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After studying and analysing this case, students would be able to evaluate and understand the importance and need of an infrastructure sector in a country, its inherent risks and scope of infrastructure investment and financing in India – National Infrastructure Pipeline and the important role of Non-Banking Finance Company’s (NBFC) vis-à-vis banks in infrastructure financing in India; critically analyse and recommend alternative decisions in a business problem situation using multi-criteria decision analysis, which is a tool used for business portfolio analysis; understand and evaluate the corporate portfolio management (CPM) tools used for an optimum portfolio mix to turn around companies; identify and suggest an optimum portfolio mix to turn around a finance company using CPM assessment applied to Pidun matrix; and recommend operational and strategic levers for successful turnaround implementation by using the integrated canvas on turnaround.

On 10 May 2020, in New Delhi, India, J. Ray took charge as a full-time director of an Indian Non-Banking Finance Company – Infrastructure Finance Company (NBFC-IFC). The NBFC-IFC of the Indian Government extended long-term financial assistance to infrastructure projects in India. During the financial year (FY) 2017–2018 till FY 2019–2020, the company suffered substantial losses to the tune of US$13.7bn, with profitability experiencing a notable decline – return on assets at a negligible 0.11% and return on equity of only 0.68%.

The NBFC-IFC had a declining yield on advances at 7.05%, net interest margins (NIMs) of 2.08% against a high cost of borrowing at 7.66%, a declining loan book (by 4.35%) of US$336.27bn and a fast-deteriorating asset quality with highest ever non-performing assets (NPAs) at 19.70% of its loan book. Such financial parameters, compared with that of the industry average of banks and finance companies, meant that the NBFC-IFC Ray had taken over was fast bleeding and was on the brink of being declared a sick company. In comparison, private and other government players had profitable and much healthier financials, and Ray felt that there was a need for improvement. To make things worse, Ray got to know that the Indian Government was in the final stages of setting up a new development finance institution focused on long-term infrastructure financing in India. Ray realized the question was not only of the NBFC-IFC remaining relevant but also of its existence in the fast-evolving sector. Ray wondered what could his his integrated canvas be for a turnaround strategy that could include effective management of an optimal portfolio mix.

With a healthy capital-to-risk (weighted) assets ratio of 30.85% and a satisfactorily improved net worth of US$103.1bn, in the given Reserve Bank of India regulatory provisions for the NBFC-IFC including restrictive exposure norms and NBFC-IFC’s operational mandate prescribed by the Indian Government, Ray had to shift the product and sectorial investment of the NBFC-IFC to reduce the NPAs, increase loan book size and improve the yield of advances and its NIM to effectively turn around the company’s profitability. Ray realized that he needed his team to evaluate and select a product and sector strategy for this change.

The present case of financing investment in infrastructure is interesting for implementation in developing economies because a lack of infrastructure is a common problem and there is a necessity of achieving a more developed infrastructure system to support accelerated economic growth in these countries. This case can be used in elective courses on corporate finance strategy and corporate portfolio management for infrastructure finance companies. This case can be taught in elective courses in post-graduate and MBA programs. This case can also be included in management development programs (MDP), executive MBA programs and executive-level courses that have subjects such as corporate finance strategy, corporate portfolio management and strategy management that focus on turnaround strategies including portfolio management for banks and finance companies.

Teaching notes are available for educators only.

CSS 11: Strategy.

Dean Lynn, of Augustine State University's School of Business Administration, has been asked to develop online offerings as a prototype for the rest of the university. The decision he faced was whether to (A) take on the project alone or (B) make a ten-year commitment to a specialized vendor. If option B was selected, the further choice was whether to allow the vendor to handle everything short of instruction with a customized program or to handle only the marketing elements of the task. In the course of considering what to do, Dean Lynn was faced with the financial as well as the qualitative dimensions of the choice. The purpose of this case is to provide students a vehicle to explore the myriad considerations inherent in every organization's decision making process… qualitative as well as quantitative.

