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In February 2015, Suzlon had just completed its financial and asset restructuring, following financial default after rapid growth through debt financed acquisitions in the financial boom ending in 2008. The restructuring resulted in a significant decrease in the promoter's equity stake. Suzlon now has to decide how to respond to an offer by the DilipSanghvi Group, promoters of Sun Pharma, to acquire a large equity stake in Suzlon for Rs. 1,800 crore. If Suzlon were to accept the offer then both the existing promoters and the DilipSanghvigroup would have the same stake of about 22% each. The case will help students examine the need to align financing and business strategy on the same plane. It will also help them understand details about restructuring of financial and business strategy in the face of financial distress.

This case examines issues surrounding the choice of financing arrangements for the acquisition of Radiologix in July 2006. The case follows Mark Stolper, the CFO of RadNet, as he considers how to raise the $363 million in funds necessary to finance the acquisition. When completed, the combined firms will be the largest private diagnostic-imaging provider in the United States. When Stolper joined RadNet in 2003, he confronted a company with “too much debt, and the wrong kind of debt.” His goal is to finance the acquisition in a way that further enhances the financial strength and operating flexibility of the company. Given the large size of funding required, the firm is unlikely to be able to fund the entire transaction with first-lien or bank debt. His financial advisors differ in their recommendations for how to raise the remaining funds—one suggests using second-lien debt, and the other, high-yield debt.

The purpose of the case is to familiarize students with frequently encountered types of debt financing that are used to finance mergers and acquisitions and other corporate transactions. The case provides information on the distinctions among first-lien, second-lien, and high-yield debt in relation to their price, availability, flexibility of covenants, repayment ease, and composition of likely investors. The case is designed for use in courses that cover corporate financing, M&As, and debt financing.

The case study “PVR Limited at a Crossroads” has been designed with the requirements of strategic management. The learning objectives are as follows:

• Situational analysis – understand the global and Indian media and entertainment industry PESTEL.

• Strategic planning – internal and external environmental analysis – strength, weakness, opportunities and threats (SWOT) analysis helps in achieving the strategic plan.

• Strategy development – to accomplish the turnaround plan, various alternatives are developed; choosing from the possible alternatives is a part of strategic planning.

PVR Limited (PVR) is the largest premium film exhibition company in India. In their annual report for 2019–2020, Chief Executive Officer Gautam Dutta acknowledged, “It was the first time in our more than two-decade history that we witnessed over 100 million patrons entering our premises in a year”. However, with the onset of Covid-19 pandemic in January 2020, things changed for the entertainment industry in India. There were fears of an eminent third wave and the detection of a new Covid-19 variant, Omicron, added to these fears. Being a major player in the game, PVR felt the impact. And even when the business started to reopen, social distancing remained a concern and ticket sales were impacted. Over-the-top viewership rose dramatically at the cost of the multiplex. The lockdown halted film productions worldwide, leading to a shortage of content. Other revenue streams, such as food and beverage, convenience fees and advertising, also came to a halt. Given the circumstances, Dutta was facing the twin dilemma of how to bring customers back to cinema in a post-pandemic world without in any way compromising the security of its patrons and keeping costs under control while investing in social distancing, safety measures and entertainment infrastructure to enhance the cinematic experience.

This case was written for use in Strategic Management classes at the undergraduate and MBA levels. It can be used in both management studies and executive development programs. It is suitable for courses on strategic management and strategic planning focusing on a turnaround strategy. Additionally, the case could be used in consumer behaviour courses in management as the focus of the case is well aligned with discussions related to change in consumer behaviour.

Teaching notes are available for educators only.

CSS 11: Strategy.

Jefferson County was in a financial crisis as the commissioners faced a decision concerning whether the County should file for bankruptcy. The County was under an EPA mandate to update an outdated and overrunning sewer system. Estimates to do the work ranged from $250 million to $1.2 billion. The situation led to graft, corruption, bribery and illegal activities. More than 20 people were prosecuted in association with the illegal activities involved in financing and construction of the sewer system and four of the five commissioners were sentenced for their involvement in the corruption. Five new commissioners were elected and had to determine what to do after the down-grade of the County's bonds and warrants; the reduced revenues; and the corruption had put the County in a situation where funds were not available to continue to operate the County and provide services to its citizens. Should they declare bankruptcy or choose other paths open to them?

