uoft_undergrad_case_comp_training_2008-01-08

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2005 Deloitte Inc.

Logical StructuringCase Competition Training

Strategy and Operations

January 8, 2008


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Logical Structuring Agenda

Purpose and Objectives

Logical Structuring & Storyboarding

Quantitative and Qualitative Observations

Professionalism

Dos and Donts

Appendix


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Purpose

The purpose of this session is to help prepare you for this weeks casecompetition.

Objectives

By the end of this session you should have a better understanding of:

How to logically structure a case presentation:


How to use quantitative and qualitative data to support your research

Research Tips

Example

How to execute a successful presentation:

Professionalism

Examples of previous presentations:

DOs & DONTs


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Professionalism

Dos and Donts

Appendix


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Why does structure matter?

1.Makes the message precise

Forces the writer to be dead clear about what they arecommunicating to the reader, preventing messages that are unclear,unintended, or intellectually empty

2.Reveals gaps in thinking

Enables the writer to identify gaps by anticipating and responding tothe readers questions before the communication is delivered

3.Provides clarity to the reader

Prevents the reader from working to understand the message,thereby eliminating the possibility that your message is misunderstoodor ignored entirely

Memo A

John Collins telephoned to say he cant make themeeting at 9:00. Hal Johnson says he doesntmind making it later or even tomorrow, but notbefore 10:30 and Don Clifford wont return fromFrankfurt until tomorrow late. The conferenceroom is booked tomorrow, but free on Thursday.Thursday at 11:00 looks to be a good time. Is thatokay with you?

Memo BCould we reschedule todays 9:00 meetingto Thursday at 11:00? This would make itmore convenient for Collins and Johnson,and would permit Clifford to be present. Itis also the only other time this week thatthe conference room is free.


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Governing Thought:States the answer to the questionraised in the readers mind

Key Line:Major points which, takentogether prove the answer

The Pyramid Structure

Support:Data and facts whichsupport the key line

Explains howor why


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Opportunitiesand threats

ABC should go online

and the first priority should be to

defend its current market share

Primary benefitsof the internet

strategy

An Unstructured Communication

ABCs currentcustomers aremore likely toshop online

than thegeneral

population

ABCscompetitors

are increasing

their onlineproductassortment

Without anonline channel

ABC risks

losing somecustomers tocompetitors

ABCs onlinesales in 2005

could reach$100mm

Defend

market share

Grow

revenue

Developdeeper

relationships

withcustomers

Support ABCsoperating

strategy


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Acme can reduce costs by

$10mm in the next 2 years

through some operational

improvements

Differentiate servicelevels to save $2mm

Segment

customersby value

Determineeconomiclevel of

service foreach

segment

Shift lowervalue

segmentsto lower

costchannels

Re-engineer corefunctions to save $5mm

Evaluateinternal

cost ofcore

function

Comparecost of

function tobest-in-

classbenchmarks

Adopt bestpracticesbased on

benchmarks

Outsource non-corefunctions to save $3mm

Select

non-corefunctions

Evaluatecost andservicelevel of

potentialpartners

Chooseone

partner foreach

function

A Structured Communication

Governing Thought:

Key Line:

Support:


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Copyright 2006 Deloitte Development LLC. All rights reserved. 9

1. Ideas at any level must be summaries of the ideas grouped below Derived from high-level ideas

Point of a paragraph is a summary of the sentences it contains

2. Idea in each grouping must always be the same kind of ideas

All ideas are from the same logical grouping

Label idea with a plural noun

3. Ideas in each grouping must be in a logical order

Deductively

Chronologically

Structurally

Comparatively

Three Key Rules to ApplyWhen Building a Pyramid


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Answer

A statement about thesubject with which you knowthe reader will agree

The complicating event thatcreate the tension in thestory

Situation:

Complication:

The implicit question thatresults from the complication

Question:

Elements of the Introduction

Governing Thought:

Key Line:

Support:


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Acme must develop avalue proposition tailored

to the coyote market.

Understand the uniqueneeds of coyotes

Adapt product line to meetcoyote needs

Educate coyotes on Acmesability to meet their needs

How?

