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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.

area E-Business; Corporate Strategy; Strategic Management; Operation Management.

level/applicability Senior undergraduate; MBA; EMBA.

overview After development for 10 years, JD was now China’s second largest business-to-customer (B2C) e-retailer and the largest in self-operated sector. It was September 2015 when Liu Qiangdong was deciding whether to persist with JD’s self-operated model and the heavy investment in the self-built logistics system. JD’s business model had been functioning well. However, as JD grew bigger and bigger, it became too expensive to expand its logistics system. JD had not made a profit since it raised funds from investors. Liu had to come up with a good proposal before the next monthly meeting to convince them that JD would finally overtake its biggest rival, Alibaba which ran on a different business model. In addition, JD was exploiting the rural and the global markets, as well as a new business in internet finance. Facing challenges and dilemmas, should JD persist with its model? How could Liu align short-term profitability with long-run development? How could JD overcome attacks from Alibaba and other competitors?

learning outcomes This case is appropriate for courses in e-business and strategy, particularly those with a strong focus on doing e-business in emerging markets (e.g. China). After studying the case, students should be able to: understand the e-commerce market in China; understand business models and key strategies of e-retailers; identify and analyse the pros and cons of the self-operated business model and self-built logistics system in e-commerce; learn how to evaluate performance, strategies and business models of e-commerce companies; and extract key trends in the market and compare different strategies.

materials 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.

This case uses Uber Technologies Inc. to engage students in a serious conversation about how a firm both affects its stakeholders and is affected by its stakeholders as well as the role of strategic leadership in the amount of emphasis placed on ethical practices. Uber represents a visible high-growth startup that has received considerable positive and negative attention in the media; however, few people know of the extent of its aggressive management approach. Much of the publicity about Uber is both a direct consequence of and a direct consequence for stakeholder relationships. Students are asked to analyze Uber’s approach and offer suggestions for moving forward.

This case was created using secondary data sources. The issues for Uber that led the authors to write this case were not very flattering to Uber, and therefore, the authors decided to use secondary sources. Since Uber and many of its direct competitors were private companies, the authors collected as much financial data as the authors could from publicly available sources. Also, due to the contentious nature of some of the managerial tactics used within Uber, the use of secondary data sources was warranted.

This case was crafted with senior undergraduate students in strategic management as the primary audience, but is also relevant for MBA-level strategy courses as well. This case touches upon core content in the vast majority of undergraduate strategic management courses with a special emphasis on two concepts underrepresented in most strategic management textbooks, stakeholder theory and ethical decision making.

The learning objectives have been prepared following Bloom’s taxonomy (Bloom et al., 1956). After completing the case study, the students will be able to identify and recall the prerequisites necessary for establishing a pathology laboratory. (knowledge); analyze the micro- and macroenvironmental factors considered by Mr Sabihul Haque in the development of the strategic plan for Healthcare Laboratories (HCL) (knowledge and application); explain the key components of the Porter’s value chain and their significance in the operation of HCL (comprehension and evaluation); use the TOWS analysis to map the internal strengths, weaknesses, opportunities and threats of HCL (application and synthesis); and analyze the challenges faced by protagonist in managing HCL and generate suggestions for addressing the challenges (analysis and synthesis).

HCL, an enterprise established in 2018 in Sahdeo Khap, Gaya, Bihar, India, aims to provide high-quality pathological diagnostic services in semi-urban and rural areas. This health-care initiative is pioneering, offering pathology services to make high-quality, low-cost diagnostic services accessible in rural India. In rural settings, numerous health-care hurdles make it challenging for individuals to access the care they need. Since its inception, HCL has expanded its reach to connect more areas, facilitating diagnostic services for people in remote regions. The establishment of laboratories in semi-urban areas aims to reduce patient travel time, costs and health risks by bringing services directly to their doorstep. Haque, the chief executive officer of the lab, grappled with multiple challenges, including selecting an appropriate location for the lab, recruiting and retaining skilled workforce, managing logistics supply, collaborating with local health-care providers, dispelling the stigma among the population that superior services are only available in cities and enhancing health literacy in rural communities. Following numerous meetings with Ms Ummati Naiyyer, head of operations, they worked collaboratively to address these challenges, developing a blueprint and future plan to operate services in rural areas. This case study provides insights into the obstacles faced by HCL striving for success in rural areas. It elucidates the beneficial application of the Porter’s value chain, along with an analysis of macro- and microenvironmental factors. Unique challenges such as societal stigma and mistrust are specifically emphasized. Students engaging with this case study will enhance their problem-solving skills through brainstorming and providing recommendations, contributing to potential solutions for HCL’s difficulties.

