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An estimate of the fair rate of return on capital is a critical input into tariff regulation. A too high estimate will lead to high tariffs for consumers; a too low estimate will not provide adequate incentives for investment. The Airport Economic Regulatory Authority of India has issued a consultation paper for finalizing the norms and procedure for estimating the fair rate of return. It now needs to reconcile the differing view and approaches of different stakeholders.

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.

The case specifically discusses the role of stakeholders and non-market forces and how they can potentially influence the strategic choices of firms. Participants need to have some basic understanding of non-market forces, and stakeholder theory. The case is suitable for courses on sustainable supply chain management, closed loop supply chain management, reverse logistics, green business, environmental management, strategic management and business in emerging economies.

The target audiences for the case are bachelor and first-year MBA students and trainees who are interested in learning the relevance of non-market forces in sustainable growth of an industry and the importance of stakeholder management in the smooth conduct of business.

The case study details how the plastic industry in Kerala faces a non-market threat and how it affects the progress of the industry by using the example of Ashiyana Pipe. Though plastic is a unique material by virtue of its reusability and non-perishable characteristics, it has invited a lot of criticism, as there is a wide spread perception regarding its detrimental impact on the environment (such as choking drains, preventing the degradation of solid waste because of its impermeability, etc.). But the reason for experiencing the detrimental impact of plastic can also be attributed to the inability of the supply chain of the plastic industry to reach a closed-loop status, especially in developing countries such as India, as all categories of post-consumer plastic are not reaching recycling plants. Lack of awareness, lack of community participation in proper segregation and aggregation at the source, absence of incentive systems, weak regulations and poor monitoring are discussed as the common barriers hindering the achievement of closed loop status of plastic supply chain. Detailing the barriers, the case study explains the failure of informal and formal recycling markets in Kerala. Finally, the case study proposes a model with involvement of all the key stakeholders to reposition the hate toward plastic into love through recycling initiatives.

Expected learning outcomes of the case are listed below: illustrate the importance of stakeholder involvement in achieving a sustainable business and to stress the importance of a decentralized approach. Illustrate the relevance of non-market forces in sustainable growth of an industry that has significant impact on the surrounding environment and society. Critically analyze the existing business models (based on market mechanism) and suggest possible improvements and alternatives. Understand the challenges that will be faced while implementing an inclusive model with involvement of all stakeholders to reduce the negative impact of non-market forces.

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.

Innovation, privatisation and property development.

Undergraduate and MA level property development courses; modules covering privatisation within undergraduate, MBA and MA level management programmes.

This paper presents the genesis and motivating factors that stimulate a managing director of a housing development (D&B Private Limited Company) to introduce innovation as a strategic solution to the challenges which hinder his firm's growth. The recently launched Ten Malaysian Plan and the Sustainable Programme for Corporate Malaysia are identified as the two stimulating events that triggered the initiation and subsequent implementation of innovation into Design and Build Sdn Bhd. Innovation has been recognized as an endeavor that impacts positively and significantly the performance of the firm that innovates. There was a major focus on factors that enhance innovation of a firm: structure, culture, resources and how to address or react to external factors such as government regulation on innovation, environmental uncertainty and market competition. The quest to be an innovative firm has led to major changes in the structure, culture and review of the firm intangible resources. Coupled with some corporate responsibilities, Design and Build Sdn Bhd has been recognized for its unique performance resulting from the competitive advantage derived from this very idea of innovations.

Students are expected to be able: to present a basic understanding of the motivations and driving force behind the housing developer's keen interest to innovate, to present the multiple benefits of adopting innovation in the housing industry, to highlight the internal and external factors which positively influence innovation among housing developers?, to present how housing developers are able to manage challenges facing their companies through innovation.

Teaching notes.

The case study has been prepared for management students/business executives to understand electric vehicle (EV) business, business environment, industry competition and strategic planning and strategy implementation.

