1. An Intro to Case Frameworks
Johns Hopkins Business and Consulting Club
January 24, 2006

2. Questions Why are PhDs recruited to business?
As scientists, our most valuable skills reasoning and research abilities
Business problems are usually much broader than those in lab
We need to learn how to apply our reasoning skills to a broader context
What kinds of jobs are available?

3. The Wall Street Journal
Genentech: reports earnings and peanut trial
Guidant story
JJ 23.2; BS 25.6, 27
New FDA Guidelines
Pfizer: buys rights to Exubera worth falls
Bristol Meyers

4. Overall Strategy Summarize the question Verify the objectives
Shows you are listening, chance for correction
Verify the objectives
Check for multiple objectives
Ask clarifying questions
Company, industry, competition, product
Lay out your structure

5. Do Not Give a monologue Ask the interviewer to repeat the question
Fly through a quick answer
Digress from the question at hand
Use terms you do not understand
Ask open-ended questions

6. If you are stuck… Take a moment to recap Run through the 5 C’s
Company
Costs
Competition
Consumer
Clients
Ask for Help!

7. Look out for… Graphs and charts- be ready to read them and draw them
Percentages:
Price Change % Change
$ $ ?
$ $ ?
$ $ ?
$ $ ?
$ $ ?
Hint: Figure out 1%, then divide that into the change

8. Entering a New Market
Your client makes shampoo. Should they enter sunscreen market too?
Consider:
Market
Entry

9. Industrial Analysis
Client is thinking about buying an entertainment industry and want to know about the entertainment industry.
Consider:
Current Industry Structure
Suppliers
Future

10. Mergers & Acquisitions
Ben and Jerry’s wants to buy a cream cheese manufacturer. Should they?
Consider:
Objectives
Price
Due Diligence
Exit Strategies

11. New Product
Client has developed a new soft drink and car wash in one. What should they think about?
Consider:
Product
Market Strategy
Customers
Financing

12. Pricing Strategies
Client has developed new screenwriting software. How much should it cost?
Consider:
Pricing
Cost-based vs price-based

13. Growth Strategies
Client has high cash reserves. How should they use them to grow the company?
Consider:
Assessment
Strategies

14. New Business
Two brothers want to start a travel agency. How do they start?
Consider:
Market
Cost/Benefit Analysis

15. Competitive Response
Competitor has a new product that is hurting client’s sales. How to respond?
Consider:
Why?
Strategy

16. Increasing Sales
Client wants to become biggest seller of product. How can it?
Consider:
Assessment
How? (volume, price, seasonal balance…)

17. Reducing Costs Publisher needs more cash. What costs can be cut?
Consider:
Assessment
Internal Cost Analysis
External Cost Analysis

18. Increasing Profits
Shoe client’s sales are up but profit is flat. How can they increase profit?
Consider
Revenue
Costs
Volume

19. Turnaround Client is in trouble. How can you turn it around? Consider:
Assess current structure
Strategy- business plan, goals

20. Practice Case
A heavy truck manufacturer with operations in Europe and the U.S. has experienced growing market share combined with declining profitability.
Your client wants to know what they should outsource.
What issues would you need to consider in order to make a recommendation?

21. Practice Case Competition Product
Several competitors have begun to outsource pieces of the truck
Product
There are “non-viewable” components such as frame rails that are low-cost, low-tech and “viewable” components such as the cab that are high-cost and high-tech (heavy labor and material content).

22. Practice Case
Costs:
The company has invested a significant amount of money in a stamping machine for cabs.
Variable Costs:
Materials $300
Labor $300
Overhead $100
Depreciation $300
Total $1000
Total – Deprec. $700

23. Consider Amount of cost reduction
Difficulty of maintaining quality control (cost of legal expenses, management time etc.)
Capacity constraints of suppliers
Number/ type of suppliers
Brand/ quality perception of customers
Proprietary process/ product?

24. Solution Low-cost, low-tech components should be outsourced.
It would be desirable to outsource if the price to the company would be below $700.
The depreciation expense is unavoidable and thus, should not be included in the decision-making process.

25. How many Grad Students at Hopkins Med School?
Estimation Problem
How many Grad Students at Hopkins Med School?

26. Solution Programs: 15 Large (20 students/yr) = 3 programs = 60
Med (10 students/yr) 5 programs = 50
Small (5 students yr) = 7 programs = 35
Total = 140 students/yr
Avg length: 5 yrs
So, 145 x 5 = 725 Grad Students

27. Meeting Details Location: Room 2-108, 1830 Bldg Time: noon-1pm
Dates: 2006 (All Tuesdays)
Jan 10&24 Feb 7&21 Mar 7&21
Apr 5& May 2&16