DMart an ace in India’s retail space

2021 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ankur Mittal ◽  
Anshul Jain ◽  
Tarun Dhingra
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Financial Management ◽  
Competitive Advantages ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Revenue Growth ◽  
Retail Chain ◽  
Academic Level ◽  
The Relationship

Learning outcomes The instructor can use this for covering the concept of competitive advantage and valuation. To explore the relationship between superior profitability with business model and identify the source of competitive advantage. Determining the value of business through discounted cash flow (DCF) approach. Case overview/synopsis This case is based on the growth path of a retail chain company, DMart (Avenue Supermarket Private Limited), in the rapidly growing organized retail industry in India. It operates a unique business model that garners significant revenue growth with high profitability. The case covers the competitive advantages of DMart with respect to its peers and its valuation through the DCF model. Complexity academic level The case is suitable for teaching basic courses in corporate valuation and strategy at the post-graduate level. The following courses can also make use of this case: financial management, corporate finance and strategic management in emerging markets. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 1: Accounting and Finance.

The effect of leadership orientation on innovation and its relationship with competitive advantages of small and medium enterprises in Indonesia

2018 ◽  
Vol 60 (2) ◽  
pp. 530-542
Author(s):  
Samsir Samsir
Keyword(s):  
Competitive Advantage ◽  
Design Methodology ◽  
Quantitative Methods ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Leadership Orientation ◽  
Content Type ◽  
Typical Food ◽  
Medium Enterprises ◽  
The Relationship

Purpose The purpose of this study is to investigate the influence of leadership orientation on competitive advantage with innovation as a mediating (intervening) variable. Design/methodology/approach Quantitative methods (Creswell, 2010) are used as the study design. It is an explanatory research with the purpose of explaining the phenomenon or pattern of correlation between concepts (Kothary, 2004). SMEs (small and medium entrepreneurs) of typical food products of Riau domiciled in Kepulauan Meranti Regency are the focus of this study; the sample size included 258 respondents. Findings There is a significant effect of leadership orientation on innovation. Higher leadership orientation will result in higher innovation. There is a significant effect of innovation on competitive advantage. Higher innovation will result in higher competitive advantage. Innovation as a mediation variable in the relationship between leadership orientation and competitive advantage indicates that higher leadership orientation will cause a higher competitive advantage, if the mediated innovation is also higher. Originality/value The originality of this research lies in innovation as a mediating (intervening) variable and a complement of a previous study by including the indicator that measures the variables of the research so that research results can be completed and detailed.

Culture and competitiveness in small-scale Latin-American forestry-based enterprising communities

2020 ◽  
Vol 14 (2) ◽  
pp. 161-181 ◽  
Author(s):  
Carlos M. Jardon ◽  
Xavier Martinez–Cobas
Keyword(s):  
Competitive Advantage ◽  
Latin American ◽  
Local Culture ◽  
Small Scale ◽  
Competitive Advantages ◽  
Formal Sector ◽  
Company Strategy ◽  
Content Type ◽  
Cultural Aspects ◽  
The Relationship

Purpose Small-scale forestry-based enterprising communities are particularly associated with their territory and, therefore, are very conditioned by the local culture. This paper aims to explore the relationship between culture and competitiveness in small-scale Latin-American forestry-based enterprising communities. Design/methodology/approach This study used 212 surveys in companies linked to the production, industrialisation and commercialisation sector of the forestry industry in the province of Misiones (Argentina), using partial least squares to analyse the relationships thereof. Findings Culture and competitive advantages improve the growth of small-scale timber businesses and growth, in turn, increases financial performance. However, culture does not have an impact on competitive advantage and no interaction effect of culture on competitive advantage was detected. The results can indicate that there might be a need to incorporate other concepts and operationalisation that are better suited to the geographical and industrial contexts in developing countries. Research limitations/implications The literature and measures used to operationalise variables in the survey did not necessarily succeed in capturing the culture in the studied small- and medium-sized enterprises. In addition, the design of the sample and subjective measures may partially condition the results. Practical implications For business managers and consultants, this study indicates that they must take into account the local culture to improve performance. Entrepreneurs must reorient the company strategy towards the long term, integrating local culture into their strategy to generate competitive advantages. Social implications Political authorities and social agents should also take into consideration the cultural aspects of the territory when implementing regulations and specific actions to improve the industry and strengthen the sense of community. The results highlight the vitality of animators and development agencies and of any factor that fosters social cohesion. Originality/value The paper shows a new approach to the relationship between culture and competitiveness in small-scale forestry-based enterprising communities, combining performance in a formal sector with the bazaar model.

