Asian Journal of Management Cases, Ahead of Print.
On 9 September 2020, after finishing one of his lectures on franchising, Professor Dani reflected upon his own experience of a food franchisee business that he had started in 2015 in Hyderabad, India. He returned to his hometown of Hyderabad after working for close to 4 years with Symbiosis International University, Pune. On one evening in December 2014, Professor Dani went shopping with his wife; while returning, he saw a catchy advertising billboard of Mumbo King Vada Pav in the Narayanguda area of Hyderabad. Being Maharashtrians, Mr and Mrs Dani wanted to test the taste of vada pav, which is extremely popular, especially in India’s financial capital, Mumbai, and adjoining regions. Their gastronomical experience was surprisingly pleasant; thus, on reaching home, the couple deliberated upon the viability of setting up a vada pav franchise outlet. Professor Dani thought he had identified a niche market that could be catered to; therefore, he set out to explore diverse vada pav franchises and finally shortlisted Mumbo King Vada Pav, of which he had a pleasant gastronomical experience a few weeks back. Shortly, Professor Dani began his venture-SMB Foods; however, hardly within a span of 15 months, he was in a dilemma on whether he should continue the business or close its operations.
Category Archives: Asian Journal of Management Cases
Rural Sales Force Retention: Dilemma of Accurate Adhesives
Asian Journal of Management Cases, Ahead of Print.
Sudeep was the sales development manager for the rural business unit of an FMCG company Accurate Adhesive Ltd. in West Bengal. The company had been plagued with a high level of attrition in its workforce. Sudeep had a big presentation coming up in the next week. He was due to present the concerns of the field sales force, benchmarking with the best practices and motivational tools needed for incremental and sustainable business practices to a team from top management. He was specially chosen for this as his immediate superior believed that Sudeep had a better insight into the field sales force. This was due to his role during his management trainee days. During the training, he experienced the life of a frontal sales force and realized the persistence and agility required of the sales force. The top management had been quite worried about the high attrition (>20%) problem in the rural areas where the company had a presence. The business loss is considerable with such a staffing gap within the field force territories. Market coverage and other business parameters such as issue resolution, product awareness & service levels also suffer. This becomes an easy breeding ground for the competition to move in. This problem of high attrition needs to be addressed at the grass root level. Can technology be the solution? Alternatively, there is a need for some other management initiatives.
Sudeep was the sales development manager for the rural business unit of an FMCG company Accurate Adhesive Ltd. in West Bengal. The company had been plagued with a high level of attrition in its workforce. Sudeep had a big presentation coming up in the next week. He was due to present the concerns of the field sales force, benchmarking with the best practices and motivational tools needed for incremental and sustainable business practices to a team from top management. He was specially chosen for this as his immediate superior believed that Sudeep had a better insight into the field sales force. This was due to his role during his management trainee days. During the training, he experienced the life of a frontal sales force and realized the persistence and agility required of the sales force. The top management had been quite worried about the high attrition (>20%) problem in the rural areas where the company had a presence. The business loss is considerable with such a staffing gap within the field force territories. Market coverage and other business parameters such as issue resolution, product awareness & service levels also suffer. This becomes an easy breeding ground for the competition to move in. This problem of high attrition needs to be addressed at the grass root level. Can technology be the solution? Alternatively, there is a need for some other management initiatives.
Financial Statement Analysis: Case Study of Apar Industries
Asian Journal of Management Cases, Ahead of Print.
The case study is focused on the financial statement analysis of Apar Industries, one of the leading corporations working in electrical and metallurgical engineering at home and in foreign markets. This is a teaching case that aims to teach early-stage business and commerce students how to assess a real company’s performance and financial condition through ratio analysis using published secondary data. The interpretation strategy uses both internal and external (industry comparison) methods in order to assess the financial health of Apar Industries in a better and more holistic manner.
The case study is focused on the financial statement analysis of Apar Industries, one of the leading corporations working in electrical and metallurgical engineering at home and in foreign markets. This is a teaching case that aims to teach early-stage business and commerce students how to assess a real company’s performance and financial condition through ratio analysis using published secondary data. The interpretation strategy uses both internal and external (industry comparison) methods in order to assess the financial health of Apar Industries in a better and more holistic manner.
Food Corporation of India: Making Public Procurement More Inclusive and Efficient
Asian Journal of Management Cases, Ahead of Print.
This case concerns the issue of enhancing the inclusivity and efficiency of public procurement operations undertaken by the Food Corporation of India (FCI) in Uttar Pradesh. The FCI was the premier central government agency entrusted with efficient management of minimum support price (MSP)-based public procurement operations, maintenance of buffer stocks for ensuring food security and assisting states in operating their public distribution systems.The Uttar Pradesh region came under the north zone of the FCI. Mr Girish Kumar, General Manager of Uttar Pradesh region of the FCI, was exploring ways to make procurement operations inclusive and efficient. Girish received feedback from a brainstorming session of the procurement team in which recommendations of a recently conducted concurrent evaluation study of public procurement in Uttar Pradesh were discussed. He wanted to amalgamate his domain knowledge with insights from the concurrent evaluation study for an actionable plan to design a more inclusive and efficient MSP-based public procurement system.
This case concerns the issue of enhancing the inclusivity and efficiency of public procurement operations undertaken by the Food Corporation of India (FCI) in Uttar Pradesh. The FCI was the premier central government agency entrusted with efficient management of minimum support price (MSP)-based public procurement operations, maintenance of buffer stocks for ensuring food security and assisting states in operating their public distribution systems.The Uttar Pradesh region came under the north zone of the FCI. Mr Girish Kumar, General Manager of Uttar Pradesh region of the FCI, was exploring ways to make procurement operations inclusive and efficient. Girish received feedback from a brainstorming session of the procurement team in which recommendations of a recently conducted concurrent evaluation study of public procurement in Uttar Pradesh were discussed. He wanted to amalgamate his domain knowledge with insights from the concurrent evaluation study for an actionable plan to design a more inclusive and efficient MSP-based public procurement system.
Communication Fiasco: Setting It Right
Asian Journal of Management Cases, Ahead of Print.
After completing their daughter’s wedding ceremonies, Mala and Ravi decide to take their guests out to dinner. Mala pre-booked this get-together at Hotel Manor Residency. Mala made this booking via phone in a conversation with Kuldeep. On reaching the venue, they were informed that there is no such booking for dinner. Brushing the oversight aside, Mala and her guests settled for dinner as it had been pre-ordered. However, to the hosts’ dismay, the steward seemed to have no clue about the order. Ravi got furious at the oversight and decided to leave with his guests without having dinner. So, he wrote to the General Manager Anitha expressing his utter disappointment at how the situation had unfolded. Upon receiving the email from Dr Ravi, Anita is in a dilemma on how to tackle the situation and respond to the complaint.
After completing their daughter’s wedding ceremonies, Mala and Ravi decide to take their guests out to dinner. Mala pre-booked this get-together at Hotel Manor Residency. Mala made this booking via phone in a conversation with Kuldeep. On reaching the venue, they were informed that there is no such booking for dinner. Brushing the oversight aside, Mala and her guests settled for dinner as it had been pre-ordered. However, to the hosts’ dismay, the steward seemed to have no clue about the order. Ravi got furious at the oversight and decided to leave with his guests without having dinner. So, he wrote to the General Manager Anitha expressing his utter disappointment at how the situation had unfolded. Upon receiving the email from Dr Ravi, Anita is in a dilemma on how to tackle the situation and respond to the complaint.
OMNI Channel: Is It Really Omni?
Asian Journal of Management Cases, Ahead of Print.
This case study is about ZARA’s transformation from conventional stores for women’s apparel brands to omnichannel concept stores to provide a seamless shopping experience inside its stores. This case is about the time when, in 2019, ZARA’s Indian subsidiary was on the verge of adapting to a new concept store model. The challenges ZARA faced in transforming its Indian stores from brick-and-mortar stores into omnichannel stores, and ZARA’s entry strategies adopted across markets and its plan to convert from the current multi-channel strategy to omnichannel stores are all elaborated on in the case.
This case study is about ZARA’s transformation from conventional stores for women’s apparel brands to omnichannel concept stores to provide a seamless shopping experience inside its stores. This case is about the time when, in 2019, ZARA’s Indian subsidiary was on the verge of adapting to a new concept store model. The challenges ZARA faced in transforming its Indian stores from brick-and-mortar stores into omnichannel stores, and ZARA’s entry strategies adopted across markets and its plan to convert from the current multi-channel strategy to omnichannel stores are all elaborated on in the case.
To Be the Tortoise or the Hare: What is Right for FreshMenu?
Asian Journal of Management Cases, Ahead of Print.
This teaching case looks at the food-tech industry in India, the cloud kitchen space, in general, and a key player in this space FreshMenu, in particular. The FreshMenu case views two competing objectives: the scalability versus profitability of an internet-run entrepreneurial firm. The firm operates in an entrepreneurial ecosystem with different dynamics than traditional businesses. The case offers a historical perspective of the food-tech industry in India, the development of the cloud kitchen space, and the latter’s pros and cons. The case focuses on the evolution of FreshMenu and its founder’s dilemma. Despite being one of the first movers in the cloud kitchen space, FreshMenu has come across as the has-been for scalability and funding. Its founder ended up pitted against her close competitors—Rebel Foods Private Limited, Innerchef and Poncho Hospitality Limited. In an entrepreneurial world, where scalability is valued more than profitability, are the founder’s fears real or mythical? As the famous fable ‘The Hare and the Tortoise’ unfolded in the mind of FreshMenu’s founder, the picture of FreshMenu’s position became clearer.
This teaching case looks at the food-tech industry in India, the cloud kitchen space, in general, and a key player in this space FreshMenu, in particular. The FreshMenu case views two competing objectives: the scalability versus profitability of an internet-run entrepreneurial firm. The firm operates in an entrepreneurial ecosystem with different dynamics than traditional businesses. The case offers a historical perspective of the food-tech industry in India, the development of the cloud kitchen space, and the latter’s pros and cons. The case focuses on the evolution of FreshMenu and its founder’s dilemma. Despite being one of the first movers in the cloud kitchen space, FreshMenu has come across as the has-been for scalability and funding. Its founder ended up pitted against her close competitors—Rebel Foods Private Limited, Innerchef and Poncho Hospitality Limited. In an entrepreneurial world, where scalability is valued more than profitability, are the founder’s fears real or mythical? As the famous fable ‘The Hare and the Tortoise’ unfolded in the mind of FreshMenu’s founder, the picture of FreshMenu’s position became clearer.
Hycons Renewable Private Limited: Viable Biogas Production from Paddy Straws: A Capital Budgeting Decision
Asian Journal of Management Cases, Ahead of Print.
The case revolves around the decision to be taken by Mr Sashikant Hegde, Managing Director, Hycons Renewable Private Ltd, on the project viability of a business proposal. The proposal was to start a manufacturing plant in Punjab to produce compressed biogas using paddy straws. Hegde firmly believed that the company would do well considering the growth of the CNG market in India, as the oil and natural gas sector in India is among the top 10 core industries in the country and plays an important role in the existence of other important sectors as well. The proposal would benefit Hycons to establish its presence in northern India, but the project viability and funding of the investment remained an unanswered question.
The case revolves around the decision to be taken by Mr Sashikant Hegde, Managing Director, Hycons Renewable Private Ltd, on the project viability of a business proposal. The proposal was to start a manufacturing plant in Punjab to produce compressed biogas using paddy straws. Hegde firmly believed that the company would do well considering the growth of the CNG market in India, as the oil and natural gas sector in India is among the top 10 core industries in the country and plays an important role in the existence of other important sectors as well. The proposal would benefit Hycons to establish its presence in northern India, but the project viability and funding of the investment remained an unanswered question.
Merger Woes: Punjab National Bank Pushed to Crossroads
Asian Journal of Management Cases, Ahead of Print.
On1 23 August 2019, the Finance Minister of India declared and cleared the way for the merger2 of 10 public sector banks into four large public sector banks (PSBs). In pursuance thereof, the Oriental Bank of Commerce (OBC) merged into Punjab National Bank (PNB). OBC held a 23% stake in Canara HSBC OBC Life Insurance Co. Ltd. (CHOIC), whereas PNB itself held a 30% stake in PNB MetLife India Insurance Co. Ltd. (PMLI) (Outlook, 2020). Thus, post-merger, PNB had two insurance businesses. Mr Mallikarjuna Rao, Managing Director & CEO, PNB, was in a fix on whether to continue with a 23% stake in Canara HSBC OBC Life Insurance or discard them. He wondered whether the two competing businesses would augur well for PNB. Should he not get out of Canara HSBC OBC Life Insurance and concentrate on PNB MetLife India Insurance or vice versa? How much cash could he raise through this disposal? Would it be right for him to dispose immediately or wait for a better valuation?3 These questions were circling in his mind. He knew that whatever decision he took, his focus had to be on improving Punjab National Bank’s profitability.
On1 23 August 2019, the Finance Minister of India declared and cleared the way for the merger2 of 10 public sector banks into four large public sector banks (PSBs). In pursuance thereof, the Oriental Bank of Commerce (OBC) merged into Punjab National Bank (PNB). OBC held a 23% stake in Canara HSBC OBC Life Insurance Co. Ltd. (CHOIC), whereas PNB itself held a 30% stake in PNB MetLife India Insurance Co. Ltd. (PMLI) (Outlook, 2020). Thus, post-merger, PNB had two insurance businesses. Mr Mallikarjuna Rao, Managing Director & CEO, PNB, was in a fix on whether to continue with a 23% stake in Canara HSBC OBC Life Insurance or discard them. He wondered whether the two competing businesses would augur well for PNB. Should he not get out of Canara HSBC OBC Life Insurance and concentrate on PNB MetLife India Insurance or vice versa? How much cash could he raise through this disposal? Would it be right for him to dispose immediately or wait for a better valuation?3 These questions were circling in his mind. He knew that whatever decision he took, his focus had to be on improving Punjab National Bank’s profitability.
TBL Myanmar: Understanding the Barriers to Sale of Dehumidifiers in Emerging Markets
Asian Journal of Management Cases, Ahead of Print.
Vipul Murarka, Executive Director of Tropical Biotechnology Ltd. (TBL), was perplexed after looking at the erratic sales of dehumidifiers over the past 3 years since he started in June 2016. Although the number of goods sold was growing until 2019, which gave a marginal increase in revenue earned, the top line was increasing at a decreasing rate, with 10% in the first year, 8% in the second year and 7% in the third year. He could not understand the reasons for these inconsistent sales despite offering quality solutions and having many satisfied clients in the past.Given the torrential rains throughout the year in Yangon, the capital of Myanmar, a dehumidifier was an essential product for factories, yet sales were not picking up as anticipated. Dehumidifiers as an industrial product aided many manufacturing units, as they helped in controlling moisture by extracting water from the air, thus reducing humidity and preventing the growth of mildew. There were myriad manufacturing companies in Yangon because of the availability of cheap labour, yet sales for certain months were flat, with not even one sales call funnelling to final action. These lull periods made Vipul anxious and forced him to think if he had entered the wrong industry. He even thought if the first-mover advantage turned into a disadvantage for him. The initial reason he speculated about this sales barrier was the price, as it was a high-investment product for industrial buyers. However, he also posited to himself that he might not have been able to position the advantages of the product aptly in the minds of the potential buyers.Unable to find a definitive reason for the sales barriers of the dehumidifiers, he approached his friend, Myint Than, an independent consultant and visiting faculty at an MBA institute where he taught sales and marketing strategy courses. Vipul and Myint had to find the reason for the barrier to the dehumidifier sales and eventually make a strategy to overcome these barriers for future growth before deciding the sales target for the year 2020.
Vipul Murarka, Executive Director of Tropical Biotechnology Ltd. (TBL), was perplexed after looking at the erratic sales of dehumidifiers over the past 3 years since he started in June 2016. Although the number of goods sold was growing until 2019, which gave a marginal increase in revenue earned, the top line was increasing at a decreasing rate, with 10% in the first year, 8% in the second year and 7% in the third year. He could not understand the reasons for these inconsistent sales despite offering quality solutions and having many satisfied clients in the past.Given the torrential rains throughout the year in Yangon, the capital of Myanmar, a dehumidifier was an essential product for factories, yet sales were not picking up as anticipated. Dehumidifiers as an industrial product aided many manufacturing units, as they helped in controlling moisture by extracting water from the air, thus reducing humidity and preventing the growth of mildew. There were myriad manufacturing companies in Yangon because of the availability of cheap labour, yet sales for certain months were flat, with not even one sales call funnelling to final action. These lull periods made Vipul anxious and forced him to think if he had entered the wrong industry. He even thought if the first-mover advantage turned into a disadvantage for him. The initial reason he speculated about this sales barrier was the price, as it was a high-investment product for industrial buyers. However, he also posited to himself that he might not have been able to position the advantages of the product aptly in the minds of the potential buyers.Unable to find a definitive reason for the sales barriers of the dehumidifiers, he approached his friend, Myint Than, an independent consultant and visiting faculty at an MBA institute where he taught sales and marketing strategy courses. Vipul and Myint had to find the reason for the barrier to the dehumidifier sales and eventually make a strategy to overcome these barriers for future growth before deciding the sales target for the year 2020.