Case studies

After completion of the case study, the students will be able to define and compute equivalent units of production, apply management accounting procedures for manufacturing businesses (Furqani Sugar Mills), calculate product cost and track product cost flows and prepare process cost summary using the weighted average method. By studying this case, learners will gain insights into the challenges and financial complexities faced by a sugar mill and how strategic decisions and economic analysis can impact the sustainability and profitability of such businesses.

This case study explained the problem Mr Zoraiz, chief financial officer (CFO) of Furqani Sugar Mill, was facing. The problems started in the month of November 2020. Mill’s owner Mr Jabbar asked him for suggestions that employees should not be laid off. So he was analysing and estimating the cost of production when increasing production. He was focusing on cost reduction in process or increasing production, and utilization of resources efficiently and effectively. This case study focused on the market segment of the sugar industry for process costing. Furqani Sugar Mill, founded in 1992 in Pakistan (Company Document), had a noble mission to improve the lives of local peasants by producing sugar and molasses. Pakistan heavily relied on agribusiness, particularly sugar production, which contributed significantly to manufacturing. However, Furqani Sugar Mill faced a dire situation despite its vital role. During the sugarcane season, it struggled due to a shortage of raw materials, primarily sugarcane. Zoraiz, the CFO, grappled with running the mill below total capacity in recent years due to two significant issues: government-fixed sugar prices and limited sugarcane supply from local farmers. The high cost of sugarcane hindered Zoraiz’s desire to operate at total capacity. Zoraiz, Furqani’s CFO, must decide what he can do so that the mill can operate at its total capacity. The future of Furqani Sugar Mill hung in the balance as Zoraiz navigated complex financial decisions while striving to uphold the mill’s legacy and commitment to the local community.

This case study is suitable for teaching in several modules, notably managerial accounting and control systems, management accounting decision-making and cost and management accounting. Specifically, it covers performance management and process costing in management accounts. It is appropriate for teaching at the undergraduate and postgraduate levels.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

Specific teaching and learning objectives include to identify factors influencing market expansion decisions and recommend appropriate entry modes, understand factors in the international business environment that contribute to success or failure of international businesses in developing countries, evaluate strategies enabling international businesses to sustain market presence in developing countries and overcome local competition, analyze the concept of local responsiveness in international business operations and suggest strategies for internationalizing domestic companies from developing countries.

The McDonald’s case examines the challenges associated with market expansion by global brands. The case occurs during the early-globalization era in the 1990s. Barbados, a developing country, is the site for potential expansion. Prospective investors, the Winters, are desirous of establishing a McDonald’s in Barbados. They need to thoroughly analyze the previous experience of McDonald’s against the host country’s current international business environment, e.g. political, economic, cultural and competitive environment. This case analysis provides a framework for understanding the multifaceted reasons behind McDonald’s exit from Barbados, considering the complex interplay of political, economic, sociocultural, technological and legal factors in the international business environment. The case equips the instructor and students to explore the risks of international expansion, particularly in developing country markets. The case study on McDonald’s failure in Barbados highlights the need to thoroughly examine one’s market entry strategy and available information on the host market and be more locally responsive regarding tastes and preferences. The case study also presents essential lessons for firms and planners from developing countries. Local firms innovated and enhanced their operations in response to the threat from the entry of the global fast-food giant. Yet, they did not seek to internationalize once McDonald’s exited the Barbadian market. The case study, therefore, considers strategies firms from developing countries could utilize to penetrate markets from developed countries.

At the undergraduate level, the McDonald’s Barbados case can be used in international business classes to highlight risks in the international business environment and the need for a carefully planned and executed market entry strategy.

Teaching notes are available for educators only.

CSS5: International Business.

After completion of the case study, the students will be able to explore the challenges involved in growing a business during its early stages inorganically, discuss the challenges faced by start-ups in their quest for growth in an emerging market, investigate the reasons behind the mergers and acquisitions, comprehend the issues in the merger of a start-up and a conventional bank, identify the various possible synergies out of the merger and examine the growth strategies that a troubled start-up such as Slice can follow to survive and expand its business operations.

