Case studies

The case can be used in the subject areas of marketing, strategy, business model innovation, and general business growth, particularly those with a focus on emerging markets.

This case can be used in postgraduate and post-experience business courses such as Master's degrees in Business Administration, postgraduate diplomas, executive education, or specialist Master's degrees.

This case looks at craft beer business Jack Black's Brewing Co. started in 2006 in Cape Town. After humble beginnings, protagonist McCulloch grew the company rapidly with a focus on the strategic “tap” market across the country. After systematically working with a number of contract brewers the company finally invested in their own, industrial-scale brewery and brewpub. The dilemma facing McCulloch and Jack Black's Brewing Co. is one of cash flow. In order to generate cash flow, the management team needs to drive sales so that the brewery operates at full capacity. While it strives to attain this goal, there are considerable cash flow and liquidity challenges.

The development of an understanding of an effective marketing mix to position a niche and young brand.

An understanding of the concept “co-opetition” and how it works in a growing market.

The ability to assess the various growth stages of a business.

The case can be used in the subject areas of marketing, strategy, business model innovation in an emerging market. The case introduces a practical example of brand extension as a growth strategy employed by an existing brand to secure additional revenue channels and customer touch points.

This teaching case is aimed at postgraduate business students such as Master's degrees in Business Administration degrees, postgraduate diplomas, executive education, or specialist Master's degrees.

Kauai is a health restaurant with 150 stores across South Africa, Namibia and Botswana, more than 50% of which are franchise-owned. An acquisition of the original Kauai quick-service restaurant (QSR) chain by Real Foods in 2015 leads to a complete rebrand and overhaul of its product offering and store experience. Since the acquisition, the business operates as a startup with few formal processes and KPIs in place to drive performance. Despite the obvious success the team is battling with the factors that need to be considered to ensure that they can scale adequately to realise full potential. Plus how should they position the existing brand effectively within the FMCG space to maximise the contribution of brand equity to its success?

–The understanding around the business model of a strong, existing brand entering a highly competitive and price-sensitive FMCG.

–Analysing the marketing strategy and brand identity approaches that could be used.

–An understanding of the brand extension strategy that could be implemented in light of various challenges.

–Understanding how retail marketing works in an emerging market context.

Communication Solutions (CS), a woman-owned business, experienced fast growth at its inception, and then found itself slowing after the mid-2000s recession. The firm provides consulting services, primarily to government agencies. The owners have brought the business to sales of about $10.5 million in 2012, but revenues declined following that peak year because of cutbacks in government spending and founder Jennifer Madison’s detachment from the business. Even though they recognize that it may not be an ideal time to sell, they are tired of running the business and want to sell now, as long as they can pay off their debts.

This case was researched through multiple interviews with Mark and Jennifer, who provided all of the financial data and background. All financial statements given in the case provide actual CS numbers. The name of the company and the names of the owners have been changed, at their request to disguise the company. At the time this case was written, the owners were in negotiation with a potential bidder, and did not want their names or their company name to be used. Market information and information about comparable companies was researched using publicly available financial data bases.

This case has the potential to be used in a variety of classes, depending on what the instructor wishes to emphasize. The author uses the case as a valuation case in a corporate finance class (suitable for undergraduates or MBAs), allowing students practice in discounted cash flow valuation and comparable multiples valuation. It could be used in an investments class which teaches business valuation, particularly in teaching valuation using market multiples. The case could be used in an entrepreneurial finance class. The author uses this case to illustrate the difficulties of business valuation with messy (but real) data.

This case explores small business valuation and exit strategies for founders. Students can put themselves in the position of small business owners who are ready to exit. Students should value the firm using discounted cash flow and multiples valuation, which includes making assumptions about the future growth of the firm. While there is likely to be reasonable agreement on the “as is” valuation, there may be great variation concerning the assumptions and valuations of the company as it could be. Students can discuss (and implement) adjustments made when using large company comparables to value a much smaller company.

