Case in point

The Case Commandments
1. Listen to the Question
2. Take Notes
3. Summarize the question
4. Verify the objective(s)
5. Ask clarifying questions
6. Organize your answer
7. Hold that thought for “one alligator” – think before you speak
8. Manage your time
9. Work the numbers
10. Be coachable
11. Be creative and brainstorm
12. Exude enthusiasm and a positive attitude
13. Bring closure and summarize

Types of Case Questions
Brainteasers
Back-of-the-Envelope (estimation questions)
Business Case Questions (our focus in this ppt.)
Number cases
Business strategy
Operations

The Ivy Case System
4 initial steps
12 popular case scenarios

The First 4 steps
1. Summarize the question
2. Verify the objective
3. Ask clarifying questions
4. Lay out your structure

The Twelve Case Scenarios
Strategy Case
Entering a new market
Industry Analysis
Mergers and Acquisitions
Developing a new product
Pricing Strategies
Growth Strategies
Starting a new business
Competitive response
Operations Case
Increasing sales
Reducing costs
Improving the bottom line
Turnarounds

Entering a New Market
1. Determine why? What’s our objective/goal? Does it fit into our overall strategy?
2. Determine the state of the current and future market
3. Investigate the market to determine whether entering it would make good business sense
4. If we decide to enter, we need to figure out the best way to become a player (Cost-benefit analysis)
Start from scratch
Acquisition
Joint venture/strategic alliance

Industry Analysis
1. Investigate the industry overall
Life cycle
Performance
Client’s position w/in industry
Major players and market share
Industry changes
drivers
2. Suppliers & product availability
3. Future outlook
Mergers, acquisitions
Barriers to entry

Mergers and Acquisitions
1. determine goals and objectives
2. How much are they paying
3. Due diligence (research the company and the industry)
4. exit strategies

Developing a New Product
1. Think about the product
Special? Patented? Substitutions?
2. Think about market strategy
Replacing existing product? Expand sales or customer base?
Barriers to entering market
Major players
3. Think about customers
Who are they and how can we best reach them
4. Think about financing

Pricing Strategies
1. Investigate the product
2. Choose a pricing strategy
Cost-based pricing
Price-based costing
Competitive analysis
3. Supply and demand

Growth Strategies
1. Ask feeler questions. Growth could mean focusing on a certain product, division, or company overall. Determine direction of questioning.
2. Choose a growth strategy based on situation and explain why.
Increase distribution
Increase product line
Diversify
Etc.

Starting a new Business
1. Investigate the market
2. Worth investing in?
Management
Market & Strategic Plan
Distribution Channels
Products
Customers
Finance

Competitive Response
1. analyze competitors’ actions
2. choose one of the following response actions:
Acquire the competitor
Merge with competitor
Copy competitor
Hire competitor’s management
Increase our own profile with P.R. campaign

Increasing Sales
1. Increasing sales doesn’t always mean increasing profits. Find underlying reason to increase sales
Four ways to increase sales:
Increase volume
Increase amount of each sale
Increase prices
Create seasonal balance

Reducing Costs
Type A:
1. ask for breakdown of costs
2. investigate any abnormalities
3. benchmark competitors
4. determine any labor-saving technologies that help reduce costs
Type B:
Internal costs: union wages, suppliers, materials, economics of scale, etc.
External costs: economy, interest rates, etc.

Increasing the bottom line: Profits
Profits=(Revenues x Costs)*Volume
Identify revenue streams
Examine your costs
Determine whether you want to pump up the volume

Turnarounds
1. gather information
Why is it failing?
Industry analysis
Tell me about the company
2. Choose appropriate action
Learn as much about the business as possible
Review services, products, and finances
Secure sufficient funding so your plan has a chance
Review talent and temperment of employees, get rid of deadwood
Determine goals (short and long term)
Business plan
Visit clients, suppliers, distributors and reassure them
Prioritize goals and get some small success.

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