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0Investment in non-Sharia compliant instruments wrecks TH's noble reputation: a challenge to regain public confidence
Author(s):Mohd Ariff Kasim, Siti Rosmaini Mohd Hanafi, Syed Zamberi Bin Ahmad, Norbaini Abdul Halim
Subject area – Islamic Accounting, Auditing, Strategic Management and Accounting Theory. Study level/applicability – The case is suitable for graduate and postgraduate business students, particularly those on courses such as Islamic Accounting, Auditing, Strategic Management and Accounting Theory. The case is based on secondary data collection and all the facts Read more
Subject area – Islamic Accounting, Auditing, Strategic Management and Accounting Theory. Study level/applicability – The case is suitable for graduate and postgraduate business students, particularly those on courses such as Islamic Accounting, Auditing, Strategic Management and Accounting Theory. The case is based on secondary data collection and all the facts are real. Case overview – In the early 2000s, the Tabung Haji (TH) faced financial difficulty, particularly regarding its returns from investments and, with the intention of helping to improve this situation, the General Manager (GM) of Finance and the GM of Investment decided to accept an investment proposal presented by an investment company. The proposal involved initial and subsequent investment portfolios of RM50 million and RM150 million, respectively. The proposal was presented in a board meeting and was approved by the board. Indeed, the two GMs were delighted to receive a return of RM12.5 million from their RM50 million initial investment – i.e. 25 per cent return. In the process of approving the subsequent investment of RM150 million, the two GMs were informed that their investments were partly for the FOREX market (Foreign Exchange Market/Currency Market). At that time, there was no conclusive decision on the status of investment in the FOREX market regarding whether it complied with Sharia principles. The two GMs contemplated whether they should accept this second investment proposal. The issue was whether they should reveal in the board meeting that this investment was partly in FOREX. What if the board failed to accept the idea of investing in FOREX and rejected the proposal? Indeed, they were dropping an opportunity for lucrative returns. Should the GMs seek technical advice on the status of FOREX investment in Islam and present it to the board? Expected learning outcomes: – The case should help students to: understand the concept of Sharia and Sharia financial principles; understand the process involved in TH investment decisions; analyze the issues involved in decision-making and apply the relevant theories to describe the actions; and recommend various alternative course of actions in a given situation. Supplementary 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. Close
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1Corporate management in receivership: the case of Uchumi supermarkets
Author(s):David Mathuva
Subject area – Strategic Management and Corporate Finance. Study level/applicability – Higher undergraduate and graduate levels. Case overview – The case demonstrates how a company can be able to manage corporate restructuring successfully and recover from receivership. Uchumi is a company incorporated in Kenya and listed on the Nairobi Securities Read more
Subject area – Strategic Management and Corporate Finance. Study level/applicability – Higher undergraduate and graduate levels. Case overview – The case demonstrates how a company can be able to manage corporate restructuring successfully and recover from receivership. Uchumi is a company incorporated in Kenya and listed on the Nairobi Securities Exchange (NSE). The case examines how Uchumi successfully recovered from receivership in 2006 owing to previous mismanagement and regained profitability after years of continued losses. A review of the company's management style and the role of the management in turning around the company are presented. Expected learning outcomes – The case demonstrates how financially and operationally troubled corporations can be managed effectively, illustrates how corporate managers can manage corporate restructuring and receivership successfully, shows the applicability of Kotter's eight stages of leading changes successfully and other leadership approaches/theories and demonstrates the differences between the performance of a corporation before and after the restructuring process. Supplementary 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. Close
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2Hero cycles: operating breakevens
Author(s):Monica Singhania, Navendu Sharma, J. Yagnesh Rohit, Nimit Mehra
Title – Hero Cycles: operating break-evens. Subject area – Bicycle industry, emerging markets, competitor analysis, financial forecasting. Study level/applicability – This case can be used as a teaching tool in the following courses: MBA/post-graduate programs in management in management accounting, management control systems and strategic cost management; executive training programs Read more
