Falling Profits Case

  • In a nutshell: This type of case asks you to explore the possible reasons behind a company‘s drop in profits.

  • What this type of question is designed to assess: Analytical ability, drilldown from a high-level statement, understanding of financial instruments, communication, industry knowledge

  • Useful concepts/frameworks: Market assessment, BCG matrix, product mix assessment.

Some examples of falling profits cases:

  • Bunny New Media is an Internet content provider that has had three straight quarters of high profit gains, followed by a 50% drop in profits this quarter. What has happened?

  • Hill Construction has been under contract with the City of Los Angeles to build a new subway station. However, Hill‘s latest financial statement shows a steep decline in profits relative to this time last year. What is the cause of this decline?

New Product Introduction

·  In a nutshell: This type of case asks you to recommend a strategy for introducing a new product.

·  What this type of question is designed to assess: Analytical ability, understanding of brand management, supply chain, communication, industry knowledge

·  Useful concepts/frameworks: Four Ps, market analysis, competitor analysis, product portfolio assessment

Some examples of new profit product introduction:

  • Joe‘s Aircraft Engines has a new design ready for market. How should they pursue this?

  • Microvilla Software has a new kitchen design application they would like to market over the Internet. How should they go about this?

 

 

Entering a New Market

  • In a nutshell: This type of case asks you to analyze whether a company should enter a new market or develop a new line of products or services. (Usually, the new products or services are somehow related to the company‘s current business.)

  • What this type of question is designed to assess: Analytical ability, understanding of market dynamics, supply chain dynamics, communication, industry knowledge

  • Useful concepts/frameworks: Market assessment, product portfolio analysis

Some examples of new market questions:

  • Hasma Systems, Inc. currently assembles laser printers for several major high-tech companies. One of these companies has approached you about manufacturing calculators and has asked you to provide an analysis of their ability to provide this service. How would you go about your analysis?

  • A major consumer products manufacturer currently makes soap, detergent, and canned meat products. Most of the company‘s product portfolio is considered mature, and it has identified two companies for acquisition: one makes frozen juice concentrate, the other makes hair care products. How would you decide which acquisition, if either, is best for the company?

Entering a New Geographic Market

·  In a nutshell: This type of case asks you to analyze whether a company should expand into a new country or region.

·  What this type of question is designed to assess: Analytical ability, understanding of global market dynamics, geographic currency issues, supply chain dynamics, communication, industry knowledge

·  Useful concepts/frameworks: Market assessment, supply chain analysis, competitor analysis

Some examples of new geographic market questions:

  • Miller‘s Wheat Bran wants to introduce its line of bran products in India . How would they go about assessing the feasibility of this idea?

  • Billy Bo Bob‘s Chili is the number one chili product in Texas and Oklahoma . The company is interested in introducing their product in California . How would you recommend the company proceed?

 

 

Where to Locate a New Facility ("Site Selection Case")

  • In a nutshell: The site selection case asks you to evaluate where a company should locate a new plant or other facility (and sometimes, whether the company‘s entire operations should be relocated).

  • What this type of question is designed to assess: Analytical ability, understanding of global market dynamics, regulatory environment, import/export environment, supply chain dynamics, communication, industry knowledge

  • Useful concepts/frameworks: Market assessment, supply chain analysis, competitor analysis

Some examples of site selection cases:

  • Yaya Manufacturing assembles bicycles exclusively in the United States . Due to cost pressures, the company is thinking of moving operations to Mexico . What factors would you consider in making this decision?

  • A major beverage manufacturer is negotiating with the Indian government to sell its products in India . The government has demanded that the company sell only products made in India, with the added specification that the company open bottling plants in India . What factors should you consider in evaluating this requirement?

Mergers & Acquisitions Case

·  In a nutshell: The M&A case asks you to determine whether a particular acquisition would be advisable.

·  What this type of question is designed to assess: Analytical ability, regulatory environment, supply chain dynamics, communication, industry knowledge

·  Useful concepts/frameworks: Market assessment, supply chain analysis, competitor analysis, structural analysis

Some examples of M&A cases:

  • Club Med is considering the acquisition of a major cruise line. Describe the way you might assess the viability of this decision.

  • A software company is interested in acquiring a logistics company to compress their supply chain and reduce their cycle time from manufacturer to retailer. What factors would you consider in determining whether this would be an appropriate decision?

 

 

Competitive Response Case

·  In a nutshell: A competitive response case asks you to recommend how your client should react to a move by its competitor.

·  What this type of question is designed to assess: Analytical ability, supply chain dynamics, communication, industry knowledge, market dynamics

·  Useful concepts/frameworks: Market assessment, supply chain analysis, competitor analysis, structural analysis

More competitive response questions:

  • So Pretty Cosmetics sells products only through major department stores. Their major competitor, Porter Cosmetics, has just announced the opening of 10 stand-alone stores. How should So Pretty Cosmetics react?

  • Starstruck Video rents and sells video tapes. They have just learned that their competitor, Vader Video, has signed an exclusive deal with Warner Bros. which gives them exclusive rights to offer Warner Brothers videos for 30 days before Starstruck is allowed to offer them. How should Starstruck Video react?

Changes in Government/Regulatory Environment

·  In a nutshell: This type of case presents a change in the governmental or regulatory environment (for example, a change in the laws of a particular country where a company has operations) and asks you to advise your client.

·  What this type of question is designed to assess: Analytical ability, supply chain dynamics, communication, industry knowledge, market dynamics, regulatory environment

·  Useful concepts/frameworks: Market assessment, supply chain analysis, competitor analysis, structural analysis, regulatory analysis