Case studies

The case proposes a discussion of the time value of money and capital budgeting concepts, including determining the effective overall cost of capital, estimating working capital requirements, consideration of all relevant cash flows – including opportunity costs, finding the present value of future cash flows (annuities and lump-sum cash flows) by linking the concepts of weighted average cost of capital and working capital and net present value (NPV) and internal rate of return (IRR).

Jehan Wadia, a newly appointed finance manager of Tembo Global Industries Ltd., is facing a dilemma in recommending an investment decision to Mr Variava, Chief Finance Officer. Implementation of the project requires an investment of INR 82m. Ms Stella, funding division head, proposed financing through equity and term loans in the proportion of 3:2, respectively. Mr Shrinivasan, handling the short-term financial needs of the firm, suggested a finance mix having a higher weight-age of debt. Mr Variava desires to maximize the wealth by taping the opportunity. The case is written for an experience in the capital budgeting dichotomy faced by managers in real-life situations.

This case can be used in various contexts – as a preparatory case in a foundation course of Financial Management at the graduate level to instill the fundamentals for evaluating long-term investment decisions or in courses of Strategic Financial Management or Corporate Finance at the undergraduate or graduate level as a capstone case to reinforce the application of multiple concepts in strategic financial decision making.

Prepared based on Secondary Sources of Published Information.

Mondelez International launched Cadbury Plant Bar in UK in 2021. It was a plant-based chocolate made using almond milk as a substitute to the conventional product to target vegan consumers. The Indian subsidiary of Mondelez International, always known for its various dairy-based products, had many sub-brands in chocolates and related categories, which were targeted at children and adults effectively. Though the company had been the market leader for about 60 years, it was yet to plan for the launch of any vegan products in the country. However, there were several new marketers who had proactively launched their respective vegan products in India, whereas large companies like Mondelez were shying away from plunging into this game. This case explores the market available for Cadbury Plant Bar in India and whether Mondelez can introduce a similar version in India.

The case is suitable for use in the Marketing Management course of MBA programmes. It can also be used in elective courses related to Brand Management and Integrated Marketing Communication.

This case was developed from both secondary and primary sources. The secondary sources include the company’s website and social media, social media sites and PR news reports. Primary sources include in-depth interviews with Nafigate Cosmetics executives. This case was classroom-tested with graduate students in an International Marketing course in Autumn 2021 and Spring 2022.

Nafigate Corporation is a small Czech company with a global presence and a solid organizational philosophy to create a better world through scientific knowledge and active use of technology. With innovative new products, Nafigate is poised to revolutionize the cosmetics industry. The case explores elements of branding, strategic decision-making and how to balance competing priorities during a company’s growth phase.

This case was written for use in International Marketing classes at the graduate level. In addition, the case could be used in International Marketing Communication courses and in CSR subjects. Students are encouraged to discuss building a competitive advantage, portfolio decisions in terms of brand differentiation, branding strategies, and most importantly, understand the complexity of the business decision-making process.

The theoretical basis for this case is a focus on ethical decision-making based upon a decision-making tree proposed by Bagley et al. (2003). Once multiple options are determined as ethical, integrating authentic leadership into the decision-making process can help leaders made difficult decisions.

The authors conducted extensive research through IBISWorld, EBSCOhost, and academic journals to review ethical decision-making and authentic leadership. The authors successfully piloted the case with over 100 undergraduate and graduate students enrolled in leadership courses.

The case describes an ethical decision a young commanding officer must make. A soldier under their leadership has been charged with an inappropriate relationship with a minor. The officer must decide between two actions that are legal within the military justice system. Each decision has ramifications that will significantly affect the organization.

The case is best taught in undergraduate and graduate leadership courses. Course participants do not need a detailed understanding of military leadership or military law to apply fundamental concepts.

The case will familiarize students to TEARS model and No TEARS approach for brand endorser selection. It will enable the students to understand the extent of influencer impact on the brand. It will make students to realistically assess the pros and cons of ambassador marketing using celebrities. It will also enable the student to devise brand strategies to mitigate the risk associated with ambassador-based marketing.

The case explains the strategic challenge the brand faces in ambassador marketing due to the uncontrollable personal crisis of the celebrity. Brand ambassador is an integral element of the brand persona and is appointed to boost the brand’s unique proposition and sales. The selection of the brand ambassador is a strategic decision with direct implication on the brand equity. A strong celebrity–brand congruence is ideal to establish credibility, but it can backfire if anything negative occurs on either side. This case evaluates the crisis faced by Fortune oil which has been positioned as “the heart healthy oil” when its celebrity ambassador suffers heart attack. In the backdrop of the case, the students can analyse brand strategies with respect to ambassador marketing, TEARS model with No TEARS approach for endorser selection and endorser-related credibility risk management.

MBA BBA PG/Graduation in Marketing/Advertising.

Teaching Notes are available for educators only.

CSS 8: Marketing.

