NIBS Case Competition Guide for

Competing Schools

Prepared by: Memorial University of

Newfoundland

Reviewed by: Dublin Institute of Technology and

Bishop’s University

May 2009
 Table of Contents

1. Introduction to the Case Competition Guide 1

2. Competition 2

3. Selecting the Team 5

3.1 Individual Presentation 5
3.2 Group Presentation 5
3.3 Case Course/Association 6

4. Preparation for the Competition 7

4.1 Country Research 7
4.2 Industry Research 8
4.3 Preparatory Case(s) 8
4.3.1 How to read a case 8
4.3.2 How to discuss a case 9
4.3.3 How to divide the work 9
4.3.4 Presenting the case 11
4.3.5 Question period 11

5. Materials to Bring 12
5.1 Attire 12
5.2 Preparatory Material 12
5.3 Supplies 12

6. Arriving at the Competition 14

6.1 Facilities 14
6.2 Liquids and Snacks 14

7. The First Case 15

8. Double Case Day 16

9. Winning and Losing 17

10. Social Events, Networking, Meeting People 18

11. Next Year 19

Appendix A – Case Study References 21

Appendix B – Sample Scoring Criteria 22

Appendix C – Sample Case and Sample Presentation 24

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 Acknowledgments

Memorial University of Newfoundland would like to thank Gerry Mortimer of

Dublin Institute of Technology and Lissa McRae of Bishop’s University for
reviewing and editing this manual.

Peggy Coady (Memorial University of Newfoundland)

May 2009

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 1. Introduction to the Guide

The Network of International Business Schools (NIBS) is a group of business schools

from around the world which believe that the internationalization of business and the
globalization of the economy are essential elements in the evolution of managerial
practices. NIBS was formed in 1993 and currently has 91 institutions in over 30
countries.

NIBS members believe that higher education and training must integrate a strong
international dimension, including the practice of foreign languages, the study of
comparative management techniques and the experience of working and studying
abroad. They also believe that cooperation between educational institutions in different
countries contributes to a better understanding between nations by furthering awareness
and knowledge of other cultures and social practices.

Members of NIBS recognize each others' qualifications, have a common goal of

collaboration, and encourage participation in the following:

» Student exchanges/interactions
» Faculty exchanges/interactions
» Exchanges of ideas for teaching programs
» Joint teaching and research programs

Membership in NIBS entitles an institution to participate in case competitions and

conferences.

The NIBS Case Competition (hereafter referred to as the Competition) began in 1996,
with the first competition hosted by ESCA University in Rennes, France. The
Competition has become one of the oldest and most respected case competitions for
business students at the undergraduate level. Normally 10 teams from countries
throughout the world participate in the weeklong event and their experience varies from
first time participant school to veteran schools that have competed for many years. In the
early years of the Competition the winning school form the previous year hosted the
Competition in the next year. In recent years the Competition has moved from one NIBS
member institution to another and the NIBS Steering Committee takes responsibility for
finding a host for the Competition. The Competition has been hosted in Canada
(Lennoxville & St. John’s), New Zealand (Auckland), Norway (Oslo), the UK (Coventry),
Ireland (Dublin) and the USA (Cookeville).

The purpose of this guide is to help all teams prepare for the competition, in particular
first time participants. The guide covers everything from how to select a team, to what to
expect at the competition. The guide will outline basic strategies teams could take when
preparing and presenting a case.

Also, the guide will help ensure that teams experience all aspects of the competition
including non-case events. The competition offers participants great opportunities to
meet new people and network with prominent business people attending the competition

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either as judges or sponsors. Participants are encouraged to relax and socialize
between cases. Teams (coaches included) should have fun!

2. Competition
The case method has been the most popular method of teaching strategy and policy for
many years in business schools. It provides students with an opportunity to move from a
narrow, specialized view that emphasizes functional techniques to a broader, less
precise analysis of the overall firm. The case method has been shown to be the most
effective teaching tool for problem solving. The Competition is an excellent opportunity to
see the application of the case method. Appendix A contains references to publications
about teaching and learning with case studies which advisors might find useful.

Much of the following material in this section is covered in detail in the Official NIBS
Case Competition Rules and Guidelines It is important to review the official rules of the
Competition.

