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After completion of the case, students will be able to understand the following: how to understand financial statements, income statements and cash-flow statements with the help of ratios; understand the concept of shareholding pattern along with different entities, namely, non-promoters, foreign institutional investor, domestic institutional investor and others; financial ratio analysis with traditional DuPont and extended DuPont analysis; understand the differences between comparable firms; how to analysis return, risk, covariance, correlation, market risk and capital assets pricing model (CAPM) and how to suggest an appropriate investment strategy.

The case presents company background and financial statements of four companies listed under departmental stores in India, namely, Vmart retail, V2 retail, Avenue Supermarts (known as DMart) and future retail. Students are asked to determine, which company is performing better to make a recommendation for investment. Students learn the tools of financial ratio i.e. profitability, efficiency, liquidity and market-based ratio along with the traditional DuPont decomposition and the extended DuPont analysis. Students also learn how to measure stock return, standard deviation, covariance, correlation, market risk and CAPM.

This case is suitable for management accounting, financial analysis and security analysis and portfolio management courses at the post-graduate or graduate levels. The case can be used in similar courses such as in financial statement analysis courses or security analysis and portfolio management courses.

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: 1 Accounting and finance.

This case will enable students to understand the operations and business model of an international retailer. The case offers enough insights and learning on a retailer who enters a different market and collaborates with the local players to gain market access; and to understand the marketing techniques and strategies of an international retailer to capitalise on market opportunities.

The case is about a third largest US-based multinational Costco Wholesale corporation which is a giant retailer. The company operated at 803 locations with a revenue of $166.7bn, which makes it the third largest global retailer in 2020. The case offers comprehensive insight into Costco Wholesale’s business model, distribution strategy, marketing techniques and internationalisation. The authors further discuss that how Costco put forth its model among different range of customers and provided them with high-quality products at a comparatively lower price. The focus of the case is towards the Asian expansion of Costco. In subsequent parts, the strategies and challenges of Costco with respect to its Asian competitors have also been discussed. After generating experience in Asian markets, Costco has considered China as its next destination. The case also discusses the foreign retailers’ success, failure and retail format.

This case is designed for undergraduate and postgraduate classes of management and business administration.

Teaching notes are available for educators only.

CSS 8: Marketing.

UrbanClap was setup in October 2014 to address the opportunity of bringing the workforce from the unorganised sector into the mainstream using the power of technology. It was an on-demand marketplace for services available through a mobile app. In the initial years, UrbanClap, developed as horizontal marketplace, saw intense competition from existing and new players who were operating in the hyperlocal services space. It competed in the on-demand service marketplace by categorising its services into a lead generation business (where it connected customers with the service provider and charged a fee for matchmaking) and a fulfilment business (where UrbanClap took end-to-end responsibility for quality of service delivery). After three and half years of operations, the three co-founders wondered if it was time they moved out of lead generation and instead focussed on the fulfilment business.

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

After completion of the case study, the students will be able to appreciate and understand why brands are an essential asset to the company and how they can enhance business value, understand the factors needed to grow brands in the growth stages and evaluate the choices that start-up companies have to grow their brand in competitive and growing markets.

Mamaearth was born as a direct-to-consumer brand in 2016 by a couple who could not find chemical-free, safe products for their child. The company that introduced as a baby-care brand soon consolidated itself to play in the space of personal care category (targeting millennials), and by 2020, it was earning majority of its revenue from skincare. It started by leveraging the power of social media space and online commerce and slowly moved to be a national brand with offline footprint and mass-media communication. In its growth journey, it acquired many brands and launched a few to cater to the specialized needs of its target audience. As the company grew, attracted impressive investors and started clocking profits, it aspired for an initial public offering (IPO). Varun and Ghazal Alagh, the founders of Mamaearth, knew that to refloat an IPO and to grow the company further, they needed to redefine their portfolio and marketing strategy. They had a choice to either invest in building a broader portfolio – organically or inorganically – or expand across geographies. Both were an option, albeit expensive, which could cost Mamaearth its profitability.

This case is intended for discussion in undergraduate and graduate management courses.

Teaching notes are available for educators only.

CSS 8: Marketing.

This case can be used to teach students how to analyze innovative business models, as well as to trace their reasons for success and failure. The following objectives also align with categories in Bloom’s taxonomy (Forehand, 2010), consistent with the keywords underlined. More specifically, this case will enable students to learn the following: First, to analyze the distinctive features of a social commerce business model, and how these differ from a traditional e-commerce model. This objective maps to Discussion Question No. 1. This objective helps students to understand the value proposition of an unfamiliar business model (social commerce platform) and compare it with that of a familiar business model (e-commerce platform). Second, racing the causes for success and failure of a venture, using frameworks from entrepreneurship and strategy. This relates to Discussion Question No. 2. This objective helps students analyze strategic decisions of an entrepreneur in light of available resource constraints and by applying appropriate conceptual frameworks. Third, developing recommendations to help a new venture sustain its business model in the face of severe challenges. Discussion Question No. 3 covers this objective. This objective enables students to debate possible paths that the startup could take. The discussion on possible paths naturally causes students to create sustainable or viable options.

The case describes the challenge facing Vidit Aatrey, the founder and chief executive of Meesho, a social commerce venture headquartered in Bangalore, India, in October of 2022. While Meesho recorded the second-highest sales (by order volume) during India’s festive season, it also recorded layoffs and business closures. While Meesho’s core business of getting resellers to sell through its online platform seemed to be working, its new business ventures, such as expanding into the grocery business and into Indonesia, had failed and resulted in more than 300 layoffs. Meesho was also pressed for funding: valued at US$4.9bn, the global market for venture capital funding had chilled and now demanded profitability, not growth-at-all-costs. Meesho’s cash burn rate was about $40m per month, and Aatrey was hard pressed to come up with options for profitable growth.

This case is intended for students of management at a master’s level in a course on entrepreneurship. At the authors’ institute, this case is used with MBA students in an elective course on entrepreneurship and also in an elective course in general management.

Teaching notes are available for educators only.

CCS 3: Entrepreneurship