Business case studies are the closest thing to a window into real life for the sometimes detached students of an academic institution. Take, for example, an in-depth look at how Spanish retailer Zara differentiates itself from rivals; or how the US coffee chain Starbucks has gone through its digital transformation; or how a Ukrainian branch of a German beer brand navigates a complicated business relationship.
Kamran Kashani, professor emeritus of global marketing and strategy at the Institute for Management Development in Switzerland, believes that case studies are at the heart of what it means to really study how businesses work – a great tool to teach future corporate leaders about real issues addressed by the heads of some of the world’s largest organizations.
A key importance of case teaching for MBA students and executives, Kashani argues, is that it brings “the realities of business and management into the confines of a classroom.”
Even academics have incentives. Christopher Bartlett spent his career at Harvard Business School, where he says the development of “good classroom material,” mostly cases, was “welcomed.”
Harvard—unlike most business schools—recognizes teaching contributions as counts in its faculty promotion. At the same time, he adds, the school’s focus is on building case studies that bring “new knowledge” to future chief executives.
What are the secrets of a good case? “Almost all major cases capture a specific, important management issue that requires a decision,” says Bartlett. “It contains the richness of the context in which to make that decision, and enough information and data to allow students to make a well-reasoned and defensible argument for their case in the classroom.”
Bartlett among the academics whose work is featured by Case Center, one of several leading publishers of teaching cases. An example of some of the main cases presented below.
The Case Center Awards are in nine categories and are given to the case studies used by the greatest number of organizations in the previous calendar year. Recent contributions have addressed topics such as artificial intelligence technologies, sustainability and remote working. It also offers a collection of classic case studies dating back more than a decade.
Zara, a nimble operator
How did a company from humble beginnings in Spain become one of the largest clothing retailers in the world? More importantly, how can it stay relevant as consumer tastes change faster than ever? Zara’s decentralized management approach and its ability to adapt quickly to changing consumer tastes has been central to its success.
The Inditex subsidiary has mastered the art of “precise” fashion – quickly adapting runway trends into mass-market designs. Despite its success, critics wondered if Zara required a “major review” of its operations to account for growth in the online world.
The case analyzes how Zara develops its rapid response strategy. New shipments arrive in stores twice a week to ensure there is a fresh pipeline of products. This strategy has helped Zara keep inventory levels low and maintain an image of exclusivity.
The Spanish retailer pays close attention to its brick-and-mortar stores rather than big marketing campaigns, and relies heavily on word of mouth to attract shoppers. Unlike its rivals, its business model eschews traditional fast fashion. Instead, the focus is on empowering teams across the organization to make quick decisions.
This case study is an effective tool for MBA students because it provides an in-depth look at Zara’s strategic management and operations – and its global expansion. In particular, its detailed supply chain analysis and its responsive design model in distribution give students insight into operations management and the role technology plays in retailing.
The digital transformation of Starbucks
It’s HIM, stupid. American coffee chain Starbucks is perhaps better known for its caramel macchiatos and weak lattes than for its successful digital transformation. But the sales of the former depended on the latter. The rapid expansion of the group had caused the quality of its offer to deteriorate. To address this issue, then CEO Howard Schultz began a technology transformation, launching the Starbucks Rewards program and mobile app to increase customer engagement and operational efficiency.
Starbucks also embraced new AI and mobile technology, introducing new features like Deep Brew, an AI engine that personalizes the customer experience. Implemented in 2017, its Digital Flywheel program focused on four key areas: personalization, payments, mobile ordering and rewards. The pandemic and the need to rely on technology strengthened Starbucks’ competitive advantage.
This case gives MBA students valuable insights into a company’s digital transformation and customer experience management as ways to remain competitive. It offers a lesson in how traditional businesses can reinvent themselves using technology while maintaining their core brand value and identity.
MBA students often complain about the lack of real-world challenges in the classroom. The digital transformation case study promotes critical thinking about leadership in the rapidly changing digital landscape.
Food for thought: Healthy Living Group
In 2010, Heather Larson, along with her father, Jeff, were exploring launching Healthy Life Group to market Nutrifusion, a flavorless powder derived from fruits and vegetables that can be added to foods such as bagels for increase their health benefits. It secured exclusive distribution rights in Canada and planned to partner with local supermarket chain Loblaws to integrate Nutrifusion into its President’s Choice brand products.
Projected first-year sales were 36,500 packages of cookies, 50,000 bagels and 28,000 bags of crisps—all infused with Nutrifusion. However, the Larsons had to analyze their financial projections and the risks of relying on just one supermarket chain to distribute their product.
Consumer demand for healthy products was increasing, but the economic downturn of 2009 had made consumers more price sensitive. Would Nutrifusion be able to compete with the need for traditional food alternatives as consumers watch their spending?
This case study gives future managers an understanding of concepts such as market entry strategy, distribution challenges, and financial forecasting.
Through this real-world entrepreneurial venture, MBA students can understand the risks, especially those associated with relying on a single distribution channel and the challenges of bringing a niche product to market.
Leadership in Control: Wolfgang Keller’s Challenge
Wolfgang Keller, managing director of Königsbräu-TAK, a Ukrainian branch of a German beer company, faced a managerial dilemma with his commercial director, Dmitri Brodsky. While Keller managed to turn around the struggling branch, his relationship with Brodsky was strained from the start.
Brodsky, a senior and experienced executive, had strong analytical skills and successfully restructured the sales force, but his slow decision-making, formal management style, and reluctance to engage directly with the sales team frustrated Keller.
Known for his action-oriented and hands-on approach, Keller found himself frequently stepping in to address pressing issues that Brodsky had failed to address in time. This exacerbated tensions between them, as Brodsky perceived Keller’s involvement as interference, while Keller saw it as necessary for the subsidiary’s continued success.
As Keller returned from a temporary assignment in Brazil, he had to weigh his options. Should he fire Brodsky, give him more coaching, or restructure the team to compensate for Brodsky’s weaknesses?
This case study offers MBA students an opportunity to delve deep into key managerial and leadership challenges, particularly in the context of international business and cross-cultural management.
The case, which has become required reading in many business schools, is designed to make students reflect on leadership, team dynamics, communication and performance management.
The case also addresses issues of ethical leadership and personal development. Keller is concerned about Brodsky’s poor performance, but he must also balance the obligation to give Brodsky a fair chance to succeed.