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This case describes the growth of ReNew Power during its first decade of operation. Sumant Sinha, a first-generation entrepreneur and former banker, founded the company, which grew from a modest generator-cum-developer of wind energy-based electricity to one of India's largest companies in the renewable energy sector. With the entry of large, well-funded players such as Tata Power and Adani Green into the Indian renewable sector by the end of 2020, Sinha had to make a strategic decision: should ReNew continue to organically scale up its presence in an increasingly competitive yet expanding Indian renewable energy sector, should it diversify geographically, or should it pursue emerging opportunities for vertical or horizontal integration within the sector? The case provides an opportunity to discuss how alternative business models and competitive scenarios may facilitate or inhibit the growth of a player in the renewable energy sector.

In the wake of the December 2015 Paris COP21 (Conference of Parties), and India's announced renewable energy commitments, Reliance Power is reviewing its renewable energy investments to arrive at a long term strategy for the role of renewable energy in its power generation portfolio and the financing of renewable projects. The case reviews the Indian government's policies to promote renewable energy; the evolution of the renewable energy sector; and Reliance Power's financing of renewable energy investments. The case requires identification of alternative long term strategies and their financing implications. This case serves as an introduction to renewable energy from the perspective of Reliance Power, a large private power generator of the country. These projects also provide a learning opportunity for Reliance Power to deal with fast evolving renewable technologies.

General Management/Strategy.

Post-graduate/MBA.

Case A: Mr Grandhi Mallikarjuna Rao, founding chairman of GMR, was considering a proposal to bid for an upcoming international airport in Hyderabad, India. The strategic move would have marked GMR’s foray into the Indian airport infrastructure sector. GMR had been involved in the development and operation of power plants and had thrived on public–private partnerships for all its projects. Mr Rao is thinking: Should GMR make another major investment in infrastructure development by bidding to build the airport in Hyderabad, India? Further, how should the organization prepare itself for this strategic move? Case B: On April 4, 2013, the meeting of GMR’s Group Executive Council (GEC) was scheduled to take place. Srinivivas Bommidala, G.M. Rao’s son-in-law and Chairman of GMR’s airports business, was gearing up for the meeting. The meeting was called to discuss a proposal for bidding for an upcoming airport project in the Philippines. It had been more than a decade since GMR entered the airport infrastructure sector. The organization had built substantial airport operating expertise during that period. It adopted a joint venture (JV) model for expanding in the airport infrastructure business. Until now, the organization had always formed JVs for all its airport projects. JVs with existing airport operators were necessitated by the bid conditions that required a certain minimum airport operating experience for qualifying as a bidder for various projects. In some cases, a JV with a local player helped GMR with market knowledge for functioning in a foreign market. GMR also used JVs to access the capabilities it lacked for operating in this sector and gradually learnt from its partners for building capabilities in-house. The group now had the required operating expertise in the sector to qualify as a bidder. One of the key issues the GEC was contemplating was: Whether GMR should continue to form JV for bidding for the upcoming project or should it go solo? Further, if it had to form a JV then, in which areas should it seek a partner?

Case A: To understand the relationship between key concepts in strategic management, including diversification, capabilities and core competence. To help students understand the various factors managers consider when deciding on the diversification strategy of an organization. To create an understanding of the organizational processes required to facilitate diversification into a new segment. To teach students how to evaluate a potential market opportunity that may require a firm to take on a diversification strategy. Case B: To help students understand how companies use alliances as growth strategies. To understand the rationale for formation of various alliances. To explore various factors managers consider when deciding on alliance strategy of an organization. To understand the challenges associated with using alliances as a strategic option. To understand the pros and cons of internal development (i.e. going solo) vis-à-vis strategic alliances.

CSS 11: Strategy.

Strategy and finance.

MBA/MBA equivalent programme – finance specialisation.

In June 2009, Mr Rakesh Vora, CEO of Alpha Power Ltd, India was facing problems while deciding the appropriate business model of the company. Without the existence of an adequate business plan, the CFO, Mr Harish Gupta, could not decide the adequate capital structure and valuation of the one million shares the company planned to issue in the market through private placement.

