Asian Journal of Management Cases, Volume 21, Issue 1, Page 24-38, March 2024.
M. Damodaran,1 chairman IndiGo, has a lot on his plate, and the servings are not over yet. What happened on 26 April 2019, was just a precursor to what was eventually to follow. Aditya Ghosh,2 the longstanding director of InterGlobe3 for 10 years, resigned from his position, making way for Greg Taylor4 as president and chief executive officer (CEO). Rahul Bhatia5 became the interim CEO. This, ironically, happened when the airline had bagged in traffic rights to as many as 15 countries, including France, UK and Germany. The most ill-timed dispute between the two co-founders of IndiGo, Rakesh Gangwal6 and Rahul Bhatia, which had been brewing for about a year, came out in the open on 16 July 2019, at the most inopportune moment. Rakesh Gangwal alleged violations of corporate governance rule at IndiGo7 and requested the Securities and Exchange Board of India8 (SEBI) to intervene. The feud between the founders of InterGlobe Aviation Ltd. opened a can of worms, although Gangwal was not inclined to sell or raise his stakes. Analysts wondered about the timing of the complaints to SEBI: Why now? Will IndiGo be able to come out of this predicament or follow Kingfisher and Jet Airways’ footsteps?11 Will it be yet another episode of shallow vested interests? Will this lead to the downfall of IndiGo,12 or will it survive the turbulence and keep flying like a phoenix?
Category Archives: Asian Journal of Management Cases
Value-added Activities of Venture Capitals in Entrepreneurial Finance: Evidence from the Growth of Flipkart
Asian Journal of Management Cases, Volume 21, Issue 1, Page 57-68, March 2024.
Entrepreneurial finance varies as per the startup stage, such as bootstrapping, crowdfunding, angel investors, venture capital (VC), banks and initial public offer (IPO). Many times, entrepreneurial finance comes with knowledge, experience, innovation, value, etc., in addition to the fund brought in. Venture capitals are the most common such contributors. This study illustrates some significant value-added activities by venture capital firms operating in India. It explores some evidence from venture capitals such as Tiger Global, Accel Partners and DST Global who fund Flipkart, an Indian e-commerce firm.
Entrepreneurial finance varies as per the startup stage, such as bootstrapping, crowdfunding, angel investors, venture capital (VC), banks and initial public offer (IPO). Many times, entrepreneurial finance comes with knowledge, experience, innovation, value, etc., in addition to the fund brought in. Venture capitals are the most common such contributors. This study illustrates some significant value-added activities by venture capital firms operating in India. It explores some evidence from venture capitals such as Tiger Global, Accel Partners and DST Global who fund Flipkart, an Indian e-commerce firm.
Star Footwear: Production Capacity Analysis
Asian Journal of Management Cases, Ahead of Print.
Basit Ali glanced at his watch. It was 3 p.m. on 17 March 2014, and only two hours were left before he would meet with CEO Amjad Raheem about production capacity analysis. Due to the excellent product quality of Star Footwear, the CEO was anticipating a significant increase in demand for one of its most famous articles, SF-119, in the next quarter. Historically, the demand for SF-119 fluctuated between 300 and 400 pairs per day. Although the existing production capacity was sufficient to fulfil the current demand of SF-119, the CEO was concerned about the future increase in demand that could be justified using current resources.
Basit Ali glanced at his watch. It was 3 p.m. on 17 March 2014, and only two hours were left before he would meet with CEO Amjad Raheem about production capacity analysis. Due to the excellent product quality of Star Footwear, the CEO was anticipating a significant increase in demand for one of its most famous articles, SF-119, in the next quarter. Historically, the demand for SF-119 fluctuated between 300 and 400 pairs per day. Although the existing production capacity was sufficient to fulfil the current demand of SF-119, the CEO was concerned about the future increase in demand that could be justified using current resources.
Nayatel: Quality in DNA
Asian Journal of Management Cases, Ahead of Print.