The case study discusses the challenges that Slice, a modern fintech organization, and North East Small Finance Bank (NESFB) face due to the changing business and regulatory environment. After working tirelessly to earn the trust of India’s banking regulator, Slice got the approval for its merger with NESFB. While Slice and NESFB got a new lease of life after the approval of their merger, Rajan Bajaj, founder of Slice, needed to make the merger a success by leveraging on the strength of the combined entity and meeting all the lending and other regulatory requirements applicable to small finance banks.

This case study is suitable for MBA/MS/BBA/BS students.

Teaching notes are available for educators only.

CSS 11: Strategy.

After completion of the case study, students will be able to: 1. understand the basis for developing global supply chains for exploring international markets, 2. identify the various sources of geopolitical risk while expanding globally, 3. assess the market entry or exit decisions from a principled and commercial perspective and 4. identify and weigh different options when faced with an exit situation under conditions of geopolitical risk.

The Japanese fast fashion brand Uniqlo opened 45 stores in Russia as a part of its international retail expansion strategy. The brand provided affordable fashion for everyone. However, the Russia–Ukraine armed conflict had put the company in a dilemma. The Japanese Government and the public joined the broader global community in condemning Russia’s armed intervention in Ukraine. These countries also imposed economic sanctions on Russia, resulting in many multinational companies winding up their operations in Russia. Uniqlo faced a market exit dilemma. Russia had the largest number of Uniqlo stores in Europe. The company CEO also highlighted the necessity of meeting the clothing needs of the Russian people. However, people in Japan and elsewhere considered Russia as an aggressor nation. Any economic link with the Russian market would be ethically wrong, and consumers in Japan, the USA and the European Union might see this as support for Russia’s war efforts. The company had to choose between continuing operations in Russia or exiting the Russian market.

This case study can be used in basic marketing management and international business courses to discuss the market attractiveness and risk aspects for market entry or exit decisions. It can also be used in advanced courses such as strategic management, global strategy and global political economy, highlighting the impact of geopolitical conflicts on business operations.

Teaching notes are available for educators only.

CSS 11: Strategy.

After reading and analyzing the case study, the students will be able to recognize the role of the mega environment in shaping business strategy, explore the challenges and opportunities in a mature industry (Foam), understand the business context of a family-owned firm and assess the implications and recommend managerial strategies.

In July 2019, Unifoam, a leading foam manufacturer, found itself at a crossroads as the company leadership grappled with diverging vision and future course of action. The newly appointed chief executive, Mr Faraz Khalid Shaikh, had overseen significant investments in expanding production capacity, and the time had come to reap the rewards. However, a series of unexpected events had unfolded, presenting the company with a unique set of challenges. Unifoam relied heavily on imported raw materials from China. Unifoam had high hopes of capitalizing on the opportunities presented by the China Pakistan Economic Corridor. However, the newly formed government had made significant policy changes regarding currency valuation and borrowing rates. This had increased the company’s working capital cost by 40%. This unexpected development had divided the board on the future direction and had forced the leadership to confront a crucial question: Should they hit the brakes or accelerate their growth strategies? This case study explored into the dynamic interplay between external factors, internal divisions and the family-owned nature of Unifoam. The analysis recognized the influence of the mega environment on the company’s strategy, exploring the challenges and opportunities within the mature foam industry and assessing the implications of conflicting approaches. This case study also offered valuable insights and managerial recommendations to guide the company’s path forward. Through embracing discomfort and confronting strategic dilemmas head-on, Unifoam sought to navigate uncharted waters and emerge as a resilient player in the evolving foam industry.

This is suitable for BBA or at the very start of MBA in the strategy courses, mainly business strategy and strategic management, and the case study can be positioned during the initial weeks in the course to provide a quick review of the basic analysis frameworks used in strategic decision-making.

Teaching notes are available for educators only.

CSS 11: Strategy.