Data sources – this case is based on field research and interviews with a commissioner, court documents and from many other public sources. Extent of disguise – the case is not disguised.

The case can be used in graduate or upper division undergraduate courses in accounting, strategy, public administration or finance. There are several topics in the case that could be addressed: governance; economics, government and political issues, ethics, accounting, financial instruments, and strategy.

Atari, a maker of video games, went through several owners over the years winding up controlled by Infogrames, a French publisher of video games. Infogrames later sold Atari shares in a secondary public offering, eventually reducing the parent’s share to 51.6 percent by September 2005 creating a complicated two-tier ownership structure. Two levels of management made it difficult to get things done. The financial structure was a problem for Infogrames because the French company had to consolidate 100 percent of Atari’s results even though it only owned 51 percent of the company. Atari was generating substantial losses, had defaulted on its debt, and was faced with the possibility of filing for bankruptcy without more working capital. The independent directors of Atari, when confronted with an unsolicited Infogrames buyout offer, had several options: (1) agree to the $1.68 offer (take the money and run); (2) pursue a white knight (a buyout from another investor of company that would be willing to pay a higher price and invest working capital); (3) file a lawsuit to stop the takeover to buy time or perhaps force Infogrames to increase its offer.

Communications in a turnaround How planning and executing a communications strategy is as important as other functional actions Dealing with an international ownership base with a U.S. turnaround of a legacy brand with no hard assets Fiduciary duty and governance issues arising from a takeover offer.

The case helps to understand: the working mechanisms of a digitized salon service, with a focus on the lower- and middle-income strata. The changing scenario of the service marketing model, with the growth in digital service models. To investigate the organisational challenges of a digitally facilitated/based start-up and find solutions to overcome the challenges.

“Yes Madam”-salon at home was a business enterprise, providing beauty and wellness services at the doorstep through a mobile application and web-based platform. The case describes the reason for opening the doorstep beauty services, its revenue model and aims to provide quality services to lower- and middle-income strata. The case will help students to understand the working mechanism of digitized salon services and associated challenges; prominent ones being attracting, selecting and retaining the beauticians and providing the standardised services. The case has examined the low-price services for the consumers delivered by the company. The case also discussed their plans for diversification and penetration into the untapped markets.

Graduates and postgraduates.

Teaching Notes are available for educators only.

CSS 3: Entrepreneurship.

The learning outcomes of this study are as follows:

▪ to bring the appreciation of the complexities involved in managing a mission-driven not-for-profit (NPO) institution;

▪ to highlight the pressures and tensions felt by a mission-driven not-for-profit organization from various stakeholders; and

▪ to appreciate the managerial challenge involved in making a not-for-profit organization financially sustainable while meeting its mission objectives.

The National Institute of Development Management (NIDM), established in 1980 by a group of development professionals, was a mission-driven high-performing knowledge institution focused on professionalizing the management of people’s institutions. From one long-term academic program in 1980 to three in 2019, NIDM came a long way in its journey. For the first five years, the institute offered a stipend to its students in the PGDM-DM program and placed them in village-based organizations. The next 15 years saw a general shift in attention toward the development sector, and NIDM started placing its students in other organizations beyond village-based development organizations. NIDM supported all its activities through funds generated on its own from program fees charged to the students, consulting and training activities. Prof. Sengupta, the Director, faced multiple challenges. He needed to decide what action he could take to keep the 40-year-old institution financially sustainable while remaining committed to the mission of its founders.

This case can be used in courses such a Managing Not-for-Profit Organizations and Management of Dual-Purpose Organizations. The case can be taught to the students of management, development management or agribusiness management programs. This case is also suitable for the faculty development programs participants to bring about the appreciation of managing an institution of higher education. The case requires about 70–90 min of class discussion time.

Teaching notes are available for educators only.

CSS 11: Strategy.

