Arun Kumar, founder and group chief executive officer of Strides Arcolab Limited - a first generation, Indian pharmaceutical company headquartered in Bengaluru - is preparing for a crucial meeting of the Board of Directors. The meeting was called to discuss the proposed dividend payout to the company's shareholders following the completion of a US$1.725 billion sale of its specialty division - Agila Specialties - to the U.S.-based pharmaceutical company Mylan Inc. Kumar proposed that Strides distribute all the free cash available from the sale - after the retirement of debt and internal payouts - in the form of dividends to its shareholders. Strides had already communicated its decision to retire debts and reduce its leverage.
Arun Kumar, founder and group chief executive officer of Strides Arcolab Limited - a first generation, Indian pharmaceutical company headquartered in Bengaluru - is preparing for a crucial meeting of the Board of Directors. The meeting was called to discuss the proposed dividend payout to the company's shareholders following the completion of a US$1.725 billion sale of its specialty division - Agila Specialties - to the U.S.-based pharmaceutical company Mylan Inc. Kumar proposed that Strides distribute all the free cash available from the sale - after the retirement of debt and internal payouts - in the form of dividends to its shareholders. Strides had already communicated its decision to retire debts and reduce its leverage.
NJOY, Inc., an electronic-cigarettes enterprise based in Phoenix, Arizona, conducted some Experiential Concept Tests (ETCs) on a sample size of 215 panelists. The sample included a mix of gender, age, education and income. It also included a mix of users and non-users of electronic cigarettes. In light of the consumer insights gained from the ETCs, NJOY Inc. wants to leverage the results to resolve three particular issues and pave the company's way forward: How should NJOY sharpen its differentiation from "big tobacco?" What further innovations would be necessary in the core product? How should NJOY position its flagship product for long-term success?
A young Peruvian MBA graduate, who previously had worked in international marketing firms, founded an online fashion store and has been selling North American fashion products through Facebook, personal sales events and pop-up stores. The business has been growing profitably with an increasing customer base, overcoming initial supply side issues. Three years after the launch, however, the personal approach to satisfy each customer, a stronghold of the founder's business philosophy, is making expansion difficult. The business has grown to a point where it is barely manageable personally. Is expansion the right decision and if so, which type? Can the fashion store founder scale the business and still enjoy the lifestyle benefits of independence and flexible working hours?
As a result of teamwork and small steps taken by the four cousins and founders, who also fill the top management positions, ID Fresh has grown, in less than 10 years, from a kirana store (a small Indian neighbourhood grocery/retail shop) to a successful mid-sized ready-to-eat and ready-to-cook food company. The managing director recognizes the need to transition to a more proficient organization by recruiting highly motivated professionals to fill the management positions. In doing so, the company will need to reconcile the working style of the incoming professionals with the founders' humble background and strong ethics and values that are based in their religious faith.
Amable, a Bangalore-based children's education organization, was co-founded by Ratnesh and Aditi Mathur, a husband-wife duo who wanted to provide innovative education to children. Amable was started as Geniekids in 2002 at Indiranagar in Bangalore, which organized summer and weekend programs for children. Geniekids developed a Train The Trainer (TTT) program, which enabled a continuous stream of high quality faculty and also provided an additional revenue stream to the organization. By 2004, Geniekids had a critical mass of parents who were ready to enroll their children in a school based on Geniekids learning philosophy. Geniekids initiated full-time learning programs for pre-primary children; and by 2009, this was expanded to children in 6-14 years age group through Aarohi Life Education. Aarohi operated as a trust and Geniekids continued to operate as a for-profit organization. In 2013 Geniekids renamed itself as ''Amable'', which was derived from the words ''I am able''. The core team at Amable believed that children have the ability to learn from and for life, and therefore have the capacity to make choices on what, when, how, and how much they want to learn. Amable envisioned an ideal learning environment to be a place where the child chooses his/her goals (curriculum), paces him(her)self, and assesses him(her) self vis-Ã -vis his (her) goals. Amable had several programs, which enabled reaching out to children, parents, and teachers. Children's programs were designed to make learning a process of self-discovery. Other programs included TTT programs, parent counseling sessions, workshops for parents, etc. Changing demographics of Indiranagar had reduced the number of participants and Amable was actively looking at options such as conducting programs at residential complexes and company premises to increase its reach. Ratnesh and his team looked at the challenge of spreading ''organic education" in a sustainable manner.
