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We obtained information on China Gerui from secondary published sources, including annual reports downloaded from the Securities and Exchange Commission’s (SEC) EDGAR database, news sites and newspapers, the company’s website and journal articles. One of the authors visited the China Gerui plant in Henan, China.

China Gerui, a Chinese metal fabrication company, enjoyed exponential growth because of its location, product innovation and ability to move up the value chain. At the height of its success, the company listed on the Nasdaq and had plans to raise capital to fund ambitious expansion plans. Unfortunately, four years after listing on Nasdaq, the company received a letter from the listing qualifications department notifying China Gerui that they were not in compliance with Nasdaq’s filing requirements because it had not filed its Form 20-F. Now, the company had only five days to decide whether to request an appeal of the letter.

This case is best suited for higher-level undergraduate accounting and finance courses such as intermediate accounting, auditing, international accounting, financial statement analysis, corporate finance and investments analysis. It is especially appropriate for graduate-level global accounting and advanced financial statement analysis courses. In these courses, the best placement is after coverage of SEC regulations and requirements for financial statement reporting and disclosure. Moreover, the case may be used as a tool to demonstrate the step-by-step process for searching and retrieving information from a public company’s filings through the SEC’s EDGAR database.

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

This case can be used in marketing management as well as consumer behaviour courses.

This case is suitable to use in advanced undergraduate levels, MBA and MSc in marketing courses that cover topics related to market segmentation and marketing mix strategies.

This case highlights the dilemma of an entrepreneur and a manager of a restaurant who were to take a decision about the sustainability of their restaurant business. Balqis Restaurant was owned by Danny who was a retiree from Telekom Malaysia. He wanted to open a restaurant business after he came back from his long holiday trip. He conducted market research to find a suitable place to open his Arabic restaurant. He assigned Waleed Masood Abdullah as the manager of Balqis Restaurant. Finally, in June 2010, he opened his long awaited restaurant at Gombak, Kuala Lumpur. The restaurant was known as Qasar before the name was changed to Balqis in 2015 because of copyright issues related to Saba’ restaurant at Cyberjaya. The restaurant was well managed under Danny’s supervision for 4 years and successfully won customers’ hearts and loyalty before he decided to give full responsibility to Waleed in March 2014. Danny trusted Waleed because he taught and trained him. However, under Waleed’s management, Balqis started to lose its customers. Waleed also started to branch out the restaurant to different places in different states; one in Ipoh, and the other in Perak. He invested much money on renovation for all three branches, but one of the restaurants closed down in September 2014. This is because of the fact that they could no longer bear the cost of operations for the restaurant. However, he failed to learn from the mistake; they set up another restaurant, which was in Kuantan, in the same month. The sales were not that encouraging but it did show gradual improvement; yet, they once again sold it to another Arab businessman. Waleed realized his failure in managing the restaurant business in August 2015. He again opted to open another new branch which was questioned by Danny. He was in a rush to open it by the end of December 2015 to ensure that the additional profits from the current restaurants could cover the variables costs if the new restaurants were launched. Based on that, the owner had to make a decision about whether a new branch should be opened or whether they should just retain their restaurant in Gombak.

The learning objectives of using this case are as follows. 1. Knowledge enhancement: to help students in understanding the problems faced by a restaurant in expanding its market; to make students aware that a properly blended marketing mix is the key to business success and to broaden students’ views and understanding in targeting the proper market segment in formulating an effective marketing strategy. 2. Skills building: to be able to identify the best marketing strategic decisions to manage the restaurant business for its survival and to develop students’ ability to analyse the existing situation to come up with a viable and effective solution. 3. Attitudinal: to help the students to have intellectual openness in accepting different ways of finding solutions for a particular problem and to assist students in making the right move at the right time.

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 8: Marketing.

This case uses the concept of social entrepreneurship to analyze the entrepreneurial journey of Mr Suraj Prakash and his social enterprise, the Swasth Foundation. It further deepens our understanding of strategic decision-making by exploring the successful use of pivots.