Republic Electric is faced with the need to engage in a systematic process of evaluating vendors for its just-in-time manufacturing. The case gives students the opportunity to think through the process for vendor selection in the context of real-world constraints for a specific organization, to become acquainted with the Delphi technique for developing consensus, to gain hands-on experience with linear averaging, to engage in calculations of value indexes, and to recognize the marketing implications of effectively evaluating vendors. A key takeaway for students is the fact that vendor selection decisions are multifaceted and will vary among organizations depending on each organization’s particular strategic needs, operational constraints, and human judgment.

The case is based upon a consulting assignment with the company that is represented by Republic Electric. The experience was gained first-hand by one of the authors.

This case is targeted at undergraduate students in marketing, materials management, supply chain management, and purchasing, but can work well in a variety of business courses in which supply chains or the development of evaluation tools is studied, to include graduate classes.

The concept of vendor assessment is well developed in the literature and represents a pragmatic, but often neglected, step in the practice of choosing suppliers.

The case study is based on field research and also on secondary data. A primary survey is included in the case study. Simple frequency and factor analysis as statistical tools have been used.

Family businesses, like that of Kiran Rai’s, owning a local Mom and Pop store in an emerging city were faced with a serious problem of sustaining their businesses. These family businesses countered immense competition from: their own types, i.e. from other local Mom and Pop stores within the same cities; online stores; and the organised stores.The choice of the customers to buy goods from the neighbourhood shops has remained largely as an age-old tradition in the households. With the millennials and the Generation Z (Gen Z) exposed to an array of brands, can they become the first choice of young customers for shopping for all kinds of products and varieties? Can the local Mom and Pop stores spread their wings across the young generations, particularly the Millennials and Gen Z through inexpensive social media channels? What are their growth options? How can the social media serve this purpose? The case uses the social cognition theory and the use gratification theory to throw light on the new concept of Social Shopping.

The case is meant to be discussed in courses like Fundamentals of Marketing, Digital Marketing and Retail Marketing in a 90-min session in the Post Graduate as well as in the Working Executives’ Management programmes. The case analysis will expose the students to the use of social media and its benefits to the small businesses. The students will also be able to analyse and understand the different types of Online Consumers’ Shopping Personalities. This would enable them to strategize for different stages in the decision-making processes.

Describes how UPS created UPS Supply Chain Solutions, an entirely new business, with carefully selected target market segments for which unique and extensive value offerings were designed. To build this business UPS made numerous acquisitions and successfully resolved post-acquisition integration challenges in compensation, information systems, personnel policies, and organizational culture.

To familiarize the students with a process of international expansion within an emerging market scenario encompassing countries such as India, Sri Lanka and a developing country like Kazakhstan. Mostly cases in international marketing are central to developed nations, as that is where the MNCs emerge and grow. In this case study, though Polaris originally is an US-based MNC, the focus lies on Polaris India going international. Hence, it looked at empowering an emerging market for regional development. To provide a situation for choice of entry mode strategies involving strategic alliances and various kinds of non-equity based partnerships. Here there is scope for tremendous learning with reference to institutional voids and market failures prompting a certain mode of entry strategy versus another in international marketing. Though this topic has been researched widely, this case is the first ever tribute to a real-life situation in an emerging market. The case is focussed on experiential marketing as the new tool for sales and communication. This is unique to Polaris, and worth replicating in its internationalization. The crucial question emerged: adaptation of experiential marketing techniques as per local market.

synopsis This case investigated the process of internationalization for Polaris India, a US-based MNC, making for an interesting study in how emerging markets can become hubs for effective regional market expansion. The case simultaneously explored the concept of experiential marketing in a new light referring to the issue of communication adaptation in international marketing. The company had successfully used Polaris Experience zones as their promotion and distribution tools. The PEZ had weaved its magic on Indian customers to bring about significant positive change to the perception of a brand now extending the brand promise to other emerging markets. Polaris India started as a wholly owned subsidiary of Polaris Industries USA Inc in 2011 with Mr Pankaj Dubey, as the Country Head. Polaris specialized in building world class off-road vehicles and was a global leader in the same. The case study provided an opportunity to discuss behind the scenes role played by channel partners in targeted foreign markets – Sri Lanka and Kazakhstan. In international marketing, strategic alliances are of tremendous significance as a method of entry strategy and the knowledge, depth, expertise can make all the difference to achievement of success in the local market. Polaris despite having to market a product with no readymade market and combating the perceived notion of a super-premium product in emerging markets, managed to weave its own success story. The case is about, how Polaris India went International with its choice of strategic partners and communication tools.

