kellogg casebook 2011

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D%2$0.?'- :;#4(,#40.--*/M#*6.-*6M#(/6#6*,.?/*6#B$9Adam J. Louras Kellogg Class of 11)Ameed Mallick Kellogg Class of 12)

Uri Kalir Kellogg Class of 12)Peter Manoogian Kellogg Class of 12)Craig DePriester Kellogg Class of 12)

Mauricio Atri Kellogg Class of 12)
mailto:[email protected]:[email protected]


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the clients optimal strategy be in each of the four graph quadrants.

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Exhibit #1: Clients share of sales by region, 2000N*++V

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MT H0/5 50*5 9=6J'/ '(=-/0L0/O_ b)V'/ B0(( ,)/ 1' =1(' /) L5=6*' 9)6' /5=, i%$;9),/5^ :)B 9.L5 B).(8 '=L5

-.1-L601'6 5=7' /) 1.O ), /5' A,/'6,'/ /) J''F F6)>0/- =/ /5' -=9' ('7'( =- i#$;9),/5 -.1-L60F/0), >''-`

NT :)B 9.L5 B).(8 '=L5 -.1-L601'6 5=7' /) 1.O ), /5' A,/'6,'/ /) ',=1(' .- /) 16'=J '7',`

YT b07', /5=/ B' L=,,)/ L5=6*' 9)6' )6 6'=(0-/0L=((O 0,L6'=-' -5)FF0,* -0*,0>0L=,/(O_ 5)B 9=,O -.1-L601'6- B).(8

B' ,''8 0, )68'6 /) 16'=J '7',`

#[


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P'2:/.'0 "0- 0E'8 L)-/P )./-).6L0,* L=F=L0/O_ ('=-0,* ,'/B)6J-_ B)6J0,* 0, -F'L0>0L

*')*6=F50'-_ '/L^

#T b)V'/ 9=O -/0(( 1' 0,/'6'-/'8 0, /50- 9)7' =- = B=O /) 16'=J 0,/) A,/'6,'/ 6'/=0(0,* =,8 'EF=,80,* 0/- -.1-L601'6 1=-'^ I=-'8 ),

/5' 9=/5 /5).*5_ /50- -5).(8 ,)/ 1' =, =//6=L/07' )F/0), (),*2/'69 '0/5'6^

3) Very open ended and reliant on candidates creativity.

NT W50- 0- 7'6O )F',2ended and should be evaluated based on the candidates argument, not answer. Based on initial estimates,

/50- 0- = 7'6O =//6=L/07' 9=6J'/ /) ',/'6_ 1./ B0/5 F60L' F6'--.6'- =,8 50*5 '(=-/0L0/O /5' 9=6J'/ 0- >=6 ('-- =//6=L/07'^ A> B' =6' /)

.,8'6/=J' /50- 0,0/0=/07'_ b)V'/ ,''8- /) >0,8 B=O- /) L),7'6/ = 9.L5 50*5'6 ,.91'6 )> L.-/)9'6- )6 80>>'6',/0=/' 0/- F6)8.L/_

B50L5 1)/5 6'a.06' 9=6J'/ 6'-'=6L5^ W5'6' 0- =(-) F)/',/0=( /) 6'8.L' L)-/- )6 '-/=1(0-5 /50- >))/5)(8 =- = ()-- ('=8'6_ 1./ /5'-'

6'a.06' -/6),* =6*.9',/- >6)9 /5' L=,808=/'^

&'0:#YU:.-$ /' "0 4Z6$22$0/ !"#$

W50- L=-' /'-/- /B) /50,*- the interviewees comfort with numbers and ambiguity. An excellent case interview will result in an

0,/.0/07' *6=-F ), B5=/ 0- 1'0,* =-J'8 a.0LJ(O =,8 -)(08 'E'L./0), ), /5' a.=,/0/=/07' F)6/0), )> /5' L=-'^

c(/09=/'(O_ /5' 1'-/ 0,/'670'B''- B0(( 9=J' = 7'6O -/6),* =6*.9',/ .-0,* /5' >=L/- F6)708'8 =,8 -.FF)6/ /5' 8'L0-0), /)

0,7'-/;,)/ 0,7'-/ B0/5 = -/6),* 1.-0,'-- -',-' =1)./ /5' L)-/- =,8 09F(0L=/0),- )> /5' F6)e'L/^

+6'=/07' -)(./0),- 1'O),8 /5)-' (0-/'8 =6' F)--01(' =,8 ',L).6=*'8_ /5).*5 -5).(8 1' 8),' B0/50, /5' >6=9'B)6J )> /5'

0,>)69=/0), =7=0(=1('^

#\


29/211

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!"#$ /069

W5' 10)/'L5 >069 =La.06'8 5=- 8'7'()F'8 = L5'90L=( /5=/ 5'(F- L),/6)( /5' 60F',0,* )> F6)8.L'^ 3>/'6 /'-/0,*_ /50-

L5'90L=( =FF'=6- /) B)6J '-F'L0=((O B'(( B0/5 =FF('-P 0/ =(()B- =FF(' )6L5=68- /) 5=67'-/ '=6(0'6 =,8 0/ 09F6)7'- /5'

)7'6=(( a.=(0/O )> /5' 5=67'-/^

@=,./ B).(8 (0J' /) J,)B 0> /5'O -5).(8 =//'9F/ /) L)99'6L0=(0n' /50- L5'90L=(^

PG$0- K. -0/.=/0),-

=6' O). >=-/ )6 -()B /)

('=6,`

@'-L601' /5' (=-/ /09'

you put your foot in

your mouth.