The size of the Indian passenger vehicle market was valued at US$32.70bn in 2021; it was projected to touch US$54.84bn by 2027 with a Compound Annual Growth Rate (CAGR) of more than 9% during the period 2022–2027. The passenger vehicle industry, a part of the overall automotive industry, was expected to grow at a rapid pace, as the Indian economy was rising at the fastest rate. However, the Government of India (GoI) had put a condition on the growth scenario by mandating that 100% of vehicles produced would be EVs by 2030. Tata Motors (TaMo), a domestic player in the market, had been facing a challenging competitive environment. Although it had been incurring losses, it had successfully ventured into the EV business. TaMo had taken advantage of the first mover by creating an electric mobility business vertical to enable the company to deliver on its aspiration of providing innovative and competitive e-mobility solutions. TaMo leadership had been putting efforts to scale up the electric mobility business, thus, contributing to GoI’s plan for electric mobility. Shailesh Chandra, president of electric mobility business, had a big task in hand. He had to scale up EV production and sales despite insufficient infrastructure for charging and shortages of electronic components for manufacturing.

The case study has been prepared for management students/business executives for strategic management class. It is recommended that the case study is distributed in advance so that the students can prepare well in advance for classroom discussions. Groups will be created to delve into details for a specific question. While one group will make their presentation, the other groups will question the solution provided and give suggestions.

Teaching notes are available for educators only.

CSS 11: Strategy.

This case features a county planning director as he approves or turns down a permit application for the Harvest Wind Farm Project, located in Klickitat County on the Columbia Plateau in Washington State. The utilities involved and Klickitat County stood to benefit through new revenue generation and a favorable federal construction grant associated with the American Recovery and Reinvestment Act of 2009, and certain landowners stood to make substantial royalties. However, other landowners were also worried about declining property values, environmental groups had raised objections to the effect of turbines on the pristine Columbia River view, and uncertainty about health effects had recently become more of an issue. Nationally, “wind turbine syndrome” and “shadow-flicker” effects had been linked to wind farm operations. Given these concerns and the uncertainty, would the gains to stakeholders justify signing off on the project?

The case study helps students to understand how public-private partnership (PPP) airports runs their business, how regulatory policies impact their business. The case also explains why the Cochin International Airport business model is so unique compared to any airport in India.

In 2016, Airport Economic Regulatory Authority released a new tariff regime for Cochin International Airport Limited (CIAL).CIAL has undergone challenges because of the tariff changes (changes every five years), which were implemented in 2017. This has impacted their business model. The CFO of CIAL was under pressure to share the impacts with the shareholders and to provide a way forward for the business. Cochin International was known to be one of the cheapest aeronautical tariff charging airports. The case discusses the issues of a public utility when it is under a regulatory price regime. The case explains different regulatory mechanisms (single till: the whole commercial revenue is cross-subsidized). The case discusses issues regarding Cochin International Airport, which is a public utility under PPP mode. Since 2016, regulator has changed the price regulatory regime from light touch (no price regulation only monitoring) to hybrid till regulation (a percentage of commercial revenue is cross-subsidized). The case explains what made Cochin International Airport so unique. It explores the challenges because of the regulatory regime, how it affects Cochin airport’s strategy for business. How should the management of CIAL to act on the above issue? What will be the impact? Will they need to change their business models?

The case is basically focused on MBA level students who are in their final year. There are various MBA courses in which this can be taught, which can be infrastructure management, infrastructure regulation, domain courses such as airport management. The student should have basic knowledge of economics, public utility and business strategy. The case helps them understand the impact of regulation, the role of the regulator and its impact on business strategy.

Teaching notes are available for educators only.

CSS: 10 Public Sector Management.

Case can be taught at the undergraduate or postgraduate level, including executive Master of Business Administration programs.

This case is intended for courses in strategic management, entrepreneurship and innovation at the undergraduate or postgraduate level.

