Majpadu: Bracing for the Future

Majpadu Bricks Sdn. Bhd. was a Malaysian company incorporated in 1996. Majpadu’s business was in manufacturing and supplying compressed clay bricks, known as dry pressed earth brick (DPEB), a type of bricks manufactured using high-density compression technology. Unlike other bricks that were widely available in the market (also known as ordinary baked bricks), Majpadu’s bricks were not ‘fired’ in kilns; as such, DPEB was claimed to be more eco-friendly, cooler in temperature and yet very durable. Majpadu’s expertise was within the engineering process as well as the technical knowledge of DPEB. Apart from its main business, it also offered consultancy services to the industry. Over the years, Majpadu saw the company face several internal and external circumstances that affected its bottom line. By early 2017, the situation had become more serious, forcing Mr Zaki Hayat, the Managing Director of Majpadu, to implement a strategy to tackle the problems faced by the company.

At-Tahur’s IPO: Creating Pakistan’s First Public Company in Pasteurized Dairy Segment

This case examines the initial public offering (IPO) decision made by At-Tahur Limited during 2017. The outstanding performance of the equity market led the company to decide in favour of stock issuance to finance its required expansion. However, soon after the company started its IPO process till the month when the shares were floated in the market, Pakistan Stock Exchange experienced its worst decline since the financial crisis, with the index dropping by 17% over the one year from July 2017 to July 2018. The IPO was oversubscribed, and the company was able to sell its shares at PKR 21 per share, higher than the floor price of PKR 20. The strong demand for the company’s shares and a successfully completed stock offering transaction during one of the most difficult periods in capital market history left the IPO management team confused about whether PKR 21 was an appropriate price for the company’s share and if it was the correct time for the company to go public. The case provides an opportunity to discuss the valuation of unseasoned equity using market multiples and discounted cash flow models. Students are invited to value At-Tahur’s stock in light of the company’s planned expansion and take a position on whether the IPO strike price of PKR 21 was correct. The case also allows for a discussion of IPO trends, costs and benefits of going public and the IPO underpricing phenomenon.

Enerzi Microwave Systems: Growth Strategies in Emerging Market

In April 2018, Enerzi Microwave Systems Pvt. Ltd. (EMSPL), a company established by Dr Prakash, was selected as one of the best companies in the medium, small and micro enterprise category. Dr Prakash was very proud of his company’s achievements, but at the same time, he was anxious about its growth in the future. EMSPL, which started in a 200-sq ft space in Bengaluru, is now one of the leading industrial microwave heating systems suppliers. However, Dr Prakash is now facing a challenging situation—to find a path that can provide rapid growth to the company. There are multiple questions in front of Dr Prakash. Should EMSPL expand into different market segments or remain focussed on the current segment? Should EMSPL invest in new product development? His team has suggested four options that can help Dr Prakash make a decision. Dr Prakash needs to find the best possible option, which can provide rapid growth to the company.

Prince Kola Beverages Limited (PKBL)

Prince Kola Beverages Limited (PKBL) is an introduction-level decision modelling case that aims to help develop what-if analysis and spreadsheet modelling skills. It has already been taught in three cohorts of my executive course customized for Coca Cola Beverages Pakistan (CCBPL) Limited middle managers, ‘Data Savvy Decision-Making’, and was warmly received. It is also suitable for both MBA and undergraduate business students. The problem involves using elementary forecasting, scenario analysis and sensitivity analysis without the complexity of statistics. This was also part of a 4-hour session in executive courses that included in-lab trainings on Microsoft Excel what-if analysis tools. For 80–90-minute sessions, students must have already been equipped with these tools. Additionally, it would be better to have the spreadsheets of students submitted by an online learning management system in advance of the class so that their models can be displayed in class and debated.

FirstCry: A Hybrid Store Strategy Creating Big Wonders!

On May 17, 2010, Supam Maheshwari and Amitava Saha founded BrainBees Solution with a seed capital of US$39.01 million, which led to the launch of the e-commerce site FirstCry.com. An online e-commerce website that offers all kinds of baby and kids-focused products from diaper pins to strollers. The global and Indian baby care market has seen huge growth in the last few years. It is estimated that by the year 2020, the projected growth of this market will be over 17%. The rising birth rate and disposable income of young parents have also favoured the growth of baby care products. In a country like India, the mortar and brick stores held the major share of the baby care products market. Supam Maheshwari was in the midst of a major decision, but he was faced with some questions. Would he be able to design a unique hybrid model? Would this model help them compete with mortar and brick stores? Would FirstCry be able to build an ecosystem to provide solutions to parents? What strategy should FirstCry adapt for long-term success?