Title – Hero Cycles: operating break-evens. Subject area – Bicycle industry, emerging markets, competitor analysis, financial forecasting. Study level/applicability – This case can be used as a teaching tool in the following courses: MBA/post-graduate programs in management in management accounting, management control systems and strategic cost management; executive training programs for middle and senior level employees; and under-graduate/post-graduate programs in entrepreneurship. It can be used to explain and test the concepts of SWOT analysis, Porter's five forces model and PEST analysis. It introduces the technique of breakeven analysis and its relationship with operating leverage. Moreover, it demonstrates the application and analyses of the Du Pont equation. Case overview – Hero Cycles Ltd was established by the four Munjal brothers in pre-independence India. It started off as a business of bicycle spare parts, but quickly expanded in post-independence India, with Ludhiana as its base. The company later joined with foreign firms like Honda Motors, Japan to become the largest manufacturers of bicycles in the world. It dominates domestic markets with a market share of around 40 percent. Ananth Munjal, a learned, ambitious and cautious individual, is the next generation, ready to take over the reins of the company. Being someone who believes in learning from past mistakes, he forms a team to critically examine the decisions made by his predecessors. This team is also directed to utilize forecasting techniques for determining the expected profitability given the existing state of affairs that prevail. Additionally, Du Pont analysis is to be performed for studying the efficiency of the company on the facets of operating performance, asset turnover and associated financial leverage. Also, Ananth's risk-averse nature compels him to study the past with regard to the relationship between operating leverage, breakeven sales and corresponding margin of safety. Furthermore, he wishes to inspect the historical cost structure of the firm, and its influence on company performance. Expected learning outcomes – These include the use of: SWOT analysis to identify the strengths, weaknesses, opportunities and threats to a company; PEST analysis to identify the political, economic, social and technological factors that affect the operations of a company; Porter's five forces model to analyse an industry. The case also helps students: by identifying fixed costs and variable costs that are a part of operating expenditure of a business; in the use of forecasting the financials of a company for the sake of predicting the future outcomes of certain business strategies; by application of Du Pont analysis to examine the efficiency of the various processes and strategies; in determining quantitative terms like contribution margin, breakeven sales, operating leverage, margin of safety, their significance, and the relationship between these terms. Supplementary 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. Close
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3Does supply-demand law work for the ICBC stock price?
Author(s):Yue Qi, Junqi Huang, Xiaofeng Peng
Title – Does supply-demand law work for ICBC's stock price? Subject area – Investments. Study level/applicability – The case is suitable for students with diverse backgrounds – from different countries with different cultures, and from different programs (undergraduate or graduate). The case will be used for an all-English course “The Read more
Title – Does supply-demand law work for ICBC's stock price? Subject area – Investments. Study level/applicability – The case is suitable for students with diverse backgrounds – from different countries with different cultures, and from different programs (undergraduate or graduate). The case will be used for an all-English course “The research of Chinese stock markets” and has been used for the course “Portfolio theory and management” (junior student level) at Nankai University. Case overview – The case introduces Chinese stock markets' uniqueness that there exists a huge number of previously nontradable shares. The release of the shares radically changes the markets' balance and causes the absolute dominance of stock supply over stock demand. Based on the analysis for ICBC, the case demonstrates that the dominance can explain the drop of ICBC's stock price by supply-demand law but fundamental analysis cannot. Expected learning outcomes – The case will help students to understand the uniqueness of Chinese stock markets and the applicability of supply-demand law in the markets and then be able to make investment decisions. Social implications – The case can help to educate not only students but also Chinese and foreign investors about the uniqueness of Chinese stock markets and arm the students and investors with the supply-demand methodology to analyse the markets and the reasoning of when and how to invest. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes. Close
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4Assessing algorithms for selecting countries to market new products to low-income consumers
Author(s):Arch Woodside, Michael D. Metzger, John C. Ickis
Title – Assessing algorithms for selecting countries to market new products to low-income consumers. Subject area – A consulting team to an international food packaging company (SDYesBox) is attempting to decide which algorithm is the most useful for selecting two national markets in Central America and the Caribbean. SDYesBox wants Read more
