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The case concerns a real $25 million program consisting of nine concurrent projects to deliver and implement a custom-built in-store customer relationship management (CRM) system and a new point-of-sale system in 400 stores of a national retail chain. The name of the company has been disguised for confidentiality reasons. Once deployed, the new system should give Clothes ‘R’ Us a significant strategic advantage over competitors in the marketplace; it will increase in-store manager productivity, cut costs, and ultimately drive increased sales for the retail chain. The program is in crisis, however, because the product managers have just left to join a competitor. The explicit details of the program are given, including examples of best practice program governance and the real activity network diagram for the program. Detailed Excel spreadsheets are also provided with the actual earned value data for the program. Students analyze the spreadsheets and the data given in the case to diagnose the impact of the most recent risk event and past risk events that occurred in the program. Ultimately students must answer the essential executive questions: What is wrong with the program? How should it be fixed, and what is the impact in time and money to the program? In addition, qualitative warning signs are given throughout the case—these warning signs are red flags to executives for early proactive intervention in troubled projects.

The goal of the case is to teach complex program oversight. Students analyze actual earned value data for a real $25 million program consisting of nine concurrent programs and assess the impact of risk events as they occur in the program. A key takeaway of the case is that relatively simple tools (Excel spreadsheets and time tracking) combined with good project planning can be used to effectively control very complex projects. Students also learn the qualitative warning signs within programs that can serve as early indicators of problems.

Management Accounting and Financial Modelling.

Undergraduate and post-graduated levels.

Aiman, the Area Manager of GEZ Berhad, realised the importance for petrol station operators to have an understanding of fundamental management accounting concepts such as cost behaviour and cost–volume–profit (CVP) analysis. He also believed that the petrol station operators should be proficient in using Microsoft Excel functionality and able to construct “intelligent” financial model with extended sensitivity analysis. Being a manager responsible for training the petrol station operators, Aiman would like to introduce the CVP concepts and spreadsheet model-building process to the petrol station operators, to aid them in planning and decision making. To construct the Excel spreadsheet model, Aiman sought the assistance of Rizal, a university lecturer in accounting, who in turn gathered the relevant operational and financial data from Baron Service Station, a typical petrol station under GEZ stable. The model should be flexible enough to allow the petrol station operator to anticipate, for example: What will happen to overall profitability of the petrol station if the fuel prices go up? What is the minimum volume of fuel that needed to be sold to break even? How much extra profit can be generated if credit card sale is reduced? and Is it viable to install an automated teller machines (ATM) kiosk and incurring administrative charges from bank to lure more customers to visit the petrol station? As the petrol station sells multiple products (petrol, diesel and convenience goods), the owner is also interested to know which product lines are the most and least profitable. Thus, the model should be able to generate segmented income statement with appropriate allocation of the common fixed costs to the each of the products.

The case discussion is intended to achieve the following learning outcomes: students are able to prepare a financial model which include a segmented contribution income statement based on the information on product mix; students are able to calculate the break-even point and distinguish between fixed and variable costs; students are able to differentiate between traceable fixed costs and common fixed costs; students are able to build a financial model that is sufficiently flexible to allow various what if analysis to be performed; and students are able to use what if analysis tools in Excel such as Goal Seek and Data Tables.

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 paper are as follows: understanding the complexities of persuading a distributor to increase investments in the Pakistani fast moving consumer goods (FMCG) context. Understanding the data handled by an area sales manager (ASM) for effective territory management, along with the path taken for a focused approach to territory growth. Comparing the distinct perspectives of a company and an intermediary (e.g. distributor) who are pursuing similar business goals. Experiencing hands-on calculations of return on investment (ROI) for a distributor, in a straightforward situation.

