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Strategic Management
Session 1: Introduction to Strategic Management. DT 06.01.2025

KEY LEARNING POINTS: The Interrelationship between Corporate Longevity, Performance as

Above-Average Return, and Organisational Choices

Corporate longevity, sustained performance, and organisational choices are interconnected facets that
define the success and endurance of firms over time. We discussed how these elements influence each
other and drive strategic outcomes.

1. Corporate Longevity: Corporate longevity refers to the sustained existence of a company

over extended periods. Firms that survive for decades or centuries often demonstrate
resilience, adaptability, and continuous innovation [Ref: 1.1. What drives Corporate Longevity?].
Longevity is not solely determined by financial performance but also by the firm’s ability to
navigate environmental changes, competitive pressures, and internal crises.
2. Performance as Above-Average Return: A sustained above-average return reflects a
company’s ability to consistently outperform competitors and industry benchmarks. This
performance is a marker of competitive advantage [yet to discuss], effective resource allocation,
and strategic market positioning. However, firms that focus exclusively on short-term
financial gains may jeopardise their long-term viability.
3. Organisational Choices: Organisational choices encompass decisions regarding structure,
culture, leadership, and resource deployment [Ref: 1.2 What are the different choices firms make?]
These choices shape a firm’s strategic direction and operational efficiency. Companies
prioritising innovation, investing in human capital, and embracing adaptive strategies are
more likely to achieve long-term success and sustained performance.

Interrelationship and Dynamics:

• Longevity and performance [mutually reinforcing]: Firms that achieve above-average returns
over long periods often benefit from strategic foresight and effective risk management,
contributing to corporate longevity. [Ref 1.3. Our discussion on ‘longevity but modest performance’ VS.
‘High performance but short lifespan’]

• Performance and Choices: Organisational choices directly influence performance outcomes.

For example, decentralised structures may foster innovation, while centralised decision-
making can streamline efficiency in stable environments.
• Longevity and Choices: The organisational choices that prioritise long-term value creation,
such as sustainability initiatives or diversification, enhance corporate longevity by mitigating
risks and capturing new opportunities.

Key Insights from the Session:

• The mutual reinforcement among longevity, performance, and organisational choices creates
a virtuous cycle.
• A breakdown in any of these elements can disrupt the overall balance, potentially leading to
underperformance or shortened lifespan.
• Strategic alignment across these dimensions enhances resilience and promotes sustainable
growth.

Understanding this interrelationship allows firms to design holistic strategies that drive short-term
success, long-term sustainability, and competitive advantage.
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Session 2: Case: Amazon.com 2021. DT 09.01.2025

Selected strategic decisions/choices of Amazon:

Year Strategic Decision Type

1994 Founded as an online bookstore Corporate Strategy
1997 Initial Public Offering (IPO) Corporate Strategy
1998 Expansion into CDs, DVDs, and electronics Business Strategy
2000 Launch of Amazon Marketplace Business Strategy
2002 Launch of Amazon Web Services (AWS) New Product/Industry Entry
2004 Launch of Amazon Prime Business Strategy
2006 AWS expands with Elastic Compute Cloud (EC2) New Product/Industry Entry
2007 Launch of Kindle e-reader New Product/Industry Entry
2008 Acquisition of Audible M&A
2012 Acquisition of Kiva Systems for warehouse automation M&A
2013 Prime Air drone delivery prototype New Product/Industry Entry
2014 Launch of Echo and Alexa voice assistant New Product/Industry Entry
2015 Introduction of Amazon Prime Day Business Strategy
2017 Acquisition of Whole Foods M&A
2018 Launch of Amazon Go cashier-less stores New Product/Industry Entry
2019 Commitment to carbon neutrality (Climate Pledge) Corporate Strategy
2022 Acquisition of One Medical for healthcare expansion M&A
2023 Expansion of AI capabilities in Alexa and AWS Functional Strategy

KEY LEARNING POINTS: Strategy is a set of integrated choices that create and sustain competitive
advantage. Interrelationships, outcomes, and trade-offs associated with choices.
1. Entrepreneurial Idea and Opportunity: Solving an economic problem efficiently.
2. Creating efficiency through business model innovation and the use of technology.
3. Basic strategic choices of where and how to compete [Scope of Business, Growth Strategy]
4. Disruptive business model and economic logic of any business.
5. Longtail Marketing, Platform Economics and Two-sided Markets
6. Networking effect [Ref. 2.1 why is the digital marketplace superior to the physical marketplace?]
7. Pre-emptive strategies, First/Early mover advantages.
8. Negative working capital business model, Scale as growth, not as profit.
9. Encouraging customer loyalty, increasing switching costs.
10. Related and unrelated diversification.
11. Future growth opportunities: Improving the Product, Geographic, and Vertical Scope and
Creating New Advantages
12. Amazon set out to disrupt traditional retailers by delivering superior retail service at lower
costs, beginning with a highly inefficient book supply chain. [Role of Luck OR Path
Dependency]
13. Select categories that befitted its business model to become an online department store.
14. Open its platform to 3rd party retailers to create a two-sided market, giving the network effect
numerous advantages.
15. Expanded into new categories that require faster deliveries.
16. Competing with traditional retailers by moving to multi-channel retailing.
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Short Case 1: Driving the Future: Tata Motors’ Electric Vehicle Strategy,
Professor Satyasiba Das, 2025 (Draft)

Tata Motors, a part of the Tata Group, is leading the electric vehicle (EV) transition in India
through a multifaceted strategy that leverages the capabilities of the Tata ecosystem. This case
explores the strategic decisions Tata Motors has made to dominate the nascent Indian EV market,
focusing on its integration with other Tata Group subsidiaries, cost leadership, and commitment to
sustainability. The case provides insight into how corporate strategy translates into business and
functional levels, offering valuable lessons in diversification, vertical integration, and competitive
positioning.

