Case studies
Teaching cases offers students the opportunity to explore real world challenges in the classroom environment, allowing them to test their assumptions and decision-making skills before taking their knowledge into the workplace.
Lesego Tladinyane, Lungelo Gumede and Geoff Bick
This case study is intended to supplement postgraduate business learning with the facilitation of an academic practitioner. The case draws on a culmination of subjects, and the…
Abstract
Subject area of the teaching case:
This case study is intended to supplement postgraduate business learning with the facilitation of an academic practitioner. The case draws on a culmination of subjects, and the participants are encouraged to juxtapose the case information with their professional experiences; however, the primary focus of the case material will be centred on strategy, innovation, and entrepreneurship.
Student level:
The primary audience for the teaching case is management education programmes including: Master of Business Administration (MBA), Postgraduate Diploma (PGDip), specialist Masters in Management, and certain Executive Education programmes.
Brief overview of the teaching case:
This case is about protagonist Ndabenhle Junior Ngulube, the cofounder of an innovative technology-enabled insurance intermediary company called Pineapple. The company has identified an opportunity to resolve the inherent conflict of interest within the insurance industry, as well as the grudge association of non-life insurance purchases. While the competitive landscape of the sector is traditionally dominated by a few large incumbent market participants, Pineapple's digital distribution strategy is more effective at converting ‘clicks-to-clients’, at a fraction of the typical customer acquisition cost. The peer-to-peer business model also allows for superior risk-selection, greater affinity, and lower incidents of fraudulent claims. Ndabenhle and the team develop the company's customer acquisition strategy by drawing on technological trends, reputation drivers, and a concentrated social media approach that focusses on trust, access, product, and value. But, as 2020 begins, Ndabenhle faces choices about the means and methods of scaling the business operation. The case documents the first few years of Pineapple's operations, with a strong focus on business model innovation, distribution, scalability, and technological integration.
Expected learning outcomes:
To analyse the role disruptive technologies play within sectoral business model innovation
To evaluate the industry-specific competitive business landscape and complexities of building and maintaining a sustainable competitive advantage within a niche market segment
To assess the strategic growth opportunities for an emerging market Insurtech disruptor
To critically appraise the entrepreneurial complexities faced by decision-makers when looking to challenge incumbent market leaders
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Sebastian Prim and Mikael Samuelsson
The case is suitable for strategy or entrepreneurship modules. It is designed to teach students about the importance of implementing formal processes when entering a growth phase…
Abstract
Subject area of the teaching case:
The case is suitable for strategy or entrepreneurship modules. It is designed to teach students about the importance of implementing formal processes when entering a growth phase as well as the complexities, unexpected costs, and benefits that growing a business can bring.
Student level:
The case is aimed at MBA or Master-level students or executive education programmes as part of a strategy or entrepreneurship module.
Brief overview of the teaching case:
Lattice Towers is a South African company in the telecommunications infrastructure sector. They are struggling to generate sufficient cash flow to sustain operations as a result of poor strategic decision-making regarding tower-build site acquisition. To compound matters, the owner has been struggling with health issues related to the stress caused by the crises that Lattice Towers is going through. Recently, however, a multinational publicly listed behemoth in the telecommunications industry, Helios Towers, offered to acquire the company. The acquisition offer seems like a saving grace to the owner; however, Lattice Towers is deeply personal to the him and he would not like to lose the brand. Furthermore, there is a tremendous opportunity for business growth due to the imminent increase in demand for tower infrastructure. But based on the challenging financial position the business currently finds itself in, he might not have the option to keep the business.
Expected learning outcomes:
To develop a decision-making framework and strategy to navigate the business life-cycle stages, from survival to growth
Understand the concepts of uncertainty, risk, and liquidity premiums that apply to entrepreneurship
Understand the stress-related implications for entrepreneurs
Understand the psychological costs and benefits of entrepreneurship
Understand the personal financial implications for entrepreneurship
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Rihana Hoosain, Geoff Bick and Mikael Samuelsson
The case is particularly relevant for students studying elements of business strategy with an interest in strategic decision-making, competitive strategy, and growth strategy. The…
Abstract
Subject area of the teaching case:
The case is particularly relevant for students studying elements of business strategy with an interest in strategic decision-making, competitive strategy, and growth strategy. The case leverages several strategic frameworks taught throughout business courses and illustrates a real-world application of these frameworks to support sound strategic decision-making. Furthermore, the case examines the relevance of sustainable competitive advantage and the linkages to the appropriate growth strategy for a business. It is recommended that this case be taught once students have covered the applicable theory and frameworks in class.