The case study’s learning objectives, structured according to Bloom’s taxonomy, engage students in higher-order thinking for critical analysis and strategic decision-making. After completion of the case study, students will be able to analyze sustainability practices and evaluate the family’s distribution model for alignment with sustainability and potential expansion strategies; explore adaptive strategies to identify adaptive solutions to challenges such as climate change and economic fluctuations; apply theoretical frameworks to balance exclusivity and growth in the olive oil industry; and assess strategic decisions considering financial viability, environmental responsibility, community engagement and sustainability.

The case study centers on the Abi Raad olive farm, a multigenerational family-owned business deeply rooted in olive cultivation traditions in Selfaya village, within Mount Lebanon’s Aley district. Led by Richard Abi Raad, the family specializes in olive cultivation, olive oil production and handmade soap manufacturing within the agriculture sector. In 2023, the organization faces significant challenges such as rising labor costs and the exploration of sustainable labor sources for future growth. Abi Raad, the primary protagonist, grapples with critical decisions regarding maintaining traditional distribution methods versus expanding into broader markets. His choices must balance the preservation of cultural heritage with the need to uphold brand integrity and competitiveness. The case study traces the family’s historical journey in olive farming and explores their contemporary strategic dilemmas, offering insights into sustainable agriculture, entrepreneurship and navigating modern challenges while honoring tradition. Through the narrative of the Abi Raad family-owned business, the case study provides profound lessons in strategic decision-making and ensuring long-term sustainability.

This case study is suitable for students studying master’s in business.

Teaching notes are available for educators only.

CSS 11: Strategy.

The learning outcomes focus on enabling higher-order learning for students to critically assess Agile project management in philanthropic settings, specifically compare and contrast Agile project management versus traditional project management in the context of a non-profit organisation (The Solidarity Fund) during a crisis; discuss and evaluate the role and contribution of philanthropy during times of crisis; rate the value additions and contributions of Agile approaches in philanthropy; evaluate the phases of Agile (unconventional) project management executed by The Solidarity Fund; and develop a review of the impact of the work done by The Solidarity Fund in terms of the approach that the Fund used. How effective/not effective was it?

Chaos, crisis and confusion: the three “C”s that succinctly condense the status quo during the COVID-19 pandemic. The roles and contributions of non-profit organisations gained recognition as countries worldwide responded to the crisis to save lives and livelihoods.

In South Africa, there was a sense of urgency and considerable pressure for a multi-stakeholder approach led by the government to save as many South African lives as possible. The conditions, however, were the opposite of traditional project management methodologies that advocate for the management of the triple constraints, namely, cost, time and scope.

How could cost be managed in a project without a set budget and which was reliant on philanthropy? How could time be managed without a set deadline and while tackling an invisible enemy – a virus that changed dynamics on a daily basis and – how could scope be managed in a context where the future was increasingly uncertain?

This case study can be useful for students undertaking postgraduate diploma in business, master of business administration (MBA), master of management courses.

Teaching notes are available for educators only.

CSS 11: Strategy.

The case study’s primary learning objectives are to develop a number of professional competencies, such as personal ethics and citizenship, decision-making acumen and business acumen. Students deal with a novel situation, underpinned by four Sustainable Development Goals (reduced poverty, quality education, decent work and economic growth, and reduced inequalities) and are required to consider a broad range of historical and cultural nuances in a resource-constrained environment, to address the dilemma at hand.

This case study tracks the efforts of a non-profit company called Just Grace, which was established in 2012 in Cape Town. Just Grace’s mission is to uplift the Langa community, an underprivileged urban suburb in Cape Town, via educational, career development and social programmes. Just Grace’s programmes have achieved success in Langa. The dilemma now facing Just Grace is whether their existing model is transferable to a rural community in the Eastern Cape in South Africa.

The case study is aimed at both local and international postgraduate students studying an honours or master’s degree in a business-related field such as accounting or an MBA.

CSS 1: Accounting and finance.

Teaching notes are available for educators only.