The teaching notes for the HCL case is designed to enhance the learning experience of undergraduate and graduate students within the context of the course. This case study serves as a valuable teaching tool, allowing students to apply theoretical knowledge to real-world scenarios in the health-care industry. The notes provide a framework for instructors to facilitate discussions, encourage critical thinking and promote a deeper understanding of key concepts related to establishing diagnostic laboratories in rural areas.

Teaching notes are available for educators only.

CSS3: Entrepreneurship.

The learning outcomes of this study are as follows:

Teaching Objective 1: Students will describe specific characteristics of the rural market in India and will draw out the differences vis-a-vis the urban markets.

Teaching Objective 2: Students will describe about the push versus pull strategy and various channels of distribution in rural areas.

Teaching Objective 3: The students will explain the 4As of the rural marketing mix and apply the same in the context of the case.

Teaching Objective 4: The case can be applied with respect to the health-belief model to help students analyse the behaviour change model.

Teaching Objective 5: Students will analyse the challenges associated with supply chain and logistics in rural areas.

This case study looked at a start-up company Rugved Hygienecare Industries Private Limited and their sanitary napkin brand “Abolee” designed and targeted for rural women in India. Onkar Charegaonkar and Mithila Charegaonkar started this venture in December 2017, realizing that sanitary napkins solved a greater purpose of helping women hygienically manage menstruation, and at the same time, there was no threat to this product because over a period of time, it became a necessity of life. Onkar and Mithila believed in giving back to the society and at the same time generate revenue for their company. Onkar and Mithila needed to make a decision with respect to the distribution structure for Abolee to improve penetration in different rural areas of Maharashtra. Onkar and Mithila needed to strategize to create a remarkable impact in the rural areas. There were multiple challenges that were faced by Abolee, such as: creating awareness about hygienically managing menstruation options among women, ensuring that women consumers continue to use hygienic menstruation management material, creating a preference for Abolee among women consumers and deciding on whether to focus on driving sales through existing channel partners or to invest in finding out alternative avenues for selling “Abolee” in rural areas.

This case study was primarily written for understanding rural marketing aspects of marketing management courses at both the undergraduate level and the postgraduate level. This case study also indicated about the role of gender and its impact on consumer behaviour in rural areas. Although this case study was related to the rural Indian market, it can also be related to other emerging economies.

Teaching notes are available for educators only.

CSS8: Marketing.

After reading and discussing the case, the participants would be able to: apply 7S and VRIO framework for online furniture retail; evaluate the profitability of horizontal versus vertical marketplaces for selling furniture online; articulate the challenges faced by online furniture retailers; discuss the applicability of technology to enhance customer experience in online furniture retail; and discuss the omni-channel strategy which online furniture companies can adopt.

Although furniture has traditionally been an unorganized category, the online furniture platforms have been on an upward curve since past few years. Digitization of economy and usage of smartphones to access internet had given a thrust to online purchases. This case on Wakefit Innovations Private Limited is intended to provide the readers with the business and marketing insights of selling furniture using online platform. The readers will be able to understand how retailing furniture using e-commerce is full of challenges and how various marketing activities have helped Wakefit improve their customer base. The readers can discuss the advantages and disadvantages of horizontal versus vertical e-commerce marketplaces and various challenges associated with online furniture retailing. Whether Wakefit should continue setting up experience centres and the benefits that could accrue by usage of virtual reality, augmented reality and data analytics are additional dimensions which can be discussed by the readers. The case will benefit the professionals in understanding the challenges and marketing strategies used by online furniture retailers and the same can be replicated by other players in this sector.

This case is suitable for students enrolled for full credit course on e-commerce at post graduate level. The case can be discussed towards the middle of the course once the students have studied different formats of e-commerce marketplace.

Teaching notes are available for educators only.

CSS 8: Marketing.

Marketing.

The courses in which this case can be used include e-business, e-commerce, digital marketing, retailing and marketing strategy. This case can be used to teach MBA students. This case is also having the equal relevance for the executive programmes.

AaramShop is digitizing the Grocery General Trade ecosystem. There are of millions of neighbourhood kirana stores spread across all the cities of India. AaramShop is bringing these neighbourhood kirana stores online, and making them not only e-commerce-ready but also capable of using technology to take their stores to the next level in terms of service and delivery. The case lists out the issues and challenges faced by AaramShop.