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Marketing.

The aim of this study is to make students understand the significance of strategy formulation and the impact of internal and external factors on the strategy adopted by the firm. Upon the completion of this case study, the students will be able to achieve the following: • map out relevant macro-environment strategical factors of an organization; • assessing organizations industry and competitive environment; • outline strategic group maps to assess positions of key competitors; • develop issues priority matrices; • testing competitive power of resources; and • identifying an organizations internal strengths and external threats.

Across the globe, the COVID-19 pandemic left few organizations untouched and many entrepreneurs fighting to stay afloat. Here we look at the survival dilemma faced by the founder of Little Birds Kindergarten, in Doha, Qatar. Founded by a local Qatari businesswoman, the kindergarten offered a British-style curriculum and an Early Years Foundation Stage structure; with her profound passion for technology, the founder (here called Fatma) has always believed that integrating technology into a child’s early learning opens the door to limitless opportunities and potential. Therefore, she ensured that the kindergarten consistently invested in advanced educational technology and the accompanying software. Yet, while the reputation of Little Birds Kindergarten stayed high, the COVID-19 pandemic stunted the growth in enrolments. Fatma stopped paying herself a salary and even drew on her own savings to keep the kindergarten going but it still did not earn enough to compensate for her initial investment. So, despite her passionate concern for the kindergarten, she worried about being unable to keep it afloat for much longer. The purpose of this case study is to shed light on the strategic posture, performance and market position of one kindergarten. From there, it surveys the opportunities in the education industry that are unique to student enrolment and highlights what a kindergarten can do to develop a survival strategy.

The case is suitable for teaching basic and advanced courses at the undergraduate and post-graduate levels.

Teaching notes are available for educators only.

CSS 11: Strategy.

Retail marketing: it can be discussed in a retail marketing course to explain the growth and expansion of the retail chain and illustrate the features of a retail model that can consider franchise as a method to expand or distribute its branded merchandise in other retail outlets. The case will also help assess the financially viable growth. Marketing Management: It can be useful for a comprehensive yet straightforward explanation of marketing mix price, promotion, place, and product, also at the same time it serves to explain the importance of customer service in terms of retailing. Strategic Marketing: The case provides varied growth options that are being considered by retail organizations, which gives the student real-time opportunity to arrive at strategic decisions by considering financial viability, internal strengths (SWOT analysis), franchising as a growth option.

This case can be used in foundation course on retail marketing or even in strategic marketing in postgraduate management program, or the dilemma can be explained as a part of a marketing course for postgraduate, executive programs, management development programs.

Kanwar, the owner of 39 Bakers, was one of the fastest-growing retail outlets in Jammu, India. He had been successful in carving his pie for himself with its unique bakery products of more than 1000 variety of, break-even point price, everyday surprise product (EDSP), reasonable price, open kitchen concept, hygiene, excellent customer service. Within three years, 39 Bakers had grown from one to eight outlets, and revenue had increased to US$68,621, and vision was to achieve US$2m within the next three years. To achieve his vision, he made two business expansion plans either to start product distribution to other retailers like an FMCG company or to go ahead with the business format franchising model. The investors needed a detailed planned within three days. But Kanwar had to decide should he expand geographically and start with franchise model or shall he establish his brand with product distribution, and then go for the franchise model, which plan would make him reach his vision by 2023? Which strategy would be efficient? He indeed wanted to go for the franchise model, but the question is when?

This case will help entrepreneurs to decide on services and retail industries to expand their business and explore available growth options. It offers a platform to talk about how often franchising used to fuel growth. Either you select to be a franchisee or independent business owner or provide franchising opportunities or start your distribution network, a detailed business plan is one of the most critical decision-making activities. Without adequate details, it can make your life's most expensive option. After students have worked on the case and the task questions, the students can analyze whether a company should grow through product distribution, franchise or both; appreciate the significance of a business plan and to recognize all aspects of a retail operation, including the marketing mix; carry out strengths, weakness, opportunities, threats analysis and can develop Internal and External Factor Evaluation Matrix (IFE AND EFE); and examine various franchise options available for business expansion in a developing econ.