The automotive industry is transforming rapidly, driven by sustainability, technological innovation,

and changing consumer preferences. In India, this shift is accelerated by government policies like
FAME II (Faster Adoption and Manufacturing of Electric Vehicles) and a growing awareness of
environmental issues. Recognising the opportunity, Tata Motors aims to lead the EV market by
developing affordable, efficient, and desirable electric vehicles.

Tata Motors’ overarching corporate strategy is to establish itself as the market leader in India’s EV
sector by focusing on:

1. Sustainable Mobility: Aligning with global trends towards carbon neutrality.

2. Mass-Market Penetration: Developing affordable EVs for the price-sensitive Indian market.
3. Vertical Integration: Leveraging the Tata ecosystem to reduce costs and secure supply chains.
4. Platform Scalability: Designing modular EV platforms to facilitate rapid product diversification.

A high-power strategic steering committee (SSC) is responsible for formulating the EV strategy,
consisting of C-level representatives from at least six business units headed by the Chairperson CEO
& MD, Tata Motors (Exhibit 1). Apart from this core team, four functional heads and two external
advisors are also part of the SSC. These functional heads are:

– Chief Technology Officer (CTO), Tata Motors: Drives R&D and platform innovation
– Chief Sustainability Officer (CSO), Tata Sons: Ensures ESG (Environmental, Social,
Governance) alignment across EV initiatives.
– Chief Financial Officer (CFO), Tata Motors: Oversees capital allocation, investment
prioritisation, and subsidy utilisation.
– Chief Strategy Officer, Tata Sons: Aligns EV strategy with the overall Tata Group vision.

Business-Level Strategies (Exhibit 1):

Example
Business Unit Strategy Key Focus Areas
Products/Services
Tata Motors Cost Leadership & Affordable mass-
Nexon EV, Tigor EV
(Passenger Vehicles) Differentiation market EVs
Jaguar Land Rover Premium Electrification of the
Jaguar I-PACE
(JLR) Differentiation luxury segment
Infrastructure
Tata Power EV charging stations Tata Power EZ Charge
Development
Lithium-ion battery
Tata Chemicals Battery Innovation Battery Recycling
production
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Smart vehicle Connected Car

Tata Elxsi Technology & Design
technology & AI Software
Component EV powertrains, EV Supply Chain
Tata Autocomp
Manufacturing batteries Solutions

Four strategic sub-committees and working groups manage the execution of the EV strategy. They are
the R&D and Innovation Group, led by Tata Elxsi, the Infrastructure and Charging Group, led by Tata
Power; the Battery and Supply Chain Group, led by Tata Chemicals; and the Market Expansion
Group, Led by JLR and Tata Motors (Exhibit 2).

Functional-Level Strategies (Exhibit 2):

Function Key Initiatives Cross-Business Integration

R&D and Innovation EV platform development (Ziptron) Tata Elxsi + Tata Motors
Supply Chain Localised battery production Tata Chemicals + Tata Autocomp
Sustainability Green charging networks Tata Power + Tata Motors
Marketing EV awareness campaigns Tata Motors + Tata Power
Operations Expanded manufacturing capacity Tata Motors + JLR

The EV Strategy document clearly defines the roles and responsibilities of each working group. It also
clearly defines the reporting and governance structure. The SSC reports directly to Tata Motors Board
of Directors and indirectly to Tata Sons’ leadership. All strategic investments require approval from
the SSC before board review.

Strategic Choices and Initiatives (Exhibit 3):

1. Platform-Based Approach: Developing scalable architectures (e.g., Ziptron) to create

multiple EV models.
2. Affordable EV Focus: Targeting the mass market with EVs priced between ₹10-20 lakh to
maximise adoption.
3. Charging Ecosystem: Building extensive EV charging networks through Tata Power.
4. Localisation: Sourcing and manufacturing key EV components domestically to reduce costs
and reliance on imports.
5. Sustainability Integration: Prioritising battery recycling and green energy to support a
circular economy.

Discussion Questions:

1. How does Tata Motors’ corporate strategy reflect in its business-level strategies for EVs?
2. What role does vertical integration within the Tata Group play in reducing Tata Motors’ EV
production costs?
3. Evaluate Tata Motors’ approach to addressing the affordability challenge in India’s EV
market.
4. How can Tata Motors sustain its first-mover advantage in India’s competitive EV landscape?

Tata Motors’ strategic choices and alignment with Tata Group subsidiaries provide a unique model
for market leadership in the EV space. By focusing on affordability, infrastructure, and vertical
integration, Tata Motors is not just driving electric vehicles but shaping the future of mobility in
India.
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Short Case 2: Blue Tokai Coffee Roasters - A Case Study in Specialty Coffee
Entrepreneurship, Professor Satyasiba Das, 2025 (Draft)
A few years ago, a young couple sat in a cosy apartment in Delhi, sipping their morning coffee. But
something felt off. The coffee was bland, and they couldn’t help but wonder why, in a country known
for its rich coffee plantations, finding high-quality, freshly roasted coffee was so difficult.

Matt and Namrata, the couple behind this realisation, had spent time abroad, where freshly roasted
coffee was the norm. They missed the vibrant flavours and aromas of artisanal coffee. This sparked an
idea – what if they could bring the same experience to India, starting with beans grown in the
country’s very own estates?