The Competition is open to any student registered, for the duration of the competition, in
an undergraduate (bachelor level or equivalent) – business program (commerce,
administration, management, etc.) at any member institution of NIBS or through special
invitation made by the host institution. The Competition consists of a Qualifying Round
and a Championship Round.

Qualifying Round

Each NIBS member institution may submit one team in the Qualifying Round. This team
is composed of four eligible students who have never competed in the Competition in a
prior year. The team should have a faculty advisor (often called coach) who will serve as
liaison with the host institution.

The Qualifying round takes place at your individual school. The host institution will send
the advisor the qualifying round case by email. Each team has a maximum of six hours
to prepare the case analysis report. The advisor will ensure that the time limit is enforced
and that the case is not seen before the six-hour preparation begins. The advisor may
provide the following materials to the case analysis team:

-four copies of the case;

-a preparation room with blackboards, white boards, or flip chart;
-paper, pencils and pens;
-two computers with word processing, spreadsheet and excel package;
-blank formatted memory stick;
-a printer or access to a printer.

The advisor should ensure that the computers used during the qualfying round do
not have internet access.

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Each member of the team may bring into the preparation room one reference book and
a calculator. Team members should coordinate so that they do not duplicate reference
books. In addition, each team can also bring into the preparation room one dictionary,
either paper or electronic, one English- language grammar text, rulers, and other
drawing aids. As well, no cell phones are allowed in the preparation room.

The case analysis must be typed using double-spacing; no hand written material of any
sort will be accepted. A margin of at least 2.54 cm (1 inch) must surround the text. The
case analysis must be no longer than 1500 words, and may include any number of
appendices, if and only if they are referenced in the text of the case. No additional text
may be included in the appendices. The case analysis must have attached a title page,
which includes the name of the institution and the names of the team members. The
name of the institution and names of the team members cannot appear anywhere else in
the case analysis (e.g. refrain from including any identifying information in headers and
footers).

The host institution will assign an identification number to each case analysis report after
its title page is removed. Three judges from the host institution will evaluate all case
analyses independently. The judges’ scores will be added and the teams then ranked.
The top teams will be invited to compete in the Championship Round.

Every effort will be made to ensure that the cases chosen are unpublished. In addition,
cases should be at the MBA level, international in scope, strategic in nature and broad
based. In terms of how to analyze a case and prepare a written case analysis report it is
recommended that you consider some of the suggestions provided in Section 4 of this
guide.

Championship Round

The top eight teams of the Qualifying Round will be invited to compete in the
Championship Round along with a team from the host institution, and the winner of last
year’s competition who both receive a bye into the Championship Round. One spot in
the final round will be kept for a team who is a ―new entrant‖ in order to increase the
number of participating schools.

Teams in the Championship Round will take part in a random draw at the Welcoming
Ceremony and each team will have a number from 1 to 10. Each team will compete
head to head with 4 other teams during the round robin portion of the Championship
Round. An effort is made by the host institution to ensure that new schools in the
Competition present first early in the week so that they can watch other teams and thus
enhance the learning experience.

A preparation room will be provided for each team during the Championship Round with
the following materials:

Four copies of the case

Black board, white board, or flip chart

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 Paper, pencils, and pens
Two computers with MS Office 2007, including Word, Excel, and PowerPoint
Two blank memory sticks
A printer or access to a printer

The team can take with it a single template memory stick containing one or more ready-
made presentation template(s). Please note the following rules for the template(s). A
template may contain school/other logos and graphic designs, such as background,
colour set-up, arrows, boxes, organization charts, etc. However, no text (including
formulas) other than the name of the team is allowed. The number of ready templates is
not limited nor is the number of slides in one template. The team monitor before each
case preparation will inspect the template memory stick. If any template is deemed
inappropriate, the memory stick will be withheld for the match immediately following. The
team may update their template memory stick between matches but the team must
make sure it keeps the template memory stick in its possession, ready for inspection at
any point during the competition.

