CRACK – A – CASE

Introduction

A business case is usually a real life business problem that is used to simulate, as best as
possible, real management problems, their synthesis, action and often consequences, in a
classroom environment.

Globally, there has been a shift in which more and more business schools are using the case
based method of teaching instead of the theoretical approach, or a mix of the two, instead of
depending on the latter completely. The case based pedagogy is known to improve students’
ability to display management skills required in the real world. Increasingly, recruiters have also
started assessing candidates using the case based method instead of using only CV related –
Q&A based interviews.

A case based interview is one in which the interviewee is presented with a business problem and
is required to work with the interviewer over 30 – 45 minutes to:

• Identify the problem

• Suggest recommendations

The case based interview gives the candidate to showcase the following skills:

• Ability to encounter complex problems

• Gathering and synthesizing data
• Finding innovative solutions
• Thinking strategically

It also allows the candidate to display communication skills, team skills and the ability to handle
difficult situations.

Cases

There are three kinds of cases that interviewers use:

• Business cases

Example: You are the CEO of an insurance company. You want to launch an e-commerce
business that is synergistic with your current insurance product. How do you decide what this
online business should sell and who it should sell it to?

• Estimation cases

Example: How many taxis are there on the roads of Kolkata?

• Brainteasers

Example: Why are manhole covers round?

The purpose of this section is to understand business cases – their types and how to solve them,
either in class or in an interview.

Types of Business Cases

There are six main types of business cases:

• Profitability

In this business case the interviewer will typically ask the candidate analyse why a firm’s
profits have decreased and what a firm could do to reverse this decline and bring itself back
to profitability.

Example: Company A’s profits have declined by 30% over the last eighteen months.
The CEO would like you to help him/her understand why this profitability decline has
happened and what he/she can do to return Company A to profitability.

• Industry analysis

In this type of business case, the interviewer will ask the candidate to evaluate the structure
of and/ or assess the desirability of a particular industry.

Example: Your client is the CEO of Company B, a U.K manufacturer of rolling stock for
the railways. He/she would like you to help him/her understand whether the rolling stock
industry a good one to be in. Why or why not?

• Market entry

The interviewer will ask the candidate to decide whether a company should expand into a
new geographic region, a new/related business, or a new customer segment.

Example: Company C manufactures and sells costume jewellery in the USA. They are
considering expanding their operations to include fashion clothing, still within the USA. Would
you recommend that they do so?

• Acquisition

An interviewer will typically ask the candidate to evaluate whether a company should
purchase another firm.

Example: Company E, a manufacturer of engines for sports cars, is considering an

acquisition of Company F, which makes sports cars. Would you recommend that it do so?

• Capacity expansion

Capacity expansion cases usually revolve around how a firm can optimally increase its output
potential.

Example: Your client, the CEO of Company D has decided that he/she needs to expand
Company D’s manufacturing capacity and is considering either building a new plant in Kuala
Lumpur, Malaysia, or increasing the scale of its current plant in Singapore. Which would you
recommend that it do?

• Investment

Investment cases usually take the form of examining the potential purchase of a new
business or installation of new infrastructure.

Example: Company G is considering whether or not to purchase and install a new inventory
management system. Would you recommend that it do so?
The above six types of business cases are not mutually exclusive but often are seen in a
combination in a business problem. Also, given the complexity of the business world, the above is
not an exhaustive list of case types.

How to crack a case?

The closest analogy to cracking a case is the following:

Question: How does one eat an elephant?

Answer: One bite at a time

Solving a case successfully involves a structured 4-step approach illustrated below:

While the above is a high level, general framework for cracking cases, each of the six types of
cases mentioned in the previous section have a prescribed framework that needs to be applied to
solve the case.

It is not enough to simply memorize the frameworks, but the only way to master the art (or
science) solving cases successfully is through practice. In-class discussion of the case
frameworks and demonstration of their application, together with practice sessions is the best
way to learn and master cracking cases. Use of cases in class will not only improve the students’
understanding of the world of business (thus making them more valuable MBAs in the
workplace), but will also improve their analytical capabilities and communication skills – all key
requirements of a world class MBA.