And so, in 2013, Blue Tokai Coffee Roasters was born. The name “Tokai” comes from an ancient
Malabari word for the tail of a peacock, symbolising their connection to Indian roots. Blue Tokai
didn’t want just to sell coffee. They wanted to create an experience that celebrated Indian coffee
farms, farmers, and the unique flavours of home-grown beans.

But starting a speciality coffee business wasn’t easy. At the time, most people in India were used to
instant coffee or mass-produced blends. Few knew about single-origin beans or the art of roasting.
Matt and Namrata believed education was key. So, they began by offering tasting sessions,
workshops, and brewing guides. They wanted people to experience the difference that freshly roasted
coffee could make.

Blue Tokai started small – a single roastery that supplied coffee to a handful of customers through
their website. But soon, word spread. People loved the idea of knowing exactly where their coffee
came from. Each bag listed the farm’s name, creating a bond between farmers and drinkers.

As orders grew, so did the ambition. The couple opened their first café in Delhi – not just as a place to
serve coffee but as a space where people could watch the roasting process and engage with baristas.
The café became a hub for coffee lovers and curious passersby alike.

Instead of expanding like a traditional coffee chain, Blue Tokai focused on transparency and quality.
They built relationships with coffee farmers across India, paying fair prices and highlighting the
estates that produced exceptional beans. This direct sourcing ensured top-quality beans, supported
local farmers, and promoted sustainable practices.

Blue Tokai wasn’t just selling coffee – they were creating a community. Their cafés doubled as
classrooms, where customers could learn about the brewing process, different flavour notes, and the
hard work that went into every cup. They launched subscriptions, delivering freshly roasted coffee
straight to people’s doors, making high-quality coffee accessible nationwide.

Soon, Blue Tokai expanded to new cities, opening more cafés and roasteries. But they remained true
to their roots – focusing on quality, building connections with farmers, and sharing the story of Indian
coffee with the world.

Imagine yourself as Matt or Namrata, sitting with that cup of uninspiring coffee years ago. What steps
would you take to build a brand that sells coffee and transforms how an entire country experience it?
How would you connect with farmers, engage customers, and scale a business while staying authentic
to your vision? The story of Blue Tokai is one of passion, persistence, and a belief that great coffee
can spark a revolution. Now, it’s your turn to imagine the next chapter.
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Short Case 3: The Story of Uniqlo - Building a Global Retail Giant

Professor Satyasiba Das, 2025 (Draft)
In 1984, inspired by the growing demand for affordable and stylish clothing, a new store opened its
doors under the name ‘Unique Clothing Warehouse’, in a small town in Yamaguchi, Japan. People
began calling it “Uniqlo,” and the name stuck. From the beginning, Uniqlo was different. It wasn’t
just about following trends. It was about creating simple, comfortable, and high-quality clothes that
anyone could wear, regardless of age or style.

Tadashi Yanai, who led Uniqlo’s growth, believed in something called ‘Life Wear’. His idea was
simple: clothing should be timeless, not something that goes out of fashion after a season. It should
make life easier and more comfortable for the wearer. He envisioned creating pieces that could be
worn by millions around the world, while still feeling personal.

To make this vision a reality, Uniqlo needed to rethink the way clothes were made. Most retailers
design their clothes and then send the designs to different manufacturers worldwide. Uniqlo decided
to take a different path. They oversee the entire process—from design to manufacturing to sales. This
way, they ensured that the quality was consistent and the prices stayed affordable.

Their first challenge was finding the right fabrics. Uniqlo partnered with innovative textile
manufacturers who could develop high-tech fabrics like HEATTECH, which keeps wearers warm in
the winter, and AIRism, a breathable fabric perfect for summer. These fabrics gave Uniqlo an edge.
No longer were they just selling clothes; they were offering technology in the form of fashion.

As the years went by, Uniqlo opened stores across Japan. People loved the simple designs and
practical approach to clothing. Soon, Uniqlo expanded beyond Japan, with stores popping up in cities
across Asia, Europe, and North America.

But Uniqlo wasn’t just focused on selling clothes. They wanted to build relationships with their
customers. They opened flagship stores in the world’s fashion capitals, where shoppers could buy
clothes and experience the brand in immersive environments. They also embraced technology,
launching an online store that allowed people to shop from anywhere.

One of Uniqlo’s most exciting moves was collaborating with famous designers and artists. Suddenly,
customers could buy affordable clothes designed by high-end fashion designers. These limited-edition
collections created a buzz, and people lined up outside stores for the chance to buy them. Uniqlo’s
success didn’t stop there. They recognised that customers wanted convenience and connected their
online and physical stores. Shoppers could check online to see if a product was available in a nearby
store or even reserve items for pick-up.

Of course, building a global brand wasn’t without its challenges. Each new country came with
different tastes and preferences. But Uniqlo listened to its customers. They studied the markets,
adapted their clothing to local climates, and paid attention to cultural differences.

Today, Uniqlo is more than just a clothing brand. It’s a global powerhouse that embodies the
philosophy of simplicity, quality, and innovation. But behind the success lies a story of careful
planning, bold decisions, and a commitment to creating something that stands the test of time.

Now, imagine you are Tadashi Yanai. You have a vision to bring high-quality clothing to millions of
people. How would you design Uniqlo’s business model? What kind of stores would you open? How
would you ensure that the clothes remain affordable but high in quality? The story of Uniqlo is yours
to continue.
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Short Case 4: The Story of Zomato - From Menus to Meals at Your Doorstep,
Professor Satyasiba Das, 2025 (Draft)
Years ago, in the bustling streets of Delhi, two young professionals, Deepinder Goyal and Pankaj
Chaddah, grappled with a problem many officegoers faced. It was lunchtime, and the office cafeteria
was overflowing. They wanted to order food from nearby restaurants, but figuring out what was
available, let alone placing an order, was tedious.