Structuring a Response to How

Governing Thought:

Key Line:

S: Acme must increase itsfocus on the coyote market

C: Acme is not currentlyfocused on the coyotemarket

Q: How can Acme focus onthe coyote market?

Step 1 Step 2 Step 3


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DrugsRUs should spend$25 million to acceleratethe approval process for

Antizak

The Antizak market isexpected to top $1 billion

per year

Earlier approval allowsDrugRUs more time

before patent protectionexpires, which is worth$200 million in profit

Competitors aredeveloping a substitutethat may capture the

market if launched first

Why?

Structuring a Response to Why

S: Approval for DrugsRUsnew lifestyle drug Antizakis taking longer thanexpected

C: DrugsRUs can spend $25million to accelerate theapproval process

Q: Should DrugsRUs spend$25 million to accelerate

the approval process?

Reason 1 Reason 2 Reason 3

Governing Thought:

Key Line:


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S: The plant is not meeting its widget production goals

C: The production line is frequently stopped because of insufficient parts

Q: What should the plant do differently?

A: The parts procurement process needs to be redesigned to reduce fulfillment time

S: Sows Ear Inc. developed a silk purse product line 2 years ago

C: Since then, the silk purse division has been unprofitable

Q: What should Sows Ear do?A: Sows Ear Inc. should abandon its silk purse product line

S: ABC, a book retailer, is considering developing an online channel

C: The online retail book market is dominated by 2 strong players

Q: Should ABC develop an online channel?

A: Yes, ABC should go online

S: You have undertaken a number of initiatives to improve customer service

C: Customer service continues to result in decreased customer satisfaction

Q: How can we improve customers service?

A: We must redesign customer service

Which Question is Raised - How or Why?


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Clarifying Grouped Ideas

List the PointsIdentify the

Type ofPointSummarize the

PointsOrder the

Points

Synthesize

findings frominterviews,

research and

analysis

Create a list

of key points

Put the points

into categoriesby defining the

kind of problem

being discussed,

attempting to

use similar level

of abstraction

across

categories

Write a

sentence thatstates the

essence of

each category

Put the points in

logical order,such as order of

importance or

time order

Activities:


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The Importance ofMECE

MECE

Mutually

Exclusive

Do any of the points

overlap?

Example

Making Dinner:

Select menu

Buy ingredient

Prepare courses

Collectively

Exhaustive

Have all possibilities

been covered?

Mobile Phone Types:

Analog Digital

GSM

Reasons to acquire competitor ABC:

Complimentary customer base

Superior technology

Digestible size

Points across horizontal levels of the pyramid should be MECE(Mutually Exclusive, Collectively Exhaustive)


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Storyboarding

Creating a storyboard provides an outline for the presentation and the pathyou will follow:

Uses Pyramid Structure as a foundation

Maps out the storyline of a presentation

Establishes team and judging panels expectations about what is to be

produced and delivered

Helps organize work and define data needs

Establishes evaluation frameworks and criteria used in the assessment

Facilitates greater productivity and higher quality

Keeps an engagement focused


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Creating the Storyboard

Cutting Edge Corporationshould close its razor

manufacturing operationin Wisconsin and

manufacture razors inMexico

Overall costs in Mexico are75% lower than in

Wisconsin,resulting in recovery of

moving costs in 6 months

Key Line:

Governing Thought:

Mexico provides anoperating environment thatis as stable as Wisconsin,

ensuring continuity ofoperations

Manufacturing technology ismore advanced in Mexico

than in Wisconsin, enablingCutting Edge to leverageleading edge capabilities

Support:

One page for each idea

Page 2

Page 1SituationComplication(Question)

