Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
E-Commerce (T01)
ABC is a new e-commerce company which sells books and other gift items through its online portal. The sales have been increasing on a year on year basis for the last 4 years. However the profitability of the business is facing stiff pressure due to the need for investments in technology and distribution. There has been huge demand especially from smaller cities and towns of India. The cost of distribution and maintenance of service levels has hit the overall bottom line. There is also news of international online business companies coming to set up business. These companies would bring in technology and bigger investments in infrastructure. ABC wants to understand where all they need to innovate and focus so that profitability is improved and also demands are created from news consumer segments. Issues: Distribution management, Demand generation, Innovation Disciplines: General Management Industries: e-commerce
Leisure (TO3)
ABC is a big Indian business group with diversified interests ranging from specialized retail brands, restaurants and also in infrastructure development. They operate 25 petrol stations on some of the busiest Indian Highways. They also operate food courts in those stations. However, due to the advent of many international brands and also due to changing travel consumer preferences, the food court business is showing a decline. Along with this the petrol retailing business is facing stiff price pressure from PSU companies. ABC is looking at a solution, to better utilize its 25 properties to leverage the increasing number of travelling consumers and also get better returns on its investment. Issues: Falling food court business, increased pressure due to rising fuel cost Disciplines: General Management Industries: Leisure Retail
Education (TO7)
Harinder Singh, class of 2000 from XYZ institute, rose along the corporate ladder at a very fast pace. He joined one of the biggest FMCG global giants from the campus and was immediately sent to serve in the overseas market for the company. He spent 8 years serving in diverse markets like Japan, Singapore, Philippines and India in the finance domain of the company. At a relatively young age of 30, Harinder occupied key leadership positions in India and abroad. Even though his career moved at a fast pace, he hit the proverbial mid-life crisis and often wondered what would he do with his career after spending three quarters of a decade in the FMCG industry. He realized like many of his generation that he too wanted to 'start something of his own' and thus ABC was born. At the inception, ABC was a finishing school offering soft skills training to youth and it scaled up using a franchisee model. ABC also reached out to tier three B schools where employability was a prominent pain area. It offered a 140 hrs soft skill-employability module to business school students. However Harinder was quick to realize that a 140 hrs module was not enough to transform B school students from rural background. It became obvious to him that to transform the young students and render them employable he needed more time and control over the process. He probably needed to attack the employability problem from many sides- communication and soft skills were just not enough? The engagement with the students needed to be holistic covering all aspects of employability, e.g.domain knowledge, attitude, communication, big picture thinking, sales and customer orientation etc. What it meant was taking over the entire delivery operations of the institution and delivering high quality academic and employability training experience to the students and also taking complete ownership of the final placement. It called for a change in the business model of ABC- transforming itself from a soft-skill training company to a B school management company. After several iterations in the process of fine-tuning the business model, ABC went to its business school clients and offered them end to end solutions in the academic and employability delivery process of the institution: becoming Indias first management of a B-school firm. This was a very new concept in India and ABC hoped to create a new segment within education management by positioning itself as an organization offering 'outsourcing of higher education' in India. India had 3000 b-schools, and quality dipped significantly beyond the Top 50. Decision Point: The new model of providing 'full service' to institutions demanded mustering high quality resources at the HO as well at the client institutions. One of the taglines of ABC was that 50% of the faculty would be from the IIMs (mostly alumni and sometime faculty). However that meant higher cost of delivery. Quality of delivery was ensured by using a large number of part time faculty (who were not on the pay rolls) and few permanent faculty (on the pay-rolls). One big challenge was collection of revenue. Most of the clients promoters were not professional businessmen and therefore a lot of delays in collection became a norm. Ensuring a constant and timely supply of high quality part time trainers, development of content and collection of receivables were the three main challenges faced by ABC. These caused a great deal of strain in the system. Harinder and few core team members felt that the strain in the company would raise a question mark on the stability of the company. A set of bigger education companies expressed interest in acquiring majority stake in ABC. So did a few Venture Capitalists.
Infusion of capital and improvement in the quality of the management team would enable ABC not only to scale up but also ensure quality of delivery. However, there was also a realization that that an early dilution of equity would lead to a great loss of value for the founding team. Issues: Valuation, Fund Raising, Entrepreneurship, Growth Strategy Discipline: General Management Industries: Education- Higher Education
Textiles (TO8)
ABC is in the business of manufacturing, retailing and exporting apparels for men, women and kids in formals, casuals and casual active-wear categories. As retailers, they have expanded to more than 1000 stores in India, with a CAGR of 20% from 2003 to 2009. Expansions in front end also led to capacity addition in manufacturing and extended network for outsourcing of apparels. The company was managing its expanded operations through funds generated from IPO (Equity) as well as debt. The debt to equity ratio was close to 2:1. However, over last two years the company has been facing severe operating problems. The company continued its expansions and did not address its inventory pile-up during the sales slump of 2009. The leverage on finances kept on soaring. Now, the company is not in a position either to operate all its stores, or to look at export orders, due to paucity of operating funds. As of now, more than 500 retail stores have been shut down, export operations have been discontinued and manufacturing capacities are lying idle. The company is facing issues on working capital, debt (interest) servicing and also inability to raise funds through private placements or additional borrowings. Due to successive defaults and accrued liabilities, the companys current debt to equity ratio has soared to more than 6:1. With its current revenues, the company cannot meet its operating and statutory liabilities, and is not in a position to service its debt. It is still continuing its operations, but at a much reduced scale. Issues: Higher debt funding, excess leverage on debt and equity funds, sales slump, expansion and inventory pile-up, inability to meet operational expenses, inability to service debt, downsizing but in vain. Disciplines: Operational Management and Financial Controls Industry: Apparel Manufacturing and Retail. Large scale diversified mid-market retailing, exports and integrated manufacturing.