Alpha Power Ltd is planning to start two power plants at Jatra and Chhapra. The plants are to be funded by a prudent mix of debt and equity; but, it has major issues regarding the financing arrangements. The management is undecided about how to fund these projects. Power sector in India is booming; however, the challenges faced by the company are numerous. They include possibility of a slowdown, different buying/leasing options for land, option of using better technology, decision regarding importing of superior quality, but high-cost coal and valuation of the company using various approaches, etc.

The case is intended to help future finance professionals understand the working of power plants in India and experience the decision-making process faced by managers, while making a business plan and raising funds for power projects.

Teaching notes.

Strategic decision making, strategic alternatives.

This case is suitable for undergraduate and postgraduate business and management, MBA programs; the case could be used in strategic management, strategic analysis methods, change management courses.

This case illustrates how Storm, a small innovation company located in the city of Novosibirsk, Russia, tackled the problem of future development. The company was set up in 1992 by young scientists to produce equipment for automatic process control systems in power engineering. All the engineering solutions were based on the developments of the company's founders. Currently Storm is the regional leader in creating engineering complexes for power generating companies. However, because of the drastic changes in the business environment and increased market competition, the company faced the challenge of further development. The company's management and owners saw the further development prospects and risks differently. Three strategic alternatives are available and the company is required to choose one of them, substantiating the choice made.

After completing the case study assignment, learners should be able to: state the strategic problems of small business development; identify the challenges of the external environment for company development; apply the tools of strategic analysis for evaluation of the company's market position; analyze the company's internal strengths and weaknesses; and elaborate and evaluate strategic alternatives for the company's growth.

Teaching notes are available – consult your librarian for access.

Corporate finance, strategic financial management, financial innovation and financial engineering.

The case is suitable for graduate level management students.

In early April 2011, Mr Ramakrishnan, the CFO of Tata Power Ltd and members of his team were busy re-evaluating fundraising options for financing Tata Power's capital expenditure requirements, for refinancing of debt, for working capital related to current projects and for liquidity to support potential acquisition bids. The team had the task of evaluating different innovative funding options as the challenge was to strike a fine balance between maintaining the owners' equity without dilution of control and avoiding any adverse impact on credit rating that could increase the cost of capital; these constraints reduced flexibility for fund raising. Keeping in mind the global market scenario and estimating the investor appetite were factors critical to the structuring of a funding instrument.

The case will help students to be comfortable in thinking about evaluating markets, financial instruments and weigh rating considerations and regulatory constraints for taking capital structure decisions.

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

MS / MBA / Executive Education

Leadership

In 2019, French multinational electric utility company, ENGIE SA (ENGIE) was on the verge of zero carbon transition. Under the leadership of Isabelle Kocher (Kocher) who became the CEO in 2016, ENGIE embarked on an arduous journey toward re-profiling ENGIE toward renewable, low-carbon energies, such as solar, green gases and digital. Kocher inherited a loss-making company and took in on a path of transformation toward a company with business lines for future. This meant ENGIE would slowly move out of energy generation through non-renewable sources, toward renewables along with storage and digital technologies. This case chronicles Kocher’s turnaround plans and investments, and explains how she went about making ENGIE a forerunner in energy revolution. While the turnaround was on track, ENGIE was unable to give returns as expected. With mounting pressure Kocher announced a strategic plan in 2019, which reemphasized ENGIE’s focus on renewables and technology. But several major shareholders including the Government of France were not impressed with the plan. It is time Kocher proves that transformation of ENGIE into a clean power company also means returns for the shareholders.

The outcomes are as follows: First, to illustrate how leaders bring in change and innovation in large well-established companies. It shows the role of leaders in leading the innovation process and in molding the companies according to the opportunities and threats presented by the macro environment. Second, to analyze the role of a leader in bringing changes in the organization. Third, to understand the strategies used by energy companies as they position their businesses in the context of a changing energy landscape.

Teaching Note

Renewable Energy – Growing cocnern about the impact of climate change on the world at large, has brought to the fore the importance of renewable energy.

CSS 4: Environmental management

The Indian electricity sector was opened to the private sector under the IPP policy. The NTPC, India's largest and perhaps most efficient generator had to respond to the changing scenario. It set out to set up the Simhadri project in Andhra Pradesh, going beyond to original mandate. The IPP policy, its perversities, the background of the power sector, the problems there in and the response of NTPC are discussed. Case (B) discusses the issues related to Project Planning and Implementation.