Eachrequiresa set-up

page


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Professionalism

Dos and Donts

Appendix


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Definition Examples Sources

Quantitative

Numerical and statistical

Most suitable when theobjective is to measure orquantify data

Answers the what questions

Firm stock value

Market share

Net Present Value

financialstatements

statistical studies

surveys

censuses

Qualitative

Interpretive and insightful

Most helpful when the goal isto understand situations orprovide context

Answers the how and why"questions

Pending lawsuits

Consumer trends

Market perception

press releases

annual reports

industry whitepapers

analyst reports

Its important to use both quantitative and qualitative observations to support

your recommendation Qualitative data and analysis is required as hard justification for your

recommendation (e.g., dollar savings, head count reduction)

Qualitative data can be used to support and explain the meaning of quantitativeresearch

Combining methods leads to a balanced, persuasive argument


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Research Tips

Structuring your research using a defined approach can help you research

effectively in a short period of time Several models can be applied to help you structure your research. One

example is Porters Five Forces

Your approach to case research should mirror the logical structuring ofyour presentation

Governing Thought (Recommendation) Key Lines Support

But how do you know what your recommendations are before conductingyour research?

Answer: Guess.

Based on your initial impressions of the case, generate some hypotheses onwhat you think the company should do. Then, based on your hypotheses,look for supporting evidence

The advantage of this approach is that it can dramatically reduce the amount

of time spent on research. You will be focusing your efforts on facts thatsupport your hypotheses

Begin by creating a research log

This is a file that documents all of the research sources that have beenreviewed and includes a summary of key findings, facts and sourcinginformation. A research log allows for easy dissemination of key findingssaving time. Assign a format and owner up front


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Example


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Professionalism

Dos and Donts

Appendix


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Professionalism Execution of the presentation

There are two key avenues for case competitors to convey professionalism:

(1)The execution of the presentation

(2)The presentation materials

Assign roles early subject matter experts and presenters

Who answers questions on which topics?

Rehearse the presentation to clearly define: Sequence what order will the team members will present in?

Duration how long should each section take?

Hand-offs how will each section of the presentation smoothly andlogically transition from one team member to the next?

Contingency plan which sections could be reduced or eliminated?

Pay special attention to numbers, statistics, charts and analysis

Inability to convincingly defend figures is a common pitfall

Be able to recall sources and assumptions without having to usereference material


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Professionalism Presentation Materials

Alignment

Check text and object alignment to ensure a consistent look across slides

Ensure headings and text boxes are in the same place, as you flip throughyour slides

Colour Scheme

A muted colour scheme is generally recommended

Avoid dark backgrounds, very bright colours or too many colours

Ensure that your colour scheme both prints well and projects well

Font

Sans-serif font styles tend to work best: Arial, Verdana, Tahoma

Font size should be readable, but not too large (min ~12pt)

Consistency

Be consistent with font size, font style and colour scheme

Be consistent with punctuation at the end of bullets - Either use it or donot, but do not use it inconsistently

Be consistent with overall structurei.e. use of tag lines versus justheaders

Use the slide master to create a template to ensure consistency


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Professionalism

Dos and Donts

Appendix


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DOs & DONTs

DOs

Brainstorm as a team to develop a strategy and agree to an execution plan

Divide and conquer the work to efficiently execute on the plan

Determine required tasks, dependencies and agree to roles for each teammember

Have each person create their slides based on an agreed upon template(designed in Slide Master)

Avoid version control issues by having one person own the master andothers provide send over their slides for inclusion in the master

Proof-read your presentation for spelling, grammar, content and logic

Recognize each others strengths in determining roles for the presentation

Group members should present material they are most comfortable with

Confident speakers can present larger portions of the presentation

Leave time to rest the night before the presentation


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Question

In early 2006, managers in technology and media companies around the worldobserved Google with awe, envy, and fear. The companys opportunities seemedboundless. What would Google do next?

Two Options

One option was to stay focused on the companys distinctive competence:developing superior search solutions and monetizing those solutions throughtargeted advertising.

