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Diagnostics services in India were growing at 20% annually with billing of USD 3.4 billion. With WTO's GATS, foreign competition was arising. Dr. Lal PathLabs had formidable brand recognition and Dr. Arvind Lal was wondering whether to accept private equity and induct management professionals to keep pace with competitors through acquisitions or greenfield or sell out. He worried over loss of proprietary control. The industry practice of incentivizing doctors for referrals meant that acquisitions brought perverse incentive systems. The choice of compromising ethics or inventing another business model had to be made alongside whether to expand in India or abroad.

After completion of this case, students will be able to: define and understand the external and internal components of the strategic management process; define and explain various alternative strategies that help companies create a sustainable competitive advantage; understand and explain the five main choices of entry mode that are available to organisations when considering entry into a foreign market, suggest an entry mode that is relevant to Standard Bank and explain the pros and cons of each entry mode; and understand how a company can offer or phase in its service offerings.

This case situates Sola David-Borha, CEO for the Africa Region at the Standard Bank Group, in April 2018, considering whether and how to expand into personal and business banking in Cote d’Ivoire – a country that Standard Bank had just re-entered, having exited there in 2003 because of the civil war. The bank has operations in 20 sub-Saharan African countries and its growth strategy is focussed on Africa. This strategy is reflected in its slogan: “Africa is our home. We drive her growth”. David-Borha has a number of questions on her mind. These include: can the bank offer financial services that will meet the needs of the Ivorian people, how can the bank expand into personal a business banking – indeed is rapid expansion into this sector the right decision for now?

Advanced/graduate courses in strategic management and international business.

Teaching Notes are available for educators only.

CSS 5: International business.

The study enables students to critique the internationalisation strategy of an African business including elements of macroeconomic analysis, company fit with jurisdictions, non-market strategies and mode of entry.

Roland van Wijnen was the chief executive officer of Pretoria Portland Cement Company Limited (PPC), a 130-year-old cement maker based in South Africa. He joined after the business had embarked on an international expansion strategy that had taken the business to countries of Rwanda, the Democratic Republic of the Congo and Ethiopia in a matter of years. This expansion caused the deflation of the Johannesburg-listed company’s share price. The company failed to appreciate a number of success factors in each jurisdiction. The challenges included cultural misalignments, macroeconomic analysis and mode of market entry. The case dilemma involved the choices that van Wijnen faced in re-evaluating the international footprint of the business.

Undergraduate or postgraduate level.

Teaching notes are available for educators only.

CSS 5: International business.

Rede Alta Velocidade, SA (RAVE), the state-owned company responsible for planning and developing a major high-speed rail project in Portugal, must persuade both public officials and lenders that the project is worth undertaking. It must also make a recommendation on the appropriate organizational form for the enterprise. Specifically, it must determine the role of the Portuguese government in financing and operating the high-speed rail network, with options ranging from full development and management of the project by the public sector to completely private development and management. Lying in between these two polar cases were a variety of hybrid models, often referred to as public-private partnerships (PPPs). Using data in the case, students have the opportunity to perform a benefit-cost analysis of the project. They also must think carefully about the optimal role of the government in a major new infrastructure project.

After analyzing and discussing the case, students will be able to:

• Understand the nature of a global public good

• Perform a back-of-the-envelope benefit-cost analysis of polio eradication

• Discuss the appropriate strategy for eradicating an infectious disease

• Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

• Discuss the role of private organizations in the provision of global public goods

Understand the nature of a global public good

Perform a back-of-the-envelope benefit-cost analysis of polio eradication

Discuss the appropriate strategy for eradicating an infectious disease

Apply game theory to analyzing which countries would be likely to contribute funds toward global polio eradication

Discuss the role of private organizations in the provision of global public goods

This case is a sequel to the “IndiGrid: Creating India's First Power Transmission InvIT (A)” case. It describes the deal that would replace the trust's original sponsor, Sterlite Power, with a new set of KKR-led financial investors. It provides an opportunity to discuss the consequences of this change on the new investment manager's outlook for management and future acquisitions. The new investment manager, freed from the limiting interest of the original sponsor, had to search for investment opportunities from the perspective of incoming financial investors, which included the new sponsor. It also provides an opportunity to evaluate the trade-offs in investing in operational utility-scale renewable energy assets by the IndiGrid, which had so far only acquired operational transmission assets in its portfolio.

Undergraduate.

This case deals with a Zambian entrepreneur named Frank Ngambi who had developed several lodges in Ndola and Lusaka, Zambia. His original intention had been to build lodges that would provide inexpensive lodging for domestic travelers. That strategy had succeeded, and the lodges had been so successful that Frank had been able to increase the size of his lodges in both cities. However, by the summer of 2015, Frank had decided to seek the patronage of international travelers. He knew that this change in strategy would be difficult to achieve. After analyzing one of his competitors, the Intercontinental Hotel in Lusaka, he realized that he needed to increase his product offerings and also offer outstanding customer service. One problem in attaining that goal was the fact that there was very little training for human resources involved in the hospitality industry in Ndola where two of his lodges were located. Another problem he faced was figuring out how to market his lodges to international travelers, as he had never sought that segment of the market before.

At the conclusion of the case discussion, the student should be able to apply Michael Porter’s General Business-Level Strategy to the present and anticipated strategies for the FATMOLS Lodges; to identify tactics that would apply to a low cost leadership strategy; to identify tactics that would apply to a differentiation strategy; to discuss reasons tourism has increased in Zambia in the twenty-first century; to analyze the financial strategy used in developing the FATMOLS Lodges; and to develop a plan for moving a company from a low-cost leadership strategy to one of differentiation.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy.