The case was primarily developed through a series of interviews with the leadership team over a year. Secondary sources included literature about Swasth Foundation available on the internet and those shared by the founder.

In 2008, Suraj Prakash left McKinsey & Company after six and half years in the health and development sector as an engagement manager. Along with his friends, Aman Paul and Ankur Sharma, he established Swasth with the goal of building an ecosystem that delivered high-quality, affordable and accountable health services to low-income communities in India. Right from its inception, Swasth went through many fundamental shifts in terms of its business model, team composition and even the nature of its existence; however, this did not deter Suraj from pursuing his goal.

The case brings into focus the health-care system of India, especially in the context of the urban poor and the challenges they are facing, followed by the initiatives taken by Swasth Foundation and the impact it is trying to create. The remainder of the case delves into Suraj’s entrepreneurial journey and the three pivotal decisions that changed the course of his organization over 11 years. It will also provide a transpicuous view of the entrepreneurial decision-making process through the lens of pivoting. As Suraj and his team are trying to bring about the required changes through the third pivot, there remain some challenges that need to be addressed for a successful implementation.

The case is written for business management students and can be used in general management, entrepreneurship and strategy classes. The case can be used for discussions on leadership, social entrepreneurship and strategic decision-making. It is suited for both undergraduate and postgraduate levels.

Learning objectives are as follows: Analyze the reasons for the implementation of retrospective taxation by the Government of India; infer the dynamics of international tax laws and the settlement process of international taxation disputes; critically analyze the factors that led to the Indian Government’s decision to scrap the retrospective tax; and infer the relationship between a country’s taxation system and its potential to attract foreign direct investment.

This case is an analysis of the Indian Government’s decision to scrap the retrospective taxation amendment. The case discusses the underlying factors that led the incumbent government to take this sudden decision. The case discusses in detail the causes for the introduction of the retrospective taxation amendment and the tax terror unleashed by this draconian law. The case also discusses the embarrassment faced by the Indian Government because of a series of adverse decisions against it and in favor of Cairn Energy and Vodafone in the international courts. It also discusses the adverse effect on Indian banks in case of ailing telecom conglomerate Vodafone Idea Ltd failure.

The case is best suited for postgraduate and executive students studying Taxation subjects in Commerce and Business Management streams.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.

Business environment, international business management.

The case is suitable for students of the business environment, and of international business management.

The case revolves around the reaction of the Finance Ministry of India on Vodafone's tax case and its implications on FDI and the foreign investors who are investing in India. The core issue is the political risk(s) faced by Vodafone even after having won the tax case in the Supreme Court, the highest judiciary body in India. The Government of India has amended the law to bring the tax into retrospective mode and it signifies the impact of political decisions on business organizations.

The case can aid in understanding the effects of changes in a political system and legal framework on the efficacy of business entities; and the importance of, and intricacies involved in, the formulation of political risk mitigating strategies while entering into new markets. The key learning outcomes are: understanding various types of political risks faced by multinationals; assessing the political risks involved in foreign investments; and appreciating the possible mitigating strategies to handle such risks.

Teaching notes are available, please consult your librarian for access.

To complete this case, students will need to access financial statements from the Securities and Exchange Commission’s webpage. The links are provided. Students will also need to review the conceptual framework that is typically covered in Intermediate 1 to respond to question 5.

This case is based on the three financial statement restatements that Weatherford International Ltd. made over an approximately 18-month period. The restatements were due to a fraud committed by manipulating the income tax accrual in the financial statements. The manipulation used was to overstate the amount of income used to calculate the dividend exclusion and then use a relatively high tax rate to calculate the resulting tax benefit. The tax rate used for the fraud was substantially more than Weatherford’s effective tax rate (ETR), which was a prominent part of the company’s strategic growth plan. The tax senior with the external auditors who reviewed the entry made for the dividend exclusion captured the inconsistency with the comment that “This [the entry] deserves a huh?” The case is intended for students in Intermediate 2, where financial statement restatements and their effect on the company’s financial statements are typically covered. During the years covered in this case, Weatherford was also under investigation for violations of the Foreign Corrupt Practices Act (FCPA). Weatherford’s FCPA violations included multiple instances of bribery, the inappropriate use of volume discounts, improper payments and kickbacks in the United Nation’s Oil for Food program. Weatherford received the eighth-largest fine in the history of FCPA violations (at that time) of $152m. Weatherford’s FCPA investigation expanded, and the company paid another $100m in fines for violations of sanctions law and export control law. This case focuses only on the fraudulent manipulation of the financial statements through the tax accrual and does not delve into the other investigations. However, the linkage between those investigations and the fraud in this case is Weatherford’s nonexistent internal controls.

