The paper studies the performance of selected public sector bank-sponsored mutual funds in India using conventional measures. The data for the study has been captured from two leading public sector bank-sponsored fund houses, namely SBI Fund Management Pvt. Ltd. and UTI Asset Management Co. Ltd., to examine their performances. The study uses maximum numbers of leading risk-adjusted interventions, like the Sharpe index, Treynor index, information ratio, Jensen’s alpha, Fama’s selectivity measure, and M-squared. The result of the study unveils that most of the sampled schemes executed well in terms of return and professional management of funds by the fund managers. The work also reveals that the SBI fund house is a slightly better performer than the UTI fund house, in terms of efficient schemes and professional management of the portfolio. The study concludes that stakeholders must make wise choices in their investments by looking at all the risk measures and returns, and other developed measures.
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.
Asian Journal of Management Cases, Ahead of Print. This case describes a situation where Vivek Vyas and Vimal Popat, first-generation entrepreneurs, started their venture shradhanajali.com in June 2011 by bootstrapping with an initial investment of ₹1.5 million. The monthly revenues ranged between ₹65,000 and ₹80,000. Shradhanjali.com garnered customers from major parts of India, the United States, Canada, the United Kingdom and Africa, whose primary need was to relive memories of their loved ones and pass on their legacy to their descendants. It was in 2018 when Vyas and Popat, co-founders of shradhanjali.com, were in their office at Rajkot, Gujarat, reading a report by The Internet and Mobile Association of India, which claimed that the number of online users would rise to more than half a billion by 2018. Looking at the report, Popat told Vyas that their goal to have 20,000 subscribers by 2020 could be fulfilled by expanding their presence in different parts of India and by rolling out a mobile application, to which Vyas mentioned finding a way to enter the global market as the population of overseas Indians was 30,843,419 as of December 2016.The purpose of this case is to provide an opportunity for the participants to step into the shoes of Vyas and Popat and to plan a way towards the growth strategy of shradhanjali.com by answering what route should be adopted in order to achieve the goal of 20,000 subscribers till 2020 (expanding presence in India and/or in the global markets). This case is also ideal for teaching the Business Model Canvas, which is fast gaining centre-stage for modern enterprises. The instructors are advised to use role-play and structured discussions to find the solution. Participants are to consider the data given on shradhajali.com, make assumptions and devise a solution for Vyas and Popat.
Title: IMPACT OF GLOBALIZATION ON THE AUTOMOBILE INDUSTRY IN INDIA
Authors: Chowdhury, Sanchita Ghosh
Abstract: Over long periods of time a variation is noticed in the factors determining
Indian automobile industry growth. However, some of these factors are
persistent over time. The paper attempts to identify these persistent factors
determining the growth of the Indian automobile industry and then examine
the impact of globalisation, as an economic shock, on the Indian automobile
industry in light of these determining factors. The paper finds that
profitability is a major driver of automobile industry growth in India, along
with labour productivity and capital intensity. It also uses a structural
break analysis to show that globalization had a considerable positive
contribution in increasing the pace of growth in the Indian automobile
industry for a period of 20 years. Globalization facilitated better returns
from the industry’s profits and opened up more avenues to explore growth
for two decades and helped the industry gather the required momentum.
Title: A STUDY OF INDIAN ACCOUNTING STANDARDS (IND-AS): IS THERE A NEED OF ‘IFRS’ IN INDIA?
Authors: Mukherjee, Ujjwal; Mukharjee, Sudipta
Abstract: The finance and accounting industries are growing in popularity all around
the globe. In this globalised age, it is becoming increasingly commonplace
to evaluate and adopt the IFRS as national accounting standards, and
many nations have already done so. As a reporting accounting language,
this accounting language is becoming more widely accepted, and it is
starting to take the role of national Ind-AS standards in a number of
countries across the globe. As a consequence of the implementation of the
(IFRS), firms and the Indian economy have benefited. The IFRS recommends
that businesses implement the standards as soon as possible and get the
necessary training. In the case of the International Financial Reporting
Standards, it was the position of the organisation rather than the kind of
business association that had an effect on attitudes regarding the
implementation of the standards (IFRS). Additionally, the type of perceived
corporate connection, the number of years of required professionalism
experience, the firm’s affiliation with the subjective standard, and the type
of business affiliation used for this purpose all played a role in the adoption
of the (IFRS).
