Assessing value of a digital company: Uber’s IPO 2019

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olga Kandinskaia ◽  
Francisco López Lubián
Keyword(s):  
Financial Markets ◽  
Alternative Methods ◽  
Content Type ◽  
Real Options Theory ◽  
Academic Level ◽  
Wide Range ◽  
Company Valuation ◽  
The Media ◽  
Executive Level ◽  
Options Theory

Theoretical basis Via this case, students are introduced to several alternative methods of valuation, including the valuation based on the “real options” theory. The novelty of the case is the link between valuation and the type of innovation that the company represents. The suggested valuation frameworks, which include both quantitative and qualitative assessments, are applicable not only in the context of an IPO valuation but also in the context of any kind of M&A activity. Research methodology This case was prepared mostly via secondary research. All the information about Uber and the industry was collected via publicly available sources. No internal documents of the company were used in the preparation of this case. The primary research consisted of an interview with the protagonist Catherine (whose name is disguised). Other disguised elements in the case include the name of the Value Investor conference organizer (Spyros Spyrou, not his real name), the country of the Value Investor conference (omitted) and the conference venue (Princess hotel, not any actual venue). Case overview/synopsis In 2019, Uber, the famous ride-sharing company, made waves in financial markets as the most controversial IPO valuation. With a wide range of proposed values, Uber puzzled investors, once again living up to its fame of a rebel and a disruptor. When Uber finally went public in May 2019, its IPO valuation stood at $82.4bn. The heated discussion in the media continued even after the IPO: “Is Uber worth this amount? Is there an upside potential for the investors who bought shares at the IPO price? What if this is a hype and markets are simply embracing higher valuations?” Complexity academic level This case can be used at the undergraduate, graduate (MBA) or executive level in finance-related courses such as Company Valuation or Valuing Innovation, which cover the topic of valuation and specifically the topic of valuing innovative companies.

The influence of global uncertainty on the cross-border performance appraisal

2014 ◽  
Vol 43 (1) ◽  
pp. 19-40 ◽  
Author(s):  
Jane Maley ◽  
Robin Kramer
Keyword(s):  
Real Options ◽  
Performance Management ◽  
Performance Appraisal ◽  
Multinational Corporations ◽  
Content Type ◽  
Real Options Theory ◽  
Cross Border ◽  
Global Uncertainty ◽  
Profit Maximisation ◽  
Options Theory

Purpose – The aim of this paper is to examine the practice of performance management in a cross-border context in times of global uncertainty. Design/methodology/approach – This is a conceptual paper. Findings – The findings expose global uncertainty to be wielding a significant influence on performance management. Practical implications – A practical framework is developed using real options theory. This approach offers suggestions for multinational corporations to increase the effectiveness of their performance management while at the same time focusing on profit-maximisation. Originality/value – This paper enhances international management research by recognizing that real options theory can effectively be applied to improve the effectiveness of performance management in global uncertainty.

Kaya FM: the challenge of an afropolitan positioning

2021 ◽  
Vol 11 (2) ◽  
pp. 1-35
Author(s):  
Emmanuel Silva Quaye ◽  
Yvonne Saini
Keyword(s):  
South Africa ◽  
Target Audience ◽  
Situational Factors ◽  
Radio Station ◽  
Strategic Decisions ◽  
Content Type ◽  
South Africans ◽  
Academic Level ◽  
The Media ◽  
To Come

Learning outcomes Amongst other things, at the end of this case discussion, the student should be able to: diagnose situational factors that contribute to a brand’s positioning; explore important issues in implementing brand positioning strategies; use relevant models for understanding a firm’s internal and external environments to inform strategic decisions about customers and competition; demonstrate an understanding of target audience; identify the unique attributes of the competition to inform a firm’s positioning and competitive strategy. Case overview/synopsis Kaya FM derives its name from the isiZulu word “ikhaya”, which means “home”. The name reflects the mission of the radio station to provide a home for black South Africans who were denied many opportunities during the apartheid era in South Africa. Kaya FM has been broadcasting since 1997, following the deregulation of the media landscape in South Africa. However, by 2018, the radio landscape has become very challenging. Mainstream advertisers still do not consider Kaya FM as a preferred channel to reach their target audience. Overall, radio listenership is dwindling and advertising sales growth is not encouraging. Greg Maloka, Kaya FM’s station manager is considering how to preserve the station’s unique positioning as it competes with both more dominant stations and new entrants so that Kaya FM can truly be a home for Afropolitans for many years to come. Complexity academic level Honour’s and master’s level, as well as executive education delegates. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