This case was designed to be used in Intermediate 2 financial accounting classes to highlight financial statement restatements and review the conceptual framework and materiality. The students who used the case did not have difficulty with the tax aspect of the case. However, most of the students had taken one tax class previously or concurrently. If students have not had any exposure to tax, the instructor might want to walk students through the tax aspects of the case.

32-year-old Heather Wilson was about to become a property investor. After years of painstaking savings, she had finally reached agreement to purchase her first buy-to-let property, a 1 bedroom flat in London's sought-after Kensington and Chelsea neighborhood. She looked forward to a lifetime of building wealth through property investments. Of course, some of the income the property would generate would be owed to Her Majesty's Revenue and Customs (HMRC). But such was the nature of life. Unfortunately, the tax laws had only recently become less favorable for property investors, but Wilson expected to negotiate a lower purchase price as a result and so she felt confident that her investment remained solid.

From a pedagogical point, the case may fulfill following objectives: First, to understand Vodafone’s position in the current environment. Does the environment present the elements that are necessary for them to thrive (as analyzed using a PESTEL framework)? Second, to understand the resources needed to build competitive advantage in an emerging market context (as analyzed using the Porter five forces model); and third, to understand the competitive challenges of conducting business in a highly (and sometimes capriciously) regulated industry.

The Indian Telecommunication sector is one of the fastest growing industries in the world. There are nine telecom operators who are pioneering this growth; however, five private companies: Bharti, Idea, Reliance, Aircel and Vodafone make up 78.86 per cent of the market. These five companies have the opportunity to increase their market share by expanding the services provided to rural India; however, the Indian Tax Authorities have caused some hesitation. Aside from being known as heavy handed and unpredictable, the authorities have also demanded that Vodafone pay them billions in taxes. These court cases have challenged the way that other telecom operators look at investing. The arrival of Reliance Jio as a new player in the Indian wireless space with deep pockets has not helped the already fierce competitive landscape. Reliance Jio is forcing all wireless companies including Vodafone to reevaluate their India strategy.

This case could be used in both MBA and executive education programs.

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.

ONGC vs. Sumitomo – Supreme Court of India, 28 July, 2010 – is an example of a dispute in an international contract, with an arbitration clause, which could have been avoided. Ironically, it took almost two decades to be finally decided. The purpose of this case is to make the readers think about dispute avoidance vis-à-vis dispute resolution. The case presents the most relevant aspects of the judgment in simple language, devoid of legal jargon. A number of questions have been suggested towards the end.

The case describes the first four years of Dhruva, a tax advisory firm set up by Dinesh Kanabar, ex-Deputy CEO of KPMG. Dinesh and other founding partners had worked with the Big-4 firms and were familiar with some of the tensions in the overall ecosystem of Professional Services Firms. Dinesh wanted to build a distinctive professional service firm driven by values of cooperation, high quality work, transparency and stewardship. Very early in its journey, Dhruva's founding team decided that they would use organizational culture as the North Star for guiding decisions related to growth, internal organization design and even admission of new members including Partners. The first four years turned out to be highly successful for the firm. Since inception, it was ranked as Tier-1 firm in the tax advisory space. It was apparent that the firm had succeeded in building a model of alternate organizational paradigm for professional service firms. The next challenge was to test the scalability of this model as the firm embarked on an ambitious growth journey.