This case traces through a 20-year history of a Chinese high-tech company, Maipu Communications Technology Company. Throughout the company’s growth, Maipu adjusted its innovation models in order to ensure that they remained compatible with corporate strategies, resources and external environments. However, as the company grew bigger, it was finding it more and more difficult to meet its innovation goals. Its current innovation model is a market-driven platform + distributed innovation. While Maipu has achieved some success under this model, it is faced with a myriad of challenges during the execution of the model. The key questions raised by this case are whether Maipu’s current innovation model is suitable for the company at this stage and how the innovation model should be adjusted to propel new innovation and growth opportunities for Maipu in this increasingly competitive market.

This case was a field research case. The authors paid three visits to Maipu Communications Technology Company, during which the authors conducted in-depth interviews with Mr Zhao, the Head of Maipu’s R&D and Innovation group, and several senior and functional managers of the company. Follow-up communication via telephone and e-mail was conducted to verify the accuracy of the written case.

This case is well suited for courses in the areas of strategic management, innovation management, high-tech management, entrepreneurship, and international business. The target audiences of the case are primarily MBA students, although this case can also be used in upper-level undergraduate business courses.

The theoretical basis for this case includes the following management theories: strategy formulation and strategy implementation, business-level and corporate-level strategies, enterprise life-cycle, corporate strategies at various stages of growth, patterns of innovation and applications, and implementation of innovation strategies.

Srikumar Misra founded Milk Mantra as a milk producing and selling company in the state of Odisha, India in 2010. The company subsequently diversified into milk-based products such as yogurt and cottage cheese and spread its foray into the neighboring states. In 2014, the company had to overcome a few challenges from the macro environment as well as think of a marketing and communication strategy to gain competitive advantage.

The case is based on the primary research and has been developed using interviews of the company representatives and documents made available from the company. Wherever required, written permission has been obtained from the company representatives.

This case could be a part of the Marketing Management course in a graduate/undergraduate program in Business Management. The case could also be a part of a Brand Management or Integrated Marketing Communications course in the same program for specialized subjects such as branding a generic product or brand communications. This case could also be used for a short discussion in a distribution and logistics course.

The specific topics, which could be facilitated through this case, are the 4 Ps of marketing, distribution and marketing strategy. The case also relies on the theories of branding and marketing communication.

This case involves the March of Dimes (MOD) Foundation, the “leading nonprofit organization for pregnancy and baby health.” MOD’s mission was to support medical research, organize volunteer workers, and provide community services and education to save babies’ lives (www.marchofdimes.org). The strategic issue in the case involves creating awareness of both the mission and services of MOD and the critical issue driving that mission – premature births. The organization must create a desire for various target markets to take action in response to the problem. The main protagonist is Doug Staples, Senior Vice President for Marketing and Communications.

Data were collected via personal interviews with the primary protagonists, Doug Staples, and Mike Swenson of the Barkley agency. The MOD provided quantitative Gallup studies they commissioned, as well as documents unveiling the roll-out in the San Jose, CA region. The Barkley Agency provided qualitative data from a study which consisted of eight focus groups conducted in two markets and ten personal interviews. Secondary research was used to provide a support for industry and market data, to supplement organizational facts provided by the MOD, and to identify and link marketing theory to the situations provided in the case. The organization, facts and characters in this case were not disguised. MOD was consulted throughout the case development process.

This case study is recommended for marketing courses at the undergraduate level. It is most appropriate for marketing management, introductory marketing, or marketing strategy classes. Additionally, this case is a good fit for courses focused upon not-for-profit marketing issues.

The strongest opportunities to apply theory using this case relate to branding (see De Chernatony and Dall’Olmo Riley, 1998 for a content analysis of the brand literature). These theories include brand image and personality (Aaker, 1997; Belk, 1998; Grohmann, 2009), brand awareness (Aaker, 2002), brand involvement and customer loyalty (Brakus et al., 2009), brand engagement (Sprott et al., 2009), brand relationships (Breivik and Thorbjornsen, 2008), and brand equity (Aaker, 2002, 2008). Specifically, question 2 addresses brand personality, and questions 3 and 4 explore relationships with the brand such as the emotional power of the brand and brand association. Question 6 focuses on positioning strategy.

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.

