S Y S T E M

David OhrvallFOUNDER OF MBACASE.COM

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Cross AerospaceCASE 101

TRAIN Profile

AnalysisRegionType Industry Number

Solo Practice with Video Assist Partner Practice60

30

45 15

55

1050

40

35

20

25

5

1. Find your videos

2. Set up

3. Listen to question

4. Recap

5. Create your plan

6. Present your plan

7. Stop and study

8. Reinforce

1. Set up

2. Present the case question

3. Recap

4. Create your plan

5. Present your plan

6. Stop and study

7. Reinforce

10 minutes

Cross AerospaceCape Town, South Africa

Cross’s profit has hit some turbulence. Can you determine what’s keeping this company from soaring?

C A P E TO W N C I T Y FAC TS

P Famous harbor: the Port of Cape Town

P Known for Cape Dutch style architecture

P Metered taxis are not allowed to drive around the city to solicit fares

P Home to oldest wine-making region in the southern hemisphere

LEVEL

1 Aerospace

ROADMAP 6

Maximize Profit

CAPE TOWN, S. AFRICAPopulation: 3.5M

Currency: Rand, ZAR, R

C A S E S TA R T

1

101

STARTRRR

w w w . m b a c a s e . c o m 1

Inte

rvie

w G

uide

Feed

back

Phys

ical

Ski

lls

Wea

k

Stro

ng

Body

Lan

guag

e a

2

3

Verb

al

a

2

3Li

sten

ing

a

2

3Th

inki

ng S

kills

Hyp

othe

sis G

ener

atio

n a

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3

Initi

al P

lan

& O

utpu

t a

2

3

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ata

Anal

ysis

a

2

3

Basic

Bus

ines

s In

tuiti

on

a

2

3

Tota

l Sco

re —

——

——

/ 21

Ca

se S

tart

Se

lf S

tud

y R

em

ind

ers

Revi

ew th

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adm

aps

and

the

Post

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e to

see

w

hat y

ou m

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d. M

ark

up y

our p

lan

to m

ake

it be

tter

.

Do

the

star

t aga

in w

ith

the

vide

o in

terv

iew

er,

or fi

nd a

live

par

tner

an

d ge

t som

e fe

edba

ck.

Inco

rpor

ate

wha

t you

le

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e fir

st ti

me.

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you

r pla

n to

war

d th

e in

terv

iew

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r m

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ebca

m) a

nd

pres

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t pie

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l in

the

sect

ions

.Br

iefly

reca

p th

e si

tua-

tion,

the

com

plic

atio

n,

and

your

task

. Spe

ak o

ut

loud

just

like

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wou

ld

in a

n in

terv

iew

.

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the

ques

tion

out

loud

like

an

inte

rvie

wer

or

wat

ch th

e M

BACA

SE

vide

o in

terv

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List

en to

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stio

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cap

& As

k fo

r a M

inut

e Cr

eate

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n Pr

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t Pla

n St

op &

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dy

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ss A

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pace

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n, S

outh

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ica

Case

Sit

uati

on &

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stio

nCr

oss

Aer

ospa

ce h

as b

uilt

a th

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g bu

sine

ss in

Cap

e To

wn

over

the

last

12

year

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ver t

he la

st s

ix

mon

ths

gros

s pr

ofits

hav

e fa

llen

quite

a b

it an

d th

ey n

eed

you

to d

eter

min

e w

hat’s

hap

peni

ng.

How

wou

ld y

ou a

ppro

ach

this

pro

blem

?

Case

Tw

ist

Redo

you

r sta

rt n

ow w

ith th

e in

form

atio

n th

at C

ross

saw

a 3

0%

decl

ine

in p

rofit

s ju

st la

st m

onth

.

How

wou

ld th

is c

hang

e yo

ur p

lan?

101

STA

RT

RR

R

Clic

k or

sca

n Q

R to

see

vid

eo.

w w w . m b a c a s e . c o m 2

My

Init

ial P

lan

and

Out

put

Toda

y’s

date

:

Que

stio

ns I’

m th

inki

ng a

bout

:

Profi

t Tre

e A

ppro

ach:

Topi

cs I

know

to c

over

:

Topi

c Bu

cket

App

roac

h:

Cro

ss A

eros

pace

Cape

Tow

n, S

outh

Afr

ica

101

STA

RT

RR

R

w w w . m b a c a s e . c o m 3

Que

stio

ns to

Con

side

r

My

Take

away

s

Post

Cas

e Re

view

Sam

ple

Case

Sta

rts

H

ave

ther

e be

en re

cent

cha

nges

that

hav

e dr

iven

vol

ume

or p

rice

dow

n?

H

ave

ther

e be

en in

crea

ses

in v

aria

ble

cost

s?

H

ave

ther

e be

en in

crea

ses

in fi

xed

cost

s?

I’m d

oing

wel

l with

:

I nee

d to

wor

k on

:

Add

itio

nal S

tudy

: For

mor

e qu

estio

ns to

co

nsid

er, r

evie

w S

ectio

n 13

: Roa

dmap

s.101

STA

RT

RR

R

Pro

fit

Tree

Ap

pro

ach

:

p

Rev

enues

P X V FC + VC

(unit V

C

x v

olum

e)

Cost

s

• Pr

ice

chan

ge for

lot

s of

pro

d?•

Chan

ge p

rici

ng

philos

ophy?

(e.g. c

ost

plus

vs. m

arke

t ba

sed)

• So

ld few

er u

nits

per

cust?

(e.g. n

o b

undle

s an

ymor

e)•

Mix

dif

fere

nt?

• O

ne

off

issu

es c

ausing

vol

dow

n?

- l

ocal

eco

nom

y -

bad

em

ploy

ees

- supp

lier

vol

. dow

n?

• Has

a fi

xed c

ost

chan

ged this

las

t yea

r?•

rent,

equip

men

t, utilities

, lea

ses,

supp

lier

con

trac

ts

-lab

or c

han

ge?

-wag

es?

-pro

duct

cos

ts?

Custom

erQ

ual

ity

Com

pPr

ice

Cost

s

Stop

ped b

uyi

ng?

VO

L

Smal

l se

t of

aer

ospa

ce

custom

ers?

What

chan

ged?

VO

L

Mor

e re

wor

k?

New

off

erin

g?

VO

L

Pric

e

pres

sure

?

Are

pri

ces

dow

n?

Inpu

t co

sts

up?

Com

p. p

ressure

on

ra

w m

ate

rial

s?

Met

al, e

lect

ronic

s?

Top

ic B

uck

et A

pp

roac

h:

How

to

max

imiz

e pr

ofi

tabi

lity

?

Cro

ss A

eros

pace

Cape

Tow

n, S

outh

Afr

ica

Clic

k or

sca

n Q

R to

see

vid

eo.

w w w . m b a c a s e . c o m 4