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2018 2

The Case Competition Toolbox

Disclaimer

This Toolbox is a collection of useful tips, tools, advices and frameworks that have proven useful for several different case solvers and winners in the past. The Case Competition Toolbox is developed by past case team members and winners and therefore all material rights belongs to The Case Competition. For further information, please visit: www.thecase.hk

About the Toolbox

The Case Competition Toolbox is a collection of useful guidelines and frameworks that will assist your case solving

• process. Although its primary objective is to be used for Beat the

Elite, you may also find it useful for other case solving exercises, such as in classes or in job interviews. Much of the content in the Toolbox is meant to serve as a foundation for non-experienced case solvers. Thus, the Toolbox does not contain a certain right way to solve a case. It does however contain a lot of useful tips and tricks. It is not intended to be a winning formula, but by reading through this collection of frameworks and guidelines the team might be one step closer to be able to Beat the Elite. Enjoy.

presentation

Introduction

• Problem solving:

This section describes how to structure the problem solving part of your solution. Presentation: This section describes how to set up your presentation and ensure the output looks nice, neat and professional. Practicalities: This section describes some of the practical things that can be done before the case launch, as well as some insiders tips from previous participants. Industry overview: This section highlights the key traits for a wide range of

• industries. It is intended to enlighten people with limited

knowledge of business on what areas to focus on during the case solving. Additional reading: External sources and readings.

Content

• Problem solving

Presentation Practicalities Industry overview Additional reading

• pp. 4-8
• pp. 9-24
• pp. 25-27
• pp. 28-36
• pp. 37

2018 4

Problem Solving

Introduction Content

• Hypothesis-driven problem solving

MECE approach Issue tree Sanity check

Structuring of the problem solving process is very important. The teams are only given 24 hours to solve a complex problem and hence a systematic approach will help prioritize and structure the task at hand. This section is about exactly how to do that. Hypothesis-driven problem solving: This section describes one of the most time efficient ways to approach a problem. MECE approach: The MECE approach is widely used within the management consulting industry and for a good reason; This framework ensures that the whole problem solution space is tested. Issue tree: Issue trees are often combined with the MECE approach in

• rder to prioritize and break down the problem.

Sanity check: This section describes the importance of doing a sanity check.

2018 5

Formation of next step hypothesis Research, analysis and conclusion Stating initial hypothesis

Hypothesis-driven problem solving

Description

Hypothesis-driven problem solving is, as the name states, all about forming a hypothesis and then testing whether one is right or wrong concerning the initial hypothesis. As an example look at the figure on the right. This example describes the hypothesis that changing the quality of the product will lead to an increase in the price and thus the profitability of the product sold. First the initial hypothesis is stated, this is then followed by an analysis which can lead to either confirming or refuting the initial hypothesis. After this, a series of new hypothesis can then be formed, here are two examples: Do not look for profit by changing quality since the analysis shows that neither in- or decreasing quality will change profitability. Or check if reduction of quality instead will lead to increased profitability. Confirm or refute Looking at price sensitivity, consumer demand, capital investments needed and uptake rates. After analysis we refute the hypothesis. Increasing quality will not increase profit pr. item. Reducing quality by 20% will lead to 5% increase in volume and 10% increase in price pr. item. Increasing quality

• f the product by

5-10% will lead to a 2% increase in profit pr. item. Hypothesis Analysis Analysis conclusion Data Refute hypothesis

• r

Confirm hypothesis New hypothesis / conclusion

• r

No additional profit can be found by changing quality. New hypothesis /final conclusion

2018 6

MECE

Description

MECE stands for Mutually Exclusive and Collectively Exhaustive and is a tool commonly used within the management consulting industry. The framework makes it easier to break complex problems down into smaller, more simple

• problems. If the ”breakdown” is MECE the team

ensures that all the sub-issues collectively exhaust the total solution space (no grey area is left uncovered) and that the sub-issues are mutually exclusive (no sub-issues are overlapping) as seen on the right. By structuring a problem this way the team ensures that they do not miss any possible solution options. It will also be possible to distribute the work among the team members without duplication of any work, thus the limited time will be used more efficiently.