One day, while flipping through a stack of restaurant menus at the office, an idea struck them. What if
all these menus could be digitised? Instead of flipping through paper menus, people could browse a
single online platform to discover restaurants and decide what to eat. And thus, in 2008, their venture,
then called ‘Foodiebay’, was born. This humble idea would eventually evolve into Zomato, a global
food delivery and discovery platform.

At first, Foodiebay was a simple website that listed menus from restaurants in Delhi. But soon, word
spread. Officegoers loved the convenience of finding restaurants and browsing menus online.
Restaurants, too, saw an opportunity to attract more customers. Realising the potential, Deepinder and
Pankaj expanded their service to other cities in India. They renamed their platform Zomato, aiming
for a brand that could resonate globally.

But Zomato wasn’t content with just being a menu aggregator. They wanted to solve the next big
challenge – helping people order food directly from the platform. This wasn’t easy. They had to build
partnerships with restaurants, figure out logistics for delivery, and ensure that customers had a
seamless experience. Step by step, they built a food delivery network that connected hungry
customers with their favourite restaurants.

As Zomato grew, they realised it wasn’t just about delivering food. It was about creating a dining
ecosystem. They introduced restaurant reviews, allowing customers to share their experiences. This
feature quickly became a hit, helping people discover hidden gems in their cities. With more users
relying on Zomato for recommendations, restaurants started advertising on the platform, giving
Zomato an additional source of revenue.

To add value, Zomato launched subscription programs like Zomato Gold (later Zomato Pro), offering
members exclusive discounts and benefits at partner restaurants. Customers loved the perks, while
restaurants saw increased footfall. It was a win-win.

Zomato also embraced technology to improve its operations. They built algorithms to provide
personalised restaurant recommendations, ensuring every user’s experience felt unique. They
integrated payment gateways for easy transactions and introduced live tracking for food deliveries so
customers could see their meals en route.

Their journey wasn’t without challenges. The food delivery market was competitive, with players like
Swiggy and Uber Eats vying for market share. However, Zomato’s focus on innovation and customer
experience helped them stand out. They expanded internationally, bringing their services to countries
across the Middle East, Southeast Asia, and beyond.

One of Zomato’s boldest moves came during the pandemic. With restaurants shutting down and
delivery demand surging, Zomato pivoted to offer grocery delivery, helping households access
essentials. They also launched initiatives to support partner restaurants, such as discounted
commissions and marketing assistance, showing their commitment to the industry’s recovery.

Today, Zomato is more than just a food delivery app. It’s a platform connecting people to food
through delivery, dining out, or discovering new cuisines. Its journey from digitising menus to
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becoming a global food-tech leader is a testament to the power of solving everyday problems with
innovative solutions.

Imagine you are Deepinder or Pankaj, sitting in that office all those years ago. What other problems in
the dining experience would you try to solve? How would you structure Zomato’s operations to serve
millions of customers while supporting thousands of restaurants? The story of Zomato is still being
written, and now, it’s your turn to continue the tale.

Exhibit 1: Zomato’s Growth over the Year

Exhibit 2: Zomato’s Market Capitalization over the Year

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Short Case 5: The Derma Co: Redefining Skincare in India, Prof Satyasiba Das
The Indian Skincare Landscape: India’s skincare industry has grown exponentially over the last
decade. With rising disposable incomes, increasing awareness about skin health, and the influence of
social media, consumers have become more discerning about the products they use. By 2023, the
Indian skincare market was valued at over $8 billion, with double-digit annual growth rates expected
in the years ahead. Yet, despite the abundance of products, a glaring gap remained: personalised,
science-backed skincare.

Historically, skincare in India was dominated by legacy brands offering one-size-fits-all solutions.
Natural and ayurvedic products often overshadow clinical formulations, leaving consumers with
limited options for addressing specific skin concerns like acne, pigmentation, or aging. The modern
consumer, however, was evolving, demanding transparency, education, and tailored solutions—a shift
The Derma Co was poised to capitalise on.

The Birth of The Derma Co: In 2020, amidst this evolving landscape, The Derma Co emerged as a
disruptor. Ghazal Alagh and her team founded the brand to bridge the gap between dermatology and
accessible skincare. The idea was simple yet revolutionary: create transparent, clinically effective
products and tailored to individual skin needs.

From the outset, The Derma Co distinguished itself by focusing on active ingredients. At a time when
most Indian consumers were unfamiliar with terms like niacinamide, retinol, and hyaluronic acid, the
brand took it upon itself to educate. Each product came with a clear explanation of its active
ingredients and their benefits, fostering trust and demystifying skincare science.

The Derma Co’s Approach: What truly set The Derma Co apart was its commitment to
personalisation. Recognising that no two individuals have the same skin, the brand introduced an
innovative online skin assessment tool. Users answered a series of questions about their skin type,
concerns, and goals, and the tool recommended a customised regimen tailored to their unique needs.
This emphasis on personalisation resonated deeply with consumers who felt seen and understood.

Impressive Growth Metrics: The Derma Co’s growth has been nothing short of remarkable:

• The brand has achieved a 200% year-on-year growth rate in just three years.
• By 2023, it captured a significant share of the Indian clinical skincare market, with revenues
surpassing ₹300 crore.
• Its Instagram following surged to over 500,000, with posts regularly featuring user
transformations and skincare tips.
• The brand’s products became bestsellers on e-commerce platforms like Nykaa and Amazon,
often ranking in the top 5 for categories like serums and acne solutions.

