LEARNING FROM BUSINESS CASE STUDIES

WHAT IS A CASE STUDY?

A business case study is a “documented study of a specific real-life situation.” It presents an account of what happens to a business/industry over a number of years. It chronicles the events that managers had to deal with, with reference to changes in the competitive environment and charts the managers’ response, which usually involved changing the business or corporate level strategy.

Case studies spark lively discussions and provide real-world management lessons that can be put into practice professionally.

HOW DO CASE STUDIES ACT AS A MEANS OF LEARNING?

Using Business Case studies as a means of empirical learning can prove priceless for several reasons.

• They provide the experience of organizational problems that could not be experienced firsthand; to appreciate and analyze the problems faced by different companies and understand how managers have dealt with problems and the lessons learned.

• Top managers enjoy the thrill of testing their problem-solving abilities in the real world. Management is an uncertain game and using cases to see how theory can be put into practice is an ideal means of improving diagnostic investigation skills.
• Case studies provide an opportunity to present our ideas to others. Managers may present their ideas and engage in discussion with other managers, who have their own views. That is why we create groups to identify what is going on in a case and through discussion, arrive at rational solutions to the case problem. The debate helps reveal how decisions are made in the actual business world.

CASE STUDIES – A TOOL FOR BUSINESS STRATEGIZING

Each of these case studies below show a different aspect to business and marketing that can be used as a tool for business studies.

Royal Enfield

Take the case of Royal Enfield, the oldest motorcycle brand still in production, and how they turned around their flagging fortunes to sell nearly 1.75 lakh Royal Enfield motorcycles in 2013, a 55 % jump over 2012 sales figures of 1.13 lakh units.

It wasn’t always so hunky dory though. Royal Enfield’s sales had dropped to only 2,000 units a month in 2000 due to multiple issues. On the one hand, there were several reliability and Quality Control issues around the bike, such as engine oil leakage and while the bikes were loved, everyone agreed they were too heavy and unreliable, difficult to maintain, had questionable ergonomics and a daunting kick-start mechanism. It was time to modernize the Bullet with bold decisions, and the rest is history.

Then there was the story of how the English Cricket Board (ECB) gave birth to a new format of Twenty20 cricket loved by purists and new-age fans alike? Trying to change the face of a sport rooted deep in its own traditions is always a tricky challenge, but the ECB’s methodical approach to reinventing the game paid rich dividends in more ways than one!

Or how Adidas made the most of their association with the 2012 London Olympics to supercharge their own success story and steal a walk over their competitors on a global scale.

Or perhaps, how the origins of the blockbusting messaging app Whatsapp was born in the failure of its founders to find a job at Facebook or Twitter. Even in the face of adversity, there is a lesson to be taken away by all of us. Brian Acton, and Whatsapp’s, upswing in fortunes will now be the stuff of legends in Silicon Valley, and theirs is a story that proves you should never stop believing in your dreams.

Using Case studies based on various companies is an ideal means to learn how markets operate and develop business strategies.

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How Twenty20 Cricket was born from Market Research

As the world veers towards knowledge based economies, the value of information is playing a bigger and bigger role in the decision-making process for businesses everywhere. One only needs to take a page out of the leaf of sports to know how crucial the right information can be. Football has soccernomics as a reference point while baseball has moneyball, but today we’ll look at a very different story that leveraged the power of information to not just play a sport, but recreate it. Today we’ll talk about the birth of Twenty20 cricket.

Acting on hunches is passé, you have to first gather all the requisite information before coming to an informed decision. With an explosion of sports and leisure activities, the English Cricket Board needed to win over consumers with ever-evolving interests. England is steeped in cricket tradition, but more exciting and entertaining sports activities threatened to dilute popular interest in the game. The ECB wanted to win over (and increase) audiences while stimulating interest in the game, and so they undertook a Market Research to understand consumer sentiments.

