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The learning outcomes of this study are as follows:

1. understand the role of financial inclusivity in the sustainable development of a nation;

2. examine the concept of social entrepreneurship and identify the skills needed to be a social entrepreneur;

3. analyze the opportunities and challenges faced by social entrepreneurs, especially in an emerging economy; and

4. assess the feasible options with respect to upscaling and expansion.

Yamuna Sastry, a young woman from a traditional Indian family, had set out to achieve her dream of financial inclusivity by helping the underprivileged in her country gain financial independence and credibility. When she was approached by a cab driver to file tax returns for him, a new venture took shape in her mind, and along with a partner, CabDost, a socially driven financial advisory start-up was created to provide financial advisory services exclusively for cab drivers. CabDost had been instrumental in making over 15,000 cab drivers financially literate, instilling in them a culture of compliance, getting them tax refunds and enabling the Indian Government recover eight crores in taxes. The success of financial inclusivity among cab drivers inspired CabDost to extend its financial services to truck drivers, auto drivers, housekeeping staff and other contractual workforce. The company found it challenging to address the demands of the increasing customer base with its available technical resources. The absence of an in-house tech team and the need for an all-in-one tech platform to provide a wide variety of financial services induced CabDost to explore other options. Dvara Money, a neo bank offering financial services, approached CabDost with a merger proposal. Though it was a lucrative offer, the founding members were apprehensive as they knew that most of the mergers failed because of myriad reasons. They were contemplating on their next move as they were in a dilemma about whether to develop a technical team in-house or to go ahead with the merger.

The case can be taught to business management students as a part of the introductory course on entrepreneurship or social entrepreneurship. The case can be used specifically to make the students understand the role of financial inclusivity in the sustainable development of a nation, the concept of social entrepreneurship, the journey of social entrepreneurs in the financial inclusivity space, right from ideation to execution, the challenges faced in the bargain, survival mechanisms adopted and the various options available for further growth and expansion.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

PT. Bank Central Asia, Tbk. (BCA), the largest national private bank in Indonesia, won an award for the Best Bank at the Euromoney Awards for Excellence (Asia) 2014. During the same event, in several categories, haloBCA^TM and BCA employees also won several awards. Previously, a number of awards were received by BCA such as: Best Indonesia Local Private Bank in 2010, Contact Center World Champion in 2012 and 2013, and Best Mega Contact Center in Asia Pacific Region in 2014. BCA is currently facing a problem of an aging population. Since the economy crisis facing the country in 1998, BCA has recruited fewer employees. The company resumed recruiting in 2010. BCA’s human resource (HR) profile in 2013 showed that nearly half of BCA’s permanent employees were aged 45 years or older, 40 per cent of whom have been working for more than 20 years. At the time of their retirement, the Bank faces the potential of losing a significant number of employees from three different generations. BCA has raised its efforts to recruit new talent. However, recruitment is not easy, as BCA wants its new employees to continue maintaining BCA’s heritage, building the Bank to become an Indonesian company that they can be proud of. How have these values, which have been a common belief, a foundation to work passionately and the glue that bonds the Bank’s employees, executives and owners, been communicated outside of the BCA and have been used to attract the future successors of BCA in Indonesia?

Master Degree in Human Resources Management or MBA Program.