Each team has four (4) hours to prepare its case analysis with the exception of one day
during the Championship Round week where two cases are prepared in one day. On
this day the teams will have 3 hours to complete each case analysis. Normally the cases
used on that day are shorter in length than those used for a 4-hour preparation. Note
that the coaches normally receive a copy of the case after the final teams have begun
their preparation

During the round robin matches, each team has twenty (20) minutes for the formal oral
and slide presentation of the analysis. Normally most teams use the entire 20 minutes
and it should be noted that presentations that start to exceed the 20 minutes will be
stopped. Each member of the team must participate in the oral presentation. At the
completion of the formal presentation, there will be 10 minutes judge for questions from
the panel of judges. Teams may show new slides during the Q & A session if they are
relevant to questions asked. The team may not, however, continue the presentation. The
host institution should be contacted to provide a list of what will be provided during the
preparation and presentation (for e.g. laser pointer).

The judges are normally selected from the business community, government leaders,
university faculty members or alumni by the organizers of the Competition. Each judging
panel normally consists of at least three judges. The formation of the judging panels is
the sole responsibility of the organizers and cannot be contested.

After both the teams have presented, the judges will determine a winner on an eleven-
point scale, i.e., the total of the points to both teams must be eleven. There are no ties.

6-5 Winning team marginally better.

7-4 Winning team clearly better.
8-3 Winning team substantially better.
9-2 Winning team clearly superior.

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Note that judges will be allowed to use fractions in their scoring (i.e. 6.5 to 4.5). The
winning team will also receive 1 point from the victory, which is counted on top of the
scores from the round.

After both teams have presented the judges will give feedback to each team in private.
The team coach is allowed to go into the feedback sessions with their team.

Each team will be assigned a team monitor. The team monitors task is to assist the
team, serving as a liaison between the team and the competition organizers. While the
team is in case preparation for the competition, the monitor will serve as a runner
assisting in any way that he/she can. No communication is permitted between team
members and anyone else except their team monitor from the beginning of the
preparation time to the time of presentation. This includes the coaches or advisors.

After the four round-robin matches are completed, each teams' scores from the three
days of competition will be aggregated and the total used to rank the ten teams; the top
4 teams will advance to the semi-final round. The winners of the semi-final round
advance to the final round. The winner of the final round is the Champion; the loser of
the final round is the second-place finisher; and the losers of the Semi-final round are
third-place equal finishers.

It is important that when the preparations begin the coach and team members be
aware of the official rules of the NIBS Case Competition. The host institution will
have a copy of the current year’s rules and regulations.

3. Selecting the Team

There are several methods that the coach or advisor may use when selecting their case
team. One method is to have students’ present cases to the coach individually. Another
method is to hold open try outs where students are grouped together and present a case
to the coach as a group. Finally, there is the course method where the university is able
to provide a Business Case Course or Directed Study where students learn how to read,
evaluate, and present cases for course credit.

The coach would normally review resumes, transcripts, and any other information
provided from students to aid them in the selection process. The coach may also
involve other faculty members in the team selection process.

3.1 Individual Presentation

The individual presentation selection method can be used to either select 4 individuals
that will make up the case team or as a pre-selection tool for the group presentation
selection method. With this technique, students should be given a case (or partial case)
to prepare in advance which they would then present to the coach. Students should be
provided with the judging criteria that will be used during the Competition to score the
teams. A sample has been provided in Appendix B.

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During the presentations, each student should be judged using a scoring sheet. After
each student has presented, the coach should rank the students. Discretion may be
used to decide the 4 students who will make up the case team; however, normal practice
would be to select the top 4 scores.

3.2 Group Presentation

The group presentation method for selecting a team is used to view how students will
work as a team and in the role that they have been designated. The role of the coach is
to not only critique the team as a whole, but also to assess individual performance. A
group of the top 4 individuals is not always the winning team. It is the group that is able
to work together and present a strong case that will succeed at the competition.

The coach should form initial groups (teams) based on the background information
provided by the students. Well-rounded teams should be formed comprising of
individuals from diverse backgrounds. For example, one member could have a
marketing background, one with an accounting background, one with a human
resources background, etc. depending on the courses offered in your school.

Once formed, the coach could, as one possibility, designate roles to the individuals
based on background information provided by students. For example: a student with a
strong analytical skill set may prefer to concentrate on the analysis; a student whose
strength lies in the financial area may prefer to ― work the numbers‖; a student with
innovative skills may prefer to focus on a marketing strategy.

When teams present the first case, the coach should use the same scoring method as
the individual case presentations. The coach should also rank the students on their
roles in order to determine the suitability of the student for that role. This will allow the
coach to rearrange teams to ensure each member is in their strongest role.