Title – Assessing algorithms for selecting countries to market new products to low-income consumers. Subject area – A consulting team to an international food packaging company (SDYesBox) is attempting to decide which algorithm is the most useful for selecting two national markets in Central America and the Caribbean. SDYesBox wants to work closely with its immediate customers – manufacturers in the dairy and food industry and their customers (retailers) – to develop and market innovative products to low-income consumers in emerging markets; the “next big opportunity for the dairy industry” according to SDYesBox. Study level/applicability – New product development and market selection in emerging markets in Latin America. Case overview – Five algorithms are “on the table” for assessing 14 countries by 12 performance indicators: weighted-benchmarking each country by the country leader's indicator scores; tallying by ignoring indicator weights and selecting the countries having the greatest number of positive standardized scores; applying a conjunctive and lexicographic combination algorithm; and using a “fluency metric” of how quickly consumers can say each country aloud. At least one member of the consulting team is championing one of these five algorithms. Which algorithm do you recommend? Why? Expected learning outcomes – Learners gain skills, insights, and experience in alternative decision tools for evaluating and selecting choices among emerging markets to enter with new products for low-income (bottom of the pyramid) products ands services. Supplementary 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. Close
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1Corporate management in receivership: the case of Uchumi supermarkets
Author(s):David Mathuva
Subject area – Strategic Management and Corporate Finance. Study level/applicability – Higher undergraduate and graduate levels. Case overview – The case demonstrates how a company can be able to manage corporate restructuring successfully and recover from receivership. Uchumi is a company incorporated in Kenya and listed on the Nairobi Securities Exchange (NSE). The case examines how Uchumi successfully recovered from receivership in 2006 owing to previous mismanagement and regained profitability after years of continued losses. A review of the company's management style and the role of the management in turning around the company are presented. Expected learning outcomes – The case demonstrates how financially and operationally troubled corporations can be managed effectively, illustrates how corporate managers can manage corporate restructuring and receivership successfully, shows the applicability of Kotter's eight stages of leading changes successfully and other leadership approaches/theories and demonstrates the differences between the performance of a corporation before and after the restructuring process. Supplementary 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. Close
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2Hero cycles: operating breakevens
Author(s):Monica Singhania, Navendu Sharma, J. Yagnesh Rohit, Nimit Mehra
Title – Hero Cycles: operating break-evens. Subject area – Bicycle industry, emerging markets, competitor analysis, financial forecasting. Study level/applicability – This case can be used as a teaching tool in the following courses: MBA/post-graduate programs in management in management accounting, management control systems and strategic cost management; executive training programs for middle and senior level employees; and under-graduate/post-graduate programs in entrepreneurship. It can be used to explain and test the concepts of SWOT analysis, Porter's five forces model and PEST analysis. It introduces the technique of breakeven analysis and its relationship with operating leverage. Moreover, it demonstrates the application and analyses of the Du Pont equation. Case overview – Hero Cycles Ltd was established by the four Munjal brothers in pre-independence India. It started off as a business of bicycle spare parts, but quickly expanded in post-independence India, with Ludhiana as its base. The company later joined with foreign firms like Honda Motors, Japan to become the largest manufacturers of bicycles in the world. It dominates domestic markets with a market share of around 40 percent. Ananth Munjal, a learned, ambitious and cautious individual, is the next generation, ready to take over the reins of the company. Being someone who believes in learning from past mistakes, he forms a team to critically examine the decisions made by his predecessors. This team is also directed to utilize forecasting techniques for determining the expected profitability given the existing state of affairs that prevail. Additionally, Du Pont analysis is to be performed for studying the efficiency of the company on the facets of operating performance, asset turnover and associated financial leverage. Also, Ananth's risk-averse nature compels him to study the past with regard to the relationship between operating leverage, breakeven sales and corresponding margin of safety. Furthermore, he wishes to inspect the historical cost structure of the firm, and its influence on company performance. Expected learning outcomes – These include the use of: SWOT analysis to identify the strengths, weaknesses, opportunities and threats to a company; PEST analysis to identify the political, economic, social and technological factors that affect the operations of a company; Porter's five forces model to analyse an industry. The case also helps students: by identifying fixed costs and variable costs that are a part of operating expenditure of a business; in the use of forecasting the financials of a company for the sake of predicting the future outcomes of certain business strategies; by application of Du Pont analysis to examine the efficiency of the various processes and strategies; in determining quantitative terms like contribution margin, breakeven sales, operating leverage, margin of safety, their significance, and the relationship between these terms. Supplementary 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. Close
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3Does supply-demand law work for the ICBC stock price?
