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By reading and understanding this case study, students are expected to: 1.Able to understand and review the impact of unethical practices from accounting perspective; 2.Able to make an analysis of how one unethical act triggers a series of forced unethical acts (ripple effect); 3.Identify the unfair practices as well as be proactive in preventing unfair practices in the business day to day affairs; 4.Able to relate the function of various ratios (current ratio, quick ration, debt to asset ratio, debt to equity ratio etc.) and its impact on the business performance; and 5.Able to apply various lean quality tools, doing the root cause analysis in identifying and solving problems.

T.M. Exports (TME) was an India-based privately owned and operated enterprise. The company had a brilliant employee named Sanjay, who was a 12-year veteran. TME’s Business Intelligence (BI) department at TME head office, Kanpur, India, ostensibly learned on April 8, 2019, from the rumors about a brand-new vehicle dished out to Sanjay by his friend who made fortune worth of millions from certain transactions. To add fuel to the fire, another incident surfaced concerning a warehouse keeper, Mohit, who was also involved in embezzlement in one of the sales offices. On May 16, 2019, BI reported these two incidents to the internal auditor who launched an internal investigation to get to root of this case. Consequently, the company owner, Tariq Mahmood got himself caught up in a dilemma to fire both Sanjay and Mohit only or restructure the organization for better transparency and integrative approach in future. Moreover, the newly appointed Chief Executive Officer had the dilemma of keeping high safety stock to maximize service level or keeping conservative safety stock and rely on-spot market-buying if demand spiked. He decided and instructed all the warehouses to keep higher inventories to meet the forecasted demand, considering unexpected spikes in demand witnessed historically. Thus, increase in inventory caused panic in the sales department as demand was sluggish. He, therefore, offered high discounted prices to liquidate the stock. This study integrated the theories of accounting/financial ratio metrics, accounts reconciliation, business ethics and lean tools. It was demonstrated in this case that the irregularities in sales accounting and their inability of reconciliation had a serious impact on business performance. The concept of total reward was also invoked to understand the disruptive and unscrupulous practices.

This case has been particularly focused on undergraduate and postgraduate early-stage-level students pursuing business or commerce program, particularly those specializing in accounting (sales accounting) and human resource management courses.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

The learning objectives of this case are as follows: identify and understand the major challenges/problems faced by a social enterprise in promoting handicraft business; examine the value chain architecture of handicraft products; assess the role of the protagonist (Sanjay) as a social change agent in shaping a successful social enterprise; assess Sahaj Crafts' initiatives and analyze whether the key intervention/s planned/executed were required for skilling up of rural artisans and upgradation of handicraft business; know the marketing strategies for handicraft products; and understand the “strategies” which need to be applied for uplifting people's lives at the bottom of pyramid in general and for enlivening of artisans’ clusters in particular. The outcomes are as follows: examining the value chain architecture of handicraft product; understanding the difficulties and challenges of structuring a viable social business model; examining the role of Sanjay as a social change agent in shaping a successful social enterprise; and examining the model of Craft Incubation Center and design education proposed by Sahaj Crafts for improving rural artisans’ livelihood and skills upgradation.

Sanjay Joshi – the promoter and CEO of “Sahaj Crafts” (a social enterprise established in Western Rajasthan, India), an initiative to strengthen indigenous skills and mainstream rural craft products and artworks – is faced with the question of how to scale up his organization’s operations. Doing so requires that he address these fundamental challenges in terms of – how to deal with unorganized craft communities; match up product orientation to market demands; integrate modern technology / processes in craft business; combat restricted mobility of women artisans; and make effective interventions so that the artisans learn and enjoy working in the current model and solve the financial issues faced by the social enterprise. Providing effective and implementable answers to those questions is vital to Sahaj Craft’s development in attaining its mission to alleviate poverty in the region. Failing to expand operations above a critical scale may leave Sahaj Crafts vulnerable in meeting sufficient demand for contemporary craft products in the mainstream markets.