U:.-$ /' .0/$)69=/0), =1)7'_ /5' 0,/'670'B'' -5).(8 1'

=1(' /) 8'7'()F = 7=60=,/ )> /5' >)(()B0,* a.'-/0),P

!" $%& '()*&$ "+,& -().& &/01.% (/2 $%& &"$+'($&2

3)04+$(5+-+$6 %+.% &/01.% 40) 7(/1$ $0 ($$&'3$ $0

80''&)8+(-+,& $%+" 8%&'+8(-9

A8'=((O_ /5' 0,/'670'B'' -5).(8 1' =1(' /) 16'=J 8)B, /5'

a.'-/0), 0,/) /B) F=6/-P%^ W5' 90,09.9 6'a.06'8 9=6J'/ -0n'

#^ W5' ,''8 >)6 F6)>0/=10(0/O

&'O L=-' -/'F-P

%^ +),>069 9=6J'/ =//6=L/07','-- 1O -0n0,* )FF^

#^ D7=(.=/' )6L5=68 6'7',.' =,8 L)-/ -/6.L/.6'-

M^ Project Danuts profitability

N^ A8',/0>O a.=(0/=/07' 0--.'- /) L),-08'6

!"#$ VI \".0$ LGG2$#

12+$'"3

c

4'02*'20)

`

5.'3 4#=)

90#*) 4'%$?)"'3

By: Adam Borchert and Joep Knijn (Tuck Class of 04), Edited By: Peter Manoogian (Kellogg Class of 12)


30/211

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F6)10,* a.'-/0),- =6' 6'L'07'8 S8) ,)/ -5=6' F6)8.L/ 1','>0/ % O'/T

! A- /5' 9=6J'/ (=6*' ',).*5 /) L),/0,.'`

4A"2:"/$ '0/ @=,./ L).(8 L=F/.6' 0, 0/- F60L0,*

@ABC BA >@BCDE>CFCDG A0*(+0H 0)?)$2) "'02*'20)" I$)J' K+%)L

7+< ,) "(+0)H :#0"' #: '() #$')0?#)M)) +"." :-0 '()7 K0#-0 '- '()

*-"' "'02*'20)

!2"


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\"=69'6 /)

5=67'-/ %$ 8=O- -)),'6

;$A$0:$ .06


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F


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P'2:/.'0 ] ;$6'77$0-"/.'0#

U7'6=((_ ).6 L(0',/ -5).(8 L)99'6L0=(0n' /50- L5'90L=( =,8 F60L' 0/ =/ =FF6)E09=/'(O i%_$$$ F'6 =L6' /) 9=J' = Y$j

9=6*0,^

3-J /5' 0,/'670'B'' 0> /5'6' =6' )/5'6 ,),2>0,=,L0=( 60-J-;1','>0/- /5=/ ).6 L(0',/ -5).(8 L),-08'6

3 F)/',/0=( =,-B'6 B).(8 ,)/' /5=/ /5' L(0',/ -5).(8 L),-08'6 -'7'6=( a.=(0/=/07' 0--.'-P

@0>>'6',/0=/0),P H5=/ 0- ).6 F)-0/0),0,*`

D,706),9',/=( 0--.'-P A- /5'6' = 60-J )> 1=LJ(=-5 =,8;)6 1)OL)// >6)9 /5' *','6=( F.1(0L` +).(8 /5' c^R^

*)7'6,9',/ =//'9F/ /) 6'*.(=/' ).6 F6)8.L/`UF'6=/0),=( 6'=(0/O L5'LJP @)'- /5' L)9F=,O 5=7' /5' 6'-).6L'- /) 8) /50-`

,)/_ /5', L=, B' F=/',/ /5' 9=,.>=L/.60,* F6)L'--`

4'F6'-',/=/07','-- )> /'-/ 9=6J'/P @)'- 0/ L)-/ ('-- /) L)7'6 =FF('- 0, )/5'6 -/=/'-`

R/6=/'*0L >0/P A- /50- )FF)6/.,0/O /)) -9=(( 6'(=/07' /) /5' -0n' )> /5' L(0',/`

&'0:#YU:.-$ /' "0 4Z6$22$0/ !"#$

DEL'((',/ 0,/'670'B''- ,''8 /) =886'-- 7=(.'2based pricing: the need to quantify added profits that our clients

F6)8.L/ B0(( 9=J' >)6 +$"L(0',/- =,8 5)B 9.L5 )> /5=/ 9),'O ).6 L(0',/ L=, L=F/.6'^

3880/0),=((O_ = -/6),* 0,/'670'B'' B0(( -5=6' -'7'6=( a.=(0/=/07' 0--.'- (0-/'8 =1)7' /) -.FF('9',/ /5' 6'L)99',8=/0),

/) ',/'6 /5' 9=6J'/^

P'2:/.'0 "0-


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!"#$ dI > )>>0L' F6)8.L/- 0, %]]#_ B0/5 -=('- )> i#[YK 0, %]]%^ W5'O 5=7' -/6),*

16=,8-_ 0,7'-/ 5'=70(O 0, 9=6J'/0,* ; =87'6/0-0,*_ =,8 5=7' *6)B, /56).*5 F6)8^ (0,' 'E/',-0),- =,8 >).6 J'O =La.0-0/0),-

UUR 0- )6*=,0n'8 0,/) Y =./),)9).- 8070-0),-_ 1./ -5=6'- 9=,.>=L/.60,* =,8 9=6J'/0,* >.,L/0),-^ R5=6'8 L)-/- SNYj )>

/)/=(T =6' =(()L=/'8 ), = j )> -=('- 9'/5)8^ W5'6' =6' /56'' F(=,/- 6.,,0,* =/ = L.66',/ L=F=L0/O ./0(0n=/0), 0- Y$j

3,=(O-/- F6'80L/ UUR 0- = F)/',/0=( =La.0-0/0), /=6*'/ *07', 0/- -/6),* 1=(=,L' -5''/ 1./ B'=J',0,* '=6,0,*-^ W5'O =6'

