Asian Journal of Management Cases, Volume 21, Issue 1, Page 7-9, March 2024.
Category Archives: Asian Journal of Management Cases
Paytm: Lack of a Cogent IPO Story?*
Asian Journal of Management Cases, Ahead of Print.
On 18 November 2021, Paytm, India’s leading digital payments and financial services company, went public, but its shares were listed at a surprising 9% discount from the initial price. This underperformance of Paytm’s highly anticipated ₹183 billion IPO, the largest in India, stunned the market despite the BSE Sensex index hitting an all-time high in October 2021 with a 50% increase over the previous year. While other unicorns like Zomato (thirty-eight times oversubscribed) and Nykaa (nearly eighty-two times oversubscribed) saw tremendous success in the capital market, Paytm struggled on the stock exchange. This raised questions about why a prominent brand with 3.33 billion customers could not effectively engage with stakeholders and failed to excite investors as Zomato and Nykaa did. Raghavendra Das, a communications consultant seeking to work with Paytm, assessed the company’s communication strategy and shared insights with MD and CEO Vijay Shekhar Sharma. The big question now is, what steps should Paytm and Sharma take next?
On 18 November 2021, Paytm, India’s leading digital payments and financial services company, went public, but its shares were listed at a surprising 9% discount from the initial price. This underperformance of Paytm’s highly anticipated ₹183 billion IPO, the largest in India, stunned the market despite the BSE Sensex index hitting an all-time high in October 2021 with a 50% increase over the previous year. While other unicorns like Zomato (thirty-eight times oversubscribed) and Nykaa (nearly eighty-two times oversubscribed) saw tremendous success in the capital market, Paytm struggled on the stock exchange. This raised questions about why a prominent brand with 3.33 billion customers could not effectively engage with stakeholders and failed to excite investors as Zomato and Nykaa did. Raghavendra Das, a communications consultant seeking to work with Paytm, assessed the company’s communication strategy and shared insights with MD and CEO Vijay Shekhar Sharma. The big question now is, what steps should Paytm and Sharma take next?
Globate 360 Solutions: Test on the Wheels
Asian Journal of Management Cases, Ahead of Print.
Rohit Prashar, director of Globate 360 Solutions Private Limited, a Chandigarh-based third-party logistics company with a global presence, faced a pivotal challenge on 25 August 2020. He secured a project to transport 200 consignments of crucial medical equipment for COVID testing machines to multiple locations in north-eastern states, Kashmir and Leh, India. This project was awarded by a US-based freight forwarding company authorized by The Indian Council of Medical Research. It was a prestigious achievement, hard-won through extensive negotiations during the national lockdown. However, he knew that the real battle had just begun. The stringent government restrictions during the COVID-19 lockdown added complexity. The consignments had to be transported delicately to maintain the testing equipment’s accuracy, necessitating minimal jolts. Deciding between air and road transport posed another challenge. Furthermore, he grappled with the choice between a multinational company with a premium price tag and a regional player with more budget-friendly options. Securing skilled labour was an ongoing concern. In this predicament, he sought cost-effective solutions for each shipment, strategizing to minimize costs while delivering top-notch service to his clients.
Rohit Prashar, director of Globate 360 Solutions Private Limited, a Chandigarh-based third-party logistics company with a global presence, faced a pivotal challenge on 25 August 2020. He secured a project to transport 200 consignments of crucial medical equipment for COVID testing machines to multiple locations in north-eastern states, Kashmir and Leh, India. This project was awarded by a US-based freight forwarding company authorized by The Indian Council of Medical Research. It was a prestigious achievement, hard-won through extensive negotiations during the national lockdown. However, he knew that the real battle had just begun. The stringent government restrictions during the COVID-19 lockdown added complexity. The consignments had to be transported delicately to maintain the testing equipment’s accuracy, necessitating minimal jolts. Deciding between air and road transport posed another challenge. Furthermore, he grappled with the choice between a multinational company with a premium price tag and a regional player with more budget-friendly options. Securing skilled labour was an ongoing concern. In this predicament, he sought cost-effective solutions for each shipment, strategizing to minimize costs while delivering top-notch service to his clients.
Is Micro-warehousing a Solution to Agricultural Commodity Storage?
Asian Journal of Management Cases, Ahead of Print.
Addressing food security is a critical priority for development, particularly in India, where crop productivity is low and post-harvest losses reach 35%–40%, which is a considerable burden. One significant reason for these losses is the lack of storage facilities, especially in rural areas of Bihar. Micro-warehouse (MWH) company, recognizing this issue, took the initiative of introducing micro-warehouses as a solution. They focused on dealing with three commodities: paddy, maize and wheat, and also facilitated the connection between processors and farmers for selling their produce. This approach of micro-warehousing gained attention from investors, leading to funding for scaling up operations. The success of MWH company raises an important question: Can micro-warehousing be a viable strategy to address agriculture storage challenges in India? The founder of the company, considering this achievement, now contemplates expanding the business to other states.