Tel Aviv–based Diskit Khartsan Ltd. sold sprays, traps, and netting to combat Blatta lateralis, the Israeli flying cockroach. The insect, slightly over one inch (2.54 cm) long and capable of flying short distances, was noisy, unsightly, and posed a risk of food contamination. Every heat wave brought more infestations, and consumers across the Mediterranean armed themselves with Diskit's HLH™ brand products.

HLH products generated nearly two-thirds of Diskit's annual revenues. During periods of low demand, local retailers resisted devoting significant shelf space to the bulky products, which meant that during periods of high demand stockouts occurred frequently and Diskit lost sales. To address this problem, the company had implemented a trust receipts program that raised prices for retailers by 3 percent but allowed them to take Diskit products onto their balance sheets without payment until the products were sold.

After analyzing and discussing the case, students should be able to: • Understand the relationship between a firm's credit policy and its product market strategy • Explain the effect of growth on firms' strategy when product market strategy is capital-intensive • Understand how exogenous change in the market's structure affects firms' product market strategy and, consequently, its inventory and credit policie

General management/Strategy: Problems with debt recovery industry in India Strategic positioning and core competencies: expansion plans.

The case can be used on an MBA program for a course in strategic management. It can be used to understand the concept of strategic positioning. It will give the students an opportunity to critically evaluate a firm’s strategic positioning in the competitive environment, enable them to understand how to create and capture superior value by differentiating as compared with other players in an industry and address expansion and growth strategies.

The case represents the success story of “Adhikrut Jabti evam vasuli”, a debt recovery agency that dared to use the unconventional strategy of employing women as recovery agents, against the stereotyped muscle-flexing male agents. Continuous focus on improving the processes and systems backed by an authoritative yet tactful approach of persuasion and patience has brought this recovery agency accolades and growth. But now Parag Shah the Managing Director is planning to expand its horizons and wonders whether he should go ahead opening up more branch offices across the country or whether he should convert his recovery firm into an Asset reconstruction company.

The case reinforces the importance of “Strategic positioning” of a firm due to well-planned differentiation in services. The case also addresses concepts of leadership, standardization, people skills and relationship management.

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.

The case aims to understand and analyse the capital structure decisions made by a profit-making, growing organisation which aimed to be India’s premier airline and the market leader. The company that had pursued a high debt policy, to take advantage of the financial leverage that it would get, was now facing problems in an operating environment that proved to be challenging. A decline in operating profit, coupled with high-interest costs and an uncertain environment with cutthroat competition, had caused the company to plunge into losses. Attempts to deleverage by equity infusion were proving to be difficult. The case can be used in MBA, Executive Education and doctoral programmes. The learning objectives of this case are: to analyse the capital structure of the company, to interpret the relationship between financial leverage and risk, to assess the pecking order theory, to analyse the nuances of the aviation sector and the factors influencing the profitability of the companies in the aviation industry, to estimate the risks and the rewards associated with foreign currency loans, to evaluate the magnifying impact of the financial leverage and to propose deleveraging methods like sale and leaseback, debt conversion to equity and devise a revival strategy for the company.

The case discusses the dilemma faced by Naresh Goyal, promoter and chairman of Jet Airways (India) Limited. At the initial stage, Jet Airways, like many other companies in its growth phase, relied on borrowed funds to meet its investment needs. However, over-reliance on borrowed funds with just one equity infusion resulted in a high leverage ratio and an aggressive capital structure. Moreover, the company operated in a sector that was highly regulated, with competition that was cutthroat and a cost structure that was volatile. A high operating risk, coupled with high financial leverage, pushed the company into incurring losses. Having run out of cash, Jet Airways eventually defaulted on loan repayments to its lenders. Facing the eventuality of losing control of the company to lenders or to a strategic investor, Goyal was trying to figure out a way to save the company from insolvency and liquidation. It was becoming increasingly difficult for Goyal to keep Jet Airways, the company he had nurtured like a baby, airborne.

The case can be taught in both online and offline modes of delivery in a 90-minute session. Post-covid, the delivery mode of classes has changed. In online sessions, it may be a challenging task to ensure student participation.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.