One approach the coach may wish to explore is to observe teams as they prepare. The
coach could sit with the team(s) for short periods of time while the teams prepare their
case. This will allow the coach to see how teams are interacting and organizing their
selves and to point out any weak links or overly argumentative individuals.

From the presentations, the coach should be able to determine the best fit for the team
and select the individuals accordingly.

3.3 Case Course

Some universities offer a course that teaches students how to evaluate and compose
solutions to business cases. This course can include international marketing cases,
accounting cases, and general business cases. Regardless of the focus of the course,
coaches may wish to tailor the course to focus on training students for the competition.
This is a difficult option as it will involve obtaining approval for the course, but if put in
place, it can prove to be one of the best methods for selecting a team.

This method is very similar to the group presentation method in terms of how a team is
selected, the major difference being that students who wish to try out for the case team
will need to enrol in the course.

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The first quarter of the course should concentrate on educating students on how to
prepare a case. After students receive guidance from the coach, teams should be
formed and presentations should begin. The coach may wish to change group members
in order to attempt to build the best teams possible. However, too many changes may
be counter productive as students will not be able to get to the level of comfort and
familiarity needed to perform well as a team.

When the course is approximately three quarters complete, the coach will need to select
the team that will attend the competition in order to begin final preparations for the
competition. For those students who have not been selected to attend the competition,
the coach may wish to either use them as judges or to continue have them give
presentations in order to determine grades for the course.

It is recommended that the team selected to attend the competition should complete a
minimum of one case per week for the remainder of the course. This will allow the team
to become familiar with the time constraint of the competition and with the styles of each
team member. If the timetable of the school does not allow for 4 consecutive hours for a
class, the team may be required to attend school after hours or on weekends in order to
have the amount of time needed to prepare and present a case.

The case course method will benefit the coach as well as they will be able to dedicate
time during their workday to improve the team and coaching methods. The course
method will also aid in gaining the support of the school to help finance and support
sending a team to the competition. With increased support of the school and faculty, the
coach will have the ability to attain the resources necessary to fully prepare the team.

4. Preparation for the Competition

Once a team is selected preparation must begin immediately in order to complete

enough practice cases prior to the Competition. It is recommended that teams should
complete a minimum of 2, to a maximum of 6 practice cases. Team members should
also become familiar with different areas of the world and how they conduct business, as
the cases may be set in different parts of the world. Finally, the team should familiarize
itself with different industries and the nuances they may have.

Also it is very important to review and possibly practice with cases used in previous
years of the competition. Note that schools are permitted to videotape their
presentations at the Competition which might be useful for practices with next year’s
team. A sample case from the 2009 Competition and a copy of a team’s PowerPoint
presentation of this case is included in Appendix C. Also, some of the advisors form
schools that have competed in previous Competitions might have other copies of cases.
.

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4.1 Country Research
Due to the international nature of the Competition, it is advised that the team becomes
familiar with several geographic areas. Each team member should be tasked with one
or two areas to which they are to complete a short summary. The summary should
include information such as population, geography, political and economic environment,
imports, exports, most common industries, infrastructure, etc.

Knowing cultural, political, economic or other local information can add great value when
formulating a solution for a case.

4.2 Industry Research

Along with country research, teams should become familiar with several industries to
ensure they know how they work and what the key success factors are for the industry.
Examples of industries that have been in past cases include:

Airline
Pharmaceutical
General Retail
Oil and Gas
Minerals/mining
Banking

Having an understanding of specific industries will be of great value to teams. Knowing

items such as rules and regulation, materials, labour requirements, etc., will all help in
the formulation of a solution.

It is impossible to prepare for every possible type of industry in all regions. These are
just suggestions to give teams some guidance when preparing for the competition.

4.3 Preparatory Case(s)

At a minimum, the coach should have the team practice with cases at the MBA level,
international in scope, strategic in nature and broad based. It will take a few practice
cases before the team is able to work efficiently together within the 3 or 4 hour time limit.
The following sections present suggestions for how the team should prepare for all of the
components of the case from the preparation to the question period.

4.3.1 How to read a case

A case will usually take 45- 50 minutes to read from start to finish. When the team first
receives the case they should read the first and last paragraph of the case to help
determine the problem being presented. Knowing the problem while reading will allow
team members to filter out the information they need in order to determine the best
solution.

