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Operations strategy/global operations/value chain.

BA/Master level – The case can be applied to support operations strategy discussions related to the link between context, configuration, and capabilities, and particularly to discuss internationalization strategy and global operations.

The case is initiated with an overview of the wider corporate and industrial context, which are included to supply contextual information pertinent to the understanding of competitive requirements and strategic choices of the company. The case then moves into establishing an understanding of the operationalization of these requirements and choices through a discussion of the structural configuration and organizational capabilities.

The case it expected to build an understanding of the fit between competitive priorities and their operationalization within structural and infrastructural decision areas.

Teaching note.

The case presents a $1+billion technology company seeking new growth through the introduction of a radically new product platform. During its first ten years, PTC Corporation grew faster than Microsoft did during the similar period of its evolution. By the late 1990s PTC was faced with intensified competition and saturation in its core markets. To maintain growth, the company introduced a completely new product platform. While PTC focused on developing and selling the product, it failed to recognize that this new product was so different from its traditional offerings that it required a new organizational structure, sales capabilities, support processes, and market strategy. The case traces the company's evolution from development and launch of Windchill through the four-year period post-launch, during which its founding CEO was forced out and the company transformed. Ultimately, Windchill became a top seller for PTC, but not until after significant internal change.

The PTC case illustrates what it means to build a new business within the context of an existing, successful firm. It can also be used to explore what it takes to accomplish a successful new product launch for a substantially new product platform. Sales and channel strategy also figures prominently in the case.

Human resource management.

The case can be used on courses related to human resources management (HRM), which are offered in management programmes like MBA/PGDBM. The case could also be used in management development programmes, seminars and workshops that have HRM as a component of the programme. The case can be used effectively for classroom discussions as well as in distance learning programmes.

The case looks into the HRM practices at a leading Indian construction company – ABC Constructions. The case tries to explain the management perspectives behind the people practice initiatives undertaken by the company in order to recruit/retain and nurture talent. The case also explains the basic principles underlying its human resource policies. It tries to explain the initiatives taken by ABC Constructions to meet the challenges posed by the changing business environment, as the company moves beyond the borders of the country of its initial operations. The case provides an overview of unique challenges faced by a company in the Indian construction industry, where a significant number of people executing its projects are not its permanent employees.

The students would get a fairly good understanding of existing good practices in the field of human resource management, especially in the context of a multifaceted and labour intensive construction industry in the Indian corporate scenario. Anecdotes of actual experiences with respect to people management would facilitate greater understanding of the complexities involved at the grass root level of functioning and implementation. Theoretical inputs relating to training could be better understood through the customised programmes provided by the company for its diverse workforce. The HR challenges faced by the top management as a company grows and expands to new markets can better be understood.

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

The learning outcomes of this study are as follows:1. Learn to analyze a hostile takeover bid from the perspectives of the acquirer, target firm’s management and a large institutional investor in the target firm.2. Review the structuring, financing, valuation, mode of consideration, legal and regulatory aspects of a hostile takeover.3. Understand the role of the target firm’s board in a hostile takeover transaction.4. Address “to sell or not to sell” dilemma of a large institutional investor in the target firm in the event of a tender offer given financial and non-financial considerations.

On June 14, 2019, Pulak Prasad, Founder and Chief Executive Officer (CEO) at Nalanda Capital, in consultation with other managing partners at Nalanda Capital, had to decide whether to tender a 10.6% equity holding in Mindtree Ltd. in an unsolicited open offer made by Larsen and Toubro (L&T) Ltd. Until then, Nalanda Capital, led by Prasad, had aligned with the Mindtree founders and had led a campaign to thwart L&T’s bid to acquire Mindtree; L&T’s offer to acquire 31% of Mindtree shares was because of open on June 17, 2019 and it is time for Prasad and the management team to take a reasoned call – whether to stay in Mindtree or to exit? Associated aspects included – What could be the consequences of not selling the stake? What could be L&T’s game plan? Could Mindtree continue to create wealth for its shareholders under L&T?

This case is appropriate for Mergers & Acquisitions and Strategic Financial Management courses in modules focused on structuring, financing and takeover defence techniques in a hostile takeover transaction. The case is appropriate for graduate MBA and EMBA programmes.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

The three cases (Case A: JSW Steel's Ispat Acquisition: The Opportunity; Case B: JSW Steel's Ispat Acqusition: The Setback & Case C: JSW Steel's Ispat Acquisition: The Turnaround Strategy) describe the business situation leading to acquisition of Ispat by JSW, the acquirer company's failure to realize synergies post-acquisition, and the subsequent turnaround initiatives to salvage the situation. In 2010, JSW Steel, a 14 mtpa Indian steel company acquired Ispat Steel with annual production capacity of 3 mtpa. The acquisition was part of JSW's multipronged strategy to realize its aspiration of being a 40 mtpa firm. At the time of acquisition, Ispat had huge debts, a long pipeline of unfinished projects, high production costs and unpredictable cash flows. Its main plant, Dolvi was shutdown for 45 days. However, the plant also had numerous advantages. It was located near the seashore and was technologically very advanced. Case A describes the events leading to acquisition of Ispat by JSW. It captures the facts, opinions and inferences around the acquisition decision, which were used as inputs in the due diligence process to assess synergies between JSW and Ispat. The case describes the economic, competitive, and industry factors prevailing in 2010 when JSW was thinking of acquiring Ispat.