Upon completion of the case study, student will be able to discuss valuation of new-age ventures and understand how it is different from the valuation of organisations with a longer history; analyse the considerations (quantitative and qualitative) while evaluating investments in new-age ventures; and develop a framework involving the various dimensions of investment readiness.

The fintech space in India has seen an upsurge of activities since 2016. The growth of Paytm, RazorPay and many such ventures and the drastic improvements in this ecosystem have been significant catalysts for this segment of new-age tech companies. Funding and valuations have seen a sharp increase, especially when businesses worldwide felt the after-effects of the pandemic, with India being home to a large number of unicorns, second only to the USA. Open Financial Technologies Ltd (OPEN TECH) is one such venture that claimed its spot as the 100th unicorn of India within a span of five years since inception. With a strong focus on disrupting the banking sector in India, this neo-bank aspires to be the equivalent of Stripe in India and eventually be a strong competitor in the international market.

Richard O’Neil is an active investor in the fintech space, based out of the UK, and he is currently looking to expand the market by considering investment options. In the process, Richard and his team have identified India as a viable and competitive market, as new venture support and funding are increasingly emphasized through policies such as Startup India, Make in India and many such more to sustain and propel its benefits. As the team was exploring ventures worth investing, Open Financial Technologies caught their attention. However, Richard, given his experience across fields and being a seasoned private equity investor, realised that valuing new-age companies is as much an art as it is a science. Multiple quantitative and qualitative aspects need to be considered while relevance of traditional valuation techniques to put a value on such entrepreneurial ventures is questioned. At this juncture, he finds it crucial to evaluate the investment readiness of OPEN TECH.

This case allows students to understand how valuation of new ventures is different from that of established companies and analyse the crucial factors worth considering while evaluating an investment proposal as a venture capitalist, which eventually helps shape the funding pitch of an entrepreneur in the space.

This case study can be useful for students undertaking graduate- and executive-level courses on business valuation and strategy and entrepreneurship, as well as entrepreneurial finance elective at the undergraduate level. One could use this case in courses on entrepreneurship and innovation, such as an introductory course on entrepreneurial finance and a course on venture capital and private equity. It also allows discussion on fintech and neobanking and the valuation of privately held companies.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

This case study exposes students to the process of decision-making given the market uncertainty, evolving shareholder expectations and other variables that executives and managers must consider ensuring business continuity and growth and helps students develop an appreciation of the impact emerging technologies are having on organizational digital transformation. This case study evaluates the strategic considerations for whitespace digital solutions into existing organizational operations, balancing innovation with core operating principles; exposes the students to the drivers of fostering a culture of innovation and employee buy-in during strategic digital transformation initiatives; and evaluates and appreciates the role of key stakeholders, such as customers, employees and executive management, in shaping a successful digital transformation strategy and promoting sustained business growth.

Vidhii Partners, a leading Indian law firm, grapples with the burgeoning demand for legal services in a rapidly evolving market. Traditional methods may struggle to keep pace, prompting Vikram Wadehra, a partner, to champion the adoption of Generative artificial intelligence (GenAI) technology. Vidhii Partners embarks on the development of two GenAI tools: VidAI, an AI-powered chatbot designed to democratize access to legal information, and VidAI Pro, a business-to-business offering aimed at streamlining legal research and drafting. Wadehra envisions these tools not only enhancing efficiency but also fostering a culture of legal awareness and generating new business opportunities. However, crucial decisions remain. Can Vidhii Partners bridge the potential gap between innovation and the firm’s established practices? How can they effectively integrate GenAI into their operations while ensuring user trust and employee buy-in? This case study presents a rich opportunity to explore the challenges and opportunities associated with digital transformation in the legal sector. Students will grapple with themes such as navigating market uncertainty, fostering a culture of innovation within a traditional organization and developing effective strategies for stakeholder management during change initiatives. Through the lens of Vidhii Partners’ GenAI journey, students gain valuable insights into the complexities of embracing disruptive technologies within a dynamic business landscape.

This case study is designed for masters level (MBA).

Teaching notes are available for educators only.

CSS 11: Strategy.