The impact of financial management practices and competitive advantage on the loan performance of MFIs

2017 ◽  
Vol 44 (1) ◽  
pp. 114-131 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Brendah Akankunda ◽  
Irene Nalukenge ◽  
Immaculate Tusiime
Keyword(s):  
Competitive Advantage ◽  
Financial Management ◽  
Positive Relationship ◽  
Management Practices ◽  
Theory Approach ◽  
Content Type ◽  
Significant Positive Relationship ◽  
Process Factors ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to study the impact of financial management practices and competitive advantage on loan performance of microfinance institutions (MFIs). Design/methodology/approach In this cross-sectional study, the authors surveyed 70 MFIs in Kampala, Uganda. The authors applied principal component analysis to reduce the number of factors and identify the important elements that capture financial management practices, competitive advantage and loan performance of MFIs. The authors put forward and tested three hypotheses relating to the significance of the relationship between these three variables of MFIs using the statistical software package, SPSS and also apply the normal theory approach developed by Sobel (1982) and Baron and Kenny (1986) in testing the mediation by competitive advantage. Findings Robust financial management practices are associated with better loan performance of MFIs. Results also reveal a significant positive relationship between the competitive advantage of the MFIs and their loan performance. Furthermore, a significant positive relationship between competitive advantage and loan performance is found. Moreover results also show a full mediation effect of competitive advantage on the association of financial management practices and loan performance, implying that the association of financial management practices of the MFIs on their loan performance is entirely through their competitive advantage. Research limitations/implications Although there is plenty of literature on loan performance, financial management practices and competitive advantage, there is scarce literature on their effective conceptualization. This together with the imprecise definition of competitive advantage may have affected conceptualization of the authors study. Thus, in this study, the authors do not claim highly refined measurement concepts. Moreover, many of the extant studies for instance have measured loan performance quantitatively, yet process factors which are inherently qualitative in nature can better explain variances in loan performance concept. More research is therefore needed to better refine qualitative concepts used in this study. Practical implications Efforts by the MFIs management to improve loan performance must be matched with adoption of financial management practices that provide MFIs with sustained competitive advantage over their rivals. Originality/value In order to explain loan performance of MFIs, and drawing from social economics, management and accounting strands, this study shows that assessing the role of competitive advantage in the relationship between financial management practices and loan performance is imperative. Also, many of the extant studies have measured loan performance quantitatively, yet process factors or antecedents which are inherently qualitative in nature can better explain variances in loan performance concept. Thus this study calls for the refinement of loan performance concept and accounting for endogeneity.

Explicating the business model from a knowledge-based view: nature, structure, imitability and competitive advantage erosion

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jin Chen ◽  
Luyao Wang ◽  
Guannan Qu
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Knowledge Structure ◽  
Firm Boundaries ◽  
Ceteris Paribus ◽  
Content Type ◽  
Knowledge Based ◽  
Strategic Value ◽  
Structured Knowledge ◽  
The Relationship

Purpose The purpose of this paper is to conceptualize the business model (BM) from a knowledge-based view (KBV), to interpret its nature and knowledge structure and to investigate the relationship between its imitability and the erosion of firm’s competitive advantage. Design/methodology/approach Based on a systematic literature review, this study builds an integrated framework to explicate the nature and structure of the BM from a KBV. Moreover, on the analysis of two contrasting cases, the argument concerning the relationship between BM imitability and its strategic value is proposed, analyzed and supported. Findings The main finding of this study is that a BM can be viewed as a structured knowledge cluster that contains explicit and implicit parts. Its imitation is a dynamic process of knowledge diffusion across firm boundaries. Ceteris paribus, with a lower proportion of implicit knowledge, a BM is more likely to be imitated and the adopter’s competitive advantage is more likely to be eroded, and vice versa. Practical implications The proposed framework could provide managers with a deeper understanding of the nature and structure of the BM and help potential adopters develop a successful entry strategy by avoiding BMs that seem profitable but are incapable of maintaining competitive advantage. Originality/value As a complement to previous studies, the research conceptualizes the BM as a “structured knowledge cluster” to explicate its nature and knowledge structure from a KBV. The implicit part of the BM is explored, and its importance for the adopter’s competitive advantage is discussed and verified.