F.1(0L(O /6=8'8 =,8 5=7' (0//(' (),*2/'69 8'1/^ 3- = F)/',/0=( 0,7'-/)6_ 5)B B).(8 O). 09F6)7' 0/- F6)>0/=10(0/O^

PG$0- K.)69=,L' 09F6)7'9',/ L=-' =,8 B0(( ())J >)6 B=O- /)

09F6)7' F6)>0/=10(0/O^ W5'O B0(( 5=7' /) .-' /5'0,>)69=/0), F6)708'8 .F >6),/ /) 8'/'690,' /5=/ L=F=L0/O

L),/6=L/0), 0- /5' F609' 9'=,- /) 09F6)7' F6)>0/=10(0/O^

I'L=.-' /5'6' =6' 9=,O F)/',/0=( =7',.'- /) 'EF()6'_

/5' 0,/'670'B'6 9=O ,''8 /) ,.8*' =(),* /5'

0,/'670'B''^

12+$'"3

`

4'02*'20)

f

90-:#' >7K3

/+K3 CJK3

By: Andy Grieve (Kellogg Class of 01), Edited By: Peter Manoogian (Kellogg Class of 12)


35/211

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U:.-$ /' 6"#$ Y U:.-$ /' 8"0-':/#3 -=9F(' L=-' -/6.L/.6' B).(8 0,L(.8' /5' >)(()B0,*P

%T Examination of OOSs recent performance to deep2807'

8'L(0,0,* F6)>0/-^

#T @0-L.--0), )> F)/',/0=( >)6 F)/',/0=( >)6 F(=,/ L),-)(08=/0),^

MT 3 F6)>0/=10(0/O =,=(O-0- )> F(=,/ L),-)(08=/0),^

4Z8.?./ ,:=,8 )./ =>/'6 0,/'670'B'' =-J- =1)./ F6)>0/=10(0/O

4Z8.?./ *:=,8 )./ =>/'6 0,/'670'B'' L),L(.8'- /5=/ F(=,/

consolidation is a worthy area for a deep2dive. This should be

'708',/ >6)9 /5' L=-' 0,/6)8.L/0),_ 1./ F6)708' 50,/- 0>

,'L'--=6O^

4Z8.?./ Vf)(()B0,* /5' 80-L.--0), )> F(=,/ L()-.6'-_ /5'0,/'670'B'' -5).(8 =-J =1)./ /5' L)-/ -/6.L/.6'- =1)./ /5'

7=60).- F(=,/-^

! A> 0,/'670'B'' =-J- =1)./ 6'7',.'-_ *',/(O -.**'-/ /) L=(L.(=/'

), = F'6 R&c 1=-0- S&:.:; $)/=( -=('- ; /)/=( R&c- o i##& ; R&cT^

!2"


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1$D $2$7$0/# /' "0"2Da$

MZ

F)6 -=('- =,8

F6)>0/- 80>>'6 =- /09' '(=F-'-

!"G"6./D :/.2.a"/.'0 c-0,* DE5010/ #_ a.=(0/=/07'(O

80-L.-- /5' F)/',/0=( )F/0),- >)6

F(=,/ L),-)(08=/0),^

@'/$# /' .0/$=L/ F6)>0/- 5=7' 1'', 8'L(0,0,*

9)6' -/''F(O /5=, -=('- 6'>('L/- /5'

>0E'82L)-/ ,=/.6' )> /50- 1.-0,'--_ =,8

#T /5' 6'=-), /5=/ -=('- 808 ,)/ *6)B

=/ = >=-/'6 L(0F /5=, F6)>0/=10(0/O 8.60,*

/5' %]\$- (0J'(O 6'>('L/- = -/6=/'*O /)

*6)B /56).*5 =La.0-0/0),-_ B50L5

F6'7',/'8 UUR >6)9 -''0,* /5' *=0,-

/56).*5 'L),)90'- )> -L=(' /5=/ ),'

B).(8 ,)69=((O 'EF'L/ 0, = 1.-0,'--

-.L5 =- /50-

@'/$# /' .0/$.( 0,/'670'B''- B0(( ,)/'/5=/ +505.=5.= 0- /5' 9)-/ >'=-01('

-/6=/'*O_ 1./ B0(( =-J /) -'' >0E'8

=,8 7=60=1(' L)-/ 8=/=d 0> -)_ /5',

F6)8.L' DE5010/ M^

F2"0/ 62'#:0'8 /5=/

/5' +505.=5.= F(=,/ 0- /5' 9)-/

>'=-01('_ 1./ /5'6' =6' -)9' J'O

L),-08'6=/0),-^

1$D Q:$#/.'0# /' "#(I

:)B B).(8 /50- L5=,*' 6'7',.'-`

SL.66',/(O i#[YK ; O'=6T

:)B B).(8 /50- L5=,*' F6)8.L/0),L)-/-` H5=/ =6' /5'O ,)B`

:)B B).(8 /50- L5=,*' F6'2/=E

F6)>0/- SL.66',/(O i#YK ;O'=6`T


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#^ :)B B).(8 /50- L5=,*' F6)8.L/0), L)-/-` H5=/ =6' /5'O ,)B`

M^ :)B B).(8 /50- L5=,*' F6'2/=E F6)>0/-` SL.66',/(O i#YK ;O'=6T

!"26:2"/.'0#

%^ 4'7',.'-P D=L5 R&c '=6,- =,,.=( 6'7',.'- )> i##& Si#[YK 80708'8 1O %#_Y$$ R&c-T