This case study is primarily suitable for post-graduate level management students to teach the concepts of designing and operationalizing a “social” business model in a social entrepreneurship module. This case study can also be used for highlighting business model innovations in the social sector of emerging markets. The case could be taught in the following academic domains: social entrepreneurship; bottom of the pyramid; social inclusion; supply chain consolidation (vertical integration in a value chain); marketing strategies for handicraft products; branding; brand positioning; cost and management accounting.

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

The case aims to understand and analyse the capital structure decisions made by a profit-making, growing organisation which aimed to be India’s premier airline and the market leader. The company that had pursued a high debt policy, to take advantage of the financial leverage that it would get, was now facing problems in an operating environment that proved to be challenging. A decline in operating profit, coupled with high-interest costs and an uncertain environment with cutthroat competition, had caused the company to plunge into losses. Attempts to deleverage by equity infusion were proving to be difficult. The case can be used in MBA, Executive Education and doctoral programmes. The learning objectives of this case are: to analyse the capital structure of the company, to interpret the relationship between financial leverage and risk, to assess the pecking order theory, to analyse the nuances of the aviation sector and the factors influencing the profitability of the companies in the aviation industry, to estimate the risks and the rewards associated with foreign currency loans, to evaluate the magnifying impact of the financial leverage and to propose deleveraging methods like sale and leaseback, debt conversion to equity and devise a revival strategy for the company.

The case discusses the dilemma faced by Naresh Goyal, promoter and chairman of Jet Airways (India) Limited. At the initial stage, Jet Airways, like many other companies in its growth phase, relied on borrowed funds to meet its investment needs. However, over-reliance on borrowed funds with just one equity infusion resulted in a high leverage ratio and an aggressive capital structure. Moreover, the company operated in a sector that was highly regulated, with competition that was cutthroat and a cost structure that was volatile. A high operating risk, coupled with high financial leverage, pushed the company into incurring losses. Having run out of cash, Jet Airways eventually defaulted on loan repayments to its lenders. Facing the eventuality of losing control of the company to lenders or to a strategic investor, Goyal was trying to figure out a way to save the company from insolvency and liquidation. It was becoming increasingly difficult for Goyal to keep Jet Airways, the company he had nurtured like a baby, airborne.

The case can be taught in both online and offline modes of delivery in a 90-minute session. Post-covid, the delivery mode of classes has changed. In online sessions, it may be a challenging task to ensure student participation.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

The case deals with a chain of hospitals, that has grown vary fast in last few years as a result of various acquisitions and new developments. The hospital chain is lagging behind in use of technology. The IT department is inward looking and the focus is more on provide support services rather than strategic orientation. A new CIO takes charge of the IT department and decides to transform IT from playing a support to strategic role. He identifies cloud computing as a tool to take the leap. The case provides an opportunity to discuss the type of service and deployment models of benefits of cloud technology. A rough data to do financial evaluation of cloud technology is presented. Evaluation parameters that may be used to decide on cloud versus in-house technology are also discussed.

BigBasket.com, an online supermarket established in December 2011 in Bangalore, India, had become one of the major players in the Indian online grocery market by the end of March 2016.₁ Run by Innovative Retail Concepts Private Limited, BigBasket.com was operating in more than 23 cities across the country in 2016. The online grocery market in India was in a stage of growth and transformation, fuelled by India's large urban population who sought a lifestyle of convenience and ease. It had also attracted many entrepreneurs who competed fiercely with each other in a market characterised by thin margins. Intense competition ensured that only a few companies were able to survive and sustain themselves. One of these companies was Big Basket, which succeeded in spite of the competition, attracting Series D_a funding worth USD 150_b million from the United Arab Emirates-based Abraaj Group in March 2016.₂

The AirAsia India 2017 (AAI) case presents the situation faced by Tony Fernandes, the CEO of the AirAsia group of companies, in 2017, when he had to respond to the changes in aviation policy made by the Ministry of Civil Aviation (MCA). As per the changes, an airline operating in India could start its international operations without having five years of domestic flying experience provided it deployed 20 of its aircraft or 20% of the total capacity, whichever was higher, for domestic operations. The objective of this case is to help discuss issues relating to sustaining late entry and exploring new growth opportunities in the context of regulatory changes.