Storytelling Meets Science: The Derma Co’s marketing strategy blended education with relatability.
The brand shared stories of real people achieving visible results through influencers, dermatologists,
and everyday users. Campaigns emphasised the concept of ‘skinvestment’, encouraging consumers to
view skincare as a long-term commitment rather than a quick fix.

Social Media and the Digital Advantage: Leveraging India’s digital boom, The Derma Co prioritised
e-commerce and social media. Its Instagram and YouTube channels became information hubs,
offering everything from product tutorials to skincare myth-busting. This approach drove engagement
and positioned the brand as a thought leader in the skincare space.
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Challenges and Innovations: Entering a competitive market wasn’t without its hurdles. Convincing
consumers to shift from natural remedies to clinical solutions required persistence. The brand tackled
this by:

1. Partnering with dermatologists to validate its formulations.

2. Offering trial-sized products to reduce the barrier to entry.
3. Launching a subscription model to encourage consistency in skincare routines.

The Path Forward: As The Derma Co continues to grow, its mission remains steadfast: democratising
dermatology-backed skincare for every Indian. With plans to expand into offline retail, introduce new
product lines, and deepen its educational initiatives, the brand’s journey is far from over.

Reflect and Imagine: Consider the story of The Derma Co. How did it navigate the crowded Indian
skincare market to carve out its niche? What lessons can other brands learn from its commitment to
transparency and personalisation? Most importantly, if you were part of the team behind The Derma
Co, how would you shape its future growth? The Derma Co’s rise is a testament to the power of
listening to consumers, embracing innovation, and staying true to a vision. It’s a story that’s still
unfolding, with endless opportunities for those who dare to dream.

Exhibit 1: Comparative Value Proposition: The Derma Co vs Traditional Brands

Aspect The Derma Co Traditional Brands

Clearly lists active ingredients and Limited information on ingredients and
Transparency
concentrations on all products formulations
Personalised skincare regimens using
Personalisation Generic products targeting broad skin types
an online assessment tool
Educational content via social media, Minimal educational efforts; marketing-
Education
blogs, and workshops heavy approach
Focus on clinically proven active Primarily focus on natural or ayurvedic
Active Ingredients
ingredients like niacinamide, retinol ingredients
Eco-friendly packaging and Standard packaging with little focus on
Sustainability
commitment to sustainability sustainability
Primarily millennials, Gen Z, and Mass market targeting all demographics with
Target Audience
individuals with specific skin concerns one-size-fits-all solutions

Exhibit 2: The Derma Co’s Revenue Growth 2020-23

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Short Case 6: Indian Hotels Company Limited (IHCL) – Core Values Shaping
Strategy and Growth, Prof Satyasiba Das
In March 2023, Puneet Chhatwal, the Managing Director and CEO of the Indian Hotels Company
Limited (IHCL), sat in his office at the iconic Taj Mahal Palace Hotel in Mumbai. Reflecting on the
company’s recent financial performance, he had every reason to be proud. IHCL had reported its
highest-ever revenue of ₹5,810 crores for FY2022-23, with an EBITDA margin of 31.2%. Beyond the
numbers, the company had solidified its position as a leader in the global hospitality industry, staying
true to the vision and values that had guided it for over a century.

The company’s journey began in 1903 when Jamsetji Tata established the Taj Mahal Palace Hotel
with a vision to create a world-class hotel in India that would reflect Indian excellence and pride.
Over the decades, IHCL evolved into South Asia’s largest hospitality company, operating over 250
hotels in 30 countries. Yet, its success wasn’t built solely on strategy or innovation—it was rooted in
the company’s core values of integrity, responsibility, excellence, and unity. These values shaped
IHCL’s decisions and operations and enabled it to overcome challenges, embrace sustainability, and
achieve long-term growth.

The 2008 Mumbai terrorist attacks had been one of the darkest chapters in IHCL’s history. The Taj
Mahal Palace Hotel became the epicentre of the tragedy, where employees risked their lives to protect
guests. Their actions were later hailed as examples of extraordinary courage and commitment. Instead
of succumbing to the devastation, IHCL rebuilt the Taj Mahal Palace Hotel as a symbol of resilience
and pride. This decision underscored the company’s unwavering dedication to its core value of unity,
which fostered collaboration, loyalty, and purpose among its employees.

IHCL’s resilience and values-driven leadership were also evident during the COVID-19 pandemic.
When travel restrictions crippled the hospitality industry, IHCL launched the ‘Meals to Smiles’
initiative, providing over four million meals to frontline workers and vulnerable communities. It also
converted its hotels into quarantine centres and accommodations for healthcare workers. These
actions reflected IHCL’s commitment to responsibility, where profitability was balanced with social
impact.

Under Chhatwal’s leadership, IHCL redefined its approach to sustainability with the launch of the
‘Paathya’ ESG framework. The company eliminated single-use plastics across all properties, reduced
its carbon footprint by 20% over five years, and integrated renewable energy solutions into its
operations. It also prioritised sourcing local and sustainable products, supporting rural artisans while
reducing environmental impact. These initiatives aligned IHCL’s strategy with global trends in eco-
conscious travel, attracting environmentally conscious travellers and enhancing its brand reputation.

