Mar '22
Case Folio
The IUP Journal of Management Case Studies
Focus
The next case, "SheEO's Community-Based Funding Model: An Alternative Solution to Foster Women Entrepreneurship?", by Jitesh Nair, is on SheEO, a Canadian venture that sought to promote an alternative financing model to women entrepreneurs. The SheEO model brought together like-minded women (called Activators) who contributed a fixed onetime amount as an act of radical generosity. Unlike the prevailing, conventional funding models, the women activators offered funding with no expectation of any direct financial return. This enabled SheEO to keep the invested money in perpetual flow, where the money was pooled and loaned out at 0% interest to women-led businesses that were selected by the women Activators through a democratic process. The loans were paid back over a total of five years, in 20 equal payments. This meant that 20% of the loan paid back by a business each year could be put to work supporting an additional business each year. The model thus ensured that money was not left in the hands of just a few investors and that the money from repaid loans was continually rotated and loaned out again, thus creating a perpetual fund to support women entrepreneurs. Though the model carries the potential to help women entrepreneurs the world over to build their business while staying true to their values, the SheEO model has not yet been able to scale up to the levels needed to fulfill its lofty objectives.
The next case, "Pricol 8", by Madasu Bhaskara Rao and Pulaparthi Mallika Rao, is on the tussle between the management of Pricol, a manufacturer of automotive ancillaries headquartered in Coimbatore, Tamil Nadu, and the labor union. The case touches upon the role of trade unions, issues related to industrial disputes, management's strategies to deal with unions, and how labor unions bear the brunt of the tussle with management.
The last case, "Hedging Using Agriculture Commodities Index in India: Issues and Challenges", by Sharon K Jose and Ekta Chandak, covers the various avenues for enhancing return on investment, and the effective inflation hedging techniques and tools available in the Indian market. The case helps readers understand how retail investors can use the newly introduced Indian commodities index (NCDEX AGRIDEX) and the issues and challenges associated with it.
Consulting Editor
Procter & Gamble's 'Double Down' Strategy During Covid-19 Pandemic
The case discusses the strategy of US-based FMCG giant Procter & Gamble (P&G) during the coronavirus (Covid-19) pandemic in 2020. P&G decided to 'double down' on marketing as demand for its products soared due to consumers' panic buying amid lockdown scare in the US. This decision came in just after P&G's third-quarter financial results revealed a massive surge in sales, the best US sales in decades. The Covid-19 outbreak spread to countries across the world and marked its presence in the US in January 2020. By March 2020, as the coronavirus transmission rapidly spread across the country, a national emergency was declared in the US urging people to stay indoors. Following the emergency announcement, stores across US were flooded by hordes of shoppers, and shelves were emptied as people were looking to stockpile groceries and household items to prepare to hunker down in the midst of the growing pandemic. Apart from staples, sanitizers, and cleaners, the items much on demand were paper products like tissues, paper towels and tissue paper. With products flying off the shelves in no time, grocers had to hire more employees to restock and manage stores. Further, to address the shortage of essentials, specifically toilet paper, grocers were compelled to put purchase limits, and leading toilet paper manufacturers had to ramp up production. Meanwhile, with the surFging sales across all its categories, P&G's saw it as a huge opportunity to increase brand visibility by reminding consumers of its brands and make them stay loyal. The FMCG Company decided to boost its advertising plans, while other companies were withholding their budget for cost saving. The global economy was likely to fall into recession, and a major shift in consumer buying behavior was expected. With demand being subdued due to the pandemic, except for select categories like essentials, it would be interesting to see how successful P&G's double down strategy would be in brand-building and capturing consumer mind-space. More »
SheEO's Community-Based Funding Model: An Alternative Solution to Foster Women Entrepreneurship?
The case describes the alternative financing model to women entrepreneurs that Vicki Saunders (Saunders) sought to promote through SheEO, a Canadian venture she founded in 2015. SheEO was based on a 'holistic feminist model' that gave women-led ventures the flexibility to grow at their own pace and on their own terms. It touches upon the need for this alternative investment model that would enable women leaders to come up with solutions to encourage investments in women-led startups, given that all-women teams had never received more than 3% of the total capital raised by various ventures since 2010. Also, the investments made in women-led startups were skewed across sectors since most venture capitalists preferred technology startups, while most of the women-led businesses were in service industries. It describes in detail the key components of the SheEO business funding model that was aligned to the mindset of women entrepreneurs to leverage their talents, strengths, and passion to create sustainable businesses. The SheEO model was built around the principle of 'radical generosity' where the investors (activators) were like-minded women who offered funding with no expectation of any direct financial return. This approach helped create a perpetual funding model which combined the meaning of philanthropy with the impact of investment. It also delves into the inclusive approach to venture selection where preference was given for businesses run by racial minorities, indigenous women, LGBTQ women, or women of color. The model encouraged women entrepreneurs in sectors like education, food sustainability, waste reduction, energy efficiency, inclusion, and biotech innovation where the business fulfilled at least one or more of the UN Sustainable Development Goals. Next, it touches upon the personalized localized support system offered to women founders in the form of venture retreats and incubation programs put in place across each region and how selected ventures decided as a group to distribute the available capital rather than adopt the winner-takes-all approach of conventional venture competitions. Though the model carries the potential to help women entrepreneurs the world over to build their business while staying true to their values, the SheEO model has not yet been able to scale up to the levels needed to fulfill its lofty objectives. More »
Pricol 8
Eight workers of Pricol Limited, Coimbatore, were awarded double life imprisonment in the year 2015. They were accused of the murder of Roy George, Vice-President-HR, who had signed the dismissal order of 42 workers. The case was popularly referred to as 'Pricol 8', and 'Free the Pricol 8' became a rallying cry for trade unions and activists among workers across the country. Pricol, a highly successful company, is a manufacturer of automotive ancillaries. It specializes in the manufacture of sensors and speed governors and driver information systems. The firm has manufacturing facilities both in India and overseas. Major automotive manufacturers, both domestic and international, are its customers. This case involved a fight between the labor union and management. It provides an opportunity for an engrossing discussion in the classroom on the role of trade union, issues related to industrial dispute, management tactics for dealing with union, and how labor unions face the consequences of their struggle even as the company makes progress. More »
Hedging Using Agriculture Commodities Index in India: Issues and Challenges
The case focuses on a research analyst's exploration of various avenues of enhancing return on his investment, and how he takes a look at the effective inflation hedging techniques and tools available in the Indian market. Approaches of price risk management and return enhancement were used, while a new method of inflation hedging using the commodities index was adopted. The classroom discussion can focus on how retail investors can use the newly introduced Indian commodities index (NCDEX AGRIDEX Index) and on the issues and challenges associated with it. More »