Student level:
This case is designed for business administration students, in particular MBA, EMBA, speciality Masters, or executive education students.
Brief overview of the teaching case:
MWEB is a leading first-tier South African internet services provider, with an operating history spanning over 22 years. The MWEB brand is a household name across South Africa, seen as one of the pioneers of the internet industry and accredited with bringing the internet to ordinary consumers across the country. The state of competition in the market, however, has intensified and MWEB's traditional operating model has not evolved fast enough to meet the changing landscape. The market is in the midst of a price war, to which MWEB has responded by reducing market pricing and offering attractive deals, undercutting all its competitors. The results have been positive; sales have increased and churn has reduced, but competitors have already started to follow. The dilemma facing CEO Sean Nourse and his management team is how to accelerate growth in a highly commoditised market with intense competition while ensuring the long-term profitability of the business. The case encourages the consideration of the strategic decision-making process by analysing the competitive landscape, evaluating the options, and reaching a decision on the most viable growth strategy for the business.
Expected learning outcomes:
To analyse the competitive landscape and the forces at play
To conduct a competitor analysis, appraise long-term profitability in the industry, identify profitable strategic positions, and determine how MWEB may achieve and protect its competitive advantage
To identify and analyse the key parameters that, in combination, represent a company's business model
To critically analyse the contextual factors that are presented as business challenges, evaluating and understanding the impact and scale of these challenges
To critically assess relevant growth strategy alternatives for MWEB and analyse the viability of the alternatives presented
To conduct an informal valuation to determine a purchase price for an acquisition target for the business
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Robert F. Bruner, Laurie Simon Hodrick and Sean Carr
At three o'clock in the morning on September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (“PPR”) and LVMH…
Abstract
At three o'clock in the morning on September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (“PPR”) and LVMH Moët Hennessy Louis Vuitton SA (“LVMH”). After a contest for control of Gucci lasting over two years, PPR has emerged as the winner. PPR and LVMH have agreed for PPR to buy about half of LVMH's stock in Gucci for $94 per share, for Gucci to pay an extraordinary dividend of $7 per share, and for PPR to give a two and a half year put option with a strike price of $101.50 to the public shareholders in Gucci. The primary task for the student in this case is to recommend a course of action for Hautillac: should he sell his 2% holding of Gucci shares when the market opens, continue to hold his shares, or buy more shares? The student must estimate the risky arbitrage returns from each of these choices. As a basis for this decision, the student must value the terms of payment and consider what the Gucci stock price will do upon the market's open. The student must determine the intrinsic value of Gucci using a DCF model as well as information on peer firms and transactions. The student must consider potential synergies between Gucci and PPR and between Gucci and LVMH. The student must assess the likelihood of a higher bid, using analysis of price changes at earlier events in the contest for clues.
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In early 2012, an equity analyst, was examining the jet fuel hedging strategy of JetBlue Airways for the coming year. Because airlines cross-hedged their jet fuel price risk using…
Abstract
In early 2012, an equity analyst, was examining the jet fuel hedging strategy of JetBlue Airways for the coming year. Because airlines cross-hedged their jet fuel price risk using derivatives contracts on other oil products such as WTI and Brent crude oil, they were exposed to basis risk. In 2011, dislocations in the oil market led to a Brent-WTI premium wherein jet fuel started to move with Brent instead of WTI, as it traditionally did. Faced with hedging losses, several U.S. airlines started to change their hedging strategies, moving away from WTI. But others worried that the Brent-WTI premium might be a temporary phenomenon. For 2012, would JetBlue continue using WTI for its hedges, or would it switch to an alternative such as Brent?
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James G. Conley, Susan Deutsch, James Fields and Richard Wong
ESPE, the market leader, is a medium-sized German manufacturer of precision dental impression materials competing in a shrinking market. To grow the business, ESPE invests…
Abstract
ESPE, the market leader, is a medium-sized German manufacturer of precision dental impression materials competing in a shrinking market. To grow the business, ESPE invests substantial resources in innovative impression materials and associated distribution mechanisms. Squeezed by the shrinking market, the competition is increasingly using the proprietary channels (dispensing mechanisms) and brand equity (trademark) of ESPE to maintain their market share. There is a potential infringement. Explores how ESPE is organized to execute on the options imbedded in its IP rights.
To provide students with an understanding of how to use brands and trademarks in conjunction with trade secrets, patents, and other forms of IP in mature markets to build and maintain innovation-based competitive advantage.
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Alexander B. Horniman and Drew Freides
This case describes the creation and performance of the America's Cup team and the leadership of Dennis Conner.