A non-MECE issue tree A MECE issue tree

Total possible solution space

Sub-issue #1 Sub-issue #4 Sub-issue #3 Sub-issue #2 Sub-issue #1 Sub-issue #4 Sub-issue #2 Sub-issue #3

2018 7

A MECE issue tree

Description

The issue tree deconstructs an issue into its sub- issues and the sub-issues into its sub-issues and so

• forth. A complete issue tree makes identification of

possible solutions easier and guides the problem solving process. In this example an issue tree is constructed around a profit problem in a company, so in order to know how to fix the profit problem, a MECE issue tree can be constructed. The overall issue is profit. On the next level, profit is deconstructed into revenue and cost. Please note that revenue and cost are the only drivers of profit and they are not overlapping -henceforth the issue tree is MECE at this level. Looking at revenue this is deconstructed into ”price / item” and ”volume,” again this is two MECE elements

• f revenue.

This issue tree is MECE but all branches are not fully developed. priority. Note: No issue tree is the only right way to structure a problem but many are wrong, which is why making it MECE must be top

2018 8

Sanity check

Description

Early on in the process it is important to do a sanity check of your solution. As seen in the figure, the sanity check is supposed to make sure that the proposed solution is both creative, has sound analysis to back it up, is feasible and has impact. If all these four elements are in place the team could have a winning solution.

The sanity check is also a good opportunity for the team to stop working, take a step back and ask the question: ”Is this solution something that the company might actually consider?” Again, there is not one way to get it right, but many ways to get it wrong. An example of a creative, but non-feasible solution, could be to open a store on Mars. An example of a solution that have all elements but creativity, could be to

• ptimize all current operations by 2%.

Neither solution are winning solutions due to their complete lack of one of the four elements. So make sure that at least these four are somewhat present.

casecompetition.org

Presentation

Description

This section entails everything you need in order to convey your solution in a compelling and convincing way. There are two major parts of a good storyline:

• 1. Structure of content – telling the right things.
• 2. Structure of argumentation – telling it the right way.

If you have these two elements you have a good storyline. This section first describes and exemplifies a logical way to tructure the content of your presentation. That is which analysis and finding to present in which order. Then, this section describes the two most used argumentation structures, the inductive and the deductive which is then exemplified. Lastly, in the final part of this section everything is put together in an example of a good case solution storyline.

Content

• Storyline
• pp. 10-15

– Structure of content – Structure of argumentation – Inductive vs. Deductive reasoning

• – Putting it all together

The executive slide PowerPoint do’s and don’ts

• p. 16
• pp. 17-24

2018 10

How to structure your content in a logical way

Description

An often used structure of the content in the resentation is based upon what the reader expects to come next. On the right is an example of how to structure the different parts of your solution. This flow ensures that the structure of the solution is easy to follow for the reader/listener. These four parts are based upon what you are telling the reader, as seen on the right. First the overall situation of the company is presented. Then, the implication (problem) of that situation is identified. In the third part of the story, the solution to the problem is presented. In the solution part it is also vital to present the arguments as to why the team has settled on that particular solution. Lastly, the impact of the solution should be presented.

4: What is the impact

• f our solution?

Setting the stage Identify problem Solution

• Arg. 1
• Arg. 2
• …

Impact

Logic of structure - we are telling you…

1: Where are we now? 2: Why is this a problem and what is the problem? 3: What is our solution to the problem?

The four major elements

2018 11

Flowofargument Flowofargum ent

How to structure a strong logical argument throughout your presentation

Inductive method:

• 1. Tell your recommendation/solution up front

in the presentation. 2. Then, in the following section tell why you recommend what you do.

Deductive method:

1. 2. First, show all your analysis and conclusions. Then, in the end serve your final recommendation for the company based on the results of your analysis.