Securing phenomenal success in its regional business, the leadership at Nayatel is contemplating expanding the business from a regional to national level without losing its iconic service quality, which lies at the core of its service strategy. From efficient hiring of its employees to coherent customer touchpoints, from constantly updating product features to investing in automated processes, from developing an inclusive culture to forming robust and dynamic systems, all contribute towards service quality at Nayatel. In essence, service quality is at the core of Nayatel’s value proposition. Therefore, the decision of future growth is highly dependent on sustaining service quality.
Securing phenomenal success in its regional business, the leadership at Nayatel is contemplating expanding the business from a regional to national level without losing its iconic service quality, which lies at the core of its service strategy. From efficient hiring of its employees to coherent customer touchpoints, from constantly updating product features to investing in automated processes, from developing an inclusive culture to forming robust and dynamic systems, all contribute towards service quality at Nayatel. In essence, service quality is at the core of Nayatel’s value proposition. Therefore, the decision of future growth is highly dependent on sustaining service quality.
To Split or Not to Split: Strategic Planning and Alignment at Jaffer Brothers Private Limited
Asian Journal of Management Cases, Ahead of Print.
Jaffer Brothers Limited (JBL) was an established, seventy-year old, private-sector business group in Pakistan involved in diversified businesses operating across Pakistan. JBL group of companies was 100 per cent owned by the Jaffer family, and it was one of the few business groups in Pakistan with no public holdings in the group companies. In 2007–2008, JBL engaged a Pakistani consultant to prepare its corporate strategic plan in consultation with the management team of JBL. The company’s strategic plan for 2020 identified the strategic vision and path which the management team had chosen for 2020.In 2013–2014, Fahim Azam was the country general manager of JBL, and there was a branch structure in the projects and machinery (P&M) division with three branches, namely Karachi (South), Lahore (Central) and Islamabad (North), all of which were reporting to Fahim. With the change of market situation such as an expansion of markets and demands across Pakistan, development of linkages with Chinese principals, opportunities offered by China Pakistan Economic Corridor (CPEC) as well as the increasing operational complexity and diversity of operations and markets, JBL decided to restructure the P&M division and introduced four strategic business units (SBUs) under the leadership of Fahim Azam. These SBUs included projects, machinery sales, machinery support (service, maintenance) and rental and power system.In 2017, the JBL P&M division was passing through a transition phase, and each SBU was required to develop and finalize its own vision and mission statement while also developing a strategic plan for 2030. Fahim was thinking about the many challenges associated with the bottom-up process of developing Vision 2030 for the division. He had a feeling that it was an issue of change management as the team was used to the old system of operations. JBL’s P&M division faced challenges related to the lack of integration of the SBUs and the lack of strategic thinking of the employees in each SBU.
Jaffer Brothers Limited (JBL) was an established, seventy-year old, private-sector business group in Pakistan involved in diversified businesses operating across Pakistan. JBL group of companies was 100 per cent owned by the Jaffer family, and it was one of the few business groups in Pakistan with no public holdings in the group companies. In 2007–2008, JBL engaged a Pakistani consultant to prepare its corporate strategic plan in consultation with the management team of JBL. The company’s strategic plan for 2020 identified the strategic vision and path which the management team had chosen for 2020.In 2013–2014, Fahim Azam was the country general manager of JBL, and there was a branch structure in the projects and machinery (P&M) division with three branches, namely Karachi (South), Lahore (Central) and Islamabad (North), all of which were reporting to Fahim. With the change of market situation such as an expansion of markets and demands across Pakistan, development of linkages with Chinese principals, opportunities offered by China Pakistan Economic Corridor (CPEC) as well as the increasing operational complexity and diversity of operations and markets, JBL decided to restructure the P&M division and introduced four strategic business units (SBUs) under the leadership of Fahim Azam. These SBUs included projects, machinery sales, machinery support (service, maintenance) and rental and power system.In 2017, the JBL P&M division was passing through a transition phase, and each SBU was required to develop and finalize its own vision and mission statement while also developing a strategic plan for 2030. Fahim was thinking about the many challenges associated with the bottom-up process of developing Vision 2030 for the division. He had a feeling that it was an issue of change management as the team was used to the old system of operations. JBL’s P&M division faced challenges related to the lack of integration of the SBUs and the lack of strategic thinking of the employees in each SBU.