Towny: a new business model for a mobile economy

2020 ◽  
Vol 16 (4) ◽  
pp. 375-391
Author(s):  
Tyler Self
Keyword(s):  
Business Model ◽  
Financial Management ◽  
Customer Value ◽  
Free Cash Flow ◽  
Online Marketing ◽  
New Venture ◽  
Digital Marketing ◽  
Content Type ◽  
Academic Level ◽  
New Business

Research methodology This case was developed from interviews the author held with Nathan Baumeister, the protagonist in the case and Towny CEO; Hannah Franzen, a Towny marketing employee discussed in the case; and Mallory Franzen, Hannah’s sister-in-law and the company representative for Boomn, the digital marketing agency discussed in the case. In addition, secondary research on the USA retail industry was performed by the author. The case was class-tested four times by the author, with Hannah Franzen and Mallory Franzen initially visiting as case protagonists. This resulted in the case of refinements based on student discussion. Case overview/synopsis Towny: A new business model for a mobile economy shares the context and issues surrounding CEO Nathan Baumeister in the spring of 2018 at Towny, a unique business helping local businesses connect with their consumers over mobile devices. The company began going to market based on the vision of its owner and Nathan’s boss, Don Shafer. It had quickly approached local business clients and consumers in five key markets. The purpose of the case is to allow students the opportunity to discuss key new venture creation concepts and scenarios such as customer value proposition, competitive advantage and digital marketing. Complexity academic level This case was developed to be used in an undergraduate course in entrepreneurship. The particular course, new venture finance: the entrepreneur’s perspective, teaches the general subject of entrepreneurial finance through financial models such as free cash flow and valuation, case discussions with entrepreneurs visiting as facilitators and protagonists and business concept planning and forecasting. This case helps train students on how to incorporate online marketing costs into their business concept plans. Relevant courses and topics also include small business management and entrepreneurial financial management.

The role of innovation in building competitive advantages: an empirical investigation

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

To examine the relationships between supplier development practices and supplier-buyer relationship practices from the supplier’s perspective

2017 ◽  
Vol 24 (5) ◽  
pp. 1309-1336 ◽  
Author(s):  
Sarang Joshi ◽  
Manoj Kharat ◽  
Rakesh Raut ◽  
Sachin Kamble ◽  
Sheetal Kamble
Keyword(s):  
Structural Equation ◽  
Success Factors ◽  
Structural Model ◽  
Manufacturing Firms ◽  
Supplier Development ◽  
Competitive Advantages ◽  
Content Type ◽  
The Relationship ◽  
Relationship Improvement

Purpose The purpose of this paper is to examine the relationships between supplier development practices (SDPs) and supplier-buyer relationship practices from the supplier’s perspective (SBRSP), and seek to understand how specific SDPs may impact a buyer’s operational performance as well as supplier-buyer relationship practices. Design/methodology/approach The authors conducted a survey of 512 respondents from the different manufacturing firms in India and applied structural equation modelling to test a structural model that proposes the impacts of various efforts of SDPs on a buyer’s performance as well as SBRSP. Findings The study concludes that SDPs and SBRSP together improve the relationship between a buyer and supplier, and this improved relationship leads to competitive advantages (CAs) followed by profitability. Results indicate that supplier perspective of buyer-supplier relationship can be improved under the condition of SDPs and SBRSP together. SDPs are driven by productive measure and competitive pressure, whereas customer uncertainty is found to be statistically insignificant. Research limitations/implications The study was carried out in North Maharashtra Industrial Zone of India, where the auto sector and machine/components manufacturing firms have been established for a considerable period of time. Results of the study are limited to manufacturing organizations predominantly focussing on the automobile sector and machine/components manufacturing firms. Practical implications This study provides significant insights into the specific impact of various SDPs and SBRSP for both academics and practitioners. SDPs along with SBRSP practices lead to improvement in the relationship leading to CAs. SBRSP suggests that trust, long-term commitments and the supplier’s perspective are important practices for relationship improvement. Originality/value The current study attempts to identify what are the success factors for the supplier-buyer relationship from the supplier’s perspective and SDPs and how the supplier-buyer relationship can be improved under the condition of SDPs and SBRSP. Hence, the aim is to develop a more thorough understanding of the outcomes of a supplier-buyer relationship improvement from both buyer’s and supplier’s perspective, under the conditions of supplier development to achieve CAs leading to profitability. Furthermore, the study analyses the effect of the improved supplier-buyer relationship for achieving CAs leading to profitability.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

