1. Apply effective business strategies in navigating operational challenges, business environment, technology adoption and operational scalability in emerging markets.
2. Assess the regulatory challenges involved in entering the e-subscription market.
3. Apply capital budgeting techniques (such as NPV, IRR and MIRR) to evaluate investment opportunities and effectively analyse risk through sensitivity and scenario analysis.
Evaluate the influence of an entrepreneur’s leadership style on long-term business strategy.
Athenaeum Solutions Pvt. Ltd. is a knowledge transporter, empowering individuals and educational establishments through subscription of print journals and magazines. Serving as a distributor for publishers and vendor for educational establishments, it operates in a cyclical business where the subscription orders are generally placed at the start of the year and forwarded to the publisher. Missing journal reports became a significant issue with an increase in the number of missing journals and magazines and a longer wait time for their delivery. This situation weakened the subscriber’s trust, adversely affecting subscription renewal & revenue. Mr Arun Dhaneshwar, MD of Athenaeum Solutions, faced the dilemma of whether to replace the existing manual system with a software solution or improve the efficiency of the current manual system. Additionally, he had to choose between the two software proposals: one offering an end-to-end comprehensive system integration and a long-term solution; and the other addressing the immediate issue of increase in missing journal report. Furthermore, he needed to weigh the financial implications, operational scalability, potential business model changes and industry growth before reaching a conclusion. The case encourages students to conduct a comprehensive SWOT analysis, assess the external business environment, evaluate market competition and analyse operational scalability. Additionally, students can apply capital budgeting techniques to assess financial implications and make investment decisions. The case also emphasises how Arun’s leadership style influences decision-making and impacts long-term business growth.
This case is intended for students of management at undergraduate and master’s levels. This case study can be positioned in the first half of the course, after learning time value of money. This case study serves as an introduction to capital budgeting techniques, sensitivity analysis and scenario analysis to make investment decisions under risk and uncertainty.
Teaching notes are available for educators only.
CSS1: Accounting and Finance.