Addressing food security is a critical priority for development, particularly in India, where crop productivity is low and post-harvest losses reach 35%–40%, which is a considerable burden. One significant reason for these losses is the lack of storage facilities, especially in rural areas of Bihar. Micro-warehouse (MWH) company, recognizing this issue, took the initiative of introducing micro-warehouses as a solution. They focused on dealing with three commodities: paddy, maize and wheat, and also facilitated the connection between processors and farmers for selling their produce. This approach of micro-warehousing gained attention from investors, leading to funding for scaling up operations. The success of MWH company raises an important question: Can micro-warehousing be a viable strategy to address agriculture storage challenges in India? The founder of the company, considering this achievement, now contemplates expanding the business to other states.
Road Ahead: Post Collapse of Punjab and Maharashtra Cooperative Bank
Asian Journal of Management Cases, Ahead of Print.
This case is about challenges faced by the depositors and the entire banking system following the collapse of the Punjab and Maharashtra Cooperative Bank. The Deposit Insurance and Credit Guarantee Corporation insured the bank deposits, and the earlier deposit insurance coverage was $74 million, which was increased to $370 million in the Union Budget of 2020. This increase was attributed to the collapse of the Punjab and Maharashtra Cooperative Bank, where 0.3 million people lost their money.
This case is about challenges faced by the depositors and the entire banking system following the collapse of the Punjab and Maharashtra Cooperative Bank. The Deposit Insurance and Credit Guarantee Corporation insured the bank deposits, and the earlier deposit insurance coverage was $74 million, which was increased to $370 million in the Union Budget of 2020. This increase was attributed to the collapse of the Punjab and Maharashtra Cooperative Bank, where 0.3 million people lost their money.
Team Member’s Promotion: Injustice or Promotion in Haste?
Asian Journal of Management Cases, Ahead of Print.
This case illustrates the importance of organizational justice, interpersonal skills and the importance of having a fair and transparent promotion policy for its employees. It also emphasizes the need to have proper employee retention and promotion plans.The case is about the lack of the team members’ confidence in their new boss Navin who was amongst them till a few months ago. It discusses how Navin, the newly promoted area sales manager from the sales manager position, cannot handle his team effectively. He was promoted as a retention tool so that he does not quit after he tendered his resignation to join the competitor’s organization. His boss Stephen had found him good in his present job and decided to retain him, knowing little about its repercussions. He also did not judge the suitability and ability of Navin to lead a team. After Navin’s promotion, his colleagues found that he had developed a superiority complex and did not behave properly with them. All this led to a lot of disharmony and resentment amongst the team members leading to dysfunctional consequences.
This case illustrates the importance of organizational justice, interpersonal skills and the importance of having a fair and transparent promotion policy for its employees. It also emphasizes the need to have proper employee retention and promotion plans.The case is about the lack of the team members’ confidence in their new boss Navin who was amongst them till a few months ago. It discusses how Navin, the newly promoted area sales manager from the sales manager position, cannot handle his team effectively. He was promoted as a retention tool so that he does not quit after he tendered his resignation to join the competitor’s organization. His boss Stephen had found him good in his present job and decided to retain him, knowing little about its repercussions. He also did not judge the suitability and ability of Navin to lead a team. After Navin’s promotion, his colleagues found that he had developed a superiority complex and did not behave properly with them. All this led to a lot of disharmony and resentment amongst the team members leading to dysfunctional consequences.
The Decision Dilemma: Disinvestment or Turnaround?
Asian Journal of Management Cases, Ahead of Print.
The case describes the journey of one of the most ambitious public sector undertakings, Heavy Engineering Corporation Limited (HECL), in the earlier unified state of Bihar, India. Despite being a leading manufacturer and supplier of capital equipment and experiencing growth in the initial years, the company incurred losses for over 17 consecutive years. In the year 2006–2007, the company briefly bounced back to profits, but those revival hopes faded within five years, leaving the company in dire need of an immediate strategic rethink and a complete overhaul. This case specifically focuses on the problems and challenges faced by the cash-strapped public sector enterprise, HECL. It addresses issues such as its negative net worth, the rising wage and incentive bills of its employees, declining product competitiveness at the global level and other persistent financial difficulties and bureaucratic hurdles that created inflexibilities in decision-making. The need for agile and lean management approaches that could increase overall organizational performance, efficiency and value deliverables was also explored.
The case describes the journey of one of the most ambitious public sector undertakings, Heavy Engineering Corporation Limited (HECL), in the earlier unified state of Bihar, India. Despite being a leading manufacturer and supplier of capital equipment and experiencing growth in the initial years, the company incurred losses for over 17 consecutive years. In the year 2006–2007, the company briefly bounced back to profits, but those revival hopes faded within five years, leaving the company in dire need of an immediate strategic rethink and a complete overhaul. This case specifically focuses on the problems and challenges faced by the cash-strapped public sector enterprise, HECL. It addresses issues such as its negative net worth, the rising wage and incentive bills of its employees, declining product competitiveness at the global level and other persistent financial difficulties and bureaucratic hurdles that created inflexibilities in decision-making. The need for agile and lean management approaches that could increase overall organizational performance, efficiency and value deliverables was also explored.