Note:

While the deductive method can be really powerful if used correctly, it is recommended that the team uses the inductive

• storylining. If using the deductive reasoning, the team must be absolutely sure that the reader will agree on the results and the

logic of the argumentation or else the complete argument for the solution could fall apart. The inductive also has the advantage that it follows the logic of: First tell them what your going to tell them, tell them and then tell them what you told them.

Description

Having secured that the structure of the content in the presentation is good, the team must also make sure that the storyline follows a strong logical

• argument. That is, how to structure the four
• elements. This means that it should be easy for the

reader to follow the logical flow of why the next slide looks like it does. E.g. setting the stage: ”the companies revenue is stalling due to maturity in market” the next slide identifies the problem of the situation. Broadly speaking there are two possibilities for how to build the logical argumentation of a good

• storyline. A good story in a solution almost always

follows either the inductive or the deductive method. Solution Argument Argument Solution

2018 12 Reasons for going to China

1. Because the market potential is huge The growth is strong Current markets are mature There are certain risks but they are limited We will be able to boost revenue by USD 1bn by moving into China

• The company should expand their business to China…

…By first targeting the coastal region… …And pack items in smaller packages… …Resulting in a net turnover growth of USD 1bn in 2018

• 2.

3. 4. 5.

• 6.

Which is more than other considered possibilities

Why to target the coastal region

1. 2. 3. Large share of population Fastest growing region Highest share of net wealth people

• Reasons to consider product

modifications

1. 2. 3. Cultural differences make Chinese consumers seek different value propositions Small is beautiful in China Current consumer trends support ”smaller”

• Financial analysis of revenue

growth by 2018 Wrap up

Example of the inductive storyline

…because… (supportive analysis and conclusions)

Note: This box is basically what to tell on the executive slide

We recommend that…

2018 13

The company should expand their business to China… …By first targeting the coastal region… …While considering product modifications… …Resulting in a net turnover growth of USD 1bn in 2018 1. The market potentials 2. 3. 4. The growth rates Current markets potential Risks involved 5. Revenue possibilities in different markets

➢➢ China comes up as the most lucrative market

1. 2. Distribution of population and their net wealth Growth across Chinese regions 1. Cultural differences – – – Value propositions needed Spending patterns Consumer trends

➢➢ Packaging in smaller bundles is needed ➢➢ Financial analysis of revenue growth by 2018 ➢➢ Wrap up ➢➢ The coastal area is where the Chinese expansion should start …leads us to recommend that…

Example of the deductive storyline

Note: Again, this box is similar to the content of the executive slide.

• Looking at… (analysis and conclusions)

2018 14

Another example of the inductive storyline

Description

One can see how this structure is closely linked to the MECE

• framework. In fact a good logical

structure will almost always follow from a correctly constructed MECE tree. In the figure on the right it is shown how one argument builds upon the underlying arguments.

• First the solution and its impact

is told.

• Then on level 2 the possible

markets are presented.

• On level 3 the different analysis

are presented. The Chinese outperformed taking market size, risk analysis, impact and ease of implementation into account.

• Finally, on level 4 the roll out

plan is ustified. Chinese market Risk analysis Roll out plan Consumer behavior Financial impact Current markets Market size & growth Other markets Market size & growth Market size & growth

Which new market should the company expand to

Expand to China realizing a USD 1bn revenue growth Risk analysis Product portfolio & channels Region feasibility

2018 15

Putting it all together: Telling a story during the progression of the presentation

• Logic of progression through the presentation should be easy to follow

By reading only the headers, the reader should be able to understand the case solution. See the example below Executive slide We recommend the company to expand their business to China and gain USD 1bn in revenue because home markets are under pressure. Home market is weak…

• We see weak growth
• Increased competition
• Weak spending due to financial

crisis …So other revenue sources are needed…

• 1. Brazil 2. Russia
• 3. India 4. China

➢➢ China is the best option …China is the most promising market…

• High growth
• Large market
• Weak customer loyalty
• Resistance towards western brands

…And will make further expansion possible.

