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This case study deals specifically with the issue of manufacturing strategy, and business strategy.

The case can be used in a number of course contexts, including undergraduate and MBA programs. The focus is on both business strategy and manufacturing strategy issues. The case can be assigned as an opening vignette, during the initial phases of business strategy, since the case situations and concepts are both simple and clear. It can also be assigned for an in-depth treatment of manufacturing strategy.

The case focuses on Capital Mills Limited (CML), a flour milling company, and concentrates on whether the company should refurbish its two 40-year old flour mills at a cost of US$6 million or if the company should invest US$15 million in the construction and installation of a new, fully-automated “Lights out” flour mill. This decision is viewed as a “make or break” decision for CML, since for the first time in the company's 40 year history will it face significant direct competition, in the form of the impending entry of a second flour milling company.

The case has four primary learning objectives, namely to: illustrate the linkages between business level strategy and the functional level, manufacturing strategy; discuss the role of a company's history and internal resource structure in the decision making process; explore how operational issues influence capital expenditure decisions; and explore the perspective of managers in different functions in an organization that is facing a new competitive challenge.

Teaching notes are available – consult your librarian for access.

This case draws upon the literature on appropriate leadership behaviors that Yahoo’s Founders or CEOs could have adopted. It discusses the process of environmental analysis that would have an impact on Yahoo!’s strategy. It discusses and depicts the levels of environmental analyzes that Yahoo! as a firm ought to have undertaken in mapping its competitive environment. Further, this case discusses transformational leadership factors and those behavioral traits that exemplify each of these factors. Finally, the four elements of aspiration in discussing future firm direction are identified. These include an appropriate vision translated into a clarifying mission reflected in specific objectives grounded in explicit value statements.

This case is based on secondary data sources that include official company records, online reports and commentary, newspaper reports, public interviews and books. All such information has been appropriately referenced.

Yahoo!, in its 22 years of existence, has demonstrated remarkable tumult. It has witnessed a succession of six CEOs, exhibited a roller coaster trajectory in its stock price and, for the most part of its existence, played “catch-up” with its strategic competitors. It has also struggled to define its core purpose, its industry category and its very essence of being. In early 2016, CEO Marissa Mayer announced that Yahoo! would be willing to sell its core internet business and that its board would “engage on qualified strategic proposals.” However, the board also reiterated that turning around Yahoo! to prosperity continued to remain a top priority. What went wrong, so terribly wrong, with Yahoo! in an otherwise lucrative industry? Does Yahoo! suffer from a fundamental, essential malaise which, if addressed, could restore it to wealth and vibrancy? This case focuses on the period 1994, the inception of Yahoo!, to early 2016. The acquisition of Yahoo! by Verizon, completed in 2017, is not to be considered for purposes of this case study.

This case is particularly suited to be taught in a capstone strategic management course for MBA/Master’s level business students, after they have been exposed to core courses in Marketing, Business Law, Accounting, Supply Chain, Corporate Finance. It may also be taught in an advanced strategy course for undergraduate business students, typically in their final year of study. Finally, this case can be used to teach senior management in executive management programs.

The learning outcomes are as follows: developing an understanding of financial statement analysis among students; students would be able to calculate various ratios, understand their meaning and interpret them to take a financial decision; and exploring the relationship between financial leverage and risk.

Amtek Auto is a leading auto-components manufacturer established in 1988 which entered into bankruptcy in through the order of Reserve Bank of India in 2017. The company started with a humble beginning and later on the promoter decided to expand exponentially both through organic as well as inorganic growth in past 15 years. To grow a company kept on taking debt which made it riskier and deteriorated its financial position over a period. The case covers a 10-year timeline from 2008 to 2017. It gives an opportunity to analyze its financial statements to understand how its decisions shaped its performance

The case aims for students to take a comprehensive view of the financial statement analysis of Amtek Auto including the following: vertical and horizontal analysis; comprehensive ratio analysis including liquidity, profitability, leverage and turnover ratios with special emphasis on debt as a double-edged sword; analysis of Armtek Auto’s financial performance over a period of 10 years.

Teaching Notes are available for educators only.

CSS 1: Accounting and Finance.