To Kill a Mockingbird: Bentham and Locke in Gambat, Pakistan
Asian Journal of Management Cases, Ahead of Print.
Set in a rural, tribal district of Pakistan in the 1990s, this case examines the tension between utilitarian and libertarian principles faced by public administrators in their everyday work. The settlement of a bloody tribal feud hinged upon returning a young girl who had recently married a man from another tribe to her parents. Ahsan, the area administrator, must decide whether to forcibly return the girl to her tribe for immediate remarriage or to let her go with her husband. His dilemmas differ from those that the senior officials face, and this divergence is at the root of the failure to control the feud administratively. To comply with orders and pursue a career, public officials, in this case, their personal kindness notwithstanding, adopt strategies that have extreme consequences for citizens. Evil is more banal than we think.
Set in a rural, tribal district of Pakistan in the 1990s, this case examines the tension between utilitarian and libertarian principles faced by public administrators in their everyday work. The settlement of a bloody tribal feud hinged upon returning a young girl who had recently married a man from another tribe to her parents. Ahsan, the area administrator, must decide whether to forcibly return the girl to her tribe for immediate remarriage or to let her go with her husband. His dilemmas differ from those that the senior officials face, and this divergence is at the root of the failure to control the feud administratively. To comply with orders and pursue a career, public officials, in this case, their personal kindness notwithstanding, adopt strategies that have extreme consequences for citizens. Evil is more banal than we think.
A Business Acquisition Case on Jollibee Foods Corporation’s Purchase of Mang Inasal
Asian Journal of Management Cases, Ahead of Print.
This case is about the largest quick-service restaurant (QSR) conglomerate in the Philippines, Jollibee Foods Corporation (JFC), acquiring its fastest growing competitor Mang Inasal (MI). At a time when MI was on its best trajectory toward expansion and financial growth, its CEO, Edgar Sia, sold 70% of the company to the market leader for P3 billion in 2010 and the remaining 30% of the stake for P2 billion in 2016—whopping amounts which, in the eyes of JFC Management, were reasonable enough to fully acquire a highly prized company. Organizing information drawn from public sources, the author wrote this case to encourage intellectual discourse among students and professors of business as they critically analyse the acquisition decision, both from the standpoint of MI and JFC.
This case is about the largest quick-service restaurant (QSR) conglomerate in the Philippines, Jollibee Foods Corporation (JFC), acquiring its fastest growing competitor Mang Inasal (MI). At a time when MI was on its best trajectory toward expansion and financial growth, its CEO, Edgar Sia, sold 70% of the company to the market leader for P3 billion in 2010 and the remaining 30% of the stake for P2 billion in 2016—whopping amounts which, in the eyes of JFC Management, were reasonable enough to fully acquire a highly prized company. Organizing information drawn from public sources, the author wrote this case to encourage intellectual discourse among students and professors of business as they critically analyse the acquisition decision, both from the standpoint of MI and JFC.
VRL Logistics Limited: Investment Dilemma Amidst the Global Pandemic
Asian Journal of Management Cases, Ahead of Print.
The case examined the investment dilemma faced by the portfolio manager Mr Thomas George of a leading wealth management company regarding investments in VRL Logistics Limited, a leading logistics company in India. As part of the portfolio evaluation and rebalancing exercise, the portfolio manager had to take a call on whether to retain VRL Logistics Limited in the portfolio or exit the stock. The share price had seen a drastic increase from ₹161.55 to ₹282 at the time of reviewing the portfolio. The logistics sector was one of the major sectors affected due to the lockdown announced by the Government on account of the global pandemic. With the imminent threat of multiple waves and lockdowns, determining the intrinsic value amidst the global pandemic poses a challenge to the portfolio manager. The case employed different methods of valuation, such as discounted cash flow and relative valuation, to arrive at the fair value of the stock. The case also discussed incorporating ‘risk’ in the valuation exercise by performing a sensitivity analysis of key variables.
The case examined the investment dilemma faced by the portfolio manager Mr Thomas George of a leading wealth management company regarding investments in VRL Logistics Limited, a leading logistics company in India. As part of the portfolio evaluation and rebalancing exercise, the portfolio manager had to take a call on whether to retain VRL Logistics Limited in the portfolio or exit the stock. The share price had seen a drastic increase from ₹161.55 to ₹282 at the time of reviewing the portfolio. The logistics sector was one of the major sectors affected due to the lockdown announced by the Government on account of the global pandemic. With the imminent threat of multiple waves and lockdowns, determining the intrinsic value amidst the global pandemic poses a challenge to the portfolio manager. The case employed different methods of valuation, such as discounted cash flow and relative valuation, to arrive at the fair value of the stock. The case also discussed incorporating ‘risk’ in the valuation exercise by performing a sensitivity analysis of key variables.