• Start in major cities
• Expand to coastal region
• 500 stores by 2018

…They can be won by adapting product…

• Given consumer behaviour, best

way to enter is:

• 1. Enter
• 2. Adapt
• 3. Expand

…Although Chinese customers are different…

• Resistance towards western

brands due to

• 1. Reason 1
• 2. Reason 2

…Our solution will grow topline by USD 1bn USD 1 bn 2020 So while still taking risks into account…

• Risk 1
• Risk 2
• Risk 3

➢How to mitigate risks ➢

Note:

This presentation is not a solution for how you need to structure (or design) your presentation, but only meant as an illustrative example. Wrap up Tell them what you told them.

Key Focus areas:

2018 16

[Setting the stage] What is the current situation for the firm? Setting the stage Identify problem Solution

• Arg. 1
• Arg. 2
• …

Impact

Description

It is recommended to put an executive slide in the beginning of your presentation, since this supports the inductive reasoning. The executive slide should… – Make the reader able to understand your solution and why you have reached your conclusions – Be the introductory slide for the presentation presented to the judges, should the team reach the finals – Tell the same story as all the headlines of the presentation

Example A Executive slide Example B Executive slide

[Identify the problems(s) or opportunity] [Propose solution]

• Argument 1
• Argument 2
• …

[Discuss impact/implications] Financial and strategic impact

The executive slide

2018 17

PowerPoint do’s & don’ts

Introduction

This following sub-section is a collection of do’s and don’ts regarding the visual setup of your slides. Since you only have 10 slides, it is vital that nothing is lost in translation, meaning do not succumb to the usual PowerPoint mistakes. The following examples are not an exhaustive list of all powerpoint mistakes but a collection of some of the most common mistakes that can easily be avoided. By making sure that your slides look more like the ”do”-examples and less like the ”don’t”- examples you increase the possibility for the reader to understand the slides as it was intentionally meant to be

• understood. On the right you will find a list of the following slides.

Overview

• Notation on graphs

Key takeaway in header One message pr. slide Less is more in graphs Less is more in effects Supporting the message Illustrate instead of excessive use of bullets

• pp. 18
• pp. 19
• pp. 20
• pp. 21
• pp. 22
• pp. 23
• pp. 24

2018 18

Remember notations on your graphs

Do Don’t

600 500 400 300 200 Note: Only include data labels if they are needed to prove your point. Also remember to include your source in the bottom of the slide. This adds credibility to your presentation.

2018 19

Make sure to put the key takeaway from your slides in the header

Don’t

Recent financial development

Do

Case Company has faced stagnating revenue growth and swindling margins since financial crisis in 2009

2018 20

Tell only one key message per slide

Do

Note: Due to the limitation of 10 slides per solution, it may prove necessary to cram more information into every slide, but it is strongly recommended to only deliver one key message per slide.

Don’t

Cost saving ini;a;ves from ”2018-‐Plan”

• Reduce overhead by 10%

• Procurement Savings Plan
• Tager: 50M DKK

2018 21

Less is more when it comes to data presentation

Do Don’t

Note: Design your graph so the reader quickly and easily can read it.

2018 22

Less is more when it comes to colours and effects

Don’t Do

Note: …and it looks unprofessional

2018 23

Make sure only things that back up the message of the slide is included

Do Don’t

Note: Images should only be included if they help to make a point clearer. Here this is hardly the case, even on the left-hand slide the value added from the images is limited.

2018 24

A “figure” is worth a thousand bullets

Do Don’t

Note: Excessive use of bullets dilutes their purpose. A bullet point is a short concise point – don’t put 20 short concise points

• n one slide. Not only is it tedious to read, it also hides the message of the slide.

2018 25

Practicalities

Description

This section describes some of the most important racticalities that lies outside the actual problem solving process and case

• solution. That being said, the practicalities included and

described in this section has a high probability of making the 24 hours of case solving easier. If ignored, there is a high probability of making the case solving hours more difficult. Time management: Due to the time pressure, a good plan will ensure that the team makes the most of the available time. Quotes from the insiders: This section includes some insiders’ tips for what things the teams should strive to have under control before the actual case launch.