Dr Reddy’s Laboratories Ltd: Can It Be An Indian Pharma’s Bellwether Again?

Dr Reddy’s Laboratories Ltd (DRL) was one of India’s success stories in the pharma space, wherein a founder’s dream turned into a reality. It had a remarkable growth over three decades, with impeccable quality and regulatory standards, as it went on to become the number-two pharma company in India by sales. However, in the last 3 years, DRL was navigating one of the most challenging times it had ever faced for various reasons. Sales were stagnated, profits had plunged, costs had spiralled and manufacturing sites grappled with US Food and Drug Administration (FDA) issues—and more importantly, its growth strategies were not delivering results. This resulted in value erosion, reduced number of new product approvals, customers doubting the capabilities, competitors doing much better, etc. Also, it questioned whether DRL continued to be the bellwether or not for the Indian pharma fraternity as competitors raced ahead. This case highlights the global and Indian context of the pharma industry, along with details of three main competitors based on secondary data sources, and analyses the ongoing issues in DRL. Finally, it concludes by highlighting the six decision buckets and the way forward to make DRL a bellwether again in the Indian pharma industry.

Mahindra Electric Cars: Challenges of Driving a Revolution in the Indian Market

Small cars accounted for 75% of the cars sold in India; electrification of these cars and making them affordable was one of the major challenges apart from the infrastructure. Hence, leading automakers saw this as highly impracticable. However, Mahindra Electric Cars Pvt. Ltd., India’s only electric car maker, firmly believed that electric mobility, though in the nascent stage, is the future of the automotive sector. The case tries to deals with Mahindra Electric Cars Pvt. Ltd.’s opportunities and challenges, the pioneers in electric mobility in India in the wake of government decision. It raises certain imperative questions like: Is the Indian market ready for electric cars? What will be the likely impact on the current market scenario? Can the automaker create a favourable perception in consumers’ minds towards electric cars? Will this new category thrive in a hyper-competitive conventional market? This case is written based on insights provided by the company. The case authors interacted with the four-member Mahindra team in Bangalore, India, and got first-hand input.

Monetary Policy in a Developing Country: A Case of Pakistan

The State Bank of Pakistan (SBP) has to fulfil multiple objectives in Pakistan’s monetary policy. The choice of policy objectives is an old theme that acquired a renewed importance after the financial crisis of 2007–2009. Most of the textbooks do not discuss the debate around objectives, rather they discuss monetary policy objectives from the lens of a developing country. The choice of objectives should be seen in the context of the country’s overall level of economic development. With historical illustration of Pakistan during the 1970s and 1980s, the case has shown how the credit-starved sectors were helped through government-directed credit. With the opening of the trade and financial sector, the economic liberalization reforms increased the private sector’s role, and authorities adopted a more market-based approach towards monetary management. Various small businesses and entrepreneurs are faced with credit constraints. Private sector financial institutions cannot relax these credit constraints given their concern with creditworthiness, a condition that small businesses and entrepreneurs cannot satisfy. The SBP Act states that it has to pursue potentially conflicting goals of economic development and stable prices. The conflicting goals create tension in the case of whether SBP should control credit supply to various sectors of the economy or determine the cost of credit through interest rate targeting. It compares the two intermediate targets: monetary and interest rate. Finally, it also highlights the difficult trade-offs faced by policymakers in developing countries.

Macrantha Sealant: A Positioning Strategy

This case study outlines the dilemma faced by an entrepreneur about promoting and positioning his product in the market. The entrepreneur was aware of the huge scope available in the Indian sealant market. Though he wanted to launch the product in the market, he was in a fix to target an appropriate market. The instructor can use the case to discuss the promotion and positioning strategy analysis to mitigate the risk. Readers must think strategically about the business performance challenges if proper strategies are not put in place. This case can be taught to address issues of marketing management, strategic marketing, product management, etc., in management courses.