Position in course – This case can be used in foundation course on retail marketing or even in strategic marketing in postgraduate management program, or the dilemma can be explained as a part of a marketing course for postgraduate, executive programs and management development programs.

Teaching notes are available for educators only.

CSS: 8 Marketing.

Examines the lease vs. buy decision for investments in technology. Addresses pivotal investment decision issues such as varying the length of the lease, the useful life of the equipment, and alignment with the company's overall financial strategy. The scenario is for a real financial services firm that has been disguised for confidentiality reasons. Presents an investment decision: should a company buy or lease technology with a relatively short useful life? The new controller at AMG, a Fortune 500 financial services firm, has been tasked with determining how to finance the acquisition of 7,542 new PCs to be rolled out over the next 12 months. This is a $6.7 million investment decision and the rollout schedule adds significant complexity to the solution. The controller must choose between buying or leasing the computers over 24- or 36-month time frames. Provides a framework for analyzing similar investment decisions. The key learning point is that leasing information technology can be cheaper than buying. This is contradictory to a car lease, which may be familiar from everyday experience. A new car has a potentially long useful life and can retain significant value after several years, hence, intuition is that buying should always be cheaper than leasing. Shows that this is not the case for information technology. Teaches the correct application of the mid-quarter convention within MACRS depreciation for technology, and the implications of operating vs. capital leases and off-balance-sheet financing. In the process, introduces the four tests for a capital lease. Finally, shows how creative analysis techniques can be used to simplify complex decisions. These techniques aid in arriving at a conclusion faster and with less effort.

To illustrate the fundamentals of lease vs. buy decisions in technology and how they differ from the typical capital equipment lease vs. buy decision. Topics covered include MACRS depreciation and off-balance-sheet financing for a complex leasing scenario staggered in time across multiple business units.

At the end of the case study discussion, students will able to state the importance of outsourcing with comparing pros and cons in business decision-making; review the value bestowed to the community in using sustainable raw material while at the same time conserving the ancient style of artwork particular to the area; discuss the utility of the products manufactured by “Flying Colours,” especially for the lockdown period which was because of the pandemic; and demonstrate and interpret the use of shark and mosquito bite matrix.

Arun Kumar Patni, 47, and his wife Neelima Patni, 43, are co-founders of Flying Colours, a start-up company based in Jaipur, in the state of Rajasthan, India. Their enterprise was engaged in the manufacturing and marketing of bird products and accessories, including bird feeders, bird houses, earthen water bowls, etc. In July 2020, post-lockdown, they were desperate to hire carpenters to restart their factory. However, COVID-19 posed a serious challenge, making it very difficult to replace their skilled carpenters, who had returned to their native places and had not come back. This disrupted production and order fulfilment. Keeping this situation in perspective in anticipation of the continuing pandemic crisis, Neelima was in favour of outsourcing basic production and designing the birdfeed decoration and artwork in-house. Meanwhile, Arun instead favoured continuing full in-house production as before, by hiring replacement carpenters. Yet for an in-house full-scale production, procuring raw material was a difficult task because of the lockdown. The situation had earlier taken a turn for the worse when Arun had advertised an exchange marketing policy to let customers return their old bird feeders for a 20% discount on a new one. This campaign was a huge success and resulted in a sales spike but unfortunately it caused a huge stock of returned products in their warehouse. Arun initially planned to repair and resell them as refurbished products. It now seemed impossible, because local carpenters demanded higher labour charges than the regular carpenters did. Flying Colours had provided skills workshops and hired external trainers to train unskilled carpenters prior to lockdown, so now all the training investment was in vain. Cash liquidity, sales, marketing, etc. were almost at a standstill.

This case particularly focuses on undergraduate-level students pursuing business or commerce programs, especially those studying core course: Entrepreneurial Strategic Management.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.