Indian marketing scenario (an emerging economy) has been experiencing a new wave of consumer behavior after liberalization of markets. FMCG and durable brands in several categories have made an impact on the lifestyle and mindset of consumers. It is interesting to note that in a market that has diverse culture across its geographical spread, several multinational brands have made substantial headway in domains that are strongly associated with the traditional culture. Snacking is a habit among Indians that covers several kinds of cultural snacks. Kurkure, a brand sold by a multinational was successful with its marketing mix that included an offering that tasted and looked similar to a traditional cultural snack. Chocolates and biscuits, categories that are strongly entrenched in the Indian context (though they have their origin in western countries) competed with traditional snacks in an environment that had proliferated western lifestyles. It is in this context Oreo brand, the well-known biscuit brand in the US market was launched in India by Cadbury. The brand competed with well-known Indian brands of cream biscuits and was positioned to attract children teenagers and young adults. In a category that lacked loyalty and was prone to brand switching (variety of offerings in the market makes the consumer switch brands as the purchasing is done with a low involvement mindset by most consumers) Oreo that had achieved considerable degree of success faced the challenge of sustaining its success. The survey results reflect the need for a deeper analysis beyond a generic brand positioning strategy. An analysis of consumer perception, sensory branding aspects, and careful consideration of a variety of needs of consumers that shape consumer perception of brands in the category seem to be the direction Oreo needs to pursue. How should Oreo use perceptual principles to reposition itself to sustain itself to sustain its success?
This case traces the inception to rise of Telma, the flagship brand of Glenmark Pharmaceuticals, over its decade of existence. Telma based on the molecular formulation Telmisartan was introduced by Glenmark in 2003 at a time when the most preferred and market-leading molecule for treating hypertension was Ramipril. This case, not only showcases the brand-building programs undertaken by Glenmark through the life of Telma, but also traces the marketing efforts that go into creating a new category that would then go on to become the market leader. The case also introduces students to the evolving regulatory framework that has shaped pharmaceutical marketing practices of generics manufacturers in India since independence.
The case on Tarnea Technology Solution is about a startup focused on providing supply chain solutions to the Indian pharmaceutical retail industry with a business model that connected distributors with retailers through a cloud-based interface, enabling real-time data access. In building an equivalent of a stock exchange at the pharmaceutical retail value chain (the last mile of the supply chain), Tarnea had developed the product and completed the pilot project. The case is set at a time when Tarnea had to decide on (a) pricing for both sides of the platform (retailers and distributors), (b) import of data from legacy products onto the Tarnea platform, (c) issues of direction of growth (whether to expand geographically first, or to diversify into other products), and (d) in their race to acquire customers, whether to outsource application development or not. The case discussion would help students to understand why and how platforms need to race to acquire customers as an insurance against envelopment.
Mission Hospital started its operations on April 02, 2008 with the aim of providing highest quality patient care facilities to all individuals at affordable rates. This super specialty hospital located in Durgapur, West Bengal, India, specializes in cardiac surgeries. Many of its patients are from nearby states and neighboring countries, and are covered under different health schemes. Among hospitals in India, flat rate for different treatments is becoming popular, mainly owing to healthcare tourism and government schemes. Dr. Satyajit Bose, chairman of Mission Hospital, was considering adoption of a package pricing (flat fee) strategy under which patients would be provided a fixed price for their treatment at the time of admission. This would imply that the package price should be calculated by the hospital on the basis of patient's clinical and non-clinical information available at the time of admission. Flat fee (or package pricing) can result in a loss to the hospitals if they do not accurately estimate the treatment cost for a patient. The hospital faces the challenge of identifying the key factors that drive the total cost of treatment so that it can quote an appropriate price to the patient.
