Asian Journal of Management Cases, Volume 21, Issue 1, Page 48-56, March 2024.
This article is a field case on business valuation woven around the dilemma for a young EdTech firm to choose between the two opportunities that came out as collaterals to the nCOVID-19 pandemic in 2020. The selection would be based on the principle of firm value maximization, for which the opportunities needed to be valued. Students will learn the application of the venture capital (VC) model used for start-up firms. Students are challenged to apply the discounted cash flow (DCF) model and the relative valuation (RV) model, and, in the process, learn to estimate the cost of equity using the capital asset pricing model (CAPM). The case provides an opportunity to learn how to build the narrative around numbers by augmenting a discussion on the impact of a pandemic on various input variables used in the valuation exercise. The case is most suitable for the course on business valuation in management and doctoral programmes.
Alpha Industrial Services Limited: Managing Safety Affordably
Asian Journal of Management Cases, Ahead of Print.
Industrial radiography (IR) is an important application of radiation in which an ionizing radiation source is used to detect any cracks or hidden flaws within machinery and welding joints. A category-2 radioactive source (if not shielded properly, it can cause serious and potentially terminal health consequences) is used in IR. It can cause severe detrimental effects like burns if not used properly. There have been many IR related accidents worldwide which are also available on the International Atomic Energy Agency (IAEA) website. This case is written on two isolated events that happened in Pakistan within the same company (name changed) engaged in IR services within Pakistan. Alpha Industrial Services Limited’s (AISL) higher management was dealing with a prevailing financial crunch, and the company was struggling to maintain its quality of services and safety at an affordable cost. The leadership of the company made several decisions to manage the financial crisis.
Industrial radiography (IR) is an important application of radiation in which an ionizing radiation source is used to detect any cracks or hidden flaws within machinery and welding joints. A category-2 radioactive source (if not shielded properly, it can cause serious and potentially terminal health consequences) is used in IR. It can cause severe detrimental effects like burns if not used properly. There have been many IR related accidents worldwide which are also available on the International Atomic Energy Agency (IAEA) website. This case is written on two isolated events that happened in Pakistan within the same company (name changed) engaged in IR services within Pakistan. Alpha Industrial Services Limited’s (AISL) higher management was dealing with a prevailing financial crunch, and the company was struggling to maintain its quality of services and safety at an affordable cost. The leadership of the company made several decisions to manage the financial crisis.
Exclusive Textiles: A Journey of Struggle ‘from Weave to Wonder’
Asian Journal of Management Cases, Ahead of Print.
This case study is about an entrepreneur and his journey from a zero-revenue company to a PKR 250 million (US$1.5 million) turnover company. This case study stipulates how he managed to create a distinctive position in the Pakistani textile market. It focuses on the transition from a small-scale business to a large-scale manufacturing business. It highlights the dilemma in decision-making for an entrepreneur to be adaptable to new technology and forward vertical integration. He was standing at the crossroads of what to do next with his 40-year-old company, Exclusive Textiles. This real-life case exemplifies the basic requirements for starting a business and understanding how businesses evolve with time.
This case study is about an entrepreneur and his journey from a zero-revenue company to a PKR 250 million (US$1.5 million) turnover company. This case study stipulates how he managed to create a distinctive position in the Pakistani textile market. It focuses on the transition from a small-scale business to a large-scale manufacturing business. It highlights the dilemma in decision-making for an entrepreneur to be adaptable to new technology and forward vertical integration. He was standing at the crossroads of what to do next with his 40-year-old company, Exclusive Textiles. This real-life case exemplifies the basic requirements for starting a business and understanding how businesses evolve with time.
Healthcare Service Delivery Models for Emerging Economies: Insights from India
Asian Journal of Management Cases, Ahead of Print.
With the population growing at such a fast pace, expected to reach 1.4 billion by 2022, and more than 70% reside in rural areas, effective healthcare service delivery serves as a primary challenge in India. Ayushman Bharat scheme was launched in 2018 by the Government of India to serve the requirement for comprehensive primary healthcare. This case provides an overview of Ayushman Bharat regarding its impact compared to cross-subsidized models like Aravind Eye Care System (AECS) and Narayana Hrudayalaya (NH) and completely free healthcare delivery by Sri Sathya Sai Sanjeevani Hospitals (SSSSH). The case outlines the background and the operational model and also emphasizes on core principles of its founders, which have translated into a massive success. The case aims to ignite a discussion on their dynamic execution approach and how these models will evolve if replicated in high-volume government schemes. The emerging discussion points are expected to challenge the conventional beliefs in the health delivery system and expose the major lacunae in implementation, which shrinks the impact of nationwide schemes. The purpose is to ignite a discussion on the differences in strategies and execution of government schemes like the National Health Mission compared to the highly impactful one-person visionaries like AECS, NH and SSSSH. The case is a classic example of the operations strategy coupled with ethics and social responsibility towards improving the health and wellness quotient in the state.