This case focuses on the business rescue of South African Airlines. SAA, four times rated the best airline in Africa (SAA, 2019), was already insolvent when in early 2020 COVID-19 decimated the world. The state-owned airline, which had last made profits in 2011, continued to lose millions of passengers to competitors over the next decade and, despite bailouts of more than R40bn, entered Business Rescue in December 2019, still owing creditors more than R26bn. To the surprise of many, Public Enterprises minister Pravin Gordhan was determined to rescue the airline. In May 2021, the business rescue practitioners handed SAA back to the interim board and Thomas Kgokolo (CA) (MBA) was appointed interim CEO. In June 2021, Gordhan announced a “born again” SAA, “almost ready to take off” and promised no more bailouts. But, with several billion rand outstanding to complete the rescue plan, a grounded fleet, unresolved labour problems, an critical but unnamed “strategic-equity partner” and a largely unvaccinated country entering its third COVID wave – what were the chances?

Within the framework of a country desperately in need of jobs and short of capital, the case raises questions about ethics, accountability, responsibility, management, economics and strategy. Should retrenched workers in airlines feel the consequences of their unfortunate career choices? Ought government’s bail-out already failed industries? Should governments run airlines? What sources of funds are available? Have all the necessary requirements for “restructuring” to succeed been satisfied?

Teaching notes are available for educators only.

CSS 11: Strategy.

MBA, Exec-ed.

Consumption and consumer behaviour are driven by social and cultural factors. The global movement against racism and skin colour bias has created a situation where companies need to relook at the way they are marketing skin lightening and cosmetic products in an emerging economy like India.

The case study was developed by collecting data from news articles and published research.

Johnson and Johnson in June 2020 decided to stop selling products under the category of Skin lightening popularly known as fairness creams in Asian markets, especially India. This created a dilemma for popular brands like Hindustan Unilever (HUL), Loreal and Procter & Gamble which have brands under this category. Among all these brands the biggest challenge is for HUL which is a major player in this segment. The case discusses the cosmetic industry in India and how HUL responded to this situation.

The case is intended for use in graduate-level courses in consumer behaviour, new product development, integrated marketing communication and marketing. Market environment, cultural and social factors and the importance of considering these factors in developing the product and marketing strategy is the focus of this case.

The information presented in this case was gathered through interviews and observations carried out during the time Ms Joy attended the Initiative for A Competitive Inner City business support program in 2017. In addition, focus groups that took place after the program provided important information and insights into her decision-making process and business goals. Additional interviews were conducted in 2018 and 2019 after the business program ended to gain in-depth knowledge of Ms Joy’s entrepreneurial journey.

This case details the experiences of Winsome Joy in recognizing market opportunities in the child care industry and then expanding into the educational materials industry. The case focuses on challenges related to founding and sustaining her business and the ways in which Ms Joy engaged in “opportunity recognition” and “effectuation” to become a successful entrepreneur. The case points out the challenges of the child care and early education field in terms of professional training, hiring practices and retaining qualified staff. It provides an aspirational role model who has overcome these challenges by finding and recognizing new market opportunities.

This case is relevant for undergraduate and graduate courses in entrepreneurship.

The learning outcomes of this paper are as follows: to understand the meaning of celebrity endorser, to understand factors that play a significant role in selecting a celebrity endorser for product endorsement, to decide when a brand needs a celebrity endorser and to generate option analysis factoring in the pros and limitations of celebrity endorsement.

Dish TV pioneered digital entertainment in India. It was July 2016, the first quarter board meeting of Dish TV India Limited at the company corporate office in Noida, India. One of the agenda items was whether the company needed to rely on celebrity endorsement 12 years after its inception. In three months, time, at its next meeting, the board was expected to come up with a product campaign that would most effectively impact its target customers.

The case is targeted at business management students pursuing a postgraduate management program.

Teaching notes are available for educators only.

CSS 8: Marketing.

The case explores Ayesha’s reasoning, who is also a financial expert, regarding how she approaches the question of Riba (interest) so that she can maximize her financial returns and remain true to her religious identity. The discussion in the case revolves around alternate rationalizations as to why Riba (interest) continues to remain important for many Islamic investors.

Historically, the prohibition of Riba (interest) prevented the exploitation of the poor borrower who was charged exorbitant interest rates by wealthy lenders. In the modern day, a banking system which operates in a regulated setup and charges market-based interest rates, the rationale regarding the exploitation of the poor seems less compelling. Furthermore, other economic realities such as inflation and currency fluctuations further lend support to protecting one’s investments through prudent financial decisions. In this case the authors approach this decision regarding the prohibition of Riba (interest) in Islam from the point of view of the protagonist, Ayesha Bhatti, who is religiously conscious and is faced with certain personal investment choices.

The case focuses on one of the core issues of Islamic finance (IF), that of the prohibition of charging Riba (interest) on debt and the reasons behind this ruling. The relevance of this prohibition to modern day financial markets is essential to understand IF.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance.