Asian Journal of Management Cases, Ahead of Print.
The case is about the turnaround story of Palash Logistics, a third-party logistics company providing delivery solutions to one of India’s biggest online retail companies. It discusses the genesis of Palash Logistics, its problems and how it finally emerged to become one of the strongest players in the region in its segment. The case tries to present and discuss the importance of building trust between the employer and the employee, which ultimately leads to an exceptional organizational work culture. Besides this, the case also tries to highlight the significance of the role of an external management consultant who was brought into the system and how he made a successful turnaround by pulling Palash Logistics out of deep troubles and converting it into not only a successful and profitable company but also a formidable player in its segment in various states of North India.
Category Archives: Asian Journal of Management Cases
Vikaspur Knowledge Centre: Micro-Politics in a Community-Based Organization
Asian Journal of Management Cases, Ahead of Print.
The knowledge centres (KC) established by Development Research Foundation (DRF) were part of an ambitious project to disseminate valuable information to the rural masses. The KCs purpose was to bridge the digital divide, which was supposed to be run by the local community. The Vikaspur KC initiative had a lot of potentials, but due to local politics and conflict among a few stakeholders, it faced many problems. The differences among the volunteers were the core issues that ultimately led to the lockout of the KC. There was a lack of proper managerial structure at the ground level. The local village dynamics also influenced this issue. The political structures and dynamics also influenced the conflict at the Vikaspur KC at the micro-level (village level) and the meso-level (provincial level).
The knowledge centres (KC) established by Development Research Foundation (DRF) were part of an ambitious project to disseminate valuable information to the rural masses. The KCs purpose was to bridge the digital divide, which was supposed to be run by the local community. The Vikaspur KC initiative had a lot of potentials, but due to local politics and conflict among a few stakeholders, it faced many problems. The differences among the volunteers were the core issues that ultimately led to the lockout of the KC. There was a lack of proper managerial structure at the ground level. The local village dynamics also influenced this issue. The political structures and dynamics also influenced the conflict at the Vikaspur KC at the micro-level (village level) and the meso-level (provincial level).
Burger King India IPO: Investment Dilemma
Asian Journal of Management Cases, Ahead of Print.
Burger King India (BKI), a master franchisee of the leading global quick service restaurant (QSR) chain Burger King US, filed its red herring prospectus (RHP) on 5 November 2019, with the Securities Exchange Board of India (SEBI) expressing its interest in going public. BKI was a major franchise of a multinational QSR, and its going public in India showed the confidence that large global QSRs had in the Indian markets. Despite the volatility caused by the global COVID-19 pandemic, BKI launched its IPO on 2 December 2020. The case study captures the complexity and challenges faced by the growing Indian QSR market and its diverse players and provides information for industry analysis. The case also provides strategic and financial information along with initial public offer (IPO) information to assess BKI’s performance and debate whether the price set is appropriate given that BKI was a loss-making firm and the uncertainty surrounding the pandemic continued.
Burger King India (BKI), a master franchisee of the leading global quick service restaurant (QSR) chain Burger King US, filed its red herring prospectus (RHP) on 5 November 2019, with the Securities Exchange Board of India (SEBI) expressing its interest in going public. BKI was a major franchise of a multinational QSR, and its going public in India showed the confidence that large global QSRs had in the Indian markets. Despite the volatility caused by the global COVID-19 pandemic, BKI launched its IPO on 2 December 2020. The case study captures the complexity and challenges faced by the growing Indian QSR market and its diverse players and provides information for industry analysis. The case also provides strategic and financial information along with initial public offer (IPO) information to assess BKI’s performance and debate whether the price set is appropriate given that BKI was a loss-making firm and the uncertainty surrounding the pandemic continued.
Interglobe Aviation Limited: The Valuation Conundrum
Asian Journal of Management Cases, Ahead of Print.
The case examines the valuation conundrum faced by the largest airline in terms of market share in the civil aviation industry in India. Indigo, a brand owned by Interglobe Aviation Limited, owned 47.2% of the total market share in India in 2019. The airline had done exceedingly well in terms of revenue growth. The share price also saw a meteoric rise from ₹1,000 to ₹1,800 in a short span of 4 years. Determining the intrinsic value of the airline’s share became imperative against the backdrop of the outbreak of the global COVID-19 pandemic. The global pandemic loomed large and seemed likely to disrupt the economy with a possible nationwide lockdown beginning in the last quarter of 2019–2020. All business activities were expected to come to a standstill. The airline industry was likely to be hit the worst, with economies across the globe restricting air travel (domestic and international). Valuation approaches such as discounted cash flow (DCF) technique and relative valuation multiples were employed to estimate the share’s intrinsic value. The intrinsic value was compared with the current market price to assess whether the airline stock was undervalued or overvalued. Questions on whether the airline could sustain this valuation in the future also came up. Tim Rogers, a recruit with an investment banking firm, was entrusted with the responsibility of analysing and valuing Indigo Airlines and preparing a recommendation report.
The case examines the valuation conundrum faced by the largest airline in terms of market share in the civil aviation industry in India. Indigo, a brand owned by Interglobe Aviation Limited, owned 47.2% of the total market share in India in 2019. The airline had done exceedingly well in terms of revenue growth. The share price also saw a meteoric rise from ₹1,000 to ₹1,800 in a short span of 4 years. Determining the intrinsic value of the airline’s share became imperative against the backdrop of the outbreak of the global COVID-19 pandemic. The global pandemic loomed large and seemed likely to disrupt the economy with a possible nationwide lockdown beginning in the last quarter of 2019–2020. All business activities were expected to come to a standstill. The airline industry was likely to be hit the worst, with economies across the globe restricting air travel (domestic and international). Valuation approaches such as discounted cash flow (DCF) technique and relative valuation multiples were employed to estimate the share’s intrinsic value. The intrinsic value was compared with the current market price to assess whether the airline stock was undervalued or overvalued. Questions on whether the airline could sustain this valuation in the future also came up. Tim Rogers, a recruit with an investment banking firm, was entrusted with the responsibility of analysing and valuing Indigo Airlines and preparing a recommendation report.
Maa Hotels: Rebranding and Digital Transformation
Asian Journal of Management Cases, Ahead of Print.
The Sahu family has been running the hotel business for 20 years in Odisha, India. The Indian hotel and tourism industry has drastically changed in the last few years with the introduction of the internet, online aggregators and digitally savvy young consumers. Technology has changed consumer behaviour regarding how they search for information before making a purchase decision. Sahu brothers were facing a decline in revenues and rising competition. Mr Satish, a recent MBA graduate from a premier business school, was fully aware of the changing marketing dynamics and the importance of online presence. He shared his learnings about digital marketing with the family and convinced the family to start the digital transformation of their business.The Sahu family first decided to reunite all the different hotels under one umbrella brand of Maa Hotels (the word Maa in Hindi means mother, and the family decided to use the name in reference to the famous Goddess Maa Tarini in Odisha). The family used many components of the digital marketing strategy, including search engine marketing, website creation, social media marketing and content strategy. Satish had to analyse and evaluate the first phase of digital marketing and decide on the next course of action to continue with the transformation journey. Moreover, he had to convince the family to continue investing in digital marketing, and for that, he had to prove that his continuous efforts were needed to increase revenues in the short and long term.
The Sahu family has been running the hotel business for 20 years in Odisha, India. The Indian hotel and tourism industry has drastically changed in the last few years with the introduction of the internet, online aggregators and digitally savvy young consumers. Technology has changed consumer behaviour regarding how they search for information before making a purchase decision. Sahu brothers were facing a decline in revenues and rising competition. Mr Satish, a recent MBA graduate from a premier business school, was fully aware of the changing marketing dynamics and the importance of online presence. He shared his learnings about digital marketing with the family and convinced the family to start the digital transformation of their business.The Sahu family first decided to reunite all the different hotels under one umbrella brand of Maa Hotels (the word Maa in Hindi means mother, and the family decided to use the name in reference to the famous Goddess Maa Tarini in Odisha). The family used many components of the digital marketing strategy, including search engine marketing, website creation, social media marketing and content strategy. Satish had to analyse and evaluate the first phase of digital marketing and decide on the next course of action to continue with the transformation journey. Moreover, he had to convince the family to continue investing in digital marketing, and for that, he had to prove that his continuous efforts were needed to increase revenues in the short and long term.
THDC India Ltd.—Performance Management System
Asian Journal of Management Cases, Ahead of Print.
The case is based on the current performance management system (PMS) followed by THDC India Ltd. (THDCIL). It intends to provide inputs about the importance of sound and objective performance management as a key HR subsystem that helps in planning, measuring and integrating performance, contributing towards organizational and business objectives, and developing a collaborative organizational culture. The case portrays an incident of performance review grievance between a superior (Mr Ajay Kumar) and a subordinate (Mr Prashant Kumar) and shows an organization’s struggle to handle an inefficient performance planning claim by a subordinate. Despite creating a clear mandate and SMART (specific, measurable, attainable, realistic and timely) PMS goals, the HR team and employees are continuously showing resistance to discuss and develop SMART KRAs and KPIs collaboratively. It further talks about the issues in the performance planning process regarding goal setting, providing regular feedback and managing performance effectively while actively engaging employees. It also states how an incident about the unsatisfactory appraisal rating of Mr Prashant Kumar led to organizational chaos and employee dissatisfaction. It further provides insights into managing an aggrieved manager using performance review discussion and coaching. It also intends to give students an insight into the different steps in designing and modifying performance management to suit business requirements.The case may help students appreciate the different roles played by HR, such as employee champion, administrative expert, strategic partner and change agent for aligning and achieving individual, team and organizational goals and objectives. They would also gain knowledge and skills to understand the role of HR in designing, executing and managing the PMS by analysing a real-life situation.
The case is based on the current performance management system (PMS) followed by THDC India Ltd. (THDCIL). It intends to provide inputs about the importance of sound and objective performance management as a key HR subsystem that helps in planning, measuring and integrating performance, contributing towards organizational and business objectives, and developing a collaborative organizational culture. The case portrays an incident of performance review grievance between a superior (Mr Ajay Kumar) and a subordinate (Mr Prashant Kumar) and shows an organization’s struggle to handle an inefficient performance planning claim by a subordinate. Despite creating a clear mandate and SMART (specific, measurable, attainable, realistic and timely) PMS goals, the HR team and employees are continuously showing resistance to discuss and develop SMART KRAs and KPIs collaboratively. It further talks about the issues in the performance planning process regarding goal setting, providing regular feedback and managing performance effectively while actively engaging employees. It also states how an incident about the unsatisfactory appraisal rating of Mr Prashant Kumar led to organizational chaos and employee dissatisfaction. It further provides insights into managing an aggrieved manager using performance review discussion and coaching. It also intends to give students an insight into the different steps in designing and modifying performance management to suit business requirements.The case may help students appreciate the different roles played by HR, such as employee champion, administrative expert, strategic partner and change agent for aligning and achieving individual, team and organizational goals and objectives. They would also gain knowledge and skills to understand the role of HR in designing, executing and managing the PMS by analysing a real-life situation.
Nykaa: A Keen Contest in Beauty Products Retailing
Asian Journal of Management Cases, Ahead of Print.
In 2019, Nykaa was recognized as India’s undisputed beauty product sales queen. Since its inception in 2012 as a niche e-commerce website, Nykaa has evolved rapidly. By 2019, Nykaa opened its 50th retail store, with plans for another 150; it had expanded into new customer segments (salon owners and men) and forged new partnerships (e.g. with Bollywood celebrities). In a manner reminiscent of a judo player, Nykaa had outmanoeuvred much larger sellers, such as Amazon, and was close to a one-billion-dollar valuation by the end of 2019. Nykaa now faced an even more exciting set of opportunities and challenges. Nykaa’s recent decision to ramp up a new business-fashion faced scepticism. Sceptics questioned whether Nykaa’s omnichannel model could work in India’s fiercely contested fashion market in 2019. Nykaa also faced a growing challenge in its core market from purplle.com—an online marketplace for beauty products. While tracing the causes for Nykaa’s success in the beauty market, the case highlights the need for senior management to re-evaluate and evolve the company’s strategy.
In 2019, Nykaa was recognized as India’s undisputed beauty product sales queen. Since its inception in 2012 as a niche e-commerce website, Nykaa has evolved rapidly. By 2019, Nykaa opened its 50th retail store, with plans for another 150; it had expanded into new customer segments (salon owners and men) and forged new partnerships (e.g. with Bollywood celebrities). In a manner reminiscent of a judo player, Nykaa had outmanoeuvred much larger sellers, such as Amazon, and was close to a one-billion-dollar valuation by the end of 2019. Nykaa now faced an even more exciting set of opportunities and challenges. Nykaa’s recent decision to ramp up a new business-fashion faced scepticism. Sceptics questioned whether Nykaa’s omnichannel model could work in India’s fiercely contested fashion market in 2019. Nykaa also faced a growing challenge in its core market from purplle.com—an online marketplace for beauty products. While tracing the causes for Nykaa’s success in the beauty market, the case highlights the need for senior management to re-evaluate and evolve the company’s strategy.
Swadisth Company Pvt Ltd: A Survival Plan during COVID-19
Asian Journal of Management Cases, Ahead of Print.
The case highlights a problem faced by Swadisth: a confectionary manufacturing firm. The company could barely sell its products through the traditional distribution network during the nationwide lockdown due to COVID-19. In just 30 days, there was a 90% decline in sales. The manufacturing plants closed, the workers were sitting idle and the costs associated with inventory, workforce and machinery were piling up. The people were not leaving their houses because of the government guidelines and relied on online platforms for purchases. Many competitors shifted their businesses online, and the rest were planning to launch soon. It was time for Swadisth to quickly respond to the market changes to survive the pandemic. Previously, Swadisth distributed its products through a network of manufacturing plants, distributors and retailers located in multiple places. Entry into e-commerce would require changing their supply chain structure and distribution strategies. For this purpose, Mr Keshav Rao (Chief Operating Officer) was tasked to evaluate alternative distribution strategies and present a report to Mr Chaudhary (Managing Director).
The case highlights a problem faced by Swadisth: a confectionary manufacturing firm. The company could barely sell its products through the traditional distribution network during the nationwide lockdown due to COVID-19. In just 30 days, there was a 90% decline in sales. The manufacturing plants closed, the workers were sitting idle and the costs associated with inventory, workforce and machinery were piling up. The people were not leaving their houses because of the government guidelines and relied on online platforms for purchases. Many competitors shifted their businesses online, and the rest were planning to launch soon. It was time for Swadisth to quickly respond to the market changes to survive the pandemic. Previously, Swadisth distributed its products through a network of manufacturing plants, distributors and retailers located in multiple places. Entry into e-commerce would require changing their supply chain structure and distribution strategies. For this purpose, Mr Keshav Rao (Chief Operating Officer) was tasked to evaluate alternative distribution strategies and present a report to Mr Chaudhary (Managing Director).
MTR Foods—Redesigning Brand Identity and Brand Architecture
Asian Journal of Management Cases, Ahead of Print.
MTR brand has a rich legacy of nearly 90 years in the Indian packaged food space, focusing on spices and ready-to-cook/ready-to-eat meals. It was a much loved and revered brand which stood for authenticity and high adherence to quality. Over the years, the target segment of the brand evolved. The new Indian woman went from being a ‘passive supporter’ of the family to a ‘discerning homemake’. She aspired for newness and modernity while guarding authentic cuisines and traditions. MTR wanted to associate itself with this ‘new evolved’ homemaker. While retaining the brand’s authentic core was essential, it was also important to represent the brand as one in tune with evolving tastes. The marketing team needed to figure out what the new brand identity of MTR should be. How best the brand could support the consumer in her different roles? How the brand portfolio could be organized to provide maximum value and how the new identity could be visually represented across its packaging?
