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Help students understand Porter’s five forces framework. Explore and analyze possible growth strategies using the Ansoff matrix.

This case study integrates lessons in growth strategies, Porter’s five forces and the Ansoff matrix. Vijay Kothari, Founder of Wealth out of Waste (WOW) is in a fix. In spite of functioning in an environment of abundant demand and potential, he is unable to perform in his optimum capacity because of operational and manpower-related issues. WOW, which turned nine in 2019, is a sort of monopoly in the organized business of scheduled collection of recyclable trash. WOW is operating in a 2% market with 98% being captured by traditional “pastiwalas.” From the current waiting period of up to seven days, Kothari wants to service any area in the city of Ahmedabad, Gujarat, India within 2 h. To achieve this objective, how should Kothari overcome the growth challenge in the business.

Undergraduate and postgraduate.

Teaching Notes are available for educators only.

CSS 11: Strategy.

The purpose of this paper is to investigate the impact of agency risk implied in case of personal debt obtained by promoters through pledging of their stock on accrual and real earnings management practices.

In this paper abnormal accruals, as suggested in Dechow et al. (1995), and the real earnings management proxies as indicated in Dechow et al. (1998) and Roychowdhury (2006) are used. OLS regression is run over 29,054 firm-years of Indian companies starting from the year 2008 to 2016. Then the occurrence of earnings management is tested in firms in year t where promoters pledge/release their holdings from the pledge in year t+1.

The findings suggest that earnings management increases in the prior year with an increase in the proportion of promoters’ stock pledge in the subsequent year. The authors find evidence for increased earnings management through accruals and also for real earnings management using abnormal cash flows and abnormal discretionary expenses. However, the authors do not find real earnings management using abnormal production cost as a measure.

The paper has considerable implications on managerial behavior toward earnings management because of the flexibility managers have in applying accounting policies and authority in operating decisions under domestic GAAP, and IFRS and earnings are prone to management tactics, fostering agency risk when they relate to the welfare of decision makers.

This paper addresses the consequences of individual borrowing of promoters collateralized by their stake in the firm, which is a global phenomenon, on reporting quality.

The learning outcomes of this paper will help students in understanding the dynamics of the formation of industry clusters and the benefits associated with industry clusters. The case will give stimulus towards the cluster competition.

The case describes the dilemma of a potential investor of a tyre company that wants to diversify its product line and is searching for a new strategic location. The investor is thoughtful about the Pithampur auto industry cluster for its upcoming investment. The case demonstrates how Pithampur has transformed into an “industry cluster” and the benefits it provides to firms in it. However, Pithampur is not the only auto industry cluster in India, clusters like Chakan-Pune is in competition with Pithampur for attracting investments. This is a cause of worry for the cluster’s stakeholders. The case projects amalgamation of concerns of the stakeholders of the clusters and those of potential investors in evaluating and benchmarking it with other clusters for a competitive future.

Suitable for both undergraduate and post-graduate students (MBA students).

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.