Flori Pharma: maintaining ethics in an unethical sales environment

2020 ◽  
Vol 10 (1) ◽  
pp. 1-21
Author(s):  
Muhammad Muzamil Sattar ◽  
Asad Ali Qazi ◽  
Farhan Shahzad ◽  
Abdul Rehman Shaikh
Keyword(s):  
Pharmaceutical Industry ◽  
Learning Outcomes ◽  
Code Of Conduct ◽  
Competitive Environment ◽  
Ethical Challenges ◽  
Content Type ◽  
Academic Level ◽  
Wide Range ◽  
Leading Position ◽  
Ethical Norms

Learning outcomes The learning outcomes are as follows: what tasks are to be done by medical representatives in pharmaceutical industry? This study also highlights various competencies required to do effective selling in this industry; analyzes and discusses different unethical practices going on in the market; explains why ethical norms are necessary in sales context when sales targets are already achievable with unethical means; and develops and comments on strategies Flori Pharmaceutical can make to overcome on these unethical issues. What should be the response of Dahar to the email of Naveed khan? What course of action should be taken by Dahar in the deceitful reporting case of Mohsin Ali? Case overview/synopsis Flori is considered a leading and growing multinational organization in the highly competitive environment of Pakistan pharmaceutical industry with over 40 years of experience. The company aims to command a leading position in developing new health-care products as it offers a wide range of diabetic, cardiovascular, respiratory and vitamin products based on quality as a result of high research and examination. Recently, an email to Bilal Dahar on March 2017 from Flori’s star sales person Naveed Khan has forced management to take some strong decisions regarding ethical norms and values to be adopted by medical representatives of Flori pharmaceuticals. The email highlighted the issues related to sales pressure which are leading toward unethical sales practices. Dahar just not have to maintain Flori’s ethical code of conduct but he and his team also has to work hard to achieve more than 26% growth rate in sales revenue as compared to last year. Dahar knew that the highly competitive environment of pharmaceutical industry has led most of the stake holders to indulge in unethical behavior to achieve their individual targets. He knew that this is dangerous in long term for the multinational organizations such as Flori pharmaceuticals as if the similar behavior continues, the sales culture and values of the organization would be on stake. He also has to decide what decision to be taken against deceitful reporting issue of one of the top-performer territory managers, who was key person in helping Flori to close the sales year 2016 with the revenue of Rs. 6.4bn, a 26% growth over the last year. The case is rich enough to provide a platform regarding management of several ethical challenges in pharmaceutical selling and developing strategies based on them. Complexity academic level BBA, MBA final year. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

Competitiveness and cost behaviour: evidence from the retail industry

2019 ◽  
Vol 21 (1) ◽  
pp. 125-141
Author(s):  
Komang Ayu Krisnadewi ◽  
Noorlailie Soewarno
Keyword(s):  
Real Options ◽  
Corporate Strategy ◽  
Retail Industry ◽  
Stock Exchanges ◽  
Competitive Pressure ◽  
Content Type ◽  
Real Options Theory ◽  
Corporate Strategies ◽  
Cost Behaviour ◽  
Options Theory

Purpose With a particular emphasis on corporate strategies for innovation, the purpose of this paper is to examine how cost behaviour operates under conditions of strong competition in the retail industry. Design/methodology/approach Retail companies listed on the Indonesian, Singaporean and Malaysian capital markets are studied using the regression analysis method. Findings The findings of this study show the sticky behaviour of changes in the selling, general and administrative (SGA) costs when companies are under competitive pressure. When sales increase, SGA costs will increase; however, when sales decline, SGA costs evidently increase. This is especially true for retail companies which have suffered a decrease in their sales of less than 7 per cent, but experienced positive sales growth in the previous period. The suggestion would seem to be that competition leads to greater aggression and the contemporary real options theory bears this out. Research limitations/implications This study only uses data from retail companies listed on stock exchanges in Singapore, Indonesia and Malaysia. Practical implications The type of industry, the extent of the competition and the corporate strategy employed might influence the extent of cost stickiness. Therefore, the users of financial statements need to understand these factors. Originality/value While previous studies incorporated a variety of industries, this paper focuses on examining cost behaviour amid the competitive pressure from recent phenomena in the retail industry. The study provides empirical evidence for supporting the contemporary real options theory. When an industry experiences competition, investing in an uncertain situation will add value to a company, even if it causes sticky cost behaviour. This result contributes to the literature on cost behaviour and strategy management.