Title: Relationship between Profitability and Advertising Expenditure: A Study of Selected Companies in Indian Manufacturing Sector
Authors: Singh, Krishna; Sur, Debasish
Abstract: The present paper attempts to analyze the growth pattern in advertising
expenditure and profitability as well as the linkage between them in selected
fifty companies which were selected by taking top five companies from
each of the ten selected industries in the Indian manufacturing sector for
the period 2002 to 2016. In this study return on capital employed (ROCE)
was taken as the overall profitability measure. A recursive simultaneous
equation framework as suggested by the outcome derived from the
endogenity test was used in explaining the variation of ROCE as well as
advertising expenditure on the basis of some identified explanatory
variables. The study found that, inter-industry variation of advertisement
expenditure gradually stepped up over time. The overall regression results
revealed that FATR, ITR, DTR and CTR had significant positive influence
on the profitability while MS and estimated ROCE significantly influenced
the advertising expenditure.
Asian Journal of Management Cases, Ahead of Print. This case study is about the organization Chief Ministers Initiative on Primary Health Care (CMIPHC). The organization was created as a collaboration between the Government of Punjab province in Pakistan and a local nonprofit organization named Punjab Rural Support Program (PRSP).CMIPHC was given control of Basic Health Units (BHU) in 12 out of 36 districts of Punjab. However, the provincial health department retained the infrastructure in other aspects of public health. Despite signs of success, CMIPHC had come under criticism from the provincial health department officials and the local government administration throughout its operation.In 2014, the conflict had reached a point where the provincial government had started considering the closure of CMIPHC and returning BHUs to the provincial health department. The final decision was to be taken after a third-party evaluation. While the CMIPHC leadership was confident that a third-party evaluation would favour the collaboration, they were still concerned about the financial and functional stability of their organization. This was because the leadership felt that some officials from the local health department were resentful of the fact that PRSP was treading on their turf.This instruction manual uses a resource dependency framework to analyse the facts presented by the case and aims to help the students better understand the opportunities and threats posed by collaborative approaches to public service delivery.
Asian Journal of Management Cases, Ahead of Print. This case clinically analyses the dynamics of the dairy sector and its core foundations, without which it is impossible to run this enterprise successfully. The prime focus is to understand the prerequisites of establishing a sustainable and profitable dairy farm considering the most critical climate factor. It provides guidelines for good dairy farming practices, challenges, and probable measures to address the obstacles. Most importantly, this case presents the execution of a mixed blend of existing and modern dairy farm practices considering prevalent constraints in the sector. The differences in breed, feed, nutrition, animal welfare, environment, and technology between the leading dairy-producing countries and developing countries (like Pakistan) are highlighted. Finally, the case suggests good dairy farming practices adopted in the local context to operate a dairy farm efficiently.
Asian Journal of Management Cases, Ahead of Print. The case helps the students explore a capacity utilization problem faced by the CEO of Maujan.pk. The financial statements from the fiscal year 2013–2014 put the CEO, Tahir, in a difficult spot. According to these reports, his main business, which was online discount coupons, has been outpaced in growth by his side business, Facebook management. Tahir had launched the Facebook management business as an afterthought; his strategic business decisions never factored it as a major consideration. Now, Tahir is forced to reflect on this matter, especially because of resource constraints. Being a small company with six employees, he has had to share resources between the two businesses. Now that his side business has grown faster than the main business, Tahir finds himself understaffed. Meanwhile, the original business is slowing down, and few avenues of growth are forthcoming due to network congestion (network effects model). Keeping this in mind, a decision must be made to choose one of the two businesses or expand and continue them both. The expansion would mean significant logistic overhead and initial resource starvation. This is perplexing for someone like Tahir, who is a real hands-on manager. Eventually, inaction would lead him to these problems, as the business would continue to grow to further compete for the same resources. Each decision has its merits and demerits in a fast-moving Pakistani digital market where copycat businesses can spring up within days, and customer loyalty is mercurial at best.