Innovation became a critical pillar of IHCL’s strategy as it expanded its portfolio to cater to evolving
market needs. Recognising the demand for experiential travel, IHCL launched ‘Ama Stays & Trails’,
offering homestays rooted in local culture and sustainability. The company expanded its Ginger
Hotels brand for budget-conscious travellers, blending affordability with high-quality service. These
initiatives diversified IHCL’s customer base while maintaining its commitment to excellence, a value
that had long defined its Taj brand. By embracing technology, IHCL enhanced guest experiences and
operational efficiency, ensuring it remained competitive in a fast-changing industry.

The company’s pursuit of excellence was evident in its consistently delivering superior guest
experiences. The Taj Mahal Palace Hotel and properties like the Taj Lake Palace in Udaipur
consistently earned global accolades, strengthening IHCL’s brand equity. Taj’s high Net Promoter
Scores (NPS) reflected exceptional customer loyalty, contributing to IHCL’s record-breaking revenue
performance. However, excellence at IHCL extended beyond luxury and shaped its efforts in
operational efficiency, cost management, and market leadership across segments.
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Sustainability wasn’t just an ethical imperative for IHCL; it became a strategic advantage. By
integrating sustainable practices into its operations, IHCL reduced costs while appealing to travellers
who valued eco-conscious choices. The company’s ability to align its profitability goals with its
responsibility to the planet demonstrated how deeply its core values influenced its strategy.

As Puneet Chhatwal considered IHCL’s future, he reflected on the challenges and opportunities
ahead. The company had proven its ability to adapt, innovate, and grow while remaining steadfast in
its values. Yet, questions lingered about how IHCL could continue scaling its sustainability efforts,
retaining its leadership in luxury hospitality, and embracing digital transformation. The company’s
legacy of excellence and responsibility provided a strong foundation, but maintaining relevance in a
dynamic global market would require balancing innovation with tradition.

For IHCL, its core values were more than guiding principles; they were a compass, steering the
company through crises and driving its evolution. They enabled IHCL to build a business and a
legacy, proving that profitability and purpose could coexist. As IHCL charted its path forward, it
remained a powerful example of how values could shape strategy, inspire loyalty, and create
sustainable growth.

Exhibit 1: Financial Performance

Metric FY2021-22 FY2022-23 Growth (%)

Revenue (₹ crores) 3,510 5,810 65.5
EBITDA Margin 22.4% 31.2% +8.8
Occupancy Rate 58% 73% +15

Exhibit 2: Sustainability Impact (Paathya Framework)

Initiative Achievement
Carbon Emissions 20% reduction in 5 years
Single-Use Plastics 100% elimination across properties
Energy Efficiency Renewable energy adoption across key hotels
Meals Provided (COVID-19) 4 million meals to frontline workers

Exhibit 3: Customer Loyalty and Brand Equity

Brand Recognition Performance Metric

Taj Hotels (Condé Nast Traveler) Top 100 Hotels in the World
Net Promoter Score (NPS) Industry-leading in the luxury segment
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Short Case 7: MUJI Japan – Core Values Driving Minimalism and Global
Growth, Prof Satyasiba Das (Draft)
In early 2023, Masaaki Kanai, the chairman of Ryohin Keikaku, the parent company of MUJI,
reflected on the brand’s journey from a modest Japanese retailer to a globally recognised symbol of
minimalism and simplicity. MUJI’s success lies not in extravagant marketing or flashy product
designs but in its unwavering commitment to its core values: simplicity, sustainability, functionality,
and affordability. These values shaped its product philosophy and guided its strategic decisions,
enabling it to thrive in an increasingly competitive retail market.

MUJI, which translates to ‘no-brand quality goods,’ began in 1980 as a counterpoint to Japan’s
consumerism-driven culture. Initially, it offered just 40 products designed to be functional, high-
quality, and free of unnecessary embellishments. This no-frills philosophy resonated with consumers
tired of excessive branding and over-designed products. The company’s core values—centred around
simplicity and functionality—became its unique selling proposition, distinguishing it from
competitors in the retail space.

Simplicity was the cornerstone of MUJI’s strategy. Its product designs focused on removing
unnecessary elements, leaving only what was essential. The result was a range of aesthetically
pleasing, versatile, and functional items. MUJI’s products became synonymous with understated
elegance, from home goods and stationery to clothing and furniture. This simplicity extended beyond
product design; it was embedded in its packaging, which was often clear or plain, allowing the
product to speak for itself. MUJI’s no-logo policy further emphasised the brand’s commitment to
authenticity and the rejection of conspicuous consumption. This approach also contributed directly to
MUJI’s profitability by minimising production costs, which are evident in gross margins, repeat
purchase rates, and strong customer loyalty metrics.

MUJI’s value of sustainability was evident in its early adoption of eco-friendly practices long before
sustainability became a global business imperative. From sourcing raw materials responsibly to
designing products with longevity, MUJI’s approach minimised waste and maximise resource
efficiency. For instance, MUJI introduced refillable products and furniture made from reclaimed
wood, ensuring its operations aligned with its environmental commitment. By 2022, MUJI had shifted
over 90% of its packaging to recyclable materials and reduced carbon emissions by 15% over five
years. Indicators such as sales growth in sustainability-driven regions and third-party recognition
further validated MUJI’s reputation as a responsible global brand.

Functionality, another core value, was central to MUJI’s product development. Each item in its
portfolio served a clear purpose and often addressed multiple needs. For example, its stackable
storage solutions and compact furniture designs were tailored for urban living, where space was often
at a premium. MUJI’s products were designed to seamlessly integrate into consumers’ lives,
providing practical solutions without compromising quality. This focus on functionality enabled
MUJI to build customer trust and loyalty, evidenced by low product return rates and consistently high
customer satisfaction scores.