In June 2015, Shah Mir, an ASM at PurePack Pakistan, was face-to-face with an irate distributor named Amir Kazmi, who ran Kazmi Agency in Sukkur, Sindh. PurePack Pakistan, a multinational organization dealing with FMCG products, had a turnover of approximately PKR 7.5bn¹ and was a fully owned subsidiary of PurePack Limited, UAE. Shah’s predecessor, Noor Azam, had managed the central Sindh territory very well and had recorded phenomenal growth. The retail outlet coverage had increased during Noor’s time, along with Amir’s investment in the territory. Knowing he was up against an outstanding past achievement, Shah had studied the data of the area and Kazmi Agency’s performance for the past two years and had concluded that there was still greater potential in the area. Amir Kazmi, owner of Kazmi Agency, was an astute businessman who visited his Sukkur market regularly. He knew the distribution business well and had benefitted from it. He was fully aware of the importance of working on relationships with his retailers in the FMCG industry because competition was high and loyalties needed to be nurtured. Like any businessperson, he was concerned about the growth and profitability of his business. Kazmi’s business had increased quite rapidly from a turnover of around PKR 8.7m in 2008 to one of around PKR 54m in 2014, indicating the potential in the Sukkur district. Shah, who was new to the territory and early in his career, was still grappling with the fact that the growth in central Sindh had been phenomenal and that expectations were high for him. He had gotten working on the territory while keeping in mind advice from his boss, Nabeel Asad, who had told him to identify one area at a time so that he could go about achieving his growth targets in a focused manner. This case brings out the challenges that young ASMs face while in the field, when they have to deal with experienced distributors in the Pakistani retail trade, especially in the smaller towns where relationships can greatly affect business. Students will gain an understanding of the key performance indicators required to focus on developmental issues in a territory. It will enable students to appreciate financial considerations as a major tool in dealing with intermediaries (distributors, in this case) and get hands-on experience in a method of convincing a distributor of his past investments and profitability and paving the way for further investment for retail expansion.

This case is designed for use at the postgraduate level in sales management, channel management and strategic marketing courses, as well as in executive management programs. It can be used at later stages of a course and show a link between a company’s requirements and a distributor’s goals. The students should have field experience or aspire to get into roles dealing with intermediaries, such as distributors. The case gives students a practical, hands-on experience in working on simple profitability calculations and pushes them to challenge the assumptions that need to be made. The case attempts to trigger a discussion on distributor management and its challenges in Pakistan, where managing relationships while keeping in mind the business perspective is imperative. Identifying the right geographical territories to focus on and working on the financials of the distributor are the key learning deliverables. The case is accompanied by a spreadsheet with calculations. This spreadsheet is for the instructor’s use and is for demonstrating calculations as the class progresses. By using the spreadsheet, the instructor can practically demonstrate the effects that changes in investments, expenses, etc. have on the distributor’s profits. It can even be used to build a far more complex situation than the one given in the case (advice for which is provided in this teaching note).

CSS 8: Marketing.

Teaching notes are available for educators only.

This case is designed to teach how to structure information technology (IT) infrastructure outsourcing deals from both the outsourcer and the client perspective. Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions is an opportunity to both reduce costs and complexity for the firm, but students first must consider whether outsourcing is a good strategic fit for OSI. Detailed spreadsheet templates are given that are based on a real outsourcing client engagement for a major infrastructure outsourcing company. The spreadsheets are complex but have been simplified so that they automatically calculate when populated, allowing the students to quickly move to answering the management challenge: how should TIS price and structure the outsourcing deal? Answering this question provides deep insights into the business case for IT outsourcing and how outsourcers financially engineer a deal structure to ensure a win-win outcome for both the client and outsource service provider.

Students will: Understand the strategic context of IT outsourcing and when it will benefit a firm; Understand IT infrastructure outsourcing and management issues such as personnel reductions and organizational change; Learn which outsourcing pricing model is the best fit for a project; Create a rigorous cost-benefit financial analysis and ROI model for IT infrastructure outsourcing; Analyze the model and learn how to financially engineer the deal to be a win-win for the outsourcer and client.

Participants will learn to analyze the basis of consumer segmentation in management education. It will specifically highlight the importance of positioning in influencing the marketing strategy of a firm and discuss the importance of a differentiated-low cost strategy to gain competitive advantage. The case will familiarize students with the business environment of rural India, and the applicability of the 4A’s and the 5D’s framework. Finally, the case will help participants understand the difference between a rural market and a Bottom-of-Pyramid (BoP) market.

A rural MBA institute for BoP students is grappling with the problem of low admissions, leading to an existential crisis. Two divergent options are presented to the protagonist. The first is to close down the B-school and use the infrastructure and facilities for a well-funded government skill development program which is vocational and intended for creating blue-collar workers. The second is to find ways to bolster the B-school to ensure that it gets adequate student enrollment, thereby leading to profitability.