Healthcare (TO10)
Hospital Profile- 150-bedded multi-specialty corporate hospital located in Bandra (E), close to Bandra Kurla Complex, Mumbai. The hospital was started in 1993, with regular expansion in coming years. Currently there are 300 operational beds including ICUs. Other than multispecialty OPD and IPD services, it also offers emergency care. External Environment: The hospital has reasonably good infrastructure and a good location / approach road. The operators have future plans for facility expansion by means of developing a new building in the existing compound. Currently, the Hospital predominantly caters to the middle and lower middle class population. It has been no empanelment with Government undertakings. The fundamental demand supply and location factors are favorable and that the Hospital has a high potential to be able to achieve industry standard performance levels in terms of quality as well as financial outcomes. Key Challenges: The hospital is undergoing a difficult financial situation with rigid labor demarcation. o The hospital currently is underutilized and the occupancy levels are around 50% with annual revenues of around INR 20 crores including pharmacy. o The hospital levies a 15% surcharge on the final bill excluding pharmacy and consumables. The average operating margin of the hospital is 6% prior to the surcharge and 13% after considering the surcharge as compared to over 20% in comparable hospitals. o Inappropriate medical programs and jumbled case mix is impacting the overall volumes of the hospital, which are significantly lower than those seen in comparable hospitals. E.g. OPD volumes ~1,450 vs. ~5,000, Lab volumes ~6500 vs. ~25,000 monthly o The efforts of the hospital to improve volumes are further impacted by issues related to quality of services and lack of defined operations & marketing strategy. o The hospitals is facing high attrition rate as it fails to retain the medical and non-medical workforce. Issues that need to be addressed: 1: Briefly describe the methodology for problem identification and steps to priorities the complications. 2: Concise the overall strategy in terms of modification of service mix offering, medical programs, thrust areas, pricing and market positioning. 3: Describe an appropriate Physician Engagement Model and Workforce retention strategy. 4: What measures should be taken to incorporate quality programs focusing on standardization of Hospital Systems? 5: How to increase revenue contribution from Diagnostics & Pharmacy? 6: Propose a marketing strategy for new service offerings.
Healthcare TO11
Background: The Business house is well diversified into businesses ranging from Beverages, Fast Food Restaurants, Ice Creams, Dairy Products, Education, Hospitality, Breweries and Healthcare. It has business presence in countries across Asia and Africa. The Business house intends to form a chain of premium boutique maternity centers in Africa and India to start with. External Environment They have planned to start a flagship hospital in Jaipur. Rajasthan has 33 administrative districts, Jaipur being the state capital. Jaipur has well-developed social, physical and industrial infrastructure as well as good virtual connectivity. Moreover, the total population of Jaipur is about 40+ Lakhs and the availability of Beds in Government Hospital is very less, making it conducive for private players to set up and operate businesses. The proposed birthing centre was tuned to the prevailing demand supply statistics, favorable demographics and location dynamics, projecting it to be a financially viable undertaking. Challenges: Market is highly competitive with most of the hospitals providing multispecialty services People are associated with local General Practitioners , which acts as a major link in referral chain Developing medical equipment plan in accordance with client requirements for the proposed service offering Identifying appropriate medical equipment requirements in tune with the latest available technology, client specifications and financials Identifying and Sourcing vendors, who would technically and financially qualify for supplying the medical equipment, devices and instruments Identify and establish requirements for Installation and commissioning of medical equipments Provisioning of leaner human resource structures for each department Developing most efficient, robust and streamlined quality operating system in terms of process flows, policies, protocols, functional guidelines, forms and formats etc Identify and establish HIS compatible operating system
Issues that need to be addressed 1. Describe the appropriateness of having women & child setup in Jaipur and methods which can be used for measuring the demand 2: Elaborate on overall strategy in terms of service mix offering, medical programs, thrust areas, pricing and market positioning. 3: Describe ways and means to achieve leaner and appropriate Human Resource structure across the organization 4: Elaborate on the organizational wide deployment of Quality operating system. Briefly outline the challenges faced during implementation and strategies to overcome such challenges. 5: Elaborate on factors which are to be considered while developing the Medical Technology plan and how it can be used as a differentiator