PT Bank Central Asia Tbk (BCA), which was established on February 1957, is Indonesia’s largest lender by market value and the second largest bank by assets. The bank has experienced a remarkable recovery from the Asian Financial Crisis in the late 1990s when the Indonesian banking system became almost bankrupt. It provides both commercial and personal banking services through its 1,000-plus branches across the country. As the largest national private bank, BCA is a well-known bank in Indonesia. BCA is managing more than 12 million customer accounts, processing hundreds of millions of financial transactions and fulfilling the needs of individual and corporate customers through various products and services. BCA Automatic Teller Machines (ATMs) are located virtually and BCA’s Electronic Data Capture (EDC) machines are available at many merchants both in big cities or small towns across Indonesia’s archipelago. However, for a nation with a population of more than 240 million spread out over 34 provinces, the presence of BCA is still deemed unevenly distributed. In the next 10 years, BCA has no plan yet of expanding outside of Indonesia. BCA put its attention on developing its market in Eastern Indonesia. Funding sources, which usually becomes an issue for expanding companies, are not a source of concern for BCA. BCA is currently facing a problem of an aging population. Since the economy crisis facing the country in 1998, BCA has recruited fewer new employees. The company had recently resumed recruiting in 2010. BCA’s HR profile in 2013 showed that nearly half of BCA’s permanent employees were 45 years of age or older, 40 percent of whom have been working for more than 20 years. At the time of their retirement, the Bank faces the potential of losing a significant number of employees from three different generations. Currently, BCA has raised its efforts to recruit new talent and its future leaders through various programs, such as: BCA Development Program (BDP), one of the most acknowledged management trainee programs in the Indonesian banking industry, provides intensive and rigorous training to selected new recruits to ensure development of BCA key talents and future leaders. HR business partners that actively visit campuses in the eastern region of Indonesia. Socialization programs in state and private universities. Job fairs, Web recruitment, internships and employee referrals, job opportunity advertisements posted at BCA branch offices located near universities and in the leading mass media. Utilization of recruitment consultant services, especially to find candidates with specific qualifications. Utilization of communication media printed (poster, flyer, booklet, banners) and electronically. Provision of scholarships to high school graduates with excellent academic records but facing financial difficulties. However, recruitment is not easy for BCA because – like other well-known companies in Indonesia – the Bank only recruits the best people based on the prospective employees’ hard and soft competencies. BCA’s aim to project a positive perception toward its employees as “a fun workplace with family-oriented atmosphere, and commitment about employees’ development” has yet to strongly resonate in Indonesia’s labor market. BCA wants its new employees to continue maintaining BCA’s heritage, building the Bank to become an Indonesian company that they can be proud of. How have these values, which have been a common belief, a foundation to work passionately and the glue that bonds the Bank’s employees, executives and owners, been communicated outside of BCA and have been used to attract the future successors of BCA in Indonesia? How should BCA obtain a large number of qualified talent pools through an effective Employer Branding strategy?

By the end of discussing the case, the learner will be: conceptually: able to explain what is meant by employer branding, internal and external approach and able to explain the relationship of employer branding with business strategy, talent management strategies and HR management functions as a whole; practically: able to identify and analyze BCA Recent Condition – able to explain the BCA brand image in the eyes of public/external/job seekers in Indonesia and internal/current employees of BCA – able to identify strategies that BCA does to recruit potential job seekers – and able to explain the influence of innovative products and services that BCA has currently on BCA employer branding; able to identify BCA goals/needs; able to identify the characteristics, needs and preferences of BCA target group of workers, concerning to the latest issues arise such as: Gen Y and AEC (ASEAN Economic Community); able to evaluate the effectiveness of BCA employer branding strategy and communications and to identify the problems faced by BCA related to employer branding; able to generate ideas related to the improvement of BCA employer branding strategy and programs – what message to be branded (company unique employee value propositions – tangibles and intangibles) – what program to be implemented (internal and external) – and how is the integrated marketing communication strategy (segmenting-targeting-positioning, channels).

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:6: Human Resource Management.

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.

Public sector management, stakeholder management, collaboration and strategy.

Undergraduate (final-year) or master's-level students (Master in Public Administration, Master in Management). Designed for courses in nonprofit management, public administration and/or international development. Can also be used in any course, such as strategic management, sustainable development or corporate social responsibility, that covers stakeholder theory, or stakeholder management as a topic.

Decentralization has changed the way core services are delivered to local populations in sub-Saharan Africa. This in turn has forced nongovernmental organizations, international aid agencies, corporations and other development partners to change the way they engage with government in their shared efforts to help improve the living conditions of people living under the threshold of poverty in this and other parts of the world. This modular ethnographic teaching case uses the specific example of the water sector in Malawi to help highlight the complexity of multiple stakeholder relations in an international development context.

Upon completion of this case, students should be able to: identify and understand the different goals and issues that individual stakeholders in cross-sector partnerships are dealing with; identify and understand the power/control dynamics at play in these relationships; analyse the advantages and disadvantages associated with different ways of coordinating multi-stakeholder partnerships; and develop recommendations for structuring multi-stakeholder relationships in developing and emerging markets that balance efficient service provision with concern for individual stakeholder priorities.

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The learning objectives of this case are as follows: identify and understand the major challenges/problems faced by a social enterprise in promoting handicraft business; examine the value chain architecture of handicraft products; assess the role of the protagonist (Sanjay) as a social change agent in shaping a successful social enterprise; assess Sahaj Crafts' initiatives and analyze whether the key intervention/s planned/executed were required for skilling up of rural artisans and upgradation of handicraft business; know the marketing strategies for handicraft products; and understand the “strategies” which need to be applied for uplifting people's lives at the bottom of pyramid in general and for enlivening of artisans’ clusters in particular. The outcomes are as follows: examining the value chain architecture of handicraft product; understanding the difficulties and challenges of structuring a viable social business model; examining the role of Sanjay as a social change agent in shaping a successful social enterprise; and examining the model of Craft Incubation Center and design education proposed by Sahaj Crafts for improving rural artisans’ livelihood and skills upgradation.