Content:

• Time management

Quotes from the insiders

• pp. 26
• pp. 27

2018 26

Draw up a time plan before the case launch

The time plan does not have to be as specific as this

• ne, but a rough time plan will certainly prove helpful

as it will help the team not spend too much time on unnecessary tasks. E.g. analysis of markets irrelevant for the case solution, spending too much time on data search etc. Also the team should note that the time plan will almost certainly not be held, as unavoidable events will happen during the case solving. However, making a time plan will keep reminding the team that time is precious and spending it unwisely is not recommended. Lastly, this time plan is not the golden rule as to how to allocate the 24 hours but only an example. The golden rule that does persist is, the more specific the time plan, the more it will help throughout the process.

Description

08:00 09:00

Example

2018 27

Quotes from the insiders

“Remember to buy snacks, snacks, snacks & more Snacks” “Set up the master slide before the case launches. We wasted at least 3

• hrs. setting up and agreeing on the

layout.” “It is very wise to save some time in the end for iteration, going through every slide asking the questions: What do we want to tell with this slide and will the reader understand it.” “Practice makes perfect. It was so evident that the more training cases we did, the better we got.” “Know your data sources. Having the best data available is a competitiveadvantage.” “My five cents on practicalities would definitely be to assign team roles and know each others relative strengths and weaknesses. Having the discussion before the launch as well as a time manager saved us time.”

2018 28

Industry Overview

Description

This section describes some of the typical industries that cases revolve around. The given industry description serves as a guideline of the key aspects to consider within a particular industry. Please note that the industry list is not exhaustive, and there may therefore be additional industries that you may need to do research on yourself. Also, please note that the industry snap shots are not a recipe for success, but rather a guideline and help for those who have limited knowledge about the industry (for instance non- business students). Each industry snapshot entails a short description of key trends, competitive landscape, customers, channels, and profit summary.

Content:

• Transportation

Consumer Packaged Goods (CPG) Finance Manufacturing Media Pharmaceuticals Entertainment Technology

• p. 29
• p. 30
• p. 31
• p. 32
• p. 33
• p. 34
• p. 35
• p. 36

2018 29

Transportation

• Transportation companies provide transport services for passengers and/or for freight, and

can be done either via rail, road, air, or water

• Increase of cost competition as more transportation service types become more freely

available

• Can be seasonal for certain types of transportation services
• Private individuals
• Corporations/small businesses
• Travel web sites/resellers
• Fare revenues; administrative & handling fees; add-on service sales
• Variable costs: fuel; food and beverage; staff/hourly employees
• Fixed costs: fleet leases; gate/port leases; IT/admin costs; salaried employees

Description Key trends Customers Revenue drivers Cost drivers

2018 30

Consumer Packaged Goods (CPG)

• CPG companies provide consumers with a range of household products and the like, such

as soaps, pet supplies, snack foods etc

• Consumer lifestyle, e.g. aging population, social networks, online ads, go green, etc
• Product mix and brand management are critical to CPG companies
• Private customers
• Business customers
• Volume of goods sold; price premium on branded goods; new product introductions
• Branding; sales; marketing; COGS (commodity costs – raw & packaging material)

Description Key trends Customers Revenue drivers Cost drivers

2018 31

Finance (Consumer Banking)

• Broad range of financial products (deposit services, credit cards, loans, etc.) are sold by

banks whose main function is to collect money from those who have savings and loan money to those who need it