/5'6'>)6'_ '(090,=/0,* Y$$ R&c- B0(( 8'L6'=-' =,,.=( 6'7',.' 1O i%%K_ )6 Nj

#^ )(()B0,* =,,.=( L)-/-_ /)/=(0,* /) i%MZK

+505.=5.=P i#$K m SiN& r N^Y& R&c-T o i#$K m i%\K o iM\^$K

K0L50*=,P i%YK m Si[^]& r Y& R&c-T o i%YK m iM]^YK o iYN^YK

V'B s'6-'OP i%\K m Si\^Y& r M& R&c-T o i%\K m i#Y^YK o iNM^YK+),-)(08=/0,* 6'7',.'- /) +505.=5.= B0(( 6'8.L' =,,.=( L)-/- 1O Y$j /)P

+505.=5.=P i#$K m SiN& r %#& R&c-T o i#$K m iN\K o iZ\^$K

M^ 0/-P H' 5=7' 6'8.L'8 L)-/- 1O iZ\K =,8 ()B'6'8 6'7',.'- 1O i%%K_ /5.- 0,L6'=-0,*

F6)>0/- 1O iY[K_ /) = /)/=( )> i\#K_ B50L5 9)6' /5=, /60F('- /5'9^

!"26:2"/.'0#


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F6)>0/- >6)9 i#YK /) i\#K^

W5' L(0',/ -5).(8 =(-) L),-08'6 -'7'6=( a.=(0/=/07' 0--.'-P

A9F('9',/=/0), W09'>6=9'P H0(( ,)/ 1' 8),' /)9)66)B^

4'(=/0),-50F- B0/5 c,0),P A> )6*=,0n'8 (=1)6 0- F=6/ )> ).6 F6)8.L/0), '9F()O'' F))( 0, /5' /B) F(=,/- /5=/ B'=6' *)0,* /) L()-'_ B' B0(( ,''8 /) =886'-- /5=/ -0/.=/0),^

+5=,*'- 0, @0-/601./0), =,8 H=6'5).-0,*P H' B0(( ,''8 = L=6'>.((O28'7'()F'8 /6=,-0/0), F(=,^ /5'

clients control and then quickly dive into the plant consolidation, then analyze the cost structures

3880/0),=((O_ L)99), -',-' =,8 1=-0L >=90(0=60/O B0/5 9=,.>=L/.60,* )F'6=/0),- -5).(8 *.08' /5'

-.LL'-->.( 0,/'670'B'' /) -)9' )6 =(( )> /5' a.=(0/=/07' 0--.'- F6)708'8

P'2:/.'0 "0-


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6'7',.'- )> =FF6)E09=/'(O i#$ 10((0), c^R^^ A, /5' F=-/ -'7'6=( O'=6-_ /5' L)9F=,O 5=- -'', = -/'=8O 8'L(0,' 0, F6)>0/-^

W5' +DU 5=- =-J'8 .- /) ())J 0,/) /50- F6)1('9^ :)B L=, ROnO*O R.F'6L)9F./'6- *'/ 1=LJ ), /6=LJ`

PG$0- K.'-/O(' )>

/50- e)1 60*5/ >)6 O).`

U:.-$ /' .0/$>'6'8 =- = 6'-.(/^

W5' 0,/'670'B'' 0- 'EF'L/'8 /) *) /56).*5 /5'-' *','6=(

-/'F- B50(' F6'-',/0,* = -)(./0),P

%^ +),>069 F6)>0/=10(0/O 0--.'- =,8 =-J /) -''50-/)60L=( 6'7',.' =,8 L)-/ 0,>)69=/0),^

#^ 3-J /) -'' 9=6J'/ F)-0/0), =,8 6'(=/'8 8=/=^

M^ 4'=(0n' /5=/ /50- L=-' 0- *)0,* /) 1' 8'L08'8

1=-'8 ), 0,>)69=/0), 6'*=680,* /5' F6)8.L/-^

N^ A8',/0>O /5' 9=0, 0--.' =>>'L/0,* F6)>0/=10(0/O

the companys R&D spending

!"#$ _I PDaD3D P:G$


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MT @''F2807' 0,/) 8607'6- =,8 F6)>0/=10(0/O _ .(/09=/'(O ('=80,* /) = 80-L.--0), )>

RbG3

@$6$##")69=/0), /5=/ 5=- =(6'=8O

1'', *07',^ U/5'6 0,>)69=/0), L.66',/(O

.,=7=0(=1('^

!'7G$/./.A$ BD0"7.6#

! W5'6' =6' -'7'6=( F(=O'6- 0, /5' 9=6J'/_

1./ '7'6O/50,* 5=- 6'9=0,'8 -/=1('

>6)9 = L)9F'/0/07' -/=,8F)0,/^

F0/=10(0/O

>=L/)6- =6' ),2par with Syzygys

L)9F'/0/)6- S'EL'F/ >)6 4G@_ =1)./

B50L5 /5' L=,808=/' -5).(8 =-J

-F'L0>0L=((OT^

NM


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ROnO*O 0- /5' 9=6J'/ ('=8'6_ /50-

,.91'6 0- *6'=/'6 /5=, %^ A> ROnO*O 0-

,)/ /5' 9=6J'/ ('=8'6_ 0/- 9=6J'/

share divided by the market leaders

-5=6' B0(( 1' ()B'6 /5=, %^ W50-

L)66'(=/'- B0/5 /5' /5' 6=/0) )> /5'

height of Syzygys rectangles to that of

competitors rectangles for eachF6)8.L/ 0, 'E5010/ #^

W5' 80=9'/'6 )> /5' 1.11('- 0- 8607',

by Syzygys total revenues in that

L=/'*)6O_ L)9F60-'8 )> 0/- 9=6J'/

-5=6' 0, /5' L=/'*)6O 9.(/0F(0'8 1O /5'

categorys size.