Guess who’s coming to deliver? Tough decisions about race in the workplace

2019 ◽  
Vol 15 (5) ◽  
pp. 416-440
Author(s):  
Katina Williams Thompson ◽  
Susan Dustin
Keyword(s):  
Organizational Behavior ◽  
Theoretical Basis ◽  
Process Model ◽  
American People ◽  
African American People ◽  
Content Type ◽  
Stakeholder Perspectives ◽  
Academic Level ◽  
Home Improvement ◽  
The Media

Theoretical basis The authors used Sue’s (2010) microaggression process model and Freeman et al.’s (2010) stakeholder theory as a theoretical basis for this case. Research methodology Information for the case was gathered from publicly available sources. No formal data collection efforts were undertaken. Case overview/synopsis Guess Who’s Coming to Deliver is a case that examines an event that occurred at Lowe’s Home Improvement Warehouse in late July and early August of 2015. A customer who had purchased some products from Lowe’s requested that only White delivery people were dispatched to her home because she did not allow African–American people in her house. The case is factual and was written from information that was publicly available in the media. The case is designed to help instructors facilitate a meaningful classroom discussion about microaggressions from the different stakeholder perspectives. Complexity academic level The case is relevant for undergraduate and graduate organizational behavior and human resource management courses.

Zolostays: competing in Indian co-living space

2021 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Surajit Ghosh Dastidar ◽  
Nitin Gupta ◽  
Damini Raichandani
Keyword(s):  
Competitive Strategies ◽  
Or Education ◽  
Content Type ◽  
Defense Strategies ◽  
Academic Level ◽  
Living Space ◽  
Start Up ◽  
Market Leadership ◽  
Executive Level

Learning outcomes The key learning objectives are mentioned as follows: to understand the attractiveness of the co-living sector using Michael Porter’s five forces model; to do competitive analysis of ZOLO by understanding its objectives, strengths and weaknesses; to understand various competitive strategies which ZOLO’s competitors could apply against it; and to understand application of various defense strategies, which ZOLO would follow to retain its market leader position. Case overview/synopsis ZoloStays (ZOLO) was an Indian real-tech start-up based in Bengaluru. It was in the business of co-living, i.e. providing affordable accommodation for students and young professionals who had to leave their home and temporarily settle in other cities in search for jobs or education. ZOLO had grown 300% and had served over 50,000 customers across 10 Indian cities, since its inception in 2015. It had claimed to be the largest co-living brand in India in FY 2019. Nikhil Sikri (Sikri), who was a Co-founder of ZOLO, had big plans of expanding the firm to a million beds in 5 years. However, increasing awareness of a huge untapped market in the co-living sector had led to entry of a flurry of competitors. Notable among them were Nestaway, Colive, StayAbode, CoHo and OYO Life. Facing such intense competition Sikri had the challenge to be able to sustain his company’s early momentum. How would he retain ZOLO’s market leadership position? What would be the best strategy to achieve further growth? Should ZOLO diversify into allied services or apply a more focused strategy? Sikri was facing all these challenging questions and had to quickly address them to continue to lead in this competitive race. Complexity/academic level The case can be taught in advanced undergraduate, MBA or executive-level programs dealing with marketing. This case study helps students in dealing with issues pertaining to a given market sector where a firm is operating, the strategies that could be used by the competitors and application of competitive strategies which the firm can apply. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing

Guest Editor foreword

2015 ◽  
Vol 9 (3) ◽  
pp. 264-268
Author(s):  
Yuanhui Li ◽  
John Ferguson
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Markets ◽  
Financial Management ◽  
Economic Transformation ◽  
Content Type ◽  
Chinese Context ◽  
Chinese Management ◽  
Wide Range ◽  
Corporate Social

Purpose – The purpose of the papers included in this issue is to cover a broad range of contemporary issues in Chinese corporate financial management and therefore provide the readers with important insights into Chinese financial markets as well as the social and economic consequences of firm behavior in the Chinese context. Design/methodology/approach – The first part of this issue is a special section on “Corporate Finance and Corporate Social Responsibility”, which includes three papers that explore various aspects of corporate social responsibility (CSR) from a finance perspective – including the relationship between CSR and the cost of equity, the “insurance-like effect” of CSR and competition in corporate philanthropy. The remainder of the issue includes seven further papers that cover a wide range of finance-related topics, including currency and equity, monetary policy, cross-border mergers and acquisitions, earnings management, overseas investment, information disclosure, social capital and cosmopolitanism. All of the papers included in this issue are based on empirical research that draws on primary and secondary data from Chinese financial markets and from the information disclosures of Chinese enterprises. Findings – The authors are confident that such in-depth discussions and analysis will help researchers and practitioners to develop a better understanding of the issues faced by Chinese managers in the context of China’s economic transformation. The findings reported in this issue will help inform and develop Chinese management theories based on a wide range of Chinese management practices. Originality/value – Each paper in this issue reports on different aspects of finance, reporting and management in the Chinese context, discussing findings that have both relevance and significance beyond China.