This case is suitable for an undergraduate or MBA course in marketing management, rural marketing in India, South-Asian marketing or strategic marketing.

Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes. There is an accompanying spreadsheet with the case for studying the market. It contains relevant market data that would support analysis of the case. Comments are added for easy understanding. Instructors can access the separate spreadsheet that works out the break-even calculations for the fee structure of the institute. Instructions on calculations as well as comments are added for easy understanding.

CSS 8: Marketing.

Operations management.

Undergraduate and MBA OM courses.

Kiwanis International is a global service organization dedicated to improving the world by helping children. The Durant, Oklahoma chapter holds its primary annual fundraiser the first Tuesday of November, which is also Election Day. The chapter sells and serves fresh pancakes throughout the day; therefore, the event is the Kiwanis Pancake Day. While serving in his first Pancake Day, Robert Howard, a new Kiwanian, notices service operations management issues such as long lines, spiky demand, and customers leaving before being served. Based on his management experience in the grocery business and his academic training in queuing systems, Robert performs an analysis of the system with the purpose of improving service operations.

Perform queuing analysis., Understand demand management., Explain the psychology of waiting.

Teaching notes and spreadsheet–based multiple–server simulator.

The Nokia case provides an opportunity to explore financing alternatives in a situation of broad strategic change. The case emphasizes the difficulties of managing the financial resources of technology-based companies when they fall behind in product innovation. Nokia, the world's leading producer of mobile phones, had recently seen its market share and profits eroded by rival products such as Apple's iPhone and phones featuring Google's Android operating system. In February 2011, Nokia CEO Stephen Elop announced a strategic plan and partnership with Microsoft to have Windows serve as its primary OS for smartphones. Since that announcement, Nokia reported a net loss in earnings, followed by a downgrade of its credit rating in the summer of 2012.

Analysts regard the next two years as a period of great uncertainty for the company. In January 2012, the CFO of Nokia estimates that the firm might require up to EUR4.3 billion in funding over the next two years to implement the plan under a representative downside scenario. Students are asked to evaluate the tradeoffs of raising the funds by issuing long-term debt, issuing equity, cutting dividends, or reducing cash. Given the firm's recent competitive struggles, none of the options is particularly appealing, which forces careful consideration of tradeoffs.

The Nokia is appropriate for use in upper-level undergraduate and graduate courses covering topics in capital raising, capital structure, corporate finance, and the costs of financing. A spreadsheet file of case exhibits to facilitate student preparation, teaching note, and instructional spreadsheet file are available for the case.

This case is suitable for graduate-level quantitative analysis, business and government, environment and sustainability, and global economics courses. Students must consider the tradeoffs between continuing to run an old coal-burning plant and purchasing emissions allowances (EAs) versus upgrading to emissions-reducing wet or dry scrubbers. Reducing emissions creates the possibility of selling the plant's surplus EAs (which are likely to increase in price). Choosing a wet or dry scrubber requires considering installation cost and construction time, variable cost, and SO2 removal efficiency. Ideally, the investment should pay back over time, but management believes some net investment could also be justified. For that, however, complete analyses from both economic and environmental perspectives are required. A supplemental spreadsheet is available to accompany the case (UVA-QA-0726X).

Illinois Superconductor Corp. a technology start-up, came up with an innovative new superconducting filter for use in cellular base stations. It needed to estimate the demand for its filters. The manager came up with a simple chain-ratio-based forecasting model that, while simple and intuitive, was too simplistic. The company had also commissioned a research firm to develop a model-based forecast. The model-based forecast used diffusion modeling, analogy-based forecasting, and conjoint analysis to create a forecast that incorporated customer preferences, diffusion effects, and competitive dynamics.

To use the data to generate a model-based forecast and to reconcile the model-based forecast with the manager's forecast. Requires sophisticated spreadsheet modeling and the application of advanced forecasting techniques.

In April 2012, JPMorgan Chase & Company was struggling with large losses that had the potential to damage the reputation of the company, of its Chairman, Jamie Dimon, and of its Chief Investment Officer, Ina Drew. The losses arose from large credit derivative trades in the London office that Dimon described as “bad strategy … badly executed … poorly monitored”.