+)66'L/(O 0,/'6F6'/0,* -(08'- # =,8 M

B0(( ('=8 /5' L=,808=/' /) L)66'L/(O

08',/0>O /5' F6)8.L/- ), -(08' MP

/'L5,0L=( ('=8'6-50F /) *)

.F =- 0/ 0,7'-/- 0, 4G@_ 1./ ROnO*O_B0/5 -(0*5/(O 9)6' 4G@ -F',80,* /5=,

+6=O 4'-'=6L5 =,8 R),0L H=7'_ ',e)O-

('-- )> = F'6L'F/0), )> /'L5,0L=(

('=8'6-50F >6)9 0/- L.-/)9'6-

DE5010/ Y 1.0(8- ), /50- F)0,/^ W5' J'O

0,-0*5/ 0- /5' =1-)(./' 'EF',-' S,)/

F'6L',/=*'T ROnO*O 0- -F',80,* ),

4G@^ +)66'L/ =,=(O-0- B0(( -5)B /5=/

ROnO*O 0- -F',80,* 9),'O ), >'=/.6'-that do not generate customers

willingness to pay. Syzygy is

-F',80,* 9),'O /) 8'7'()F >'=/.6'-

/5=/ L),-.9'6- =6' ,)/ B0((0,* /) F=O

>)6^

NN


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

Exhibit 1: Syzygys Historical Costs, Revenues and Profits

NZ


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4Z8.?./ *I 5'


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

Exhibit #3: Syzygys Absolute vs. Relative Market Share

N\


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

Exhibit #4: Companies R&D vs. Degree of Technical Leadership

N]


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51/211


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!"#$ fI ;'/.##$


55/211

! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8 YY

!"#$ /


56/211

! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

!2"/'6 A,/'670'B'' B=(J- /56).*5 -/6.L/.6'_ =-J /5'9P

! 70 601 $%+/* $%($ .)08&)6 )&$(+-&)" =01-2 5& +/$&)&"$&2 +/ 3)&D"&("0/&2

8%+8*&/" 4)0' B0$+""&)+& B(/8%9

! V) L)66'L/ =,-B'6d 5)B'7'6_ -5).(8 1' ()*0L=((O 8'>',8'8

! E4$&) "&/'6 80-L.--0,* /5' 9=6J'/ /'-/P

! 3--.9'- /5=/ /5' 8'9=,8 >.,L/0), >)6 4)/0--'60' 4=,L5 L50LJ',- 0-

(0,'=6^

! R/)6' % 0- L)9F=6=1(' /) /'-/ -/)6' 3 =,8 -/)6' # /) /'-/ -/)6' I

!2"


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P 2 /. - - /.


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

P'2:/.'0 "0-


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

4Z8.?./ b,I \"


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

4Z8.?./ b*I !'0/


61/211


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1$D $2$7$0/# /' "0"2Da$


63/211

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1$D $2$7$0/# /' "0"2Da$

B$K.0./.'0 'K ;>H W) 1'*0, /50- L=-' L)66'L/(O_ /5' 0,/'670'B''

9.-/ .,8'6-/=,8 /5' L)9F),',/- )> 4UA

If the interviewee doesnt know the formula

>)6 4UA_ /5' L=-' 0- 8'=8d 5)B'7'6_ O). -5).(8

*.08' /5' 0,/'670'B'6 /) 5'(F /5'9 F6=L/0L'

@$/ F0,8 /5=/ )69.(= >)6 4UAP

@'/$# /' H0/$ = /OF0L=(

H)6J0,* +=F0/=( -/=/'9',/ B0(( 0,80L=/' =(( )>

/5' 6'('7=,/ L=/'*)60'- )> L=F0/=( >)6 F.6F)-'-

)> L=(L.(=/0,* 4UA^

I=-'8 ), /5' 8=/= >6)9 /5' F60)6 F=*'_

>)(()B0,* L),L(.-0), 9=O /5', 1' 86=B,P

W)/=( H)6J0,* +=F0/=( 0,L6'=-'8 1O iY$K

1'L=.-' A,7',/)6O ('7'(- 0,L6'=-'8 1O

iY$K )6 A,7',/)6O A,L6'=-'P

'6=/0), )> -/=,8=680n'8 F6)8.L/ (0,'-

A,=LL.6=/' 8'9=,8 >)6'L=-/- 6'-.(/0,* 0,

'EL'-- -=>'/O -/)LJ

U1-)('/' 0,7',/)60'- )> )./28=/'8 F6)8.L/

(0,'-^

g$"< , g$"< V

;$A$0:$ %$$K %#YK

!'#/ 'K F


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!"#$ jI i.0-"2'' !'


65/211

! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8 ZY

!"#$ /


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

!2" F6)8.L/ 1','>0/- =,8 F)/',/0=( 09F=L/-

#T A8',/0>O L)-/ -/6.L/.6' =,8 F(=L'- 0, 7=(.' L5=0, B5'6' L)-/- B).(8 86)F

MT Calculate NPV of product to value Vindaloos product

I''/- *6)B, >6)9 /5' ,'B -''8- B0(( F6)8.L' -.*=6 0, = %P# 6=/0) 6=/5'6 /5=, /5'

L.66',/ %P% 6=/0)^ V)B %$$ 1''/- F6)8.L' %$$ F).,8- )> -.*=6 %$$ 1''/- *6)B,>6)9 /5' ,'B -''8- B0(( ,)B F6)8.L' #$$ F).,8- )> -.*=6_ )6 # (1-;1''/^