scholarly journals The battle over wastewater between Woonsocket and North Smithfield

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Melissa S. Prosky
Keyword(s):  
Rhode Island ◽  
City Council ◽  
New Host ◽  
State Legislation ◽  
Content Type ◽  
Wastewater Disposal ◽  
Academic Level ◽  
Service Agreement ◽  
Executive Level

Research methodology This case study draws on interviews conducted with officials from the Rhode Island Department of Environmental Management (DEM), City of Woonsocket and Town of North Smithfield. Additionally, it pulls from relevant legal documents, recordings and minutes from meetings of the Woonsocket City Council and North Smithfield Town Council, City Council resolutions, state legislation and local press coverage. Case overview/synopsis From 2012–2017, the communities of Woonsocket and North Smithfield engaged in a protracted dispute concerning wastewater disposal. For 30 years, the two jurisdictions had maintained a signed service agreement. Following its expiration; however, Woonsocket imposed a new host fee on North Smithfield. Woonsocket needed to upgrade the facility to comply with mandates from the RI DEM. Over the next five years, leaders from both jurisdictions vociferously fought over the new fee. At the same time, leaders within communities experienced their own divisions. This case study highlights the challenges that decision-makers faced in both communities. Complexity academic level This case is appropriate for graduate and executive level courses in environmental policy, communication and leadership.

Development of a conceptual framework on real options theory for strategic human resource management

2018 ◽  
Vol 50 (5) ◽  
pp. 272-284 ◽  
Author(s):  
Som Sekhar Bhattacharyya
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Real Options ◽  
Human Resource ◽  
Strategic Human Resource Management ◽  
Market Demand ◽  
Content Type ◽  
Real Options Theory ◽  
Strategic Hrm ◽  
Options Theory

Purpose The purpose of this paper is to propose a conceptual real options theory framework for the firms to use options to mitigate both investment risks and retention of the trained human resources. Design/methodology/approach This conceptual paper is built with logical argumentation. Findings The growth of IT firms has created a demand for quality IT industry employees in substantive quantity in India. IT firms provide training and development (T&D) inputs for developing better skills of employees for better employee and superior firm performance. T&D input requires firm investment. It also creates enhanced market demand for the trained employee. High growth area like IT firms not only competes for market but also for employees. A trained employee might leave the firm that provided the training to join a rival firm which offers relatively better salary, a catch -22 situation. This paper develops a real options-based framework for strategic human resource management (HRM). Research limitations/implications This work integrates the theory of real options and strategic HRM. Originality/value This conceptual work is one of the first attempts to use real options theory on strategic HRM.

ONE STOP KITCHEN: managing a multi-brand cloud kitchen

2021 ◽  
Vol 11 (4) ◽  
pp. 1-17
Author(s):  
Aasha Jayant Sharma ◽  
Debopriyo Dey
Keyword(s):  
Subject Area ◽  
Growth Potential ◽  
Third Party ◽  
Business Practices ◽  
Content Type ◽  
Expansion Strategy ◽  
Customer Base ◽  
Academic Level ◽  
One Stop ◽  
Executive Level

Subject area Marketing; Business Expansion Strategy Case synopsis Rahul Hazarika, the owner of One Stop Kitchen (OSK), was convinced that expansion of his cloud kitchen had to be aligned at various fronts to compete. He was juggling with thoughts of expanding from B2C to B2B model, whether to expand in the same city or other cities or to introduce new variants in existing B2C so as to use and leverage the existing customer base and network. The competition was growing ablaze, and most of the orders were procured from the third-party aggregators, leaving little chance for OSK to connect to its customer base directly. The growth potential in this upcoming sector was undeniable, and Hazarika was continually trying to bring in relevant business practices to maintain the momentum. The case deals growing cloud kitchen business problems and covers business concepts such as business expansion strategy, product profiling and marketing strategies. Learning objectives Students will understand strategies for a Online startup Business in the Cloud Kitchen category. The concept of Product Profiling is also dealt with in the case. Complexity academic level Suitable for PG- and Executive-level courses. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing.

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