Adapted from Marc Cosentino’s Case In Point, 8th Edition, pages 115-118:
The client is a large pharmaceutical company that has discovered a cure for baldness and thinning hair. It is a pill that will restore a full head of hair in three months. The pill needs to be taken every day to maintain the hair’s thickness. Estimate the size of the US market and tell me how you would price the drug.
Adapted from Marc Cosentino’s Case In Point, 8th edition (p. 45):
It is important to remember that growing a company or increasing sales does not necessarily imply an increase in profits. Growth can mean capturing more market share, improving brand recognition, expanding the customer base, or a number of other objectives. Most commonly, the focus is on increasing sales volume.
Adapted from Marc Cosentino’s Case In Point, 8th edition (p. 37-40):
The Profit and Loss case has several variations, but all of them deal with the central framework:
E (P = R – C) M
where E represents the economic situation and M describes the market and/or industry. Within the parentheses, we have Profit = Revenues – Costs.
Adapted from Marc Cosentino’s Case In Point, p. 77-78:
Our client [Yellow Stuff Company] is a manufacturer that makes industrial cleaning solvents and pesticides. Recently, sales have been declining, mostly due to new EPA guidelines. […] Further evaluation of sales, both past and future, indicates that the chemical industry has, and will, continue to grow slowly over the next five to seven years, with 3% annual growth.
Management has decided to diversify. While Yellow Stuff wants to keep its chemical business intact, it also wants to enter an industry that has long-term, high-growth potential. Yellow Stuff has hired us to help determine what industry or industries to enter.
Summary of practice case from CIP with my comments and additions in blue:
“Our client is Harley-Davidson. Their stock fell from $54 to $49 a share on news of declining profits. What’s going on and how can we turn this around?”
K Does Cases 