sudden failure on 23 September 2019 left 600,000 holidaymakers stranded and sparked the largest ever peacetime repatriation of British citizens at cost of £83m to the Department of Transport. Around 9,000 employees who had expected to be paid on 30 September were left unpaid.Could CEO Peter Frankhauser have addressed the challenges faced by Thomas Cook more effectively during his tenure or was the company locked into a flightpath to failure? The case highlights the importance of context when performing financial analysis and encourages students to evaluate the challenges posed by the current standards related to accounting for goodwill and corporate reporting of underlying performance.

This case can be used in undergraduate financial reporting and current issues in accounting courses/modules at the postgraduate level.

The subject areas are entrepreneurship, start-up ventures and business strategy.

The case is appropriate for undergraduate and graduate MBA.

Shikhar Veer Singh (Singh), a post graduate in Medical Biotechnology, quit a cushy corporate job to start his own food venture WoknStove Foodworks Pvt. Ltd. (WSFL) in October 2015. WSFL sold the ubiquitous popular Indian snack food “Samosas” under the brand name of “Samosa Singh”. “Samosa” – a deep fried triangular in shape with conical edges crispy wrap with variety fillings of potatoes/vegetables – was part of unorganized sector and sold by small shops and road-side hawkers. Singh spotted an opportunity to “brand” the “Samosas” that as well was gaining momentum in the international convenience food markets. The company set up a central kitchen near Electronic city, Bangalore, and started experimenting with different fillings. In February 2016, WSFL opened its first quick service restaurant (QSR) in Electronic city, Bangalore. It was an instant hit with consumers of all age groups. Gradually, the company started supplying bulk orders to various other customer segments such as corporate customers, schools and movie theatres/event stalls, that resulted in revenue growth. By January 2017, his monthly annual revenues amounted to INR […] Singh had ambitious plans to expand his business from a single QSR to 15 QSRs across the city by 2018. However, to cater to the increasing demands and support his expansion plans, he was yet to find out the most suitable back-end processes. He had adopted few standard operating procedures (SOPs) for quality operations and implemented 30 per cent of automation for backend processes at his central kitchen. Singh was aware of the automated machinery available in international markets that had conveyor belt arrangements where one could place the flour dough and filling consecutively to get the end product in a shape, unlike the shape of the Indian “Samosas”. The triangular shape with conical edges of the Indian “Samosas” was of utmost importance for the Indian consumers, as the shape associated them with the favourite snack, the “Samosas”. Singh preferred the method of manual filling to maintain the shape and decided to focus on increasing the shelf life of the “Samosas” instead. He felt that an increased shelf life would better equip him to cater the increased market and seasonal demands. However, the question was that whether this was a feasible option to support his ambitious expansion plans (with only 30 per cent automation)? Was Singh’s thinking right with respect to the business operation? More importantly, whether WSFL venture would be able to make an attractive business proposition for investments from any future institutional/angel investor? Singh’s mood turned reflective as he pondered on the above questions.

The case is structured to discuss the structure of Indian QSR market and factors contributing to its growth, evaluate WSFL’s ability to leverage the Indian QSR market potential, its strengths and shortcomings, to highlight the steps of consumer decision making process in terms of selection of a QSR and discuss WSFL’s business model and its future sustainability.

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 3: Entrepreneurship

In October 2004, Mr. Richard Sands, CEO of Constellation Brands, evaluated the potential purchase of The Robert Mondavi Corporation. Sands felt that Mondavi's wine beverage products would fit into the Constellation portfolio of alcohol beverage brands, and the opportunity to purchase Mondavi for a highly favorable price was quite possible due to recent management turmoil at that company. However, should it be purchased, strategic and operational changes would be necessary in order to fully achieve Mondavi's potential value. In making a decision, students need to consider the attractiveness of the wine industry, its changing structure, its share of the overall market for beverages, and rival firms' strategies. As rival bidders may emerge for Mondavi's brands, Constellation must offer a price that demonstrates its serious intent to acquire Mondavi.

Entrepreneurship; Business Strategy; Business Environment courses.

This case is appropriate for use in Masters in Business Administration (MBA) programs as well as advanced undergraduate courses. The case provides an apt simulation of the emerging Indian fast food companies in the competitive dynamics of Indian business environment.

Rakesh an MBA graduate from the University of Hartford, Connecticut, after four years of corporate experience, made a decision to start a business of his own. Thus, was born Infusions Foods Pvt Ltd (IFPL) an entrepreneurial venture of Rakesh Raghunathan. IFPL launched its fast food chain of grilled wraps under the brand name of PETAWRAP. The brand was positioned to target the recent consumer behavior shift of Indian consumers which was towards healthy, nutritious food combined with the concept of necessity-based eating out.IFPL had successfully opened six company owned outlets by March 2011. Their strategy for success was built on the age-old four-point formula of a good-quality product, at value for money prices, delivered efficiently to the customers. The absence of “a hygienic branded product” in this Indian fast food industry contributed to the initial success of their company. Rakesh believed that key to building the brand image depended on quality in terms of operations standardization and product quality.

The case is structured to achieve the following pedagogical objectives: To identify the forces on which of an entrepreneurial opportunity is dependent; To analyze the changes in competitive dynamics of Indian fast food industry and identify the factors that lead to the emergence and acceptance of PetaWrap; To understand the challenges of building a brand in low-cost business model and the economics of cost incurred; To evaluate the business strategy and the business model adopted by the company for expansion.

Teaching notes

International Strategy

Undergraduate or graduate capstone course in strategy or international management course.