INFINITI HR – professional employer organizations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susan White ◽  
Karen Hallows
Keyword(s):  
Financial Analysis ◽  
Flow Analysis ◽  
Capital Budgeting ◽  
Discounted Cash Flow ◽  
Content Type ◽  
Analysis And Evaluation ◽  
Academic Level ◽  
Course Of Action ◽  
Basic Capital ◽  
Current Events

Theoretical basis Students need to know basic capital budgeting techniques to value INFINITI and its competitors. Issues include how to: handle taxes in a discounted cash flow analysis when valuing an S Corp. where incentives depend on current (known) and future (unknown) tax provisions; value a firm using comparable multiples analysis and transactions data; assess the costs and benefits of acquiring a firm versus being acquired; and analyze an industry and perform a ratio and financial statement analysis. Research methodology The case information was obtained through interviews with co-founder Mark Schwaiger. In addition, the authors researched industry and comparable company data, along with current events relating to the professional employer organization (PEO). Financial data was obtained from the owners and competitor data was obtained from Thomson One and Bloomberg. Case overview/synopsis INFINITI HR was a PEO providing comprehensive human resources to their clients. Co-founders Scott Smrkovski and Mark Schwaiger were at a crossroads at the end of 2015 trying to determine the best course of action to take with their company to grow and prosper. One option was for INFINITI to be acquired by a larger company and the second option was for INFINITI acquire a smaller company. In this case, students have the opportunity to do a financial analysis and evaluation of INFINITI and its competitors to determine which option is the best. Complexity academic level This case is intended for an advanced undergraduate or an MBA corporate finance class.

scholarly journals Australian universities in a pandemic world: transforming a broken business model?

2020 ◽  
Vol 16 (4) ◽  
pp. 541-548
Author(s):  
Lee D. Parker
Keyword(s):  
Business Model ◽  
Financial Management ◽  
International Student ◽  
Well Being ◽  
Future Research ◽  
University Management ◽  
Operational Strategies ◽  
Content Type ◽  
Global Pandemic ◽  
Australian Universities

Purpose The purpose of this paper is to critique the accounting and financial orientation of Australian universities’ business model to identify the future university financial management and accounting role in universities’ strategic trajectory responding to COVID-19. Design/methodology/approach Informed by Habermasian perspectives on change, it uses published research into university commercialisation and media commentaries on COVID-19 impacts. Findings Australian universities have aggressively pursued an accounting-based private sector business model. Their revenue generating reliance on international student revenues has been undermined by the COVIS-19 crisis. Nonetheless, university management clings to their commercialised university identity and role colonised by the accounting structures. Fundamental change requires a reversal of this relationship. Research limitations/implications Future research must observe and evaluate university strategic crisis reactions and their impacts on national and societal well-being with a view to identifying alternative futures. Practical implications Universities face decisions concerning their ongoing role in society and their future approach to balancing operational strategies and the accounting influence. Social implications This study raises the issue of whether universities should continue being seen as an export industry supporting the national economy or as knowledge, educational and social resource for their national and regional communities. Originality/value This paper integrates research into universities over several decades into a strategic critique of their current reaction to an unprecedented global pandemic.

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