• Financial crisis threatened solvency of industry due to illiquid and un-valuable assets
• Consolidated, mature industry with growth through acquisitions
• Demographic shift creating a large market for retirement products
• Individual consumers, especially high net worth consumers
• Small/medium businesses without sufficient size for larger investment banking financing

services

• Difference between the bank’s borrowing cost and the interest rates charged to borrowers;

administrative fees for services

• Administration; salaries; writing off bad debt, bank branch offices

Description Key trends Customers Revenue drivers Cost drivers

2018 32

Manufacturing

• This sector includes companies that are in the business of mechanical, physical, or chemical transformation of

materials/substances/components into new products

• Subsectors of manufacturing include: textile, paper, chemical, computer/electronics, transportation equipment, machinery
• Manufacturing is highly cyclical in most sectors
• Higher cost structure (labor in many cases) leads companies to outsource manufacturing to lower-cost regions of the world
• End-consumer; OEM (original equipment manufacturer); B2B (Business-to-business)
• Diversity of customers; volume; emerging markets; adjacent industries; new technologies/ products
• Potential outsourcing quality costs; supply chain management (inventory turns); labor; raw material; channel management;

marketing; capital investment in equipment Description Key trends Customers Revenue drivers Cost drivers

2018 33

Media

• The media sector includes print, audio, and video content generation
• Primarily an advertising-supported industry, the traditional media space faces unprecedented challenges as online media

continues to disrupt traditional business models

• The rapidly advancing speed of the internet and wireless devices change the consumption pattern of media
• The proliferation of “free” content has harmed content generators but created opportunities for new channels.
• Individual end-consumers
• Business users
• Advertisers
• Advertising; subscriptions; individual sales
• Variable costs: salaries; technological equipment
• Fixed costs: Studios/press offices; overhead; marketing; advertising

Description Key trends Customers Revenue drivers Cost drivers

2018 34

• Pharmaceutical companies produce original patent-protected (for a certain period of time) drugs for human

and animal diseases

• Generic drug producers produce ‘copy-cat’ drugs (with the same medical result) at a lower development cost

when the originator drug’s patent expires

• Price competition from generic drug manufacturers
• Increasing pressure from health insurance companies and hospital chains to reduce prices
• R&D challenge of finding high revenue drugs
• Doctors who prescribe these medicines
• Insurance companies that pay for them
• Patients/consumers who need these drugs/medicines
• Patent premium; buy-in from doctors that will prescribe; speed to market; niche products
• Variable costs: sales; marketing; raw material, salaries
• Fixed costs: R&D; equipment; machines

Pharmaceuticals

Description Key trends Customers Revenue drivers Cost drivers

2018 35

Entertainment

• The entertainment industry provides different services and products for customers' leisure time
• Increasing competition from stay-at-home or other free alternatives of entertainment

compared to traditional entertainment types

• Individual customers
• Business arrangements
• Service/product/ticket sales, subscriptions, gadgets sales; add-on sales
• Variable costs: raw materials; salaries
• Fixed costs: equipment, venue areas; advertising

Description Key trends Customers Revenue drivers Cost drivers

2018 36

Technology

• The technology industry broadly consists of the systems (PCs, servers), semiconductors,

communications equipment software, internet, and IT services subsectors

• Increasing M&A activity: aggregation offering customers a one stop shop proposition
• Co-opetition: Leading vendors co-exist as competitors and collaborators
• Cloud Computing: Offering IT as outsourced utility has implications across subsectors
• Individual customers
• Enterprise, SMB (small/medium businesses)
• Retail channel customers
• Subscriptions; licenses; maintenance; renewals, revenue per click
• Variable costs: salaries, advertising
• Fixed costs: R&D; equipment: gross margins, R&D

Description Key trends Customers Revenue drivers Cost drivers

2018 37

Additional reading

Online

Here we have listed external sources and additional readings that are also useful for the case solving team.

• Choosing the right kind of chart:

http://extremepresentation.typepad.com/files/cho

• sing-a- good-chart-09.pdf
• Previous cases:

http://www.thecase.hk/case_solving/ previous_cases www.caseinterview.com www.bcgperspectives.com

• Data sources:

http://www.eiu.com/ http://research.thomsonib.com/

Offline

• How to structure your argument:

Barbera Minto – The pyramid principle

• Presentation design advice:

Gary Reynolds – Presentation Zen Nancy Duarte - Slideology