Author(s):Yue Qi, Junqi Huang, Xiaofeng Peng
Title – Does supply-demand law work for ICBC's stock price? Subject area – Investments. Study level/applicability – The case is suitable for students with diverse backgrounds – from different countries with different cultures, and from different programs (undergraduate or graduate). The case will be used for an all-English course “The research of Chinese stock markets” and has been used for the course “Portfolio theory and management” (junior student level) at Nankai University. Case overview – The case introduces Chinese stock markets' uniqueness that there exists a huge number of previously nontradable shares. The release of the shares radically changes the markets' balance and causes the absolute dominance of stock supply over stock demand. Based on the analysis for ICBC, the case demonstrates that the dominance can explain the drop of ICBC's stock price by supply-demand law but fundamental analysis cannot. Expected learning outcomes – The case will help students to understand the uniqueness of Chinese stock markets and the applicability of supply-demand law in the markets and then be able to make investment decisions. Social implications – The case can help to educate not only students but also Chinese and foreign investors about the uniqueness of Chinese stock markets and arm the students and investors with the supply-demand methodology to analyse the markets and the reasoning of when and how to invest. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes. Close
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4Assessing algorithms for selecting countries to market new products to low-income consumers
Author(s):Arch Woodside, Michael D. Metzger, John C. Ickis
Title – Assessing algorithms for selecting countries to market new products to low-income consumers. Subject area – A consulting team to an international food packaging company (SDYesBox) is attempting to decide which algorithm is the most useful for selecting two national markets in Central America and the Caribbean. SDYesBox wants to work closely with its immediate customers – manufacturers in the dairy and food industry and their customers (retailers) – to develop and market innovative products to low-income consumers in emerging markets; the “next big opportunity for the dairy industry” according to SDYesBox. Study level/applicability – New product development and market selection in emerging markets in Latin America. Case overview – Five algorithms are “on the table” for assessing 14 countries by 12 performance indicators: weighted-benchmarking each country by the country leader's indicator scores; tallying by ignoring indicator weights and selecting the countries having the greatest number of positive standardized scores; applying a conjunctive and lexicographic combination algorithm; and using a “fluency metric” of how quickly consumers can say each country aloud. At least one member of the consulting team is championing one of these five algorithms. Which algorithm do you recommend? Why? Expected learning outcomes – Learners gain skills, insights, and experience in alternative decision tools for evaluating and selecting choices among emerging markets to enter with new products for low-income (bottom of the pyramid) products ands services. Supplementary 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. Close
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5Hero Cycles: operating break-evens
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6Does supply-demand law work for ICBC's stock price?