With the population growing at such a fast pace, expected to reach 1.4 billion by 2022, and more than 70% reside in rural areas, effective healthcare service delivery serves as a primary challenge in India. Ayushman Bharat scheme was launched in 2018 by the Government of India to serve the requirement for comprehensive primary healthcare. This case provides an overview of Ayushman Bharat regarding its impact compared to cross-subsidized models like Aravind Eye Care System (AECS) and Narayana Hrudayalaya (NH) and completely free healthcare delivery by Sri Sathya Sai Sanjeevani Hospitals (SSSSH). The case outlines the background and the operational model and also emphasizes on core principles of its founders, which have translated into a massive success. The case aims to ignite a discussion on their dynamic execution approach and how these models will evolve if replicated in high-volume government schemes. The emerging discussion points are expected to challenge the conventional beliefs in the health delivery system and expose the major lacunae in implementation, which shrinks the impact of nationwide schemes. The purpose is to ignite a discussion on the differences in strategies and execution of government schemes like the National Health Mission compared to the highly impactful one-person visionaries like AECS, NH and SSSSH. The case is a classic example of the operations strategy coupled with ethics and social responsibility towards improving the health and wellness quotient in the state.
Fahm-ul-Halal Versus Taqwa Industries: Investigating Ethical (Mis-)Conduct in Pakistan’s Beverage Industry
Asian Journal of Management Cases, Ahead of Print.
This case looks into an incident that took place in Lahore, Pakistan, in 2017, when Masheer Rai from Fahm-ul-Halal (FUH) company found E120, a prohibited ingredient, on the label of a Sweeter strawberry juice drink bottle. He sent a WhatsApp message that quickly went viral. In response to the message, Rai received a phone call from Taqwa Industries, the juice manufacturer. Rai was told it was a labelling error, but the manufacturer did not have the documents to back the story. The management of both the companies met, but the FUH group was not satisfied with the outcome of the meeting and began contemplating their next move. The case can potentially be a benchmark for understanding the problems of adopting halal certification and ethical conduct in the food industry.
This case looks into an incident that took place in Lahore, Pakistan, in 2017, when Masheer Rai from Fahm-ul-Halal (FUH) company found E120, a prohibited ingredient, on the label of a Sweeter strawberry juice drink bottle. He sent a WhatsApp message that quickly went viral. In response to the message, Rai received a phone call from Taqwa Industries, the juice manufacturer. Rai was told it was a labelling error, but the manufacturer did not have the documents to back the story. The management of both the companies met, but the FUH group was not satisfied with the outcome of the meeting and began contemplating their next move. The case can potentially be a benchmark for understanding the problems of adopting halal certification and ethical conduct in the food industry.
The Airblue Flight 202: Communication and Decision Making in Crisis
Asian Journal of Management Cases, Ahead of Print.
The case study on Airblue chronicles the events that led to the biggest plane crash in the aviation history of Pakistan. Airblue flight 202 destined from Karachi to Islamabad crashed while attempting to land under adverse weather conditions. The flight carried 146 passengers and 6 crew members; all died in the crash. Later investigations identified gross errors in judgment and decision making by the cockpit crew and unprofessional attitude as the sole cause of the crash.The case study documents the events that unfolded prior to the crash and identifies a number of major factors that are important while communicating and making decisions under critical situations. It touches upon the themes of superior-subordinate communication and relationships, empowerment, sense of responsibility under life-threatening situations, making sense of crises, the role of initiative, self-confidence, and reliance on others. The case is suitable to be taught on topics dealing with communication, decision making, teamwork, and leadership in crises, at the graduate level (MBA) and in executive training courses on team building, leadership and crisis management. It highlights the situations which emerge as crises and where teamwork is paramount for the effective achievement of goals. Furthermore, it focuses on the possible relapses when effective teamwork and communication are not in play.
The case study on Airblue chronicles the events that led to the biggest plane crash in the aviation history of Pakistan. Airblue flight 202 destined from Karachi to Islamabad crashed while attempting to land under adverse weather conditions. The flight carried 146 passengers and 6 crew members; all died in the crash. Later investigations identified gross errors in judgment and decision making by the cockpit crew and unprofessional attitude as the sole cause of the crash.The case study documents the events that unfolded prior to the crash and identifies a number of major factors that are important while communicating and making decisions under critical situations. It touches upon the themes of superior-subordinate communication and relationships, empowerment, sense of responsibility under life-threatening situations, making sense of crises, the role of initiative, self-confidence, and reliance on others. The case is suitable to be taught on topics dealing with communication, decision making, teamwork, and leadership in crises, at the graduate level (MBA) and in executive training courses on team building, leadership and crisis management. It highlights the situations which emerge as crises and where teamwork is paramount for the effective achievement of goals. Furthermore, it focuses on the possible relapses when effective teamwork and communication are not in play.