W5' '(=-/0L0/O )> 8'9=,8 >)6 -.*=6 0- %^

W5' 7=(.' L5=0, L=, 1' 16)J', 8)B, 0,/) >).6 F609=6O F6)L'--'-P

%^ f=690,* SF(=,/0,*_ 5=67'-/0,*_ =,8 -'((0,* 1''/-T_ B50L5 0- N$j )> L)-/

#^ W6.LJ0,*_ B50L5 0-%$j )> /5' L)-/

M^ 4'>0,0,*_ B50L5 0- M$j )> /5' L)-/

N^ @0-/601./0),_ B50L5 0- #$j )> /5' L)-/^

f=69(=,8 /5=/ 0- ,)/ .-'8 >)6 -.*=6 L=, 1' 6'F.6F)-'8 /) *6)B L=11=*'_ B50L5 0-

L.66',/(O ),' >0>/5 =- F6)>0/=1(' =- -.*=6^

W6.LJ0,* L)-/- >)6 -.*=6 =6' Yj >0E'8 =,8 ]Yj 7=60=1('_ B0/5 /5' 7=60=1(' L)-/-

806'L/(O 6'(=/'8 /) /5' B'0*5/ )> B5=/ 0- 1'0,* /6.LJ'8^

4'>0,0,* L)-/- =6' =(( 7=60=1('_ =,8 0/ B0(( L)-/ #Yj 9)6' F'6 1''/ /) 6'>0,' /5'

,'B 1''/- /5=, 0/ L)-/ /) 6'>0,' /5' )(8 1''/-^

W5'6' =6' ,) L)-/ -=70,*- 0, 80-/601./0), >6)9 /5' 6'8.L'8 7)(.9'^

!2" O'=6-

ZZ


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!"26:2"/.'0# R6'0/ T


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!"26:2"/.'0# R6'0/WT

\"/8 #'2:/.'0

\"/8 Q:$#/.'0H5=/ =6' /5' /)/=( L)-/ -=70,*- 0, /5' 7=(.' L5=0,`

P/$G L!'#/ F'


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P'2:/.'0 "0-


71/211

! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

P'2:/.'0 "0- h0,8=()) +)6F)6=/0), 0- 806'L/(O 6'(=/'8 /) L)-/ -=70,*-^

3>/'6 6.,,0,* /5' VO = ,.91'6 )> 60-J- =,8 F)/',/0=( 1','>0/- S0^'^ =8)F/0), 6=/'-_ L)9F'/0/07'

6'-F),-'_ )/5'6 .-'- '/L^T 1'>)6' 9=J0,* /5'06 >0,=( 6'L)99',8=/0),^

&'0:#YU:.-$ /' "0 4Z6$22$0/ !"#$

W50- 0- = a.=,/0/=/07'(O 5'=7O L=-'^ Q))J >)6 /5' 0,/'670'B'6 /5=/ 0- a.0LJ(O =1(' /) 08',/0>O /5' 09F)6/=,/ 8607'6- )>

L)-/ =,8 L=, L6.,L5 ,.91'6- a.0LJ(O =,8 B0/5 (0//(' '66)6^

3880/0),=((O_ =, 'EL'((',/ L=-' B0(( 6'a.06' ('-- *.08=,L' >6)9 /5' 0,/'670'B'6_ F=6/0L.(=6(O ), ,'E/ -/'F- ), *'//0,*

/56).*5 L=(L.(=/0),-^

[%


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!2"


73/211

! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

!2"O0,* /5' )F/0),-P -'(( L50(('8 e.0L'_ -'(( =(( e.0L' 1.-0,'--'-_ L),/0,.' ),

B0/5 =(( 1.-0,'--'-

#T g.=(0/=/07' 80-L.--0), )> L)9F'/0/07' 8O,=90L-

MT @0-L.--0), )> F6)8.L/ -'('L/0),;L)9F),',/-_ =- B'(( =- B=O- /) L./ L)-/-

58$0 "#($-O /8$ .0/$ N$j =,8 #Yj_ 6'-F'L/07'(O^

Zephyrs market share, 12% makes it third in the industry.

W5' /B) 9=6J'/ ('=8'6- =6' =1(' /) 8) 9)6' =87'6/0-0,*_ L).F),0,*_ F6)9)/0),_

=,8 /6=8' /5=, u'F5O6 0- =1(' /) 8)^ H' 8) ,)/ J,)B =1)./ /5'06 F6)>0/=10(0/O_

1./ =--.9' 0/ 0- F)-0/07'^

!2"'6 6'(0=1('

F6)8.L/-^ :)B'7'6_ /5' 16=,8 F6'90.9

9.-/ 1' 0, (0,' B0/5 )/5'6 16=,8'8

F6)8.L/- =,8 =(( 16=,8'8 e.0L'- -'(( 0,

/5' -=9' F60L' 6=,*'^

! W50- 0- = 50*5(O F60L' -',-0/07' 9=6J'/

/5=/ ()7'- L).F),-_ F6)9)/0),-_ '/L^

!'7G$/./.A$ BD0"7.6#

! W50- 0- = 50*5(O L),L',/6=/'8 9=6J'/^

W5'6' 5=- ,)/ 1'', = ()/ )> L5=,*'_

/'L5,)()*0L=( )6 )/5'6B0-'_ 6'L',/(O =,8

/5'6' =6' ,) )170).- ',/6=,/-^

[M


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!2"


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

!2" L)-/- 3m306(0,' 90*5/ >=L' .,8'6 1)/5 F6)L'--'- 1'>)6' 5=,80,* )./ /5'

'E5010/^ H5', =-J'8_ 'EF(=0, /5=/ /8$ /'/"2O G$< K2.38/O #"A.03# K))8 =,8 =(L)5)(0L

1'7'6=*' 0/'9- =6' -)(8 ), 3m306(0,'

>(0*5/-

! I08($+0/"K W50- 0- = cR @)9'-/0L

8'L0-0), ),(O A*,)6' 0,/'6,=/0),=(^

!'7G$/./.A$ BD0"7.6#

! b=99= 0- /5' ),(O =06(0,' /5=/ 5=-9=8' /5' -B0/L5d 5)B'7'6 =(( )/5'6

=06(0,'- =6' '7=(.=/0,* /5' -B0/L5^

! f)6 /5' F.6F)-'- )> /50- L=-'_ b=99=

=,8 3m306(0,' -5).(8 1' L),-08'6'8 /)