Faced with increased competition at home, Sainsbury's decided to expand its international operations by entering Egypt. Sainsbury's initially created a joint venture with an Egyptian food retailer, but quickly increased its commitment by opening over 100 stores in Egypt. Sainsbury's dream of capturing the Egyptian food market faded as quickly as it was started. Due to declining profits, Sainsbury's eliminated its exposure in Egypt by selling its interests to its Egyptian partner. Sainsbury's first developing-country venture could be regarded as an object lesson in how not to operate. The company failed to properly investigate its market and its partners, and showed insensitivity to local conditions. Moreover, entering the Egyptian consumer business sector may have been ill-advised. Egypt, with a low gross domestic product (GDP) per head of about $1,300 and a population of 65 million, while having growth potential, is a daunting market. Why a poor and frequently disorganized country was perceived as having excellent growth potential was not addressed by Sainsbury's in its headlong rush to invest. The case should be interesting for students because it highlights a situation where a firm's international expansion efforts failed after the firm had success expanding internationally previously. Numerous reasons are presented in the case for Sainsbury's failure. The case highlights the multiplicity of issues which a company faces when it “goes global.” While Sainsbury's withdrew from Egypt, the case affords students the opportunity to evaluate whether they would have made the same decision by providing a discussion of the alternatives suggested by Sainsbury's Chairman.

The Sainsbury's case is capable of addressing several important teaching objectives: the case is an appropriate vehicle to demonstrate what can happen to a firm as it expands globally; students will gain more knowledge concerning why companies expand into foreign markets and the impact of cross-country differences in market conditions; the case presents the multifaceted complexities involved in globalization efforts and issues faced by companies concerned with global competition and global strategy; students should apply the concepts and tools of industry and competitive analysis; students should gain a better understand how to manage globally; students should gain an understanding of the challenges of globalization and global competition; students should gain a better understanding of the evolution of strategy as industry conditions change and new opportunities arise. As with any case study, students should learn to translate good analysis into appropriate recommendations for action.

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

Sustainable fashion.

Bachelor Degree/Master Degree, Master of Business Administration (MBA), PhD.

The case focuses on Osklen, one of the world’s first eco-fashion brands, founded in 1989 by Oskar Metsavaht. For the past 26 years, Osklen had become Brazil’s foremost sustainable luxury venture, and since 2012, under first minority and then majority corporate ownership, pursued an aggressive global expansion strategy. The dilemma of the case juxtaposes Osklen’s creative aesthetics, which leverage unique Brazilian beauty in nature and heritage, with the financial pressures of global expansion. The tension is exacerbated by the 2015 corruption scandal, which decelerated the Brazilian economy and reduced consumer spending on sustainable luxuries in Osklen’s home market; it also risked compromising the appeal of Brazilian brands elsewhere. The case explores the complex interconnections between local and global aspects of sustainability and brings forward the environmental, social and cultural aspects of brands and business to the foreground. The case also illustrates how economic crises impact brands from the initial creative inspiration to the prospects of global expansion.

Students will master tools for strategic analysis (VRIN framework and scenario planning) to a company evolving in an emerging economy. They will learn about the ways to consider and communicate sustainability. Students will be exposed to the importance of aesthetics and multi-sensoriality in business activities.

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

Benecol Spread, a cholesterol-lowering margarine, was a product with unusual media-planning challenges. With a narrow target group and unproven market potential, Johnson & Johnson needed to get the most “bang for the buck” from its Benecol advertising. Would a media-planning model (optimizer) requiring executives to quantify their judgment on several key inputs be helpful in this process? A spreadsheet accompanying the case allows students to weight the target groups and to choose among different advertising vehicles to form the best possible media plan.

This case describes the challenges faced by Amul in organising dairy farmers into a co-operative and creating continuous opportunities for value addition. Participants in the case discussion are required to review the developments in the organisation and recommend a strategy for the future.

John Hume, a veteran game farmer and founder of the Mauricedale Game Ranch in South Africa, was deeply troubled by the record upsurge in black rhino poaching incidents and black-market horn thefts in 2010 and 2011. While the endangered black rhino represented only one segment of Mauricedale's hunting and farming businesses in 2011, the animal's survival was an important component of the ranch's and industry's growth potential in the future. As both a businessman and a rhino advocate, John Hume was contemplating an innovative idea that might help stop the decline of the black rhino: the creation of a market for legalized black rhino hunting. As he pondered the possibilities and alternatives to determine what his next move should be, Hume had several questions on his mind: Was the legalization of the international sale and trade of rhino horns a viable solution? Was it Hume's responsibility to save the black rhino, and was the animal a good investment?

Marketing, retail management and new product launch.

BBA final year students, MBA first year students.

The case is about the decision that needs to be taken for breakfast launch by McDonald's Pakistan. It was mid July 2011, when Jamil Husain, marketing manager, Atif Abbass and Ali Raza. Marketing executives were sitting in the meeting room of Lakson Square building, Karachi, in order to discuss the fate of breakfast menu. It was Jamil's idea to launch the breakfast menu in the Pakistani market. He, however, was unable to convince his team members who thought that the market was not ready to accept the breakfast option since there was a huge difference between Pakistani lifestyle and western lifestyle. Jamil presented his arguments before them but all in vain. Somehow he knew that the same arguments if presented in front of the top management would lead to a “No” situation. Just then the phone rang; it was Caroline, company secretary, confirming the meeting date and venue which was supposed to take place after two days.

The learning outcomes should be: organizations need to understand the cultural differences and decide about the product launches; based on the class discussion the instructor can conclude whether launching would be a good option or not – apart from culture what are the other important considerations; and preference of glocal vs global – in what situations might a glocal strategy be more suitable as compared with global.

Teaching notes are available, please consult your librarian to access.