Financial Crisis at Jet Airways Limited: Turnaround or Bankruptcy
Asian Journal of Management Cases, Volume 21, Issue 1, Page 99-122, March 2024.
In 1992, Naresh Goyal started on a journey to build the best airline in India, Jet Airways. With rising market share and revenues, Jet Airways began climbing up the ladder of success. It gradually became one of the household names in the Indian aviation sector. In 2005, it came up with an initial public offering (IPO) to reach greater heights with large investments from the funding raised. A ‘paradigm shift’ in the Indian airline business came in 2006 with the increased competition and entry of low-cost carriers. The rise in the competition impacted Jet’s turnover, which was ultimately reflected in the diminishing profitability margins. With a series of industry challenges and questionable managerial decisions, Jet became a debt-ridden and loss-making enterprise from being one of the leaders in the aviation sector. Eventually, in April 2019, Jet Airways temporarily ceased its operations because of a lack of funding available to sustain it. The consortium of lenders, led by State Bank of India (SBI), faced a serious dilemma; whether to revive the airline by looking for potential investors or declare Jet bankrupt and begin the bankruptcy proceedings.
In 1992, Naresh Goyal started on a journey to build the best airline in India, Jet Airways. With rising market share and revenues, Jet Airways began climbing up the ladder of success. It gradually became one of the household names in the Indian aviation sector. In 2005, it came up with an initial public offering (IPO) to reach greater heights with large investments from the funding raised. A ‘paradigm shift’ in the Indian airline business came in 2006 with the increased competition and entry of low-cost carriers. The rise in the competition impacted Jet’s turnover, which was ultimately reflected in the diminishing profitability margins. With a series of industry challenges and questionable managerial decisions, Jet became a debt-ridden and loss-making enterprise from being one of the leaders in the aviation sector. Eventually, in April 2019, Jet Airways temporarily ceased its operations because of a lack of funding available to sustain it. The consortium of lenders, led by State Bank of India (SBI), faced a serious dilemma; whether to revive the airline by looking for potential investors or declare Jet bankrupt and begin the bankruptcy proceedings.
Zyne: Growth Pangs in a Commoditized Market
Asian Journal of Management Cases, Ahead of Print.
Marketing entails challenges. It is even more challenging in developing markets such as India. This case revolves around the challenges faced by a relatively new entrant in the Indian home furnishings market—Zyne. Launched in 2010 and managed by Raman, a third-generation entrepreneur, the case revolves around the opportunities and challenges faced by Zyne and the options it has for effectively positioning itself in the competitive home furnishing market.The company faces a host of challenges in its quest for expanding its market presence. The market for home furnishings is growing but is highly fragmented, with many small and fringe players in the fray. Zyne must ensure good product quality, competitive pricing, higher promotional expenditures and an effective channel strategy to succeed in such a market. It must also extend its channel reach to more prospective markets. As the market matures, new entrants will enter as the investments needed to enter this market are relatively low, and many companies depend on cheaper imports. The company is at a crossroads and plans to establish itself alongside more established rivals such as Bombay Dyeing. Given the backdrop, Raman, armed with an MBA degree, does not want to let go of the opportunity and wishes to assess three options: (i) enter into alliances with international brands and gain entry into more established retail channels, (ii) review and revamp its distribution network and (iii) enhance investments at point of viewing in retail outlets and train the sales personnel in stores to push the Zyne brand.
Marketing entails challenges. It is even more challenging in developing markets such as India. This case revolves around the challenges faced by a relatively new entrant in the Indian home furnishings market—Zyne. Launched in 2010 and managed by Raman, a third-generation entrepreneur, the case revolves around the opportunities and challenges faced by Zyne and the options it has for effectively positioning itself in the competitive home furnishing market.The company faces a host of challenges in its quest for expanding its market presence. The market for home furnishings is growing but is highly fragmented, with many small and fringe players in the fray. Zyne must ensure good product quality, competitive pricing, higher promotional expenditures and an effective channel strategy to succeed in such a market. It must also extend its channel reach to more prospective markets. As the market matures, new entrants will enter as the investments needed to enter this market are relatively low, and many companies depend on cheaper imports. The company is at a crossroads and plans to establish itself alongside more established rivals such as Bombay Dyeing. Given the backdrop, Raman, armed with an MBA degree, does not want to let go of the opportunity and wishes to assess three options: (i) enter into alliances with international brands and gain entry into more established retail channels, (ii) review and revamp its distribution network and (iii) enhance investments at point of viewing in retail outlets and train the sales personnel in stores to push the Zyne brand.
Lakshya Food India Limited (LFIL): Finding the Right Position in Dairy Business
Asian Journal of Management Cases, Ahead of Print.
