Case in Point

Question 1

What are the first five steps you take after the case is read?

Answer 1

1. Summarize the question.
2. Verify the objective(s).
3. Ask clarifying questions.
4. Label the case and lay out your structure.
5. State your hypothesis.

Question 2

What are some tips for summarizing the question?

Answer 2

Mention numbers in terms of percentages if possible

Question 3

What are some tips for verifying the objective? Ex?

Answer 3

i.e. “One objective is to raise profits. Are there any other objectives that I should know about?”

Question 4

What are some tips for asking clarifying questions? Ex?

Answer 4

key is to ask broad, open-ended questions that help you narrow the information at the start, because as the case progresses, you’ll lose your “right” to ask these sweeping questions. i.e. if you have been tasked to raise revenues by 10%, “What have revenues done for the last three years?”

Question 5

Name the 8 things to think about the COMPANY

Answer 5

1) Profit and Revenue trends
2) Customer Segmentation
3) Product Mix
5) Production Capabilities and Capacity
6) Brand
7) Distribution channels
8) WCS. What constitutes success

Question 6

Name questions a/b PRODUCT MIX

Answer 6

What products or services does the company offer and what are the costs and margins associated with each product? Have there been any recent changes in the product mix?

Question 7

Name questions a/b PRODUCTION

Answer 7

Does the company have the ability to expand? Are they running at full capacity now and if not, why not?

Question 8

Name questions a/b DISTRIBUTION

Answer 8

How are the products and services currently distributed? Usually the more distribution channels the better. So how can the company expand its channels?

Question 9

What constitutes success?

Answer 9

This is different from the objective. If it’s an entering a new market case, the objective might be to decide whether to enter or not. While success might be defined as 10 percent of the market in three years, it is critical to understand what success means to the client.

Question 10

Name the 8 things to think about the MARKET

Answer 10

1) Market Size, Growth Rate
2) Industry Drivers
3) Customer Segmentation
4) Industry Changes
5) Distribution Channels
6) Major Players & Market Share
7) Product Differentiation
8) Barriers

Question 11

Name questions a/b Market SIZE

Answer 11

Ask for three years of data. How is the industry doing overall and how is the company growing compared with the industry?

Question 12

Name questions a/b INDUSTRY DRIVERS

Answer 12

Is it brand, price, content, size, economics, technology, geopolitical events, bargaining power of buyers, bargaining power of suppliers, or distribution channels?

Question 13

Name questions a/b Customer Segments

Answer 13

There are often a number of segments within an industry. Which is the company going after? How big are they?

Question 14

Name questions a/b INDUSTRY CHANGES

Answer 14

Have there been any major changes within the industry, such as new players, mergers, new technology, or new regulations?

Question 15

Describe BARRIERS to ENTRY

Answer 15

Barriers to entry can be access to capital, distribution channels, raw materials, or human talent. Barriers could also be government regulations, customer loyalty, sticky features (making it hard to leave one product for another), or market domination by one or two major players.

Question 16

Describe BARRIERS to EXIT

Answer 16

Barriers to exit could be massive investment and nontransferable fixed assets, contract requirements with suppliers, or government requirements (e.g. a company receives major tax breaks from a state government to employ a certain number of people from that state). Another barrier would be that the costs of leaving a market are higher than those incurred to continue competing in the market.

Question 17

What are the 4 options for entering a new market?

Answer 17

1. Start from scratch and grow organically.
2. Acquire an existing player from within the industry.
3. Form a joint venture / strategic alliance with another player with a similar interest. What can each side bring to the venture?
4. Outsourcing.

Question 18

Name ways to increase volume of sales

Answer 18

• Expand the number of distribution channels.
• Increase product line through diversification of products or services (particularly with products that won’t cannibalize sales from existing products).
• Analyze the segments of the business that have the highest future potential.
• Invest in a marketing campaign.
• Acquire a competitor (particularly if the question is about increasing market share).
• Adjust prices (lower them to increase volume and raise them to decrease demand or increase profits).
• Create a seasonal balance. (Increase sales in every quarter – if you own a nursery, sell flowers in the spring, herbs in the summer, pumpkins in the fall, and Christmas trees and garlands in the winter).