spectra-gt-23 - Tumblr blog

[spectra-gt-23]

Trust Us !!!!!

Indian Conglomerates have played a significant role in developing the country's economic landscape. These diverse business empires shaped the nation's growth and became synonymous with entrepreneurship, innovation, and global competitiveness.

There is one  conglomerate that is famous and infamous at the same time for using the country's patriotism as its advantage to raise funds and commit fraud. We are talking about none other than "Sahara Group." Led by Subrata Roy, this group was founded in 1978. It used small investors like farmers, workers, etc. It made them invest in their so-called financial schemes (Chit funds) to raise funds for business operations and diversify into several other sectors like real estate, housing finance, and many more.

During its Golden Era, the Sahara was untouchable. It employed about 12 lakh employees who regarded and treated Mr. Roy as equal to the god. Sahara entered the aviation sector and developed one of the most luxurious townships, "Aamby Valley City". At the same time, they were a sponsor of the Indian Cricket Men's team for more than 11 years and, with the help of its vast workforce, made a Guinness World Record too.

Later, in 2010, the Securities and Exchange Board of India (SEBI) filed a case against Sahara after they found out Sahara wasn't complying with SEBI's regulations and their financial schemes were not anything more than chit fund schemes which were duping over more than 20 lakhs Indians. After seven years of legal battle, SEBI won the case, and Sahara said they refunded the investors' money to SEBI (or did they).

The landscape of leading conglomerates has been changing, but from few years, companies like TATA and Reliance have remained constantly at the forefront. Now, the Sahara group wants to make a comeback in the headlines and wants to come clear of all the allegations against them.

TASK IN HAND –

Even after all this, Subrata Roy claims himself as one of the most prominent patriots and claims that all misdeeds happened behind his back by the employees of his companies. You are representing Mr. Subrata Roy and you have to defend all the allegations against him and his companies.

Conduct through Market Research and come up with PR strategies for the Group.

Requirements –

Slides (7 X 7) (You must submit a presentation for the same, which might include testimonials or proof from relevant sites regarding the case or anything you can use to prove Mr. Sahara Sri's innocence).

Brownie points will be given for extra deliverables given by the team.

Submit it to: spectra23.gt@gmail.com

Deadline: 8:30 am (19th October)

[spectra-gt-23]

ARTIFICE ACT OF NIKOLA

Nikola Corporation, a once-promising player in the Electric Vehicle (EV) industry, faced a significant downfall after being exposed for fraud and misrepresentations. Founded in 2014 by Trevor Milton, Nikola aimed to be a global leader in zero-emission transportation, particularly with hydrogen-powered trucks. The company secured partnerships with reputable automotive players and garnered substantial investments, reaching a valuation of $34 billion at its peak.

However, in September 2020, a report by Hindenburg Research accused Nikola of significant misrepresentations and fraudulent claims about its technology and business. The report alleged that Nikola's proprietary technology was acquired from other companies, and it raised questions about Milton's past ventures, which were also marred by lawsuits and exaggerated misrepresentations. The revelations led to a rapid decline in Nikola's stock price and the withdrawal of partnerships, including General Motors.

The fraud allegations prompted investigations by the U.S. Securities and Exchange Commission (SEC) and the Department of Justice. Milton was charged with securities and wire fraud, accused of misleading investors about Nikola's products and technology to boost the company's stock value. He pleaded not guilty to the charges. Nikola attempted to distance itself from Milton, stating that he had not been involved in the company since his resignation in September 2020.

The case study raises several discussion points, including the use of Special Purpose Acquisition Companies (SPACs) as a means of raising capital, the impact of remuneration policies on executive behavior, the composition and independence of Nikola's board of directors, the role of short-sellers in exposing fraudulent practices, and the differences in legal and regulatory environments between the U.S. and Singapore.

The document also highlights red flags in Nikola's statements and actions that could have been detected earlier through proper due diligence by investors. It questions the viability of the SPAC route to going public, considering the potential for fraudulent activities. The case study emphasizes the need for robust corporate governance, independent boards, and transparent disclosure practices to prevent such misrepresentations and fraud in the future.

Furthermore, the document mentions the controversies surrounding Milton's previous ventures and his retention of a significant shareholding in Nikola, which potentially grants him control over the company. It discusses the severance terms negotiated by Milton, allowing him to retain substantial benefits even after his departure from the company.

Overall, the Nikola case serves as a cautionary tale about the risks of fraudulent practices, the importance of thorough due diligence by investors, and the need for effective corporate governance to protect shareholders' interests and maintain trust in the market. The future of Nikola remains uncertain as it faces legal challenges, loss of partnerships, and a lack of capital and resources Nikola Corporation, a once-promising player in the Electric Vehicle (EV) industry, faced a significant downfall after being exposed for fraud and misrepresentations. Founded in 2014 by Trevor Milton, Nikola aimed to be a global leader in zero-emission transportation, particularly with hydrogen-powered trucks. The company secured partnerships with reputable automotive players and garnered substantial investments, reaching a valuation of $34 billion at its peak.

TASK AT HAND

You are Nikola's New Chief Executive Officer and have been tasked with the company's Re-launch. Create strategies for the company to ensure its survival in the EV market and gain the highest market share.

DELIEVERABLES

• Executive Summary

• Reasons behind the financial failure of the company from the point of view of mistakes in strategic decision making.

• Given the events of Nikola, design a business model for a new EV company ensuring transparency, sustainability, and innovation.

• Present your venture to potential investors highlighting the lessons learned from Nikola’s case. Assuming Nikola wants to rebuild its brand, devise a 5-year strategic plan that can help the company regain trust and establish a solid market position.

• Given the EV industry's dynamics, conduct a SWOT analysis for Nikola post-crisis, identifying potential markets and segments they could target.

• Evaluate the financial risks involved in investing in start-ups, especially in the high-tech domain, and devise a plan to mitigate such risks.

• Public Relations Strategy to revive the trust and goodwill of the stakeholders.

REQUIREMENTS

A) Report of maximum 50 pages.

B) PPT of minimum 12 slides.

C) Poster for the Launch

Brownie points for extra deliverables (promotional video, logo, tagline, etc.)

Deadline : 4:30 am (19th October )

For any further queries please contact :

Manan : 7490921044

Sneha: 6375388745

Mail (to Submit the assignment): spectra23.gt@gmail.com