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0Assessing 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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1Hero Cycles: operating break-evens
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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2Does supply-demand law work for ICBC's 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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3Tata 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 Read more
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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4High 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 Read more
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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1Hero Cycles: operating break-evens
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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2Does supply-demand law work for ICBC's 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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3Tata 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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4High 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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5Ommune 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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6Väätsa 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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7KK Metals: CNC process costing
Author(s):Monica Singhania, Gagan Gandhi
Title – KK Metals: CNC process costing. Subject area – The application of activity based costing (ABC); calculating the cost of a CNC Process using ABC; designing a pricing strategy. Study level/applicability – The case can be used in the following courses: MBA program with specialisation in finance (to teach students the application of costing in services sector); MBA program in general management (to highlight the concept of activity based costing and its application); and under an elective course on management control systems in MBA programs (to highlight the strategy to determine price effectively). Case overview – The case highlights the application of activity based costing in arriving at cost and finally leading to development of price to be charged by KK Metals. The company wishes to compute the activity based cost of CNC process and develop the selling price for 194 precision turning services scientifically as opposed to the present strategy of being a price taker, largely on the basis of what essentially is prevalent in the local market within which KK Metals operates. The case gives an insight to numerous control variables that the management can consider while pricing its services. Expected learning outcomes – The case can be used to understand management concepts such as ABC, pricing and the role of efficiency in business processes. It can be used to: teach complexities involved in identifying activity driver(s) in case of ABC as far as application to service sector is concerned; help understand the use of costing as an effective tool in pricing strategy of the company; and help students realize the significance of inputs used for calculating per hour cost. Supplementary materials – Teaching notes are available. Consult your librarian for access. Close
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8Financial closure of Bengaluru International Airport Limited
Author(s):Thillai Rajan, Josephine Gemson
Title – Financial closure of Bengaluru International Airport Limited. Subject area – Infrastructure finance. Study level/applicability – II MBA/Executive MBA (Project Finance, Infrastructure Finance). Case overview – It is generally believed that the economy of India is on the threshold of achieving significant growth in the coming years. The availability of adequate infrastructure facility will play a key role in realizing this growth potential. To accelerate the process of creating infrastructure capacity, the Government of India has opened up many infrastructure sectors for private sector investment. Creation of international standard airport facilities is an important component of such new infrastructure creation.This case study presents the initial development and financing closure of Bengaluru International Airport Limited (BIAL), the first major private sector airport in India. In retrospect, it is generally felt that BIAL was an important milestone in the privatization of airports in India. The blueprint for the greenfield PPP airport in Hyderabad was closely modelled on the BIAL project. The experience gained in the development of BIAL also played a major role in subsequent brownfield PPP airport expansion projects in Mumbai and Delhi. Expected learning outcomes – The goal of this case study is to illustrate the complexities that exist in the process of infrastructure development and financing. This following are the expected learning outcomes: The importance of using an appropriate project structure. The prevalence of early returns to project sponsors as compared to lenders.The process of achieving financial closure. Analyzing project risks and returns. Supplementary materials – Teaching notes. Close
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9Auditor industry specialization in a MENA region country: lessons learnt from PricewaterhouseCoopers – Egypt
Author(s):Ahmed M. Abdel-Meguid
Title – Auditor industry specialization in a MENA region country: lessons learnt from PricewaterhouseCoopers – Egypt. Subject area – Auditing, accounting, finance, control. Study level/applicability – Upper level undergraduate, MBA, MS accounting. Case overview – This case takes an internal approach by exploring how PricewaterhouseCoopers – Egypt develops and applies industry specialization in an emerging market such as Egypt. The case focuses on three aspects of specialization. First, the strategic drivers behind specialization. Second, the internal processes of building industry-specific knowledge. Finally, the costs and benefits of specialization. Expected learning outcomes – Industry specialization is a strategy: Specialization is a strategy primarily used by Big 4 auditing firms, such as PwC-Egypt as a means of differentiating it self from the market. Industry specialization is a culture: For specialization to be fully effective a learning culture should be in place in which firm personnel are committed to continually seek new in-depth knowledge about clients and their industries. •Human resources are the most valuable asset of auditing firms: •Auditing is a service that involves extensive professional judgment. Thus, knowledge and expertise of its personnel is what differentiates one auditing firm's staff from another. Supplementary materials – Teaching notes. Close
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10Synergy between ISA and manual auditing practises at Jain Chowdhary & Company, India
Author(s):Meghna Rishi, Anjana Singh
Title – Synergy between ISA and manual auditing practises at Jain Chowdhary & Company, India Subject area – Finance, accountancy, auditing. Study level/applicability – Supports information systems audit (ISA), auditing practises and controls, corporate governance and internal controls and financial management modules, business administration and MBA programmes. Case overview – The case study focuses on the implementation of ISA and information technology in the highly responsible task of executing financial audits The case emphasises on the fact that the advantages of ISA can only be reaped when they are amalgamated with an auditor's scrutiny, sharp eye, extensive knowledge of auditing systems and accounting principles and a rich experience of the auditing function. The suggested synergy also facilitates a reduction of around 60 per cent, in the cost of executing the audits and the man-hours required to complete the audit, as in the case of Jain Chowdhary & Company. Expected learning outcomes – The case helps students to comprehend the relevance of audit trail. It emphasises on the importance of identifying the source of information and tracking raw data backward. It familiarises the students with the complexities involved in a real audit and emphasises on the role of logic, intelligence, diligence, patience and farsightedness while performing the auditing function. It is important for them to understand how White collar crimes take place in real business economy. This case, hence exposes students to these nuances and can make a student, from a non-commerce background, understand the key elements of efficient auditing. (Elaborate teaching objectives are appended in the teaching note.) Supplementary materials – Teaching note. Close
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