Alternatively, Google could branch into new arenas:

Build Google into a portal like Yahoo! Or MSN by aggregating content intothematic channels

Extend Googles role in e-commerce beyondsearch into a more activerole as an intermediary facilitating transactions

Challenge Microsofts hegemony over thePCdesktop by developingproducts to compete with Office and Windows

Last Years Case Competition Topic


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Evaluation Criteria

Recommendation

Followed logically from analysis

Dealt with all issues raised

Used decision criteria

Showed sounds business judgment

End result was practical/realistic

Question & Answer

Answered question posed

Provided convincing explanations

Admitted weakness

Answered as a team

Analysis

Identified key problems

Used supporting facts/data

Drew accurate conclusions

Considered risk

Offered original insights

Presentation

Spoke clearly and concisely

Structured storyline well

Slides were visually attractive

Showed enthusiasm and professionalism


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Last Years 2nd Place Case


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Bright Colour Scheme


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1. Communicate recommendation in thebeginning of the presentation

2. Set expectations


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Evaluate each recommendationagainst the 3 criteria


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Data Sourcing


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PrettyPie Chart


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Last Years Winning Case


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Terry Huang

Aron Lau

Ke Zhang

Godmans Chow


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Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation

What is the situation?

Question:W

hat should Google do?

Complication: Company is facing boundlessopportunities.

Stay focused with Googles distinctive competencies.Branch into new arenas.

Recommendation: Google should stay with its core

competencies providing superior search solutions$6.5 billion by end of 2011

Agenda


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Overview of the approach

What shouldGoogle do?

Branch intonew areas

Extend

Googles coresearch &targeting

competencies.

InternationalSearch

MobileAdvertising

NarrowcastingBuild Googleinto a portal

Extend

Googles roleinto e-

commerce

Develop

Products toCompete withOffice &

Windows

Use Pyramid

Structure toFrame theStoryboard

Measurement

Metrics:

Market Potential

Fit with Mission

Option 1 Option 2


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Google should stay focus with its core competence

Driven by Company PhilosophyIt is best to do one thing really, really well developing superior search

solutions

Market PotentialHas opportunity to further monetize its search solutions through

targeted advertising

U.S. and International Internet Users Forecas

(million users)

2003E 2004E 2005E 2006E 2007E 2008E 2009E

Time

U

International

U.S. and International aid arket Search

Forecast ($ billions)

2 54 3

6 48

9 66

3 42 5

0 27 9

5 93 3

50 6

2003E 2004E 2005E 2006E 2007E 2008E 2009E

Time

U Market InternationalMarket

Charts data sourced from provided Business Case Description


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Google should not branch into new arenas. The three arenas proposed deviates from the companymission, or have tremendous risks (market potential).

Googles mission - To organize the worlds information and make it

universally accessible and useful.

Build Google into aportal

Were not in the portalbusiness, were in thebusiness of making allthe worlds informationaccessible and useful.

- Schemidt

Develop products tocompete with Office and

Windows

There is strategicleverage in building an

ecosystem aroundcontent and advertisingthat is an extension ofour search mission.

- Schemidt

xtend Googles role ine-commerce

Acting as anintermediary facilitatingtransactions (Google

Checkout) is consistentwith the mission of the

company.

Inconsistent Font


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Google should not extend in e-commerce or develop products to compete with Microsoft due to thehigh risks (market potential) involved.

xtend Googles role in e-commerce

1. Strong competition:eBay has 39.2% of the e-commerce market. eBay facilitates eCommerce byoffering tools such as PayPal1.

PayPal has 24% market share of U.S. online payments market. It is eBaysmajor electronic payment method1.

2. No incentive for PayPal users to switch to using Google Checkout3. Despite Google Checkouts launch in June, 2006. PayPal posted revenues

of $417 million, a 37% growth rate compared with 2005s fourth quarter2

.

1Wikipedia.org

2 CNN.com

InconsistentAlignment


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Google should not extend in e-commerce or develop products to compete with Microsoft due to thehigh risks (market potential) involved.

1. Strong competition:Microsoft2. Difficult for new entrant: OpenOffice currently only has 14% of the enterprise

software market as of 2004 Hard to convince user to switch to newdesktop applications1

3. Relatively small potential revenueThe market forOffice is only an annual revenue of $1 billion1

Too small of a market size comparing to Google's currently advertisingbusiness (140 million vs. 6.1 billion)

Develop products to compete with Office and Windows

1Wikipedia.org


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Google should continue to strengthen its expansion into the international online advertisementmarket.

nline ds Spending Growth Rate har

ime

GrowthRate%

orth merica

Western

uropesia

atin merica

ustralia/

e ealandTotal

S s International Internet sers in millions

ime

. .

nternational

. . internet user is % of all users in the

orld.By , it ill decrease and become

. %.