The case is about challenges faced by Linda Portnoff, the Co-founder and Chief Executive Officer of Riteband, a Sweden-based fintech startup. In March 2020, Portnoff was conducting beta testing of Riteband’s app, which experts considered the world’s first stock exchange for music trading. After completing a PhD, Portnoff who was working as a Research Analyst, left her job to pursue entrepreneurship. Through Riteband, Portnoff helped to resolve pain points of artists who were forced to give the copyright of their music tracks or albums to distributors, in lieu of funds or promotional campaigns that distributors arranged for them. Portnoff invested in developing a patent-pending machine learning-based algorithm that based on several parameters could predict the likelihood of a music track or an album to become a success. Based on this prediction and royalty that artists were interested in sharing with fans, shares were issued to investors, who were also fans of the artists. As Portnoff identified an innovative business opportunity to trade music on a stock exchange based on Riteband’s machine learning algorithm, competition in Riteband’s strategic group was also becoming intense. Consequently, Portnoff was facing challenges of establishing competitive advantage of Riteband. Furthermore, as women in general faced challenges in raising funds for their startups, and even though Portnoff obtained some funding for Riteband, but overall, funding was a challenge for her as well. Moreover, as machine learning was a technical aspect for artists and potential investors, Portnoff also faced challenges to monetize on its machine learning algorithm.

By the end of the case study discussion, students should be able to: understand the principles of cross-industry innovation and explain the creation of new business opportunities based on cross-industry innovation; differentiate between direct and indirect competitors through strategic group analysis and further critically analyze the competitive advantage of business over other direct competitors; determine ways of reducing gender biases in venture capital funding; describe how machine learning works and further formulate ways to monetize a business through machine learning; and demonstrate the application of the value proposition canvas and business model canvas.

CSS 3: Entrepreneurship; CSS 11: Strategy.

Strategic Management and Organization Theory and Design.

Advanced undergraduate and MBA students taking courses in Strategic Management and Organization Theory and Design.

By the end of 2011, five years short of its centennial anniversary, UMW Holdings was one of the biggest corporations in Malaysia, registering revenues of RM13.5 billion (US$4.5 billion), and net profit after tax of RMI billion (US$0.33 billion). By that time, it had 110 subsidiaries, operating in four core businesses of automotive assembly and distribution of Toyota lines of products, automotive components and lubricants original equipment manufacturing (OEM) and replacement equipment manufacturing (REM), heavy equipment, and oil and gas drilling service. In September 2011, the company had targeted its Toyota automotive business to contribute to 50 percent of its revenues, while the other 50 percent would come from its other three businesses, by the year 2015. However, as of the first quarter of 2012, Datuk Syed Hisham Syed Wazir, the Group CEO and his management team realized that, at 72 percent, the automotive business was still the main contributor to the Group's revenues. As the company's Toyota assembly operation was limited exclusively to the Malaysian market, plus in the face of greater competition within the automotive industries, the company needed to set strategies to achieve its 50:50 plan. The case stimulates discussion on strategy formulation of a mature corporation, involved in diversified business portfolio.

Understanding the process of industry analysis, as well as the formulation and implementation of business-level and corporate strategies, enables case analysts to extend the concepts to many business situations.

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

Emerging markets, business models, information technology.

This case is designed for MBA groups or students from MSc in Management, International Business, Logistics, Information Systems or Environmental Management programs. It can be covered in courses on Strategy, Process Management, International Business, Process Management, Supply Chain Management and Managing Information Systems.

Returpack is a Hungarian company dealing with reverse vending machines (RVMs) that collect aluminum beverage cans, even in crushed form, based on a worldwide technology innovation. All RVMs are online and monitored and managed remotely. RVMs are mainly “fed” by the poorest, often homeless people, who are still motivated by the extremely low (less than 1 euro cent for a can) incentive that comes from the selling of the aluminum waste to recycling smelters. Based on the success of the business model in Hungary, projects were planned in the USA, Austria, Romania, and Turkey in 2013. However, beyond economic, legal and cultural challenges, a dramatic decline in the global aluminum waste prices early in 2014 questioned the return on investment at these projects. Advancements in the material-recognition technologies at waste sorting plants raise further questions.

Evaluating the business model innovation in the case by combining the different approaches of the business model concept with the knowledge on the recycling industry, the crowdsourcing method and the Internet of Things. Based upon this, students may identify and evaluate options for implementing the business model in and adapting to new markets, also by simulating these changes in a formal (numerical) business model.

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

Strategy.

CSS 11: Strategy