Service Sales Corporation: The Wholesale Challenge
Asian Journal of Management Cases, Ahead of Print.
Ahmed Hussain had just concluded an intense phone call with one of the biggest wholesalers in the central region. The wholesaler had made it clear to Ahmed that he would not use his current monthly budget to buy from Service Sales Corporation (SSC) unless Ahmed matched the offer being made by one of his competitors in terms of discounts on purchase. Ahmed had been at SSC for well over 5 years, he came back to Pakistan after studying at Carnegie Mellon University. He had been appointed as country head wholesales just over a year ago. However, his previous education and experience had not prepared him for such a challenge in the unstructured footwear industry of Pakistan (Ahmed had studied engineering, and this was his first job in a sales role). The case focuses primarily on the power of channel partners within an industry. The importance of the wholesaler in the context of SSC is discussed, and their role within the value chain is elaborated upon. The objective is for the class to assess the business situation presented before them in the case and evaluate the options under discussion. Ahmed is depicted as being under severe pressure to meet his goals and improve the performance of the wholesale channel. He faces competition from the SSC retail channel as well as other large players in the market. The situation is considered so serious that key executives within the company are considering getting out of the wholesale channel and focusing on retail only. Ahmed and his team, however, are not willing to let go of 30 per cent of the company’s revenues and have proposed bypassing the wholesalers and selling directly to private independent non-exclusive retailers. Another option put forward is to launch a new brand into the wholesale channel at a lower price point.
Ahmed Hussain had just concluded an intense phone call with one of the biggest wholesalers in the central region. The wholesaler had made it clear to Ahmed that he would not use his current monthly budget to buy from Service Sales Corporation (SSC) unless Ahmed matched the offer being made by one of his competitors in terms of discounts on purchase. Ahmed had been at SSC for well over 5 years, he came back to Pakistan after studying at Carnegie Mellon University. He had been appointed as country head wholesales just over a year ago. However, his previous education and experience had not prepared him for such a challenge in the unstructured footwear industry of Pakistan (Ahmed had studied engineering, and this was his first job in a sales role). The case focuses primarily on the power of channel partners within an industry. The importance of the wholesaler in the context of SSC is discussed, and their role within the value chain is elaborated upon. The objective is for the class to assess the business situation presented before them in the case and evaluate the options under discussion. Ahmed is depicted as being under severe pressure to meet his goals and improve the performance of the wholesale channel. He faces competition from the SSC retail channel as well as other large players in the market. The situation is considered so serious that key executives within the company are considering getting out of the wholesale channel and focusing on retail only. Ahmed and his team, however, are not willing to let go of 30 per cent of the company’s revenues and have proposed bypassing the wholesalers and selling directly to private independent non-exclusive retailers. Another option put forward is to launch a new brand into the wholesale channel at a lower price point.
Half a Loaf for the Destitute
Asian Journal of Management Cases, Ahead of Print.
This case describes an ethical dilemma faced by an employee of an established business organization. Working in a business environment rife with unethical practices, Zafar came to believe that some of these practices were acceptable for the business to survive, particularly in the context of dysfunctional state institutions. Where he drew the line was when an act became detrimental to the interest of his organization. Also, he chose not to become directly involved in such practices. In his personal life, a cause close to his heart was helping the poor for which purpose, in addition to other things, he started a school for children of poor families in a low-income area with the help of a friend named Qasim. Funds were needed to run this school, which he generated from his income and through the support of his family and friends. He also convinced Qasim to secure business from his organization, ZSP, even if it required using commissions, and use the funds generated through this venture to further their charitable causes.The dilemma Zafar faced was when a company, FEP, contacted him to help it materialize a deal with ZSP in exchange for a handsome commission. Being a reputable name, FEP had all the ingredients of a valuable partner. While Zafar believed that taking a commission for a deal of this kind would not harm his organization, he could not bring himself to benefit from the financial gain personally. One way out was to utilize the funds for the poor children who attended his school. Refusing to take the commission would not have any impact on this practice since someone else in his organization would be quite willing to accept it. It would also mean the loss of a good opportunity to support an important cause. Zafar was unable to decide.