While reading, each team member should make note of key issues within the case,
along with noting key pieces of information that will help them with their portion of the
case. For example, if a member is given the role of presenting the analysis, they should

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keep notes on strengths and weaknesses of the company, industry information,
economical conditions, etc.

It is very important to note exactly where information is within the case, as the team will
not have enough time to read it a second time. One suggestion is to use short hand and
take note of pages that contain vital information. Another would be to simply highlight
key points and make short hand notes next to it that will allow the student to identify the
type of information that is highlighted. Whatever the method, each team member should
ensure that they stick to one method to avoid confusion during the preparation time.

As the team becomes more familiar with reading cases they will soon learn what
information needs their attention and what can be skipped over.

4.3.2 How to discuss a case

There are many different approaches to discussing a case and this section will detail one
approach. The discussion must begin immediately after the team has completed reading
the case. If a team member finishes earlier than the rest of they team they can begin
preparing their slides. This will ensure that the team is utilizing the three or four hours to
its maximum.

One person should be designated as the note taker and it will be their job to put all ideas
that are mentioned on display (whiteboard, paper, etc). It is important to take down all
ideas as this will help to narrow down the correct problem, solution, and implementation.
Initially, the team might brainstorm and then begin filtering ideas and making a decision
as to what the problem is and what are the possible solutions.

During the discussion one person should be designated as the timekeeper to ensure that
the team does not spend too much time on one topic. The timekeeper should
continually let the team know how much time is left in the preparation period.

A good starting point for the team discussion is the main problem presented in the case.
Once the problem is defined, the next logical step is to list out all the key issues
presented in the case. These issues will help the person who is presenting the analysis,
as it is their portion of the presentation that sets up the recommendation and
implementation. Knowing the key issues allows the team to formulate a solution that will
address most, if not all, key issues within the case.

After key issues, the team must come up alternative solutions to the problem. Only
presenting one solution will show that the team did not fully discuss the alternatives, nor
demonstrate that the one selected is the optimal solution. Every alternative should have
advantages and disadvantages, with the final recommendation having the most
advantages.

After the team has determined the alternatives and the recommendation, an
implementation plan will need to be created. Items that should be discussed include
timeframe (how long will it take), cost (order of magnitude estimates), how it will solve
the problem, and who will be involved (resources).

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Once the discussion has ended team members should begin to prepare their slides. Or
the discussion can continue and those team members designated to prepare the slides
can begin to prepare them.

4.3.3 How to divide the work

There are many different approaches to dividing up the work of preparing the case
analysis and this section will detail one approach. Each team member may have a role
on the team. The natural roles that could emerge will follow how the cases are judged.
These include:

1. Introduction, key issues/ problem statement

2. Analysis
3. Alternatives and recommendation
4. Implementation
5. financial analysis, and conclusion

Key Issues / Problem – The key issues and problem statement within the case should be
clearly stated.

Analysis – The environmental, economical, financial, and political factors of the case
should be reviewed in terms of what is relevant to the key issues. The analysis should
have an external and an internal focus in term of the organization. One example would
be the use of a SWOT analysis to review the organization.

Alternatives – Normally 2-3 alternatives should be analyzed. The recommended

alternative should address the key issues and solve the problem stated.

Implementation – The implementation is an action plan that will be used to implement

the recommendation. The implementation must fit the organization and should be
attainable. The implementation should address all areas of the organization including
operations, marketing, human resources, and finance. The plan should have a timeline
along with a breakdown of the costs associated with the implementation.

Financials – All cases should address how the recommendations will affect the
organization financially. If the case does not provide any financials, students can still
address how the plan will affect them, however specific numbers will not be available.
Items that may be considered in this section are: Stock/share price, profits, revenue,
expenses, IRR, NPV, etc. Financials presented should be realistic and based on factual
information found in the case.

The team members assigned to each section could be responsible for creating the
slides, presenting, and responding to questions on their section. As stated above, this is
not the only way to proceed and may not always be the best way for any specific team.
Other team members are encouraged to help out where they can during the three-hour
preparation time. It is the responsibility of the coach to provide guidance to the team
with regards to approaching each role.

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 Normally teams take on the role of consultants and thus they may also wish to decide
on a name that will be used consistently throughout each case (e.g. Global Consulting).
As consultants, it is assumed that the team is presenting their findings to the specific
individuals in the case, or the board of Directors.