Affordability was the fourth pillar of MUJI’s core values, ensuring its products were accessible to a
broad audience. By avoiding unnecessary marketing expenses and streamlining production processes,
MUJI kept its costs low and passed these savings on to customers. Its pricing strategy further
reinforced its ‘no-brand’ ethos, creating a sense of inclusivity that appealed to both budget-conscious
shoppers and design enthusiasts. Affordability metrics, such as market share growth in urban regions
and increased penetration in budget-conscious markets, further demonstrated how this value drove
performance.
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Despite its steady growth, MUJI faced significant challenges as it expanded internationally. Markets
outside Japan often had different consumer preferences, with some regions favouring bold, branded
products over minimalistic designs. To address this, MUJI relied on its core values as a guiding
framework, allowing it to maintain its identity while adapting to local markets. In China, for example,
MUJI focused on urban consumers who valued simplicity and functionality, tailoring its product
offerings to suit their needs. Similarly, MUJI’s eco-friendly practices and minimalist designs
resonated with consumers seeking sustainable alternatives to traditional brands in Europe and North
America. Its success in these regions was reflected in the growing share of international revenue,
which accounted for 26% of MUJI’s total revenue in 2022, up from 23% in 2021.

MUJI’s commitment to its core values was also evident in its customer experience strategy. Its stores
were designed to reflect the brand’s ethos of simplicity and calmness. Neutral colours, open layouts,
and natural materials created an atmosphere that invited customers to browse and explore at their own
pace. MUJI stores became spaces where consumers could experience the brand’s philosophy
firsthand, enhancing their connection to its products and values. Metrics such as in-store conversion
rates and average time spent in stores further illustrated how MUJI’s store design strategy aligned
with its core values.

In recent years, MUJI had also embraced digital innovation to complement its brick-and-mortar
presence. Its e-commerce platforms allowed the company to reach a wider audience, while its online
storytelling reinforced its brand message. MUJI used digital tools to educate customers about its
sustainability initiatives, creating transparency and strengthening its reputation as a socially
responsible brand. Metrics such as digital engagement rates and sales growth from online channels
demonstrated the impact of this strategy on reaching younger, tech-savvy audiences.

As Kanai considered the future, he acknowledged the challenges ahead. MUJI’s unique positioning
was both its strength and its vulnerability. While its minimalist philosophy appealed to a specific
audience, it risked alienating consumers who sought more variety or personalisation. The global retail
landscape was becoming increasingly competitive, with fast-fashion brands and e-commerce giants
encroaching on MUJI’s territory. However, Kanai was confident that the company’s core values
would continue to serve as a compass, guiding its decisions and ensuring its relevance in a changing
world.

For MUJI, its values were not just a marketing tool—they were the foundation of its business model,
shaping everything from product design to customer experience. These values had enabled MUJI to
build a loyal customer base, differentiate itself in the global market, and achieve sustainable growth.
Indicators like brand equity scores, customer retention rates, and third-party recognition further
highlighted how deeply MUJI’s philosophy resonated with its audience. As the company looked
ahead, its challenge would be to remain true to its principles while adapting to the evolving needs of
its customers.

Exhibit 1: Financial Performance Indicators

Metric FY2021 FY2022 Growth (%)

Revenue (¥ billion) 432.6 453.2 +4.8
Operating Margin 9.2% 10.1% +0.9
International Revenue Share 23% 26% +3

Exhibit 2: Sustainability and Responsibility Metrics

Indicator Achievement
Carbon Emission Reduction 15% reduction in five years
Eco-Friendly Packaging 90% recyclable materials
Refillable Products Broad adoption in personal care and stationery
Third-Party Recognition Multiple awards for sustainability
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Exhibit 3: Customer and Market Engagement Metrics

Indicator Performance
Repeat Purchase Rate Consistently above 60%
Product Return Rates Less than 5% (indicating quality and satisfaction)
Brand Equity Score Among the highest in the minimalist retail segment
In-Store Conversion Rate Significant growth in key urban regions
Average Time Spent in Stores 15% higher than competitors

Exhibit 4: Digital and Global Expansion Metrics

Indicator Performance
Sales Growth from Digital Channels 20% annual growth
Digital Campaign Engagement Rates 25% higher than industry benchmarks
Market Share Growth in Urban Areas Steady increases in penetration
Revenue from Sustainability-Driven Markets Up 10% in Europe and North America
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Short Case 8: Fjällräven – Core Values Guiding Purposeful Growth

Prof Satyasiba Das
In the picturesque town of Örnsköldsvik, nestled in northern Sweden, young Åke Nordin crafted his
first backpack in 1960. Dissatisfied with the cumbersome and poorly designed equipment of the time,
he set out to design something functional, durable, and comfortable. This simple act of innovation
planted the seed for Fjällräven, a brand that would go on to embody Sweden’s commitment to nature,
sustainability, and timeless quality.

By 2023, Fjällräven had grown into a globally recognised outdoor brand, celebrated for its functional
designs, sustainable practices, and enduring style. Its success was not an accident. It directly resulted
from a deep-rooted commitment to its core values: sustainability, functionality, durability, and
connection to nature. These values shaped everything from product design and materials sourcing to
marketing and global expansion. Fjällräven’s ability to stay true to these principles while navigating
the challenges of global competition made it a compelling case study for values-driven strategy and
growth.