This case describes an ethical dilemma faced by an employee of an established business organization. Working in a business environment rife with unethical practices, Zafar came to believe that some of these practices were acceptable for the business to survive, particularly in the context of dysfunctional state institutions. Where he drew the line was when an act became detrimental to the interest of his organization. Also, he chose not to become directly involved in such practices. In his personal life, a cause close to his heart was helping the poor for which purpose, in addition to other things, he started a school for children of poor families in a low-income area with the help of a friend named Qasim. Funds were needed to run this school, which he generated from his income and through the support of his family and friends. He also convinced Qasim to secure business from his organization, ZSP, even if it required using commissions, and use the funds generated through this venture to further their charitable causes.The dilemma Zafar faced was when a company, FEP, contacted him to help it materialize a deal with ZSP in exchange for a handsome commission. Being a reputable name, FEP had all the ingredients of a valuable partner. While Zafar believed that taking a commission for a deal of this kind would not harm his organization, he could not bring himself to benefit from the financial gain personally. One way out was to utilize the funds for the poor children who attended his school. Refusing to take the commission would not have any impact on this practice since someone else in his organization would be quite willing to accept it. It would also mean the loss of a good opportunity to support an important cause. Zafar was unable to decide.
Equipment Maintenance in Primary and Secondary Healthcare, Punjab
Asian Journal of Management Cases, Ahead of Print.
Healthcare systems and, more specifically, public sector healthcare systems are complex hierarchical entities. Delivering quality healthcare services is a challenging task facing several key hurdles. Equipment maintenance and availability is one of the key issues since the non-functionality of medical equipment degrades service provision in public sector hospitals. In this case, we discuss the situation of primary and secondary healthcare services in Punjab, Pakistan, focusing on the current condition of equipment functionality and maintenance across thirty-six districts of Punjab. The healthcare sector in Punjab is organized in a tiered manner, with primary health care facilities providing basic medical services to the masses and secondary healthcare facilities providing referral and specialized services to the patients. Providing medical services requires an efficient network of medical professionals, adequate medical equipment, physical infrastructure and sufficient supply of medicines at all levels of the healthcare system. This case identifies and discusses the issue of non-functionality and maintenance of medical equipment in Punjab. Demand for medical equipment is generated on a central and district level, followed by a combination of central- and facility-level procurement. Maintenance of equipment is done by the facility without any standard operating procedures. The purpose of this case is to observe the current maintenance options in practice and to assess the impact of a decentralized maintenance system on the functionality status of biomedical equipment across districts. The objective is also to highlight the need for an efficient maintenance regime in accordance with the nature of the equipment to ensure cost and downtime minimization.
Healthcare systems and, more specifically, public sector healthcare systems are complex hierarchical entities. Delivering quality healthcare services is a challenging task facing several key hurdles. Equipment maintenance and availability is one of the key issues since the non-functionality of medical equipment degrades service provision in public sector hospitals. In this case, we discuss the situation of primary and secondary healthcare services in Punjab, Pakistan, focusing on the current condition of equipment functionality and maintenance across thirty-six districts of Punjab. The healthcare sector in Punjab is organized in a tiered manner, with primary health care facilities providing basic medical services to the masses and secondary healthcare facilities providing referral and specialized services to the patients. Providing medical services requires an efficient network of medical professionals, adequate medical equipment, physical infrastructure and sufficient supply of medicines at all levels of the healthcare system. This case identifies and discusses the issue of non-functionality and maintenance of medical equipment in Punjab. Demand for medical equipment is generated on a central and district level, followed by a combination of central- and facility-level procurement. Maintenance of equipment is done by the facility without any standard operating procedures. The purpose of this case is to observe the current maintenance options in practice and to assess the impact of a decentralized maintenance system on the functionality status of biomedical equipment across districts. The objective is also to highlight the need for an efficient maintenance regime in accordance with the nature of the equipment to ensure cost and downtime minimization.