Operational Management, Strategic Management and Marketing Management.

The case can be taught in introductory marketing courses and management and organizational policy course and in advanced level in promotion, distribution channels, marketing research, consumer behavior and brand management courses at graduate level. Importance of market and technological research; first mover advantage and disadvantages in new market segment; importance of competition in a market; use of PESTL analysis before pursuing for any segment; types of growth strategies which could be used that is Broad base or Narrow base; how company uses marketing mix strategy; and how managers make decision in dynamic environment (contingency theory approach).

This case study relates to a real-life situation the data was collected from primary and secondary sources between 2012 and 2013. The case is of a company Pakistan Accumulators (PAL), having less than 18 years of experience, has been able to grow successfully in the dynamic environment of Pakistan. The decline of the private businesses in Pakistan due to the energy crisis has popped up a new need of power generation alternative equipment in the country. PAL, which is a privately owned company, suppliers of automotive batteries, Uninterruptable Power System (UPS) batteries, lead acid batteries and rechargeable batteries has been able to manage the growth of 20 per cent per year. In this case study, we have highlighted only one market segment of the company that is of UPS batteries, we have focused on what is the future prospect of this particular segment, its attractiveness. Also, the area of focus was the new market segments which can be targeted by the company. Basic issues of the case study: calculation of the market segment value of UPS industry; identification and solution of different challenges faced by PAL in the dynamic Pakistani market (contingency theory); recognition of different future growth prospects for PAL.

The basic objective of this case is to enhance the analytical and qualitative skills of the students by giving them the real-life perspective of a company working successfully in country like Pakistan which is facing economic and political crises. This case can also be used for understanding the problems of third-world markets and how company can pursue successfully in the long–term.

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 case provides valuable insights on challenges faced by otherwise-protected organisations which are made to face the global onslaught. What happens to an organisation when its own collaborators become competitors overnight? What happens when market leaders refuse to share their technology or dictate their own terms? In addition, this case study looks at the strategy of diversification desired in the business portfolio and the cost of non-diversifications. The case evaluates the environment in which a capital-intensive industry has to operate. It evaluates the combination of all the variables required for undertaking a comprehensive analysis and aims at identifying the best possible level to which the business can be expanded to maximise profits under the known constraints in which the business has to operate.

Target audience is corporate executives, students of MBA/postgraduate programme in management in strategic management and/or workshops for understanding the concept of SWOT (strengths, weaknesses, opportunities and threats) analysis, competitor analysis, Porter's Five Forces Model, Boston Consulting Group (BCG) Matrix, business environment analysis and growth strategies for future.

A combination of global competition and open access in the domestic market is putting pressure on the margins, as new players are likely to move towards gaining market share by bidding aggressively. This is threatening the competitive intensity for Bharat Heavy Electricals Limited (BHEL) in the long-term. Raw materials, such as steel products, that are critical to production process are subject to substantial pricing cyclicality and periodic shortages of supply in India. The margins are thus continuously being impacted by movement in raw material prices, especially steel and copper. How BHEL hopes to sustain its growth story? Whether Chinese competition will kill BHEL? These are some of the pertinent questions the authors will try to answer in this case study.

Use of SWOT analysis to identify the strengths, weaknesses, opportunities and threats to a company and use it as a tool to strategic decision-making. Highlighting the importance of strategic tools such as Porter Model and BCG Matrix within an emerging economy backdrop; to illustrate the alternatives and difficulties/complexities involved in a strategic planning process of growth and cost cutting; and to analyse the financial statements of BHEL.

Analysing public sector undertakings (PSUs)/government companies involved in infrastructure build up/projects of strategic nature in the country, their performance, challenges and efficiency in pre-liberalisation era and post-liberalisation era, and identifying how many are visible today, including the reasons for their growth/decline in generating revenues and profits, has multiple social implications especially for an emerging economy like India. A look at the performance trends of such companies over the past years too would help them in their quest by assisting them to get an idea of business and the industry profile in which BHEL is operating.

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