Sanjay Joshi – the promoter and CEO of “Sahaj Crafts” (a social enterprise established in Western Rajasthan, India), an initiative to strengthen indigenous skills and mainstream rural craft products and artworks – is faced with the question of how to scale up his organization’s operations. Doing so requires that he address these fundamental challenges in terms of – how to deal with unorganized craft communities; match up product orientation to market demands; integrate modern technology / processes in craft business; combat restricted mobility of women artisans; and make effective interventions so that the artisans learn and enjoy working in the current model and solve the financial issues faced by the social enterprise. Providing effective and implementable answers to those questions is vital to Sahaj Craft’s development in attaining its mission to alleviate poverty in the region. Failing to expand operations above a critical scale may leave Sahaj Crafts vulnerable in meeting sufficient demand for contemporary craft products in the mainstream markets.

This case study is primarily suitable for post-graduate level management students to teach the concepts of designing and operationalizing a “social” business model in a social entrepreneurship module. This case study can also be used for highlighting business model innovations in the social sector of emerging markets. The case could be taught in the following academic domains: social entrepreneurship; bottom of the pyramid; social inclusion; supply chain consolidation (vertical integration in a value chain); marketing strategies for handicraft products; branding; brand positioning; cost and management accounting.

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 3: Entrepreneurship

This case is based on primary and secondary sources of information. These sources include interviews with senior executives as well as documents provided by Mondragon and Eroski. The interviews were conducted on-site. In addition, the authors researched the literature on both organizations.

Eroski is the largest of Mondragon Corporation’s coops. Since its founding, Eroski has faced numerous challenges. It has responded to each challenge with out-of-the-box thinking. In response to the pandemic, Eroski become an e-commerce supermarket as well as selectively continuing bricks and mortar stores. As the pandemic is winding down, Eroski is considering how to respond to the “new normal,” which is largely undefined. The question posited at the end of the case is, “Will Eroski be able to hold to its social principles, maintain its unusual governance model and other unusual practices, and survive this latest challenge?”

Eroski of Mondragon is a complex and unusual organization. To appreciate the challenges and how they were overcome by its unique business model, a student must have a minimum background in management, corporate finance and marketing. Thus, this case would fit well into a senior or graduate class on strategic human resource management. It is also recommended for the strategy capstone course usually offered during the last year of a business bachelor’s degree (senior level) to ensure that students are introduced to what Paul Adler refers to as an alternative business model. It can also be targeted for an advanced management course or a strategy course at the MBA and executive levels.

Public sector management, policy-making, sustainable development, post-Communism.

The case is designed to be used with undergraduate-level and MBA/MPA students. With undergraduate levels, the case can be used on the subject strategic management. In MBA/MPA programs, this case can be used in subjects such as strategic planning for public administration. Here, it can be stressed as being about the problems faced by a country on the long road toward democracy. Issues to be discussed in class include: environmental scanning, competitiveness, public policies and strategic agenda.

At the most general level, the case allows for the analysis and evaluation of the strategy and performance of the Albania from 1928 to 2014 along economic, political and social dimensions, using the techniques of country analysis (see Country Analysis Framework, HBS No. 389-080). Depending on time limitations and the particular objectives of the individual instructor, the case can be used to explore all phases of the nation's development or, alternatively, to focus on a specific era, such as Albania, in the way toward a free market economy. The case provides a setting in which to explore the diamond model as a tool for analyzing competitiveness and setting the economic policy agenda. In the Albania case, we highlight diamond analysis in an emerging economy. Albania also highlights the transition from a planned economy to a market economy, and the importance of a cross-border regional integration in competitiveness.

The case is written to serve a number of purposes: Understanding the problems and challenges to sustainable development, especially in a post-communist emerging economy like Albania. The transition/changes that all policymakers have to go through in their efforts for sustainable development of the country. To discuss production factors and the importance of a growth model based on the production factors.

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

Financial management, strategic management.

The study can be used by business schools, companies/organizations, individuals, students of business management, in the area of financial and strategic management to study and analyse management strategies by a Government organization that has to balance social objectives and commercial viability.

Indian Railways (IR) has mixed operations – passenger and freight – that generate resources for its development expenditure, as well as fully covering its operational costs. This is in sharp contrast to most world railways that depend on a subsidy for operations and development expenditure. While IR would strive to increase earnings through higher throughput levels and generate more funds through its own resources, the constraints of fixed expenditure, largely comprising staff related expenses and fuel costs make it difficult to achieve the target. Operational and safety considerations dictate the need to ensure adequate provision for working expenses. Global developments significantly influenced the Indian economy after 2008-2009 and resulted in moderation in growth compared with the robust growth in preceding years. IR is presently passing through a difficult phase which began with the slowdown in the economy and implementation of the Sixth Pay Commission's recommendations. While earnings continue to grow both in the passenger and goods segments, the expenditure on account of increases in salaries, allowances and pensions has been much higher than after previous Pay Commissions. This case explores this difficult period for IR when there was a major increase in operating expenditure largely due to the implementation of the recommendations of the Sixth Central Pay Commission and because of the global economic slowdown.