Once the 3 or 4-hour time limit passes, the monitors will not give teams extra time to
make any final additions or changes to their presentation, and will ask for the memory
stick immediately. Not having the slides in the proper order, or asking for 5 minutes from
the judges to reorganize slides shows that the team was unable to complete their case
analysis in the time permitted. When practicing, coaches should follow these rules in
order for the team to become comfortable with the time constraints and the strict rules of
the competition.

4.3.4 Presenting the case

When entering the presentation room, team members should introduce their selves to
the judges and quickly take their position. Teams may sit or stand during the
presentation. Prior to presenting, it is suggested that the team designates a team
member(s) to change slides. For example, the second person to speak should turn the
slides for the first. Once the first has finished speaking, that person can become the one
responsible for changing slides for the remainder of the presenters. Or individual team
members can control their own slides. Practice with these transitions can be as
important as the presentation itself. Sloppy transitions are distracting and may show
lack of preparation to the judges.

All members of the team should present a part of the case. There should be balance
and flow between members. Awkward transitions will waste time and can distract
judges.

4.3.5 Question Period

Prior to the Competition, the coach should attempt to bring in judges for the practice
presentations. The coach may act as judges at first, but to avoid the team from
becoming comfortable, external judges should be used.

When the team has completed the presentation, they should all stand and wait for the
judges to begin their question period. When a judge asks a question to the team, be
cognizant that team members do not jump right into an answer. Team members can
look to each other very briefly to indicate which team member would be best responding
to the question. If the question is unclear, ask for clarification before trying to present an
answer.

After a team member has answered a question, a follow up answer should only be given
if it will add value to what was already said. Teams must also ensure that they do not
contradict each other while answering questions.

At no time should a team argue with a judge. Many times judges will tell teams they do
not agree at all with the solution presented. Some may even tell the team that they are
wrong. When this occurs, becoming confrontational will only hurt the team. It is this
time when confidence in the solution must be presented. Teams should still support

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their answer, but they should do so by revisiting the facts they presented and assuring
the judge that their plan is the optimal one. The result will almost always be one where a
team may either convince the judge there are correct or at a minimum gain the judges
respect since the team was able to back up their solution, even if they still disagree.

Finally, teams should pay attention to the body language of the judges. When a judge
begins to nod their head in agreement or present other body language that sends similar
signals, the person answering the question should wrap up and allow for the next
question to be asked. The objective is to efficiently answer questions in the 10-minute
period.

5. Materials to Bring
No matter how good a team may be, without the proper tools it is near impossible to
compete at the competition. Veteran schools know exactly what to bring along with all
the time saving tricks that help their teams gain an edge during the three-hour
preparation time. One goal of this guide is to level the playing field to allow new schools
to compete at the same level as those who have been completed before.

5.1 Attire

It is important to dress professionally while participating in the competition. Business

suits are a minimum requirement in order to be viewed as a professional team. It is
important that team members not only wear professional clothing, but that they are
comfortable in their attire.

Each member should bring multiple shirts and ties (for male participants). Although the
competition may be located near many clothing shops, last minute purchases will only
add to the stress of the event. Sending clothing to be cleaned is possible, but it is
another area where problems may occur. Having multiple outfits will reduce the need to
have items cleaned, along with keeping the participant comfortable.

It is recommends that team should carry with them items that can be used to help
remove minor stains or to repair clothing (such as thread and needle, double sided tape,
etc). Last minute adjustments may be needed and teams should always be prepared for
every situation.

Finally, teams should have comfortable clothing to wear when not participating in a case.
As it has been mentioned throughout the guide, teams will participate in many social
events. For less formal nights, teams may be more comfortable in other clothing.
Sometimes there are athletic events at the Competition so athletic clothing is appropriate
to bring. This will allow teams to relax and socialize more comfortably which will help
lower the stress level between cases.

An important point to note is that the location of the competition might be in a cold
climate. As the competition is often held in February, March or April the temperature
might still be very cool or cold. As you will likely be leaving the hotel and host institution

12
for various events warm attire might be required! It is recommended that you consult the
local weather forecast before you travel to the Competition.

5.2 Preparatory Material

Most teams will complete research as mentioned in the previous section. Along with the
research, the team should spend some time developing their slide template which they
will bring to the Championship Round.