Rob Griffin, senior vice president and U.S. director of search for Media Contacts, a communications consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France. At the time of the case, SEM had become an advertising phenomenon, with North American advertisers spending $9.4 billion in the SEM channel, up 62% from 2005. Moving forward, Griffin wants to ensure that the team keeps its leading edge and delivers the results Air France requires for optimal Internet sales growth. The case centers upon Air France's and Media Contacts' efforts to find the ideal SEM campaign to provide an optimal amount of ticket sales in response to advertising dollars spent. This optimal search marketing campaign is based on choosing effective allocation of ad dollars across the various search engines, as well as selecting appropriate keywords and bid strategies for placement on the search result page for Internet users.

In determining the optimal strategy, the case presents background information on the airline industry as well as the Internet search options available at the time, including Google, Microsoft MSN, Yahoo!, and Kayak. Additionally, background information is provided on SEM and its associated costs and means of measuring the successfulness of each marketing effort. The case illustrates how one must first determine the key performance indicators for the project to guide analysis and enable comparison of various SEM campaigns. Cost per click and probability to produce a sale differ among publishers. Therefore, using a portfolio application model's quadrant positions can be used to determine optimal publisher strategies. Additionally, pivot tables help illustrate campaigns and strategies that have historically been most successful in meeting Air France's target Internet sales. Multiple recommendations on how Media Contacts can assist Air France in improving its SEM strategy can be derived from the data provided.

Students learn how to optimally leverage the Internet in generating customer sales in a cost-effective manner. Students will analyze and manipulate a variety of data using pivot tables to determine optimal strategies for obtaining maximum total online bookings through the various online channels available. Using a portfolio application model, students can determine an optimal publisher strategy and complete copy improvement analysis.

Examines the lease vs. buy decision for investments in technology. Addresses pivotal investment decision issues such as varying the length of the lease, the useful life of the equipment, and alignment with the company's overall financial strategy. The scenario is for a real financial services firm that has been disguised for confidentiality reasons. Presents an investment decision: should a company buy or lease technology with a relatively short useful life? The new controller at AMG, a Fortune 500 financial services firm, has been tasked with determining how to finance the acquisition of 7,542 new PCs to be rolled out over the next 12 months. This is a $6.7 million investment decision and the rollout schedule adds significant complexity to the solution. The controller must choose between buying or leasing the computers over 24- or 36-month time frames. Provides a framework for analyzing similar investment decisions. The key learning point is that leasing information technology can be cheaper than buying. This is contradictory to a car lease, which may be familiar from everyday experience. A new car has a potentially long useful life and can retain significant value after several years, hence, intuition is that buying should always be cheaper than leasing. Shows that this is not the case for information technology. Teaches the correct application of the mid-quarter convention within MACRS depreciation for technology, and the implications of operating vs. capital leases and off-balance-sheet financing. In the process, introduces the four tests for a capital lease. Finally, shows how creative analysis techniques can be used to simplify complex decisions. These techniques aid in arriving at a conclusion faster and with less effort.

To illustrate the fundamentals of lease vs. buy decisions in technology and how they differ from the typical capital equipment lease vs. buy decision. Topics covered include MACRS depreciation and off-balance-sheet financing for a complex leasing scenario staggered in time across multiple business units.

In late 2012 Adeline Herzog Memorial Hospital in Castle Rock, Colorado, was facing a problem with patient satisfaction. The Press-Ganey scores for the third-floor nursing unit–the primary destination (70 percent) for patients admitted through the emergency department–were at the 15th percentile, and the key HCAHPS score for inpatients was well below the Colorado average. Over the past six months Jeri Tinsley, director of medical, surgical, and intensive care services, had made various changes to try to improve the patient satisfaction scores for her 32-bed unit, but the scores seemed stuck at an unacceptably low level.

Tinsley worried that if improvements were not made soon, patients would start “voting with their feet” and take their business to competing hospitals. As a registered nurse, Tinsley's expertise was helping people heal; it was not analyzing data. In particular, she was overwhelmed by the patient comments included in the surveys; she had no idea how to analyze them and could not decide which issues to address first.

After analyzing the case, students should be able to:

• Organize and analyze qualitative data using affinity diagrams

• Identify priorities using Pareto diagrams

• Identify which aspects of a problem are (1) within their control to solve, (2) within their influence to solve, or (3) outside their control to solve

Organize and analyze qualitative data using affinity diagrams

Identify priorities using Pareto diagrams

Identify which aspects of a problem are (1) within their control to solve, (2) within their influence to solve, or (3) outside their control to solve