These include: being able to analyse whether the turnaround phase of IR is over; and discussing the strategies to return IR to the path of growth.

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

The learning outcomes are as follows: to be able to evaluate early warning signs/red flags through financial statement analysis; to be able to analyse company’s credit or debt servicing using a thorough process of fundamental analysis; to be able to analyse and decode the financial health of an organization through different financial tools applicable according to the industry such as default probability and financial ratios; and to be able to synthesize credit rating framework and role of credit rating agencies in the bond market.

In late January 2019, the allegation by an online investigative portal about the misuse of the Dewan Housing Finance Corporation Ltd. (DHFL) money by its promoter for buying asset abroad was the start of the fall of the non-banking finance company giant. This was followed by a series of downgrade by credit rating agencies on its debt and eventual default on its interest payment on 4 June 2019 which upset multiple portfolio investors and the regulators. Investors became sceptical about the regulator’s policy and inefficiencies of credit rating agencies in predicting the default along with asset management houses which were expected to guard investors’ interest. One investor, Shikhar Pachori, decided to scrutinize all hidden information on DHFL to investigate if DHFL crisis arises because of unknown factors which was not in control of management or if it a clear negligence on the part of all involved parties. The case tries to emphasize the aspect of Asset-Liability Management and process of credit analysis while looking for red flags which aids in identifying any stress in company’s financial or any potential default by company.

This case can be used in the advance level of post-graduate finance course or MBA program for elective/specialization courses such as Financial Statement Analysis, Financial Institutions and Market and Fixed Income.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance

By the end of their studies, students are expected to: undergraduate level. Learning objective 1: Describe the concept of social entrepreneurship. Learning objective 2: Explain the sources and challenges of funding social entrepreneurial activities. Learning objective 3: Discuss the different strategies that social entrepreneurs may use to raise funds. Postgraduate level. Learning Objective 1: Use theory to explain the concept of social entrepreneurship. Learning objective 2: Discuss the role of social capital in facilitating resource acquisition for social entrepreneurial activities. Learning objective 3: Evaluate the current action for fundamental change and development (AFFCAD) funding model and propose strategies that may be used by a social enterprise to achieve financial sustainability when donor funding expires.

The past decade has seen the emergence of many social enterprises from disadvantaged communities in low-income countries, seeking to provide solutions to social problems, which in developed countries would normally be addressed by government sponsored welfare programmes. The social entrepreneurs behind such initiatives are typically drawn from the disadvantaged communities they serve. They are often young people committed to improving the lives of their most disadvantaged community members. Being poor themselves and located in the poorest communities, establishing their enterprise faces fundamental challenges of obtaining resources and if accessed, sustaining the flow of resources to continue and grow their enterprise. Targeting external donors and mobilizing social resources within their community is a typical route to get their enterprise off the ground, but sustaining momentum when donor funding ceases requires changes of strategy and management. How are young social entrepreneurs dealing with these challenges? The case focusses on AFFCAD, a social enterprise founded by Mohammed Kisirisa and his three friends to support poor people in Bwaise, the largest slum in Kampala city. It illustrates how, like many other similar social enterprise teams, the AFFCAD team struggled to establish itself and its continuing difficulties in trying to financially sustain its activities. The case demonstrates how the youngsters mobilised social networks and collective action to gain access to donor funding and how they are modifying this strategy as donor funding expires. From an academic perspective, a positive theory of social entrepreneurship (Santos, 2012) is applied to create an understanding of the concept of social entrepreneurship. The case uses the social capital theory to demonstrate the role played by social ties in enabling social entrepreneurs to access financial and non-financial support in a resource scarce context (Bourdieu, 1983; Coleman, 1988, 1990). The National Council for Voluntary Organisations Income Spectrum is used as a tool to develop the options available for the AFFCAD team to sustain their activities in the absence of donor support. The case provides evidence that social entrepreneurs are not limited by an initial lack of resources especially if they create productive relationships at multiple levels in the communities where they work. However, their continued success depends on the ability to reinvent themselves by identifying ways to generate revenue to achieve their social goals.

This case study is aimed at Bachelor of Entrepreneurship students, MBA, MSc. Entrepreneurship and Masters of Social Innovation students.

Teaching Notes are available for educators only.

CSS 3: Entrepreneurship.