5.3 Supplies

While most of the supplies are provided by the host institution, the team should bring
one reference book each. You should ensure that each team member brings a different
reference book. Also it is important to bring calculators as these are not provided.

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 6. Arriving at the Competition

This section will provide information regarding what teams should do once they arrive at
the Competition in order to ensure a smooth first day and to get the week off to a good
start.

6.1 Facilities
After teams have arrived and checked into their hotel rooms, the next step they should
take is to become familiar with the facilities. Teams should become aware of where the
breakfast room is located and all designated meeting places.

The preparation and presentations normally take place at the campus of the host
institution. After the Welcome Ceremony on the first evening of the Competition, teams
should attempt to visit at least one presentation room in order to understand their
surroundings prior to the first case. This is normally facilitated by the host institution.
Walking into a presentation room for the first time moments before presenting can be
unnerving and potentially cause a team to not perform to their potential. Having visited
these rooms in advance will remove this uncertainty and increase the team’s ability to
have a strong start to the Competition.

Restrooms are the second most important rooms in the Competition. Taking a bathroom
break during preparation will mean lost time and searching for restrooms is a task that
teams cannot afford. As teams may not use the same preparation room for all cases,
knowing where all restrooms are will allow for teams to use the one nearest to them
during their preparation. However, host institutions do attempt to have each team use
the same preparation room throughout the competition.

6.2 Liquids and Snacks

The Competition may take place in a large city or a small town. It is important for the
team to be familiar with the local area around the hotel. Once teams have familiarized
their selves with the facilities of the competition, it is important that they familiarize with
the shops in the immediate facility in the case of an emergency (emergency referring to
the need to purchase an item for the competition, not a medical or other emergency).
Most importantly, teams should purchase snacks and liquids for during and after
presentations. The competition will likely offer water, coffee, tea and some food during
the preparation time, however, to ensure they are completely prepared, teams should
have some food and drink with them in case they are not provided or a team member
has an aversion or allergy to items provided.

Hunger and dehydration is very taxing on the body and will lead to a decreased ability to
concentrate and formulate ideas. Having supplies to satisfy hunger and thirst will ensure
that teams are able to perform at their optimal level.

14
7. The First Case

If a team has not competed in a competition prior to the NIBS Competition the first case
is always unsettling. This section contains information and tips that will help teams
prepare for the first day of a challenging and fast paced week.

Teams from schools who have competed previously, that have competed prior to this
competition may still find the first day difficult. In order to get off to a good start, teams
should ensure that they have a game plan prior to leaving for the competition. Although
teams will learn a great deal while at the Competition, they should not stray too far from
their plan as this is what they have practiced and what is familiar to them.

Many times the excitement and adrenalin of competing can lead to teams becoming
disorganized and unfocused. To combat this from occurring, the team should gather
their thoughts prior to entering the preparation room and communicate with each other.
Five minutes prior to entering a preparation room, teams could go through some sort of
ritual (be it a pre case cheer, moment of silence, top 5 keys to success, etc) that will help
them relax and become mentally prepared. Having a routine that they have practiced
prior to every practice case will cause a familiar feeling and help the team relax. This is
similar to athletes who use a routine prior to a game in order to set the mood and tone
before competing.

Communication is the key component that will allow teams to stay on track and complete
the case to the best of their abilities. Vocalizing that a plan is going off track or that a
member or members are not working as they have practiced can jolt the team back on
track. Vocalizing things such as time remaining, roadblocks, new information, etc., will
allow all members to fully prepare for the presentation and seem as a single unit.

The most important thing to remember about the first case is that teams need to leave
the outcome in the presentation room. Whether teams win or lose or work well or poorly
together, this is only the first of four cases. Premature celebration or feelings of doubt
may cause teams to lose sight of their strategy and not succeed at the competition.
Teams should always learn from each case, win or lose, but each case should be
attacked as if it was the first or was the deciding case for the competition.

15
 8. Double Case Day

The double case day is the day where teams will complete two cases in one day. This
will test teams in different ways and this section aims to help outline how teams can
prepare for the different types of challenges they bring.

The double case day is always a challenge to teams as there is little time between cases
to relax, eat, or discuss the previous case. This day is by far the most difficult day (along
with the semi finals & finals where a second case is required in the same day) and
preparation is what teams need in order to complete two successful cases.