1' 'E=L/(O /5' -=9' 0, =(( 6'*=68-^

[[

1$D $2$7$0/# /' "0"2Da$


78/211

! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

1$D $2$7$0/# /' "0"2Da$

!8"03$# .0 ;$A$0:$ A,/'670'B'' B0(( (0J'(O 1'*0, B0/5 /5' L)66'L/

=--.9F/0), /5=/ 6'7',.' B0(( 1' ()-/ 8.' /)

.,5=FFO_ L=-52),(O F=--',*'6-

U,L' =-J'8 =1)./ 5)B 9=,O =6' ()-/_ 5=,8

)./ 4Z8.?./ ,/) 8) = 9=6J'/ -0n0,*

!8"03$# .0 !'#/# A,/'670'B'' -5).(8 9=J' 9',/0), )> +)-/

L5=,*'- 8.' /) /5' -50>/ /) = +=68 U,(O

-/6=/'*O^

3-J /5' 0,/'670'B'' /) 8'/=0( /5' /OF'- )>

L)-/- /5=/ 90*5/ 1' 0,7)(7'8 1'>)6' 5=,80,*

)./ 4Z8.?./ *

=i\ ] 5')6

+=-5 K=,=*'9',/ =,8 +=68 K=,=*'9',/ =/

3m306(0,'^

W5' 0,/'670'B'' -5).(8 ,)/0L' /5' >)(()B0,*

0,>)69=/0),P

+=-5 K=,=*'9',/ G +=68 K=,=*'9',/ 1)/5

have 2% fees associated, so this is a wash in

/'69- )> -=70,*-^

+=-5 K=,=*'9',/ 6'a.06'- =880/0),=(

)7'65'=8_ [ /)/=( '9F()O''- F'6 =06F)6/_ /5=/L).(8 1' '(090,=/'8 >)6 >.6/5'6 -=70,*-^

H5', =-J'8_ 'EF(=0, /5=/ /5' /)/=(_ F'6 >(0*5/_

-=70,*- >6)9 '(090,=/0,* )7'65'=8 8.' /)

+=-5 K=,=*'9',/ UF'6=/0),- 0- eV_YK2.38/

H0/$(-1& 04 W0/&6P 3m306(0,' B0(( 6'L'07'

/5'06 9),'O M$ 8=O- -)),'6_ =,8 /50- 9),'O

L).(8 1' .-'8 /)P

A,7'-/ 0, 0,/'6'-/ '=6,0,* =LL).,/- )6

*6)B/5 F6)e'L/-

> -.FF(0'6- '=6(O =,8 /=J'

=87=,/=*' )> 80-L).,/-

=-/'6 A0)*+/. C(3+$(- !'3)0(0*5/ 0,

L5=,*' L=, 1' '(090,=/'8_ /5.- >6''0,* .F L=-5

>()B^ 3880/0),=((O_ /5'6' B0(( 1' = 6'8.L/0), 0,

()-- )> L=-5 8.' /) /5'>/ =,8 8=9=*'

F(33+&) C1"$0'&)"K W5' 9=e)60/O )> L.-/)9'6-

B0(( 1' =1(' /) F(=L' =,8 6'L'07' /5'06 )68'6

>=-/'6 ), /5' F(=,' B50L5 B0(( =(-) 0,L6'=-'

-=('-

P$"/# >66:G"0/# &:#.0$## X$.#:


79/211

! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

P'2:/.'0 "0- ()B =,8 L).(8 =(()B .- /) '=6, 0,/'6'-/_ F=O 8)B, L6'80/)6-_ )6 0,7'-/ 0, F6)e'L/-^ 3880/0),=((O_ 1Oreducing cash losses and eliminating Change tied up on airplanes, we can improve our Working Capital and also put

/50- 9),'O /) B)6J >)6 .-^ f0,=((O_ 0/ =FF'=6- =- /5).*5 L.-/)9'6-_ 0, *','6=(_ 90*5/ =L/.=((O 1' 5=FF0'6 1'L=.-' /5'

-F''8 )> /6=,-=L/0),- ), /5' =06F(=,' B0(( 09F6)7'^

&'0:#YU:.-$ /' "0 4Z6$22$0/ !"#$

3, 'EL'((',/ 0,/'670'B'' B0(( ,)/'P

@.' /) /5' 0,L6'=-'8 /6=,-=L/0), -F''8_ F6)1=10(0/O )> F.6L5=-' >)6 1)/5 I.-0,'-- =,8 DL),)9O F=--',*'6- 0, /5' 3fWD4 -/=/'

-5).(8 *) .F 8.' /) = 6'8.L/0), 0, >6.-/6=/0),^ W5' F')F(' ), /5' 1=LJ )> /5' =06F(=,' )>/', =1=,8), = F.6L5=-' 0> 0/ /=J'- /))

(),* /) F(=L' =, )68'6^ K=J0,* L5=,*' /=J'- = ()/ )> /09'X

37'6=*' F.6L5=-' =9).,/ -5).(8 =(-) 0,L6'=-'^ W5'6' 0- = F6)7', F-OL5)()*0L=( F5',)9',), /5=/ -5)B- 5)B L),-.9'6- B5) 8)

,)/ L=66O L=-5 F.6L5=-' ('-- B5', = L=-5 )F/0), 0- )>>'6'8 1'L=.-' /5'O >''( *.0(/O .-0,* /5'06 L=68^ 3 L=682),(O )F/0), '(090,=/'-

this guilt and consumers dont mind using the card.