This case challenges the participants to understand the new business model in the e-commerce space. The participants can look at the different angles of the business model proposition, namely, how AaramShop approach delivers on the retailer proposition, consumer proposition and the brands proposition. The participants can also be sensitized about the obstacles in making the business model more successful. These obstacles can be posed by the retailers, consumers or brands. The case will lead to a discussion about the logistics model opportunity available to Aaramshop.com.

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 8: Marketing

The learning outcomes are as follows: to design an appropriate strategy for firms to succeed in low-income, price-sensitive markets; to appreciate how business model innovation can help to overcome the obstacles faced by firms when serving rural and semi-urban markets in an emerging economy; to identify possible threats to the business model and evaluate strategies to sustain growth in a dynamic environment; and to allow students to consider sources for competitive advantage and how to build a sustainable business model in low-income markets.

The case details the growth story of Vakrangee Limited (Vakrangee) from a technology consultancy firm to a technology-driven firm focused on creating the largest last-mile retail network providing various services in underserved parts of India, mainly rural India. The firm launched retail outlets called Vakrangee Kendras (VKs) in 2011 that evolved from non-exclusive stores offering a single line of e-governance services into technology-enabled franchisee-based exclusive stores that offered a multiple line of services such as banking, finance, insurance, ATM, e-commerce and logistics. VK however is witnessing competition from different players in different segments. Additionally, the dynamic business environment such as the growing penetration of smartphones and internet usage, heterogeneous needs of customers and government policies pose further threat to the company’s growth in the future. In the wake of these challenges, what should Vakrangee do to sustain its growth? Should it focus on cost-leadership or differentiation for strategic positioning?

This case can be used in an MBA or an executive management program, in courses on strategic management, entrepreneurship, services marketing and rural marketing.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

As a “unicorn” devoted to the rural market, Huitongda has gone through a major evolution since its establish-ment in 2010 from a rural home appliance distributor, a supply chain platform, an O2O service platform to an industry Internet platform of the rural e-commerce ecosystem, based on its deep understanding of the pain points in the rural market and operational experiences. After 2017, as the platform scaled with more vendors, Huitongda was no longer satisfied with selling a single product from urban to rural areas, but was committed to promoting the two-way flow of diverse commodities between urban and rural areas. It also set out to promote employment by entering the rural human resource market, expanding the single-industry O2O service platform to a complete multi-industry ecosystem. In 2018, with a service network covering over 17,000 townships across 20 Chinese provinces, Huitongda's sales reached RMB 35 billion yuan, enabling over 500,000 rural dwellers to start their own businesses or to find employment.

However, the depth, breadth and complexity of the rural industry Internet gradually multiplied, as more member stores joined the business ecosystem with more valuable commodities and services. As a rural industry Internet network owner, how could Huitongda better tap into digitalization in order to support its industry Internet business model and the huge network? How can it further widen the network boundaries to drive more business innovations and maximize network value?

Marketing, entrepreneurship, operations management, and transportation/logistics.

The case is suitable for junior, senior undergraduate and first-year graduate business classes. It can be used entirely in business classes in marketing, entrepreneurship, operations management, and transportation/logistics, and parts of it can be used for discussions in classes related to emerging economies/markets, environmental management, sustainability, and technology management.

The case builds on the expansion plan considered by a young software company, called Hangzhou Omnipay located in the city of Hangzhou, China. Mr Chao, Vice President (VP) of Omnipay, is the main character of the case. He was aware of the current car-sharing industry leader – Zipcar headquartered in Boston and also identified multiple stakeholders in the city for decision making. By collaborating with a global student project team, Mr Chao collected a great deal of information and data. This teaching case provides students and educators ample opportunities to examine, from a multitude of aspects, the viability of a car-sharing service in Hangzhou.

The central goal is to help students gain a comprehensive understanding of the role of car-sharing service in a country's development in sustainability, socio-economy, environmental commitment, and new urban life style, as well as in a technological company's active pursuit of business expansion opportunity. In addition, students will not only understand the social, cultural, technological and strategic perspectives of car-sharing service implementation, but also develop and enhance analytic skills needed to conduct fundamental cost analysis, determine a base-line pricing scheme, and service location network design.

Teaching notes are available, please contact your librarian for access.