MTR brand has a rich legacy of nearly 90 years in the Indian packaged food space, focusing on spices and ready-to-cook/ready-to-eat meals. It was a much loved and revered brand which stood for authenticity and high adherence to quality. Over the years, the target segment of the brand evolved. The new Indian woman went from being a ‘passive supporter’ of the family to a ‘discerning homemake’. She aspired for newness and modernity while guarding authentic cuisines and traditions. MTR wanted to associate itself with this ‘new evolved’ homemaker. While retaining the brand’s authentic core was essential, it was also important to represent the brand as one in tune with evolving tastes. The marketing team needed to figure out what the new brand identity of MTR should be. How best the brand could support the consumer in her different roles? How the brand portfolio could be organized to provide maximum value and how the new identity could be visually represented across its packaging?
Unnao Tanneries Limited: Post COVID Business Strategy
Asian Journal of Management Cases, Ahead of Print.
Unnao Tanneries Limited (UTL), formerly known as Monir Leather Works, was set up in the 1980s and has been a family-owned business for over four decades. The primary activity of UTL in the initial years was leather jackets and purses. It sold its products under the brand name Brown Cliff. It shifted its manufacturing units from Kanpur to the nearby town of Unnao to cut costs and increase capacity in 1990. It later expanded its product range to primarily include leather footwear, targeting the menswear market. It became one of the top players in the northern part of the country with a proper business strategy. The footwear segment was growing rapidly and profitably for UTL. The business was smooth for almost four decades with minor hiccups until the government imposed a ban on its functioning due to a sparse wastewater disposal system in May 2019. The initial ban was prolonged further due to the COVID-19 pandemic in the country in March 2020. As a result, UTL suffered a significant loss in sales and clients. Reviving demand for the products after the easing of partial lockdown in the country was a daunting task. UTL became a contractual manufacturer for CONTE to utilize its idle resources and reduce its financial burden. Later, UTL got an offer from Batla Leather Products Limited (BLPL) to become its contract manufacturer. BLPL was one of the top players in the national and international market and it was looked for facilities to quickly scale up its operations. This case allows the readers to put themselves in Mr Sadiq Monir’s shoes and analyse an unforeseen business situation. The choice between short-term profits and sustainability versus long-term growth of the family brand Brown Cliff had to be made. The case gives several macro and micro factors supporting the choices and the decision to be made. The decision dilemma has two facets—to gain expertise in improving operations and to have a steady flow of income for the next 2–3 years versus risking the loss of independence and dilution of the family brand Brown Cliff.
Unnao Tanneries Limited (UTL), formerly known as Monir Leather Works, was set up in the 1980s and has been a family-owned business for over four decades. The primary activity of UTL in the initial years was leather jackets and purses. It sold its products under the brand name Brown Cliff. It shifted its manufacturing units from Kanpur to the nearby town of Unnao to cut costs and increase capacity in 1990. It later expanded its product range to primarily include leather footwear, targeting the menswear market. It became one of the top players in the northern part of the country with a proper business strategy. The footwear segment was growing rapidly and profitably for UTL. The business was smooth for almost four decades with minor hiccups until the government imposed a ban on its functioning due to a sparse wastewater disposal system in May 2019. The initial ban was prolonged further due to the COVID-19 pandemic in the country in March 2020. As a result, UTL suffered a significant loss in sales and clients. Reviving demand for the products after the easing of partial lockdown in the country was a daunting task. UTL became a contractual manufacturer for CONTE to utilize its idle resources and reduce its financial burden. Later, UTL got an offer from Batla Leather Products Limited (BLPL) to become its contract manufacturer. BLPL was one of the top players in the national and international market and it was looked for facilities to quickly scale up its operations. This case allows the readers to put themselves in Mr Sadiq Monir’s shoes and analyse an unforeseen business situation. The choice between short-term profits and sustainability versus long-term growth of the family brand Brown Cliff had to be made. The case gives several macro and micro factors supporting the choices and the decision to be made. The decision dilemma has two facets—to gain expertise in improving operations and to have a steady flow of income for the next 2–3 years versus risking the loss of independence and dilution of the family brand Brown Cliff.