Q1"+/&"" E81'&/P W5' >=L/ /5=/ b=99= 306(0,' 5=- =(6'=8O -B0/L5'8 0- = L('=6 0,80L=/0), /5=/ /50- 0- = ()*0L=( 08'=^

[]

4Z8.?./ b,I L0 LA$


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4Z8.?./ b,I L0 LA$


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! #$%% &'(()** +),-.(/0,* +(.1 22 3(( 40*5/- 4'-'67'8

G

STEP 1:Cash Handler

Loads Plane with$50 in Change

AAirline Cash Management Process

STEP 2:Flight Attendant

collects cash frompassengers and

gives change

AAirline Credit Card Process

31 Days Total Time

On Ground

In Flight


Deposits Cash intoFlight Lockbox

STEP 4:

Cash Handlercollects FlightLockbox fromPlane (EOD)

STEP 6:Armored Car

Service collectscash

2% Fee on All CashCollected

STEP 5:

Flight Lockboxesdeposited toOnsite Cash

Processing Center

STEP 7:

Armored CarService reconciles

cash forcounterfeit.

STEP 8:

Cash (Less Fees)deposited to

AAirline BankAccount

KEY5 Cash Handlers per Airport2 Employees in Onsite Cash Processing Center per Airport


swipes credit cardin wireless

terminal

24 Hours Total Time

On Ground

In Flight

STEP 3:Cash (Less Fees)

deposited toAAirline Bank

Account

STEP 2:Merchant Service

Receives andprocesses Credit

Card

2% Fee on All CashCollected

\%

!"#$ ,*I &$22 !'7G:/$< H06W


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!"#$ /).,8'6 )> I'(( 5=- 6'/.6,'8 /) /5' L)9F=,O =,8 /=J', )7'6 =- +DU^ :' 5=- 506'8 .- /) 8'/'690,'P

H5O 5=7' ).6 F6)>0/ 9=6*0,- 8'L(0,'8`

What can we do to improve our profitability and reach our Full Potential?

PG$0- K.


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\"/8 P'2:/.'0#

\"/8 F"=LX

c,0/- R)(8 S&T M$^$ M$ $ Y^$ %$^$ Y^$ c+W+

3R< i%_$$$^$ i[Y$ $ iY$$ $ iM_$$$ $ i#Y$^$

+=LX

VA SiKT A9F6)7'8 i%M Y i%M Y i#^M iN^Y i$^$ eVVWc

+)-/


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809:04&;+*14,


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!2"


91/211

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H0/$>'L/ )> L)9F'/0/)6- /5=/ =(-) )>>'6

L)6F)6=/' 5).-0,*

]%

1$D $2$7$0/# /' "0"2Da$


92/211

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D D

]#

!:O >./.6' )FF)6/.,0/0'-^

F$0$/


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P'2:/.'0 "0-


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P'2:/.'0 ] ;$6'77$0-"/.'0#

The first part of the case doesnt have a real answer, it should simply be a conversation about potential options for our cli',/

DE5010/ ),' 0- = 1=-0L 9=/5 B=69 .F_ =,8 =,)/5'6 )FF)6/.,0/O >)6 /5' 0,/'670'B'6 /) 80-F(=O a.=(0/=/07' L6'=/070/O

f0,=((O_ 8'F',80,* ), /5' 60-J F6)>0(' )> /5' L(0',/ SB50L5 /5' 0,/'670'B'6 L=, '0/5'6 =--.9' )6 =-J >)6T /5'6' L=, 1' = L=-'

9=8' >)6 =(( /5' L)9F'/0,* )F/0),-

A> B' ,''8 /5' 50*5'-/ 6'/.6, F)--01(' =,8 B' =6' 60-J ,'./6=(_ /5' =8 L=9F=0*, -/0(( 0- /5' 1'-/ )F/0), 8'-F0/' /5'

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a viable option if we dont think we can raise the capital required for higher cost options

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Advertising and a Rewards program could be appealing to potential customers that dont use our product.

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right investment. Thats why we brought you on board. What do you think?

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400 rooms X 50% vacancy X 350 days (dont use 365) year = 70,000 rooms per year

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This case is defies a lot of candidates expectations, with a lot of them really focusing on competitive/market

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0,7'-/9',/^

Additionally, an excellent interviewee will interpret the breakeven point as low. Asking them to interpret these

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:=,8 )./ 'E5010/ t# Current players share and margins

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the world known brands to attract customers in this segment.

Additionally, by targeting young adults and teen & children it can

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local manufacturing would probably require significant fixed (plants, )

and variable (labor, ) costs

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aspects of CCUs targeting and marketing strategy are covered.

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The client is trying to identify the best approach to meet its growth target. The clients goals for expansion are to most

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clients business and goals. Interviewers should

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the clients business model and to be sure they

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central costs. For this analysis, assume that central costs dont vary depending on the

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each geographic area? How might this influence the clients choice of target

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been Dark Skys only source of revenue.

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the number of aircraft sold. How much and how long is the payback period for the investment in

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There are 650K Group diabetics left uncoached. Is there a way to make the segment profitable? Ideas include:

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! Its tempting to suggest that the client should market to 65+ Medicare patients with diabetes, since this is

where the program yields the greatest savings. While its good that we have lowered the cost of older

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* Members 65 years of age and above. Known as Medicare Advantage, premiums funded by government

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P$37$0/ LA$6:2"< !'WBy: Danny Fitzgibbons (Kellogg Class of 12), Edited By: Craig DePriester (Kellogg Class of 12)


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disposed of weekly. In addition, Ocular has been considering the launch of Irelands FIRST daily disposable contact lens

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Assess candidates ability to solve a break even

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performance of Oculars other products?

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(If needed, nudge) Given the data provided, how attractive to Oculars future

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Oculars launch of daily disposable contact lenses

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Weve been able to come up with these projections 5)B B).(8 /50- 09F=L/O).6 =,=(O-0- =,8 6'L)99',8=/0),-`

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kellogg casebook 2011

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