Case studies

Doug Cook, an MBA graduate, was wrestling with one of the most important career decisions of his life: Which one of three seemingly promising businesses should he acquire? Each acquisition was a viable opportunity, and each had potential to be a successful business. Cook, however, had heard numerous disconcerting stories about other entrepreneurs going through this process. He realized that until this time the biggest purchase he had made in his life was a $250,000 condominium in downtown Chicago. Acquiring one of these companies would require a financial and personal commitment greater than anything he had ever attempted. He felt a window of opportunity was closing. If he did not act now, he might find himself in the corporate world forever. Cook began by writing up a personal criteria list for his acquisition, then researching online and media sources for businesses for sale. Frustrated with that process, he hired a business broker. With the broker's help, Cook found three promising candidates from which to choose: Luxury Tassels, Inc.; Feldco Windows and Doors, Inc.; and Coyote Consulting Company. The (A) case includes income statements, pro forma forecasts, balance sheets, and organization charts for each company, in addition to Cook's financial analyses and valuation of each company. The (B) case features the letter of intent that Cook gave the owner of the company he selected. Ultimately he did purchase the company, and in the (C) case, Cook examines pathways to growing his newly acquired company.

How to be entrepreneurial through acquiring a business The importance of establishing their own decision criteria regarding the type of company they would like to acquire How to research businesses for sale The issues in working with a business broker How to analyze financial statement in the context of buying the company How to make decisions and use financial analysis to support their decisions

MBA students Tim Joyce and Brandon Cornuke had what they believed was a great product concept: a body powder that could be delivered in an aerosol spray. Current market-leading powders such as Gold Bond and Johnson's Baby Powder involved messy application, as they were only available in “dump-on” form. Worse, because powders deposited on top of the skin didn't adhere to it, they tended not to last long. Joyce and Cornuke believed an aerosol powder spray would solve these problems. They called their product concept Dry Goods. However, taking Dry Goods from idea to reality presented some serious challenges. How would two students without access to a lab be able to research and develop a complex chemical/physical process like aerosol delivery, let alone manufacture it once they had a proven prototype? To address these problems, the two entrepreneurs sought out a contract manufacturing partner. After identifying a number of options, Joyce and Cornuke had to decide which partner offered them the best chances of success, given their goals and financial constraints.

Students will learn about the process of hiring a contract manufacturing partner to produce a new packaged good for a startup.

Todd Wilson, manager of partner development at Educational Technology Corp., needed to determine the targeting, positioning, and selling strategy for its innovative Interactive Mathematics software for the college market. This required determining what types of colleges to target and which stakeholders to focus on within institutions. His task was complicated by the unclear objectives of nonprofit institutions and the differing motivations of teachers, students, and college administrators in adopting software-based learning technology. Highlights the difficulties in innovation adoption within large nonprofit institutions and the challenges in marketing to institutions with complex decision-making processes, multiple influencers, and conflicting motivations.

Examines the launch of Xigris, a breakthrough new pharmaceutical product for the treatment of sepsis. The newly appointed head of marketing for Xigris is reviewing the launch plan.

Supplements the (A) case.

It is January 2014, and the case protagonist, David Milestone (senior advisor at the Center for Accelerating Innovation and Impact at the U.S. Agency for International Development's Global Health Bureau), is preparing for a meeting of global stakeholders and pharmaceutical manufacturers who are interested in reducing mortality caused by childhood pneumonia and are prepared to donate $10 million to support this effort.

Milestone's goal is to propose a strategy to address childhood pneumonia in Uganda, toward which the $10 million donation would go. In addition to effectively and sustainably reducing childhood pneumonia deaths, the plan must align the interests of various stakeholders behind the problem. A successful strategy in Uganda could be a model for interventions elsewhere. The United Nations Commission on Lifesaving Commodities for Women and Children recently identified Uganda as a “pathfinder” country, meaning it could serve as the example for other countries wrestling with the same issues. This is a remarkable opportunity to change the lives of children in Uganda—and all around the world.

After reading and analyzing the case, students will be able to:

• Perform a stakeholder analysis

• Appreciate the challenges involved in improving public health, especially in developing countries

• Create a patient journey and use it to identify potential impact points

Perform a stakeholder analysis

Appreciate the challenges involved in improving public health, especially in developing countries

Create a patient journey and use it to identify potential impact points

The case puts students in the position of a young analyst working for a Chicago-based student housing developer. The premise is that the analyst, Tricia, must prepare a report for the firm's partners detailing her recommendations regarding a variety of green upgrades for a potential value-added acquisition project. The redevelopment project is based on two multifamily student housing redevelopment projects in Denton, Texas (led by Iconic Development). The case focuses solely on the operating expense reduction that took place at the property and does not address potential changes to property revenues.

The objective of the case is to provide a framework for students to evaluate various sustainable retrofitting projects in a multifamily property. Students must analyze the energy impact, cost, financial returns, and environmental impact of each potential property upgrade, and then decide which upgrades to recommend to management.

This case looks at an important business task: forecasting a new product. The case can be used to teach finance, marketing (new product introduction), and healthcare strategy. The product is one of Amgen's most important new products: denosumab. On the surface, the case is fairly easy; students simply have to do some simple mathematical calculations. However, the challenges of forecasting quickly become apparent; every forecast depends on some critical assumptions, and the answer can vary dramatically.

Highlight the importance of forecasting as a business task. Give students the opportunity to create a forecast, using logical assumptions to generate an answer. Illustrate how dramatically forecasts can vary. Demonstrate why sensitivity analysis and customer understanding are both critical when trying to forecast a new product launch.

EuroPet S.A. was a multinational company operating gas stations in many European countries. There was a growing propensity for supermarkets to attach gas stations to their retail operations, which was developing into a major threat to EuroPet. As a result, in the mid-1990s, the company began to develop and brand its own convenience stores co-located with its gas stations. However, the company was spending much more on advertising the convenience stores than its competitors did. Management now had to decide if the increase in sales attributed to advertising efforts justified the advertising spend by analyzing the market data from one large metropolitan area: Marseille, France.

Students will learn: how to use cross-tabs and other marketing research tools to identify segmentation descriptors; how to analyze data and interpret results; and how these research results could guide new product development and positioning strategies in order to effectively target relevant customer segments.

A senior product manager for a telecommunications company has been asked to propose ideas for generating new revenue from video gamers who use his company's Internet services. The manager has commissioned the development of “experience maps” for three subsegments within the gamer segment. The experience maps, which are reproduced in the case, provide students with an opportunity to generate customer insights based on real qualitative data.

After students have analyzed the case, they will be more comfortable analyzing unstructured consumer insight data with limited direction, as well as with the inductive reasoning necessary to develop marketing insights based on qualitative research results. They will also have a better understanding of how customer insights can drive product development decisions and a greater understanding of experience maps as a consumer research tool