This case requires students to evaluate alternative dual-share-class corporate structures that allow companies and entrepreneurs to pursue profit with purpose. The case explores Impact Makers, an IT consulting company based in Richmond, Virginia. While original founders of the firm hold all voting rights, the cash flow rights belong to two nonprofits setting the stage for a Newman's Own model of management consulting. The case discusses whether and how the alternative corporate structure aids the firm's overall strategy to attract top-quality employees, pay them competitive salaries, and provide superior service to its clients while donating 100% of its lifetime value to charitable causes, largely through partnerships with various nonprofit organizations. More importantly, the case asks students to evaluate how such a dual-share-class and dual-purpose company can raise capital to fund continued growth.

The case opens with CEO Michael Pirron reminding himself of all the questions he had run through to execute a strategy to further grow Impact Makers' consulting business both through expanding a menu of services and through conquering new geographical markets. To do either, or both, the company needed a cash infusion. Internal cash was limited, as up to 40% of it flowed to charitable partners, demonstrating Impact Makers' commitment to its mission. Raising debt for a company without fixed assets was challenging and time consuming. Complicating it all was that being structured as a nonstock corporation rendered equity raising difficult. Could Impact Makers raise money to grow and stay true to community values at the same time?

At the end of the case discussion, students should be able to:▪ analyse and discuss networks as a form of social capital;▪ identify and discuss alternative growth strategies for an small, medium, micro enterprise (SMME) in the context of prevailing challenges;▪ use the six domains of the entrepreneurship ecosystem to identify and discuss factors that enhance and challenge a business with particular reference to an SMME; and▪ analyse and understand the key dimensions of entrepreneurial behaviour using the case protagonist as an example.

Nhlanhla Dlamini, the managing director of Maneli Pets based in Johannesburg, South Africa had opened an office in Cincinnati in the USA in July 2019 to take over the distribution and marketing of the company’s high-quality protein pet treats. Just over eight months later, the COVID-19 pandemic exploded across the world resulting in unprecedented disruption to people’s lives, world trade and the global economy.Now, in June 2022, Dlamini contemplated the successes and challenges he had experienced since starting Maneli Pets in 2016, not least of which was parting company with US-based Novel Dog LLC, which had previously marketed and distributed the pet treats. He had built an internationally accredited factory from scratch, produced pet products and a brand that was appealing to the competitive international market, and exported to 12 countries around the world. However, Dlamini had also faced the retrenchment of a large number of staff, the breakdown of the relationship with Novel Dog, the difficulties of setting up a distribution business in the USA along with overseeing the South African factory, and in September 2019, his co-founder, Sipha Ndawonde, had left Maneli Pets.Maneli Pets had served Dlamini’s philanthropic purpose of creating jobs and contributing to the growth of the South African economy. Despite the setback of parting ways with Novel Dog, he hoped to continue to create jobs and return to and exceed the staff numbers he had achieved by 2018, regardless of the hard work involved.In his dual position of managing director of Maneli Pets, based in Johannesburg, and sales director of the distribution and marketing arm, Nandi Pets Inc. in Cincinnati, Dlamini had a global view of the companies’ financials that he realised had been missing initially. Would the new structure of Maneli Pets he had created in 2019 in a pre-pandemic world see the company profitable by the end of 2022? What else could he do to take the company to the next level?

MBA, Masters in Management, Postgraduate Diploma in Business, Executive Education short courses.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

Considers why Blockbuster has a competitive advantage in video retailing. Details both Blockbuster's use of revenue sharing contracts with movie studios to coordinate the vertical chain and Blockbuster's “Go Home Happy” marketing campaign. Challenges readers to understand how revenue sharing contracts, which are imitable and sometimes used by Blockbuster's competitors, can nevertheless be a key part of Blockbuster's advantage.

The area of focus is on internationalization strategies, specifically on developing suitable strategies to support an internationalization initiative of a new medical device company.

This case is designed for final year undergraduate and MBA students. It is suitable for courses of organizational management, organization theory and design, strategic management, and international business as well as international marketing.

GranuLab, a medical device company that produced the synthetic bone graft substitute GranuMaS, aspired to be a high-growth company. To achieve this aspiration the company had made plans for internationalization, which include penetrating the ASEAN, Middle East, Latin American, and African markets within the next five years. By December 2010, GranuLab had completed the construction of its new manufacturing facility in Shah Alam, about 30km from Malaysia's capital city of Kuala Lumpur. This manufacturing facility had the capability to produce high volumes to support the company's high growth plan. However, the company's internationalization processes had taken longer than expected and this has led to a low business volume. By mid-2012, the company was forced to make a quick decision as it had suffered a year and a half of operations losses. GranuLab had to formulate a strategy as to how to position GranuMaS and penetrate the targeted markets. Failure to internationalize would incur even greater losses and might hinder the achievement of its high growth aspiration by 2015.

This case is designed to stimulate case analysts' thinking into providing recommendations for the appropriate internationalization strategies to be adopted by the management team to ensure that the company could succeed in achieving its goals. The case will expose students to the concepts and theories of strategic management, international business, international entrepreneurship; and facilitate the development of students' abilities to apply those concepts in managerial situations.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.