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7Tata Power Ltd: innovation in financing growth
Author(s):Mayank Joshipura, Vasant Sivaraman, Sameer M. Nawani
Title – Tata Power Ltd: innovation in financing growth. Subject area – Corporate finance, strategic financial management, financial innovation and financial engineering. Study level/applicability – The case is suitable for graduate level management students. Case overview – In early April 2011, Mr Ramakrishnan, the CFO of Tata Power Ltd and members of his team were busy re-evaluating fundraising options for financing Tata Power's capital expenditure requirements, for refinancing of debt, for working capital related to current projects and for liquidity to support potential acquisition bids. The team had the task of evaluating different innovative funding options as the challenge was to strike a fine balance between maintaining the owners' equity without dilution of control and avoiding any adverse impact on credit rating that could increase the cost of capital; these constraints reduced flexibility for fund raising. Keeping in mind the global market scenario and estimating the investor appetite were factors critical to the structuring of a funding instrument. Expected learning outcomes – The case will help students to be comfortable in thinking about evaluating markets, financial instruments and weigh rating considerations and regulatory constraints for taking capital structure decisions. Supplementary 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. Close
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8High rise in Ho Chi Minh City
Author(s):Sundar Venkatesh
Title – High rise in Ho Chi Minh City. Subject area – The case covers capital budgeting practice in a real estate company in Vietnam. Study level/applicability – The case is ideally suited for participants in MBA, Executive MBA, and Masters in Finance programmes. It can be taught near the end of a course on corporate finance/financial management. It can also be taught as an advanced topic in financial management courses. Case overview – A real estate company in Vietnam has prepared a capital budget for, what it claims is, a 600 billion VND project. The weighted average cost of capital used by the company is 10.64 percent. An analyst in a consulting company is asked to thoroughly review the capital budget of what appears to be a project that is too good to be true. Lending rates in Vietnam at this time were around 15 percent. Expected learning outcomes – Participants will learn how to correctly apply the principles of computing: net after tax cash flows from a project; and weighted average cost of capital, particularly in the context of real estate companies. Supplementary 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. Close
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9Ommune IT Solutions: make or break
Author(s):Monica Singhania, Syed Ashraf Husain
Title – Ommune IT Solutions: make or break. Subject area – Accounting and finance, entrepreneurship and business strategy. Study level/applicability – The case is suitable for the following courses: post graduate programs in entrepreneurship; executive training programs for middle and senior level employees; and MBA/post graduate programs in management in strategic management. Case overview – The case deals with an entrepreneurship venture whose initial business model appeared to be faltering with the founder wondering about the future of the company. After Ommune Solutions’ (founded 2010) initial business plan failed, the company started offering IT outsourcing services to Indian customers. However, the company was spending more that it was earning and the CEO generated additional revenues through independent consulting. By 2012 a customer relationship management (CRM) tool was also ready for release. The company was another IT start up yet to find a firm footing. The CEO wondered whether he should continue to build the company and, if so, in which direction? Expected learning outcomes – These include: the use of SWOT analysis as a tool to aid strategic decision making along with Porter's five competitive forces model and the BCG matrix; using cost benefit analysis for evaluating business decisions; understanding the complexities involved in a strategic planning process; and identifying unnecessary cost and increasing revenue generation for expansion and maximizing profitability. Social implications – The case provides insight on challenges faced by a venture at an early stage in the business environment and the venture is analyzed in depth. It gives students a perspective on decision making and adapting to scenarios where initial business plans appear not to have succeeded. Supplementary 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. Close
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10Väätsa Agro AS financial distress
Author(s):Laivi Laidroo
Title – Väätsa Agro AS financial distress. Subject area – Corporate finance, financial management. Study level/applicability – The case is suitable for Master's level corporate finance or financial management courses. Sufficient prior theoretical knowledge of corporate finance concepts is required. Case overview – Väätsa Agro AS is an Estonian dairy farming company. Although the company had operated successfully in the past, its ownership changed significantly in 2006 leading to changes in the company's capital structure. Starting from 2008 milk prices on global markets decreased and this trend had also affected the company's profits. As a result of these developments the company's financial situation had deteriorated since 2008 and towards the end of 2009 the company had problems in meeting its obligations. On 1 September 2009 its owners hired a consultancy firm represented by Karl Kukk to tackle the company's problems. Expected learning outcomes – The case should help students to: understand the risks of LBOs; understand the importance of an appropriate capital structure of a firm; evaluate a company's financial situation and compare it with competitors; understand the alternatives facing firms in financial distress; and choose the best course of action for a distressed firm considering the pros and cons of each alternative for each stakeholder group. Supplementary materials – Teaching notes are available; please consult your librarian for access. Close
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