Mission Hospital started its operations on April 02, 2008 with the aim of providing highest quality patient care facilities to all individuals at affordable rates. This super specialty hospital located in Durgapur, West Bengal, India, specializes in cardiac surgeries. Many of its patients are from nearby states and neighboring countries, and are covered under different health schemes. Among hospitals in India, flat rate for different treatments is becoming popular, mainly owing to healthcare tourism and government schemes. Dr. Satyajit Bose, chairman of Mission Hospital, was considering adoption of a package pricing (flat fee) strategy under which patients would be provided a fixed price for their treatment at the time of admission. This would imply that the package price should be calculated by the hospital on the basis of patient's clinical and non-clinical information available at the time of admission. Flat fee (or package pricing) can result in a loss to the hospitals if they do not accurately estimate the treatment cost for a patient. The hospital faces the challenge of identifying the key factors that drive the total cost of treatment so that it can quote an appropriate price to the patient.
Speechwriters do not exist to free executives from having to work on presentations; they exist to help make executives look good enough to give their careers a boost. The objective is the creation of a speech that is memorable, hopefully for its key message. Those planning speeches must ask: “Do I endure or embrace the speech experience?” Because giving a great speech can help one climb the corporate hierarchy, there is no excuse not to embrace it. Speeches should be clear and concise, usually between 1,500 and 2,000 words. As very few people are born to give fabulous keynote addresses without preparation, practice is key. Indeed, delivering a good speech requires training, energy and commitment. While preparing, one should ask for and be open to blunt feedback. Inserting brief pauses into speeches as a means to emphasize key points can be a powerful tool. When crafting a speech, it is important to consider aural quality and avoid non-conversational language. Good speeches create a dialogue with the audience through relating to people and involving participants. Furthermore, every good speech should feature an attention-grabbing title.
This is the third case in a three-case series. The role-play exercise that relates to the (C) case illustrates the current Chinese cultural characteristics that influence leadership succession and highlights the case issues to be explored in the case discussion. See also 9B15C020 and 9B15C021.
As a result of teamwork and small steps taken by the four cousins and founders, who also fill the top management positions, ID Fresh has grown, in less than 10 years, from a kirana store (a small Indian neighbourhood grocery/retail shop) to a successful mid-sized ready-to-eat and ready-to-cook food company. The managing director recognizes the need to transition to a more proficient organization by recruiting highly motivated professionals to fill the management positions. In doing so, the company will need to reconcile the working style of the incoming professionals with the founders’ humble background and strong ethics and values that are based in their religious faith.
A young Peruvian MBA graduate, who previously had worked in international marketing firms, founded an online fashion store and has been selling North American fashion products through Facebook, personal sales events and pop-up stores. The business has been growing profitably with an increasing customer base, overcoming initial supply side issues. Three years after the launch, however, the personal approach to satisfy each customer, a stronghold of the founder’s business philosophy, is making expansion difficult. The business has grown to a point where it is barely manageable personally. Is expansion the right decision and if so, which type? Can the fashion store founder scale the business and still enjoy the lifestyle benefits of independence and flexible working hours?
NJOY, Inc., an electronic-cigarettes enterprise based in Phoenix, Arizona, conducted some Experiential Concept Tests (ETCs) on a sample size of 215 panelists. The sample included a mix of gender, age, education and income. It also included a mix of users and non-users of electronic cigarettes. In light of the consumer insights gained from the ETCs, NJOY Inc. wants to leverage the results to resolve three particular issues and pave the company’s way forward: How should NJOY sharpen its differentiation from big tobacco? What further innovations would be necessary in the core product? How should NJOY position its flagship product for long-term success?
The three cases in this series focus on two Chinese families’ experiences with entrepreneurship and succession. Because most family businesses in China are relatively young, these first-generation entrepreneurs use their own approach to identify and develop their successors, and to pass their “wealth” to their offspring in a context shaped by unique Chinese cultural elements. The role-play exercise that relates to the (C) case illustrates the current Chinese cultural characteristics that influence leadership succession and highlights the case issues to be explored in the case discussion. See also 9B15C021 and 9B15C022.
New medicine launches in India had come down by nearly 80 per cent during the last six years. The risks associated with new-drug development were high, and for that reason, companies were considering buying the potential molecules in the early stages of development at comparatively cheaper rates. Apart from cutting costs, out-licensing provided opportunities for domestic players to enter into collaborations with global players. Now, with out-licensing gaining popularity in the global pharmaceutical markets, one of the fastest growing pharmaceutical companies in India wondered whether out-licensing could be its next big Indian opportunity.