. . online ads spending slo ed do n

recently hile online ads spending from theinternational market are increasing at a

faster speed.

eMarket.comeMarket.com

The Winning Case UsedExtensive DATA to Back

Up its Statement


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International Online Advertising ntry Analysis

Who is thecompetition?

How do theirproducts &

services differ

What are thepotential

barriers to entry

How does Googlebecome a player?

What are the ris s

Yahoo, MSN,Local search

engines (Baidu)

Google'scompetitorsentered the

market earlier,and tailored

products to adaptto local customers.

Perhapsgovernmentregulations(censorship

issue in China)

Partner with localcompanies,leverage our

leading technology,and adapt to local

environment.

Late to the game.Lack of

understanding of thelocal environment


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We believe the emerging mobile advertising market is a fit for both Googles technological expertiseand philosophies.

The potential of the mobile user base is

promising, projected to rise to 1 billionusers of 3G data services by 2011.

o ile d e enues

2,900 00

millions

1,400 00

millions

200 2011

3G ser ase

100 users

millions

1,000

users

millions

200 2011

Mobile advertising revenues is

expected to reach $2.9 billiondollars by 2011.

Asia urope Business: 3G in the world : June 20th 200 TVweek.com: Nov 15th 200

More Data!!


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Mobile advertising market analysis before entry.

W b li th i ti k t i fit f b th G l t h l i l ti d


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We believe the emerging narrowcasting market is a fit for both Googles technological expertise andphilosophies.

nline Gaming d orth

$500

million

$100million

2006 2010

S Narrowcasting e enue

$450

million

$750

million

2006 200

Narrowcasting revenue in the US isprojected to reach $1.2 billion by

200 - >$700 million innetwork software operations.

Targeted online gaming advertising worth

is projected to be worth $0.5 billion by2010.

CapV InfoStats March 2005Businessweek Jan 2007

Even More Data!!!


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Narrowcasting market analysis before entry

Who is thecompetition?

How do theirproducts & services

differ

What are the potentialbarriers to entry

How do we become a player?What arethe ris s?

K3, Scala,ipSigns

Current infrastructureof fixed targeted

content that is notuser targeted

Privacy concerns,government billboardregulations, aesthetic

trends

Partner with existing players,leverage Googles user targetedalgorithms for more targeted ads.

Inaccurateforecast of

market.

Changinggovernmentregulations

on publicads.

G l h t t th i t ti l li hi d d ti i k t ith


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Google can approach to enter the international online searching and advertising market withrelative ease.

To continue strength its expansion in the international online advertisement market

Identify potential international market to expand its serviceConduct market research to understand customer behavior

Develop localized applications and adapt to taste of local customers

Cooperate with local business (partnership, M&A)


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Google can approach to enter the narrowcasting and mobile advertising market with relative ease

Tie into the current and emergingmarkets with Googles currenttechnology and infrastructure.Froogle

GoogleMaps

GoogleMobile

GoogleNews

Blogger

GoogleServer

argeted UserGroup/Individual

SystemIntegrator

Advertiser/Contents

RetailCorporateHospitalityServices

Public Spaces____

Gamers____

Mobile device users

San Fran Wifi____

Game developers____

Mobile service providersAnyone

InconsistentFont


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Googles projected growth in the next 5 years

MobileAdvertising :

$1.0B(assuming1 3 market

share)

Narrowcasting:

$0.5B(assuming 1 3market share)

International

Search$ .98B ($2.4B

market with 20%annual growth)

Combinedrevenue growthof an additional

$6.5B by theend of 2011.

Clear VisualRepresentation

RecommendationAgain Backed Up

by DATA!

uoft_undergrad_case_comp_training_2008-01-08

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