Laxman and Joel, managing directors of Lakshya Foods India Ltd., faced a positioning issue for their milk brand. The young entrepreneurs had acquired a stake from Mr Redu, the founder and owner of Lakshya, a regional dairy company based out of Haryana, India, in 2012. While designing their annual marketing plan for 2019, they were not able to figure out what made Lakshya different from its competitors.The dairy market dynamics were changing with varying consumption patterns, people becoming more health-conscious, a rise in disposable income and consumer demand for variety in the product range. Due to these changes, the competition was growing intense in the dairy business. From renowned national brands such as Amul, Mother dairy, Madhusudan etc., establishing foothold to various app-based online milk vendors such as Daily Ninja, Milk Basket and Country Delight entering dairy space, everyone was fighting for more market share. There was a substantial unorganized market that had a loyal customer base. Different brands were using different value propositions to compete in the market, such as quality, purity or attractiveness of the packaging to pull consumers. The two young entrepreneurs were unsure about what would work better with the Indian buyers; purity, freshness, taste or health. These milkpreneurs wanted to convey a proposition that was deeper and moved Lakshya from mundane milk to a preferred choice of every household.Until now, there was no clear communication strategy, and various channels were used at any time of the year to reach customers, which led to target bullets in the air and wasting marketing effort. They wanted to make Lakshya a national dairy brand, but they were uncertain how to differentiate their dairy brand. They had to decide a value proposition that would help Lakshya position itself firmly in the dairy market.
Laxman and Joel, managing directors of Lakshya Foods India Ltd., faced a positioning issue for their milk brand. The young entrepreneurs had acquired a stake from Mr Redu, the founder and owner of Lakshya, a regional dairy company based out of Haryana, India, in 2012. While designing their annual marketing plan for 2019, they were not able to figure out what made Lakshya different from its competitors.The dairy market dynamics were changing with varying consumption patterns, people becoming more health-conscious, a rise in disposable income and consumer demand for variety in the product range. Due to these changes, the competition was growing intense in the dairy business. From renowned national brands such as Amul, Mother dairy, Madhusudan etc., establishing foothold to various app-based online milk vendors such as Daily Ninja, Milk Basket and Country Delight entering dairy space, everyone was fighting for more market share. There was a substantial unorganized market that had a loyal customer base. Different brands were using different value propositions to compete in the market, such as quality, purity or attractiveness of the packaging to pull consumers. The two young entrepreneurs were unsure about what would work better with the Indian buyers; purity, freshness, taste or health. These milkpreneurs wanted to convey a proposition that was deeper and moved Lakshya from mundane milk to a preferred choice of every household.Until now, there was no clear communication strategy, and various channels were used at any time of the year to reach customers, which led to target bullets in the air and wasting marketing effort. They wanted to make Lakshya a national dairy brand, but they were uncertain how to differentiate their dairy brand. They had to decide a value proposition that would help Lakshya position itself firmly in the dairy market.
Sindh Fruit Traders: Expanding Abroad
Asian Journal of Management Cases, Volume 21, Issue 1, Page 83-98, March 2024.
This case examines the establishment of a small-scale business, Sindh Fruit Traders, owned by Mr Imtiaz and Mr Tehseen. The saturated local market condition is compelling them to look at export markets as means of expansion. The core challenges they face are identifying and selecting an appropriate export country and making the necessary preparations for the expansion. All these decisions have to be made before the next harvest season in July 2017.This case describes in detail the dates business in Khairpur, Pakistan. It provides information about how an individual commences business at a small scale and then expands with time by learning the techniques of the business.This case also explains the local trading of crops and traditional ways of conducting business in the date market of Khairpur and looks into ways in which research should be conducted to expand the business for exports. After discussion, the students will be able to understand the production and sales business of dates in general. More specifically, the students will understand how entrepreneurs are attracted to a business, what role research can play in making informed decisions, and the potential means to expand a local business into an international venture.
This case examines the establishment of a small-scale business, Sindh Fruit Traders, owned by Mr Imtiaz and Mr Tehseen. The saturated local market condition is compelling them to look at export markets as means of expansion. The core challenges they face are identifying and selecting an appropriate export country and making the necessary preparations for the expansion. All these decisions have to be made before the next harvest season in July 2017.This case describes in detail the dates business in Khairpur, Pakistan. It provides information about how an individual commences business at a small scale and then expands with time by learning the techniques of the business.This case also explains the local trading of crops and traditional ways of conducting business in the date market of Khairpur and looks into ways in which research should be conducted to expand the business for exports. After discussion, the students will be able to understand the production and sales business of dates in general. More specifically, the students will understand how entrepreneurs are attracted to a business, what role research can play in making informed decisions, and the potential means to expand a local business into an international venture.