The game of cricket that originated in Britain thrives on passion and the following it generates in India and other South Asian countries is tremendous. The Board of Control for Cricket in India (BCCI) is the apex governing body that controls all cricketing events in the India. Being the richest such body, BCCI is the most powerful national body among similar organizations across countries where cricket is played. The world of cricket saw a sea change with the introduction of the Indian Premier League (IPL) due to its unprecedented commercial success. The case describes the betting scandal that hit IPL, BCCI and its promoter in the middle of 2013. The scandal involved the son-in-law of the President of BCCI. The events following the scandal saw the Supreme Court of India, the highest judicial body in the country, to indict BCCI and its President of serious misgovernance. Set in this backdrop, the case highlights governance issues in the functioning of not for profit organizations such as BCCI. The case provides an opportunity to reflect on and discuss as to how such quasi-public bodies ought to be governed.

General Management, International Strategic Management, International Marketing and Brand Management.

MBA (General Management), MBA (Marketing), Management and executive development programme.

The Indian Hotels Corporation limited known as the Taj Group was set up by JRD Tata in 1903. The company has undertaken a long journey since then. It is one of the most recognized hotel brands in luxury market segment of the hotel industry. Off late some micro- and macro-level changes in the business environment have not been in favor of the group. The strategy of international expansion in acquiring and refurbishing of assets has mounted the debt and the growing losses. What has compounded the growing troubles is the entry of aggressive multinational brands in the luxury segment of the hospitality industry. The group prioritizes to get its financials in order. It thereafter needs to rework on its competitive strategy and take advantage of the booming domestic hotel industry for profitable future growth.

Expected learning outcomes are as follows: to understand the impact of expansions on the top line and the bottom line on the hospitality industry; to understand the impact of expansion on brand image for the legacy brand; to understand and develop strategies for a company which make it profitable in the hotel industry; and to formulate entry and exit strategies for companies dealing in the hospitality industry.

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.

Arvind Mills incurred a loss of Rs.316 crores in the year 1999-2000 after a period of declining profits in spite of increasing sales. In January 2001 lenders to Arvind Mills received the Information Memorandum on Debt Restructuring which offered several alternative schemes. They had to decide whether they should accept the proposal and if they accept which specific scheme they should choose.

The learning outcomes of this case are in understanding core concepts of brand management and brand dilution. Assessment of macro-economic risks and proper positioning strategies are the key take-away from this case. The case gives an understanding of how brands are built and positioned, and the pitfalls of poor brand planning and assessment that could lead to brand dilution. The case is useful for highlighting the importance of brand management and the challenges of re-positioning. The discussions would shed light on why it is important to plan and manage spending on marketing for brand building activities, and why brands would suffer when spending is reduced. This case is a teaching case and not a research case. It will help participants assimilate available information in combination with existing academic theories and publications to help develop an accurate assessment and prognosis of the events leading until the point of slicing the case.

Reid & Taylor in 2015 had been reduced to a discounter brand offering extended end-of-season sales when most other competitors have ended their promotions. In the 17 years since its big-budget launch in the Indian market in one of the most memorable brand introductions, Reid & Taylor changed its ambassador twice and repositioned itself thrice. The case would allow participants to delve deeper into aspects of marketing spending, brand management, positioning and advertising effectiveness. The case brings to the fore discussions on marketing, specifically on branding, positioning and its related advertising in the textile sector for a brand that has not been studied in academic literature until the present time. The discussion allows for novelty, involving both forward- and backward-looking assessments and evaluations to help participants better imbibe learnings in brand management and positioning.

The case is suitable for a graduate-level (Master’s level) course in marketing and brand management. This case is suitable for elective courses that discuss positioning and brands.

Teaching notes are available for educators only.

CSS 8: Marketing