Abstract
This case describes the creation and performance of the America's Cup team and the leadership of Dennis Conner.
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Jeanne Brett, Lauren Pilcher and Lara-Christina Sell
The first across-the-table negotiation between Google and China concluded successfully in 2006, when Google received a license to establish a local domain (google.cn) targeted at…
Abstract
The first across-the-table negotiation between Google and China concluded successfully in 2006, when Google received a license to establish a local domain (google.cn) targeted at Chinese Internet users and not subject to the “Great Firewall.” During these negotiations both Google and the Chinese government struggled to reach an outcome that would be acceptable to their constituents. Google was caught between pleasing its shareholders and preserving its reputation for free access to information, while China was balancing the desire for cutting-edge search technology and the concern that liberal access to information would undermine its political-economic model. In the end, the negotiation resulted in Google operating two domains in China: Google.com and Google.cn. In early 2010, Google announced that its corporate infrastructure had been the target of a series of China-based cyber attacks and accused the Chinese government of attempting to further limit free speech on the web. These incidents led to a public conflict and private negotiations between Google and the Chinese government, which culminated in July 2010 when the Chinese government renewed the google.cn license knowing that Google was redirecting all Chinese customers search to its google.hk.com site This case concerns the changes in Google and the Chinese government's environment that led to Google withdrawing services from google.cn and the Chinese government saving face by renewing the google.cn license. The case is based on the publicly reported events surrounding two series of negotiations between the U.S. technology giant Google and the Chinese Government regarding Google's license in China.
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Timothy J. Feddersen and Susan Edwards
Dave Williams has taken over as CEO for MBC Corporation and wants to change the mission statement of the company. However, he needs to get approval from four shareholders: a…
Abstract
Dave Williams has taken over as CEO for MBC Corporation and wants to change the mission statement of the company. However, he needs to get approval from four shareholders: a former board chairman, his father and current board chairman, and two members of his own executive team. Williams must navigate the varying dynamics and opinions of the shareholders to gain their buy-in and create a new mission statement that will take MBC on a new path for the future.
The concept this case addresses is that of the mission statement and how it is used to align an organization and its stakeholders. After students have analyzed this case, they will be able to:
Communicate the importance of a mission statement
Engage stakeholders in the creation of a mission statement
Implement a new mission and culture at an organization
Communicate the importance of a mission statement
Engage stakeholders in the creation of a mission statement
Implement a new mission and culture at an organization
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David P. Stowell and Stephen Carlson
Hedge fund Magnetar Capital had returned 25 percent in 2007 with a strategy that posed significantly lower risk to investors than the S&P 500. Magnetar had made more than $1…
Abstract
Hedge fund Magnetar Capital had returned 25 percent in 2007 with a strategy that posed significantly lower risk to investors than the S&P 500. Magnetar had made more than $1 billion in profit by noticing that the equity tranche of CDOs and CDO-derivative instruments were relatively mispriced. It took advantage of this anomaly by purchasing CDO equity and buying credit default swap (CDS) protection on tranches that were considered less risky. Now it was the job of Alec Litowitz, chairman and chief investment officer, to provide guidance to his team as they planned next year's strategy, evaluate and prioritize their ideas, and generate new ideas of his own. An ocean away, Ron Beller was contemplating some very different issues. Beller's firm, Peloton Partners LLP, had been one of the top-performing hedge funds in 2007, returning in excess of 80 percent. In late January 2008 Beller accepted two prestigious awards at a black-tie EuroHedge ceremony. A month later, his firm was bankrupt. Beller shorted the U.S. housing market before the subprime crisis hit, and was paid handsomely for his bet. After the crisis began, however, he believed that prices for highly rated mortgage securities were being unfairly punished, so he decided to go long AAA-rated securities backed by Alt-A mortgage loans (between prime and subprime), levered 9x. The trade moved against Peloton in a big way on February 14, 2008, causing $17 billion in losses and closure of the firm.
This case analyzes the strategies of the two hedge funds, focusing on how money can be made and lost during a financial crisis. The role of investment banks as lenders to hedge funds such as Peloton is explored, as well as characteristics of the CDO market and an array of both mortgage-related and credit protection-related instruments that were actively used (for better or worse) by hedge funds during the credit crisis of 2007 and 2008.
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Case provider
- The CASE Journal
- The Case for Women
- Council of Supply Chain Management Professionals
- Darden Business Publishing Cases
- Emerging Markets Case Studies
- Management School, Fudan University
- Indian Institute of Management, Ahmedabad
- Kellogg School of Management
- The Case Writing Centre, University of Cape Town, Graduate School of Business