From its earliest days, Fjällräven’s core value of functionality influenced its approach to product
design. Åke Nordin believed that outdoor gear should serve a clear purpose: to make nature more
accessible and enjoyable. His first backpack, made from wooden frames and strong cotton, was
designed to distribute weight evenly, reducing the strain on hikers. This emphasis on functionality
became the foundation for all Fjällräven products. Iconic designs like the Kånken backpack,
introduced in 1978 to prevent back problems in Swedish schoolchildren, exemplified the brand’s
focus on practical solutions. Today, the Kånken is a symbol of Scandinavian design and a bestseller,
with over three million units sold annually. Its long-term success highlighted Fjällräven’s
commitment to corporate longevity, a rare achievement in the competitive outdoor industry.

Fjällräven’s value of durability was equally influential in shaping its identity. Outdoor enthusiasts
relied on products that could withstand harsh conditions, and Fjällräven committed to delivering gear
that would last for decades. Materials like G-1000, a highly durable and adaptable fabric, became
synonymous with the brand’s rugged quality. By designing products with longevity in mind,
Fjällräven cultivated a loyal customer base that valued reliability and trusted the brand to accompany
them on their adventures. Indicators such as low product return rates and high repeat purchase rates
underscored how durability directly translated into customer loyalty and stable revenue growth over
decades.

Sustainability became a cornerstone of Fjällräven’s strategy long before it became a global business
imperative. The company’s ethos reflected Sweden’s deep respect for nature, aiming to minimise its
environmental impact through thoughtful sourcing, manufacturing, and product lifecycle
management. Fjällräven adopted eco-friendly practices such as using recycled and organic materials,
avoiding harmful chemicals, and promoting repair and reuse through initiatives like the Fjällräven Re-
Kånken, made from recycled plastic bottles. These efforts resonated strongly with environmentally
conscious consumers, particularly in Europe and North America, where sustainability was a driving
factor in purchasing decisions. By 2022, Fjällräven had reduced its carbon footprint by 25% across its
supply chain, a milestone that cemented its leadership in eco-conscious outdoor gear.

The company’s connection to nature was not just a value but a guiding philosophy that permeated its
culture and strategy. Fjällräven saw itself as a steward of the outdoors, inspiring people to explore and
protect nature. Initiatives like the Fjällräven Classic, an annual trekking event, and the Arctic Fox
Initiative, which funds environmental projects, demonstrated how the brand engaged with its
community to foster a deeper connection to the natural world. These initiatives reinforced customer
loyalty and strengthened the emotional bond between the brand and its audience, driving metrics like
high Net Promoter Scores (NPS) and consistent market share growth. Fjällräven’s approach to
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corporate longevity was reflected in its ability to stay relevant for over 60 years, adapting to changing
market dynamics while maintaining its core identity.

Despite its success, Fjällräven faced challenges as it expanded globally. In markets like North
America and Asia, where consumer preferences were diverse and competitive pressures intense,
Fjällräven had to balance staying true to its Scandinavian roots while adapting to local tastes. For
example, in Japan, the Kånken backpack became a fashion statement, celebrated for its minimalist
aesthetic, while in North America, Fjällräven leaned heavily into its identity as a premium outdoor
brand. Indicators such as market-specific revenue growth and new customer acquisition rates
highlighted how Fjällräven navigated these challenges by leveraging its values as a consistent
framework.

Fjällräven’s marketing strategy also reflected its values. Unlike many competitors, the brand avoided
overtly commercial tactics, focusing on authenticity and storytelling instead. Campaigns emphasised
the utility, craftsmanship, and environmental benefits of its products rather than seasonal trends or
discounts. This approach attracted a loyal base of customers who aligned with the brand’s ethos,
particularly millennials and Gen Z consumers who valued transparency and purpose-driven brands.
Digital engagement metrics, including high interaction rates on sustainability-focused content, further
demonstrated the success of this strategy.

Fjällräven’s commitment to its values also extended to its internal culture. The company invested in
employee training programs emphasising environmental stewardship and product knowledge,
ensuring staff could authentically represent the brand. Employee engagement scores and low turnover
rates indicated that Fjällräven’s workforce strongly identified with the company’s mission, creating a
culture of purpose and collaboration.

By 2023, Fjällräven had built more than a brand—it had created a movement. Through its
commitment to functionality, durability, sustainability, and connection to nature, Fjällräven had
achieved a rare feat: sustained success over six decades. Corporate longevity became one of its most
compelling performance metrics, demonstrating how adherence to core values could enable a
company to endure and thrive in a competitive and rapidly evolving industry.

Exhibit 1: 10-Year Financial Performance Indicators

International Revenue
Year Revenue (€ million) Operating Margin (%)
Share (%)
2013 350 10.5 30
2014 370 10.8 32
2015 400 11.0 34
2016 420 11.5 36
2017 450 11.8 38
2018 490 12.2 40
2019 520 12.8 42
2020 550 13.0 44
2021 600 12.5 45
2022 650 13.8 50
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Exhibit 2: Sustainability and Responsibility Metrics

Indicator Achievement
Carbon Footprint Reduction 25% reduction in supply chain emissions
Recycled Materials Usage 40% of total product materials
Repair and Reuse Programs 10,000+ products repaired annually
Arctic Fox Initiative Funding €1 million donated to environmental projects

Exhibit 3: Customer and Market Engagement Metrics

Indicator Performance
Repeat Purchase Rate Consistently above 65%
Product Return Rates Less than 5% (indicating quality and satisfaction)
Net Promoter Score (NPS) High scores across European and North American markets
Social Media Engagement Rate 25% higher on sustainability-focused content

Exhibit 4: Corporate Longevity as a Performance Metric

Metric Achievement
Years in Operation 63 years (as of 2023)
Longevity of Flagship Product Kånken backpack sold continuously for 45 years
Market Share Growth 10% growth in the global outdoor market over 10 years