Case studies

James, a financial advisor at Bank Private, is advising a high net worth client with $1 million to invest. Bank Private can offer an investment that returns a fixed rate of 5.5% (compounded annually) for twenty years. James needs to prepare financial projections for the client that include annual interest and annual taxes as well as total interest and total taxes.

This case is one of a pair of cases used in a merger negotiation. It is designed to be used with “British Petroleum, Ltd.” (UVA-F-1263). One-half of the class prepares only the British Petroleum (BP) case, and one-half uses this case. BP and Amoco are considering a merger, and are in the process of negotiating a merger agreement. Macroeconomic assumptions, particularly forecasting future oil prices in an uncertain environment, and assumptions about Amoco's ability to reduce exploration and production costs make Amoco's future cash flows difficult to predict.

Five carefully constructed problems illustrate the concepts of second-market discounting, price skimming, limit pricing, random discounting, premium pricing, and bundling.

The case, “Shivani Carriers Pvt. Ltd.: Managing Employee Motivation at the Bottom of the Pyramid”, has been designed to teach students about the basic principles of employee motivation. The case is also a representative example of the problems faced by small and medium-sized businesses in employee acquisition, motivation, and retention, especially at junior levels i.e. entry-level operational and front-line roles. The case documents the history and evolution of the driver management system (DMS) instituted by Vandana and Hemant Laddha at Shivani Carriers Pvt. Ltd. (SCPL). It looks at the constraints faced by the company and the challenges that emerged during the implementation of the new system. After initial success, Vandana Laddha faced a dilemma around the future direction of the DMS. The original incentive scheme had been a success: driver productivity and motivation had improved significantly. Given that the scheme had achieved its desired objectives, the firm had decided to modify it to further improve efficiency. However, employee discontent was brewing since the scheme had been modified. Vandana Laddha had to decide if she should she bring back the original incentive management scheme to quell employee discontent or should she introduce alternate initiatives to manage driver motivation? If she chose to introduce new initiatives, what could these be? What mechanisms would she need to put in place to support the new initiatives? What about the complaints of the drivers? What should she do to address the complaints of the drivers? The case provides students with an opportunity to understand the principles of employee motivation with the help of extant and contemporary research on motivation. It also sheds light on the link between initiatives aimed at increasing motivation and other managerial activities and mechanisms. Importantly, it helps students arrive at an integrated framework that links various aspects of employee motivation such as needs, cognitions, work design factors, organizational support and actions, organizational culture and industry context.

Agarwal Packers and Movers Limited is an example of a business that delivers superior customer service with continuous logistics design innovation. The case provides details of a leading logistics and solution provider for household goods relocation who in past was facing problems due to increase in number of customer complaints and claims and also increase in packaging costs. APML believed that mistakes could be avoided and defects could be prevented. Solutions were offered by modifying the processes through innovation in its services resulting in customers' delight. As a result of continuously improving capabilities, people, processes, and technology; the services improved too. The case gives an insight on how the company improved its services by innovating and how these innovations were sustained by such a large organization with many branches throughout India.

Controladora Comercial Mexicana, a Mexican retailer, had successfully managed the bankruptcy process and was ready to emerge from its problems, primarily caused by speculation and excessive debt, and begin operations anew. Was the restructured Comerci capable of regaining its position as a premier retailer, and more importantly, was the firm capable of repaying the high level of debt that it carried following bankruptcy reorganization? How strong was the reorganized firm? Had Comerci truly left its problems behind in bankruptcy court, or would history repeat itself? How could Comerci raise funds needed for growth – through additional debt? Though asset sales?

This case was researched using publicly available information, including the company's financial statements, bankruptcy filings, news stories about the bankruptcy and financial data bases (e.g. ISI Emerging Markets, Economática, Capital IQ, etc.) to obtain information about the competitors and from financial analysts.

This case is intended for advanced undergraduate or MBA electives in finance. Students should have a basic understanding of valuation and financing before attempting this case. The case could also be used in a corporate finance or banking class to illustrate bankruptcy and credit risk, or could be used in an international business class to illustrate the differences between USA and international bankruptcies.

Marketing.

Undergraduate and postgraduate management students.

Small scale business in India employ almost 30 million people contributing 50 per cent to industrial and 45 per cent to the total exports of the country. The rapid growth of internet has made it possible for the small scale start ups to reach its existing and potential customers without investing much. The case highlights this fact describing the journey of “Chumbak” a small scale business from an unknown brand to the foremost favourable funky product of India. Through this case the authors have tried to relinquish a synoptic view of how Chumbak has used varied social media platforms, to engage and connect with its customers. A survey of 147 customers of Chumbak customers shows that engagement through Facebook fan page of Chumbak positively impacts its purchase intention, brand image and leads to positive word of mouth.

The case highlights numerous dynamics of social media marketing and shows the recent social media promoting methods being used by the little scale businesses to ascertain on-going dialogues with their customers. The Case would facilitate the scholars in learning how these platforms may be used alone as a promotional tool not solely to reach the purchasers but additionally to type a higher complete awareness of the products with reference to Chumbak. The case explains that communication happening at varied social media platforms got to be tailored considering the sort of users.

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This case provides an opportunity to discuss the design and implementation of a Public Private Partnership project. It describes the Delhi Airport Metro Express Line project from conception to completion, and the subsequent dispute between the Public and Private partners leading to the Concession Agreement going into arbitration. Students discuss the reasons for failure and come up with suggestions for another metro rail project currently in the design stage.