 The English Cricket Board (ECB) took a very methodical approach to this, laying out clear business objectives and a tangible action plan that would achieve them. The ECB, through its Market Research, wanted to create a more consumer focused experience that would draw in fans and encourage participation in the sport. The systematic, analytical approach they undertook covered three phases:

• Analysing the existing environment by collecting relevant facts and figures about cricket viewership, participation and opinions
• Developing a consumer focus through interviewing different groups of existing and potential spectators
• Generating ideas for new products by identifying and testing audience reactions to proposed revisions to the accepted cricket formats.

Market Research can use either Primary or Secondary Research to understand trends and opinions. For the ECB, secondary data helped to identify who the existing and potential consumers of cricket are. In all, potential cricket consumers included:

• children
• women
• young men
• ethnic minorities
• inner city communities

At the same time, the Secondary Research identified some vital details about the changing marketplace for cricket. For example, cricket attendances at international matches rose substantially in recent years, but this achievement has to be viewed against a background in which individual membership of county cricket clubs has been falling. The research also confirmed that the majority of current county cricket spectators tend to be males who are middle-aged or older and from a middle class background.

The ECB’s Primary Research, both qualitative and quantitative, involved at-home interviews with a nationally representative random sample of 4,104 adults and Likert scales were used to discover the interests of different groups of consumers. Qualitative and Quantitative Research was conducted to arrive at an informed conclusion.

This research revealed how consumers felt that there was a lack of excitement associated with cricket compared to other sports, particularly county cricket. Audiences (especially a younger one) made it clear that they wanted an exciting game that justified the time and money invested in a match ticket. The research also showed that many customers who had a positive first experience of cricket would come back for more.

The research showed that there was significant interest in cricket if they were virtually guaranteed entertainment in a socially inviting environment where all were welcome. At the same time, it suggested that although any new product had to be seen as new and different from existing forms of cricket, the ECB would not have to re-invent the game. Most importantly, the final phase of the research showed that a cricket match that lasted around 3 hours would appeal to new audiences such as females between 15 and 44, as well as families.

The ECB decided to go with this radical format of the game and called it the Twenty20 Cup, a 20 over competition with music, fanfare and entertainment galore. While purists questioned the new format, it attracted several new consumer groups such as young people, women and families, making the game more popular than ever! The rest, as they say, is history.

Royal Enfield’s Highway to Success

It happens to the best of us. One moment you’re king of the world, the next moment your kingdom is snatched away from you. Royal Enfield is the oldest motorcycle brand still in production, but the bigger they are, the harder they fall. The legendary bike brand was facing a loss of Rs. 20 crores and was on the brink of a shutdown back in 2000, but the manner in which they turned things around is a master class in product planning, process and brand management.

Royal Enfield

Their problem was manifold. On the one hand, sales had dropped to only 2,000 units a month and there were several reliability and Quality Control issues around the bike, such as engine oil leakage, the engine seizing up and the accelerator/brake cables snapping. The brand still commanded a loyal following, but everyone agreed that the bikes were too heavy and unreliable, difficult to maintain, had questionable ergonomics and a daunting kick-start mechanism. It was time to modernize the Bullet.

The marketing mavens at Royal Enfield understood the need for a complete makeover, but they faced a catch-22 situation; doing so could bring in a newer profile of buyers, but they also risked alienating their loyal audience that defined the brand. It was a challenge they had to meet, and did so in style. Siddhartha Lal, a member of the Delhi-based Eicher group of companies and Royal Enfield fan, pushed the board for another chance, and the board agreed because “the business was doing so badly it could hardly get any worse.”

The Royal Enfield desperately needed a makeover, but many elements made them unique, such as its cast Iron engine that created its distinctive sound and thrum. However, its ancient architecture was also responsible for oil leaks and subsequent seizing, issues a modern aluminum engine would solve. Critically, making the move would see the character of the old engine vanish, which Royal Enfield customers loved.

For the greater good, the move to migrate to newer-generation engines was made and international sound mapping experts were consulted to recreate the feel of the original engine. More importantly, the new engine was more reliable, 30% more fuel efficient and 30% more powerful too. It was an instant hit, and coupled with corrections in shop floor processes and service quality levels, the tide slowly turned. By 2008, dealers were reporting lower workloads and warranty claims fell sharply too. Royal Enfield also began conducting marquee rides to promote leisure biking as the bike became a lifestyle proposition.

The turnaround has been miraculous. Sales soared to 74,600 motorcycles in 2011, and the demand was insatiable. Royal Enfield subsequently announced an investment of Rs 150 crore in a new facility in Chennai, which would see its production capacity beyond 1.5 lakh units per annum. Royal Enfield’s turnaround proves that driving change can be difficult, but in Royal Enfield’s case they have rode off into the sunset on the back of a happy ending.

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Adidas 2012 Olympic Marketing Campaign Case Study

 

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What’s impossible? Nothing, if you ask Adidas

The bigger they are, they harder they fall. Even giants of the corporate world have been tripped up by poorly executed branding exercises. Just ask Coke about what happened to New Coke and you’ll have your answer! Pulling off a branded exercise can easily end up an unmitigated disaster, so Adidas had its hands full when they won the right to partner with the London 2012 Olympics. The Olympic Games are no trifling event, but how do you leverage an event of this magnitude to ensure engagement and a return on investment?

That was a question Adidas had to find answers to, and they were in a unique position to do so. The Adidas brand is built on a passion for sports excellence and their association with the Olympic Games stretched back to the 1928 Amsterdam Olympics, when Adidas’ running shoes debuted. Adidas were thus the logical choice as a partner for Team Great Britain and the London 2012 Olympics. The challenge ahead of Adidas lay in inspiring and engaging its young target audience (aged 14-19) in an innovative manner across the UK and the globe. This was no mean demand, and it was achievable with investment in the right marketing campaigns. However, there had to be a clearly measurable Return on Investment for the campaign to be tagged a success.

Adidas’ sponsorship deal was the broadest set of sportswear rights in Olympic history. They became the Official Sportswear Partner of the London Games and the exclusive licensee of all branded (Adidas + London 2012) and event branded (London 2012 only) clothing and promptly focused on these key marketing

objectives:

•  To ensure a clear association as Sportswear Partner of London 2012, Team Great Britain and Paralympics Great Britain.
•  To engage and excite 14-19 year olds and become the preferred sportswear brand in the UK.
•  To deliver a Licensed Product Return on Investment (ROI)
•  To become the most talked about sports brand in 2012.

The campaign, which involved Above-The-Line and Below-The-Line activities in addition to unique online and social media initiatives, was dubbed “Take The Stage” and the response to it was staggering. Their branded content on YouTube was viewed more than 8 million times, sales of branded apparel clocked 100 million units, increasing market share by 2%, and they received 128 million impressions for the #takethestage campaign on Twitter. Truly incredible numbers that shows how well planned marketing strategies with clearly defined objectives can create meaningful engagement and a great Return On Investment all at once!

Facebook’s $19 Billion mistake we can all learn from

Never stop chasing your dreams. Briac Acton’s is an inspiring story that shows us how when one door shuts on you, another one opens. Four years after Facebook declined to offer him a job, WhatsApp co-founder Brian Acton is the latest Silicon Valley entrepreneur to become a billionaire when Facebook announced it had reached an agreement to buy popular mobile messaging startup WhatsApp for a deal valued at a stunning $19 billion.

Acton’s 2009 tweet is remarkably upbeat as he looks forward to “life’s next adventure.” His adventure turned out to be a journey that helped build a cloud messaging behemoth. Whatsapp has today grown into a 450 million-user mobile messaging giant and this is the largest-ever venture-backed deal. The messaging giant is on a warpath to connect 1 billion people and most remarkably for a Silicon Valley internet startup, WhatsApp is actually profitable thanks to its $1 annual subscription charge after one free year.

Facebook is in hallowed company as Twitter too turned down the chance to hire Acton back in 2009. Brian Acton’s mantra seems to be “If you can’t join them, beat them”.

Brian Acton’s upswing in fortune will now be the stuff of legends in Silicon Valley, and his is a story that proves you should never stop believing in your dreams.

Corporate Social Responsibility: it’s just good business for your brand

As corporate social responsibility (CSR) becomes mandatory for Indian companies from the upcoming fiscal year, the seriousness exhibited by corporate towards it has increased. But business owners shouldn’t look at CSR as a hindrance, but rather as an opportunity ripe for the picking. Consider the following.

“Project Sunlight” is Hindustan Unilever’s ambitious social mission that invites its consumers to get involved in doing small things to help their own family and their community. In India, HUL will use brands such as Lifebuoy, Dove and Knorr to drive the project, and it is an increasingly common phenomenon to combine CSR with business objectives.

HUL has done something similar with its recent Domex Toilet Academy, which has the aim of building 24,000 toilets by 2015 in areas where there is lack of sanitation. The motivation comes from the importance the company places on social good in local contexts, and that it helps Domex capture consumer attention is an added bonus. Marrying social with business objectives is de rigeur, helping companies be good corporate citizens and create a marketplace that is receptive to it at the same time.

Even overseas, Kellogg’s tasted major success when it ran a multi-platform campaign to stress the importance of a healthy breakfast via its breakfast clubs winning over parents, MPs, students and the general public, in the process driving awareness and sales figures exponentially, all because they wanted to be seen doing good.

Like Kellogg’s, Tanishq, Havell’s and Tata Tea have used a multi-platform effort to reach out to a varied audience while Tata Tea’s “Jaago Re” campaign has gone on to become a strong platform for change. Similarly, Havell’s advertisement that showed a domestic help being asked to join the family dinner resonated strongly, even for a low-engagement product such as fans.

Tying a brand to social actions that encourage customers to performing an action ranging from giving to doing to supporting a cause ensures everyone wins. In a world full of brands, you must be a brand in your own right. Doing something beneficial for communities and achieving your business objectives at the same time never was easier!

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Kraft Foods Case study on Supply Chain Management

Inventory management is a main sub group of Supply Chain Management, which involves decisions on quantity, quality, timing, transportation, product specifications and more.

The 3 key elements of a great Supply Chain Management system

Today’s consumerist culture holds a simple truth for brands; deliver or perish. It’s imperative that your Supply Chain performs like clockwork, so focus on these 3 building blocks that are critical elements of any Supply Chain.

Inventory
Get a handle on your inventory levels, because if you’re getting this wrong you will have to redo everything. Inventory management involves decisions on quantity, quality, timing, transportation, product specifications and much more.

Customer service
The customer is king, and if you don’t know what your customer wants, you have no reason to be in your line of business. Without this basic information, even the greatest of Supply Chain Management systems will come to naught.

Transportation
Marrying your Supply Chain to a great transportation system allows the where, how and what if’s of Supply Chain Management to be effectively answered, tested and updated as needed.

Kraft Foods wanted to answer such questions as well, and thus the “Service Excellence Programme” was born. Their solution was to develop a 9 point framework to build, implement and evaluate projects with the aim of improving daily operational efficiency. These were:

Perfect Ordering and perfect management of the retail requirement from end-to-end.

Knowledge exchange and a thorough understanding of the Supply Chain from end-to-end by all partners.

Seasonal planning that ensured the Supply Chain coped with high volume special events easily.

A delivery interface that helped Kraft Foods and its partners understand each other’s distribution operations, assisting in the rapid and efficient movement of stock.

Great people, without which managing a Supply Chain relationship is impossible.

Maintaining optimal inventory, which is vital to satisfying demand.

Data alignment, which helped all partners have uniform information about a given product.

Variant management, which helps manage change and even as product variants change.

Consumer satisfaction, which involves delivering a high quality product and managing the brand experience.

Kraft Foods was able to substantially improve service levels by:

• Improving the understanding of the Supply Chain.
• Smoothening the order and delivery processes.
• Managing change.
• Ensuring skilled people focus on the right tasks.

Multimillion dollar technology projects and grand strategies are pointless if they cannot show continuous improvement across customer service, costs and inventory levels, to name a few. Get the basics right, and the rest of your Supply Management Systems will fall into place.