After studying and analysing this case, students would be able to evaluate and understand the importance and need of an infrastructure sector in a country, its inherent risks and scope of infrastructure investment and financing in India – National Infrastructure Pipeline and the important role of Non-Banking Finance Company’s (NBFC) vis-à-vis banks in infrastructure financing in India; critically analyse and recommend alternative decisions in a business problem situation using multi-criteria decision analysis, which is a tool used for business portfolio analysis; understand and evaluate the corporate portfolio management (CPM) tools used for an optimum portfolio mix to turn around companies; identify and suggest an optimum portfolio mix to turn around a finance company using CPM assessment applied to Pidun matrix; and recommend operational and strategic levers for successful turnaround implementation by using the integrated canvas on turnaround.

On 10 May 2020, in New Delhi, India, J. Ray took charge as a full-time director of an Indian Non-Banking Finance Company – Infrastructure Finance Company (NBFC-IFC). The NBFC-IFC of the Indian Government extended long-term financial assistance to infrastructure projects in India. During the financial year (FY) 2017–2018 till FY 2019–2020, the company suffered substantial losses to the tune of US$13.7bn, with profitability experiencing a notable decline – return on assets at a negligible 0.11% and return on equity of only 0.68%.

The NBFC-IFC had a declining yield on advances at 7.05%, net interest margins (NIMs) of 2.08% against a high cost of borrowing at 7.66%, a declining loan book (by 4.35%) of US$336.27bn and a fast-deteriorating asset quality with highest ever non-performing assets (NPAs) at 19.70% of its loan book. Such financial parameters, compared with that of the industry average of banks and finance companies, meant that the NBFC-IFC Ray had taken over was fast bleeding and was on the brink of being declared a sick company. In comparison, private and other government players had profitable and much healthier financials, and Ray felt that there was a need for improvement. To make things worse, Ray got to know that the Indian Government was in the final stages of setting up a new development finance institution focused on long-term infrastructure financing in India. Ray realized the question was not only of the NBFC-IFC remaining relevant but also of its existence in the fast-evolving sector. Ray wondered what could his his integrated canvas be for a turnaround strategy that could include effective management of an optimal portfolio mix.

With a healthy capital-to-risk (weighted) assets ratio of 30.85% and a satisfactorily improved net worth of US$103.1bn, in the given Reserve Bank of India regulatory provisions for the NBFC-IFC including restrictive exposure norms and NBFC-IFC’s operational mandate prescribed by the Indian Government, Ray had to shift the product and sectorial investment of the NBFC-IFC to reduce the NPAs, increase loan book size and improve the yield of advances and its NIM to effectively turn around the company’s profitability. Ray realized that he needed his team to evaluate and select a product and sector strategy for this change.

The present case of financing investment in infrastructure is interesting for implementation in developing economies because a lack of infrastructure is a common problem and there is a necessity of achieving a more developed infrastructure system to support accelerated economic growth in these countries. This case can be used in elective courses on corporate finance strategy and corporate portfolio management for infrastructure finance companies. This case can be taught in elective courses in post-graduate and MBA programs. This case can also be included in management development programs (MDP), executive MBA programs and executive-level courses that have subjects such as corporate finance strategy, corporate portfolio management and strategy management that focus on turnaround strategies including portfolio management for banks and finance companies.

Teaching notes are available for educators only.

CSS 11: Strategy.

Pebble Technology Corporation (Pebble) was an early entrant into the smartwatch industry. Pebble’s Founder, Eric Migicovsky, began thinking about creating a smartwatch in 2008 while still an undergraduate engineering student. After selling about 1,500 prototype watches, he was accepted into Silicon Valley’s prestigious Y Combinator business start-up program. Finding it difficult to attract investors, Migicovsky launched a crowdfunding campaign that raised a record-breaking $10.27m on Kickstarter. The case concludes shortly after Apple’s unveiling of its soon-to-be-released Apple Watch. The case provides an opportunity to evaluate Pebble’s various strategic options at the time of Apple’s announcement.

The authors observed over 30 h of video and audio recordings of speeches, interviews and other events involving Pebble’s founder, other Pebble executives, investors and competitors. These recordings are all publicly available. Whenever possible, the authors also reviewed the Twitter feeds, Facebook sites and personal websites of Pebble’s top executives over time. Similarly, the authors followed Pebble’s official website, corporate blog and Kickstarter campaign websites. The authors also drew from numerous media reports. Due to the public nature of the data, no company release is provided nor has any information been disguised in any way.

The case is designed for both undergraduate and graduate students for courses in strategic management.

Karaikal Port Private Limited (KPPL) was a special purpose vehicle created by MARG Group on February 18, 2006 to develop Karaikal port. According to the concession agreement signed for a period of 30 years, KPPL was given rights to Karaikal port on a Build, Operate and Transfer (BOT) basis. It was to phase the building of the port based on short term, midterm and long term demand. By August 22, 2011, Phase I of construction had been completed, and Phase IIA was nearing completion. Though the project had not faced any major problems in its development, there were issues such as restrictions on the availability of land for any future expansion, limited scope of hinterland businesses, small scale environmental issues and others that needed to be addressed for the future development of the port.