The first thing a team must do is to practice completing two cases in one day prior to
arriving at the competition. This will allow the team to be familiar with the limited time
between the cases, along with dealing with lower levels of energy during the second
case.

This is the most important day where food that can provide energy should be brought to
the preparation room. Motivation is another required component for this day. If a team
member shows signs of becoming tired or inattentive, it is the job of the other team
members to immediately recognise the behaviour and change it. Every person is
motivated in different ways and it will be during practice that teams will become familiar
enough with one another to understand exactly what will be needed in terms of
motivation.

Finally, the team must remember that the judges have also had a long day and it is up to
their performance to stand out. The team must make a conscious effort to show energy,
emotion, and confidence during the second case. Being mentally and physically drained
by this point, teams can forget that they still need to present and showing signs of
fatigue or inattentiveness could cost them the match.

16
 9. Winning and Losing

With all competitions some teams will win, some will lose, and some will experience
both. This section of the guide is not aimed at teaching teams how to do either in terms
of strategy, preparation, etc; rather it is to allow teams to win and lose gracefully and to
learn from each experience.

Whether it is your first win or your fourth in a row, teams should understand that there is
a proper way to celebrate the win. Until a team reaches the semi-finals, no win is worth
over celebrating. Even with an 11-0 win over another team, there is always something
the team can learn and improve upon before the next match. Over celebrating will also
give the impression that the winning team is not showing the proper respect for the team
they just competed against. Spirit is a very large component of this competition and
showing class and respect to all teams is a contributing factor towards spirit.

Losing is also not to be approached in a negative manner. Review the loss and pick out
areas where the team could have approached the case differently to produce a better
result. Learn from the loss then move on. Many times both teams present a strong case
and the judges decisions were the result of one particular point such as how a question
was handled or a more realistic cost analysis, etc. Therefore, a loss does not mean the
losing team did not present a good analysis and solution to a case, it simply means the
other team may have simply performed a little bit better. After the results are posted,
teams can review the judges’ comments and determine how to ensure they perform
better at the next case.

A final note on this section is that no matter what a team’s result, whether it is going
undefeated or losing every case, no team leaves the competition without learning. All
teams will leave feeling that they are stronger and more able to tackle issues and
problems that will face them in their careers.

17
 10. Social Events, Networking / Meeting People

During the course of the Competition, teams and coaches will have several opportunities
to socialize with the other teams, coaches, judges, and host institution coordinators. The
host institution usually plans several social events which may include dinners, sight
seeing, and sporting events.

A major component to the Competition is spirit. The week long Competition is a

challenging and tiring time, yet extra effort is made to ensure that all teams not only
enjoy the experience of competing against schools from around the world, but also to
meet new people and have fun once the work is over.

Students attending a business school do not need an introduction to the benefits of

networking, however it is important to remind teams that this competition is a great
chance to not only meet members of other teams, but to meet the judges and other
attendees. Judges of the Competition are made up of prominent business people and
academics that have a wealth of knowledge. Team members should take the time to
meet and talk to them to, at a minimum, take advantage of this knowledge and how it
can help them in their career.

Returning to the topic of spirit, it is important that teams socialize. Not all teams will be
comfortable with taking part in social events as it is not for everyone. Some teams may
believe it will interfere with their ability to perform. However, most teams will find that the
social events and simply socializing with others will help to ease the stress and tension
the competition brings. Most importantly, an award for spirit is normally presented at the
Competition final banquet. Lifelong friendships are often formed at the NIBS
Competition!

18
 11. Next Year

Once the Competition is over the work does not end for the coaches or for some of the
team members. Upon returning to their school it is suggested that all teams debrief and
attempt to determine how the following year’s team can perform even better. Even if the
team is the competition champion, there is always room for improvement.

During the Competition, the coach should keep a journal of how the team performed.
They should also attempt to watch other teams as much as possible in attempt to see
how others perform. This journal will be very useful in the following year as it will help
prepare the next team to ensure they are able to perform to their full capabilities.

The coach should always retrieve the slides used by their team during the Competition.
This will allow new teams to view exactly the calibre they must attain prior to leaving for
the competition. It will also help give new teams a better idea as to how they should
approach their role and tasks for each case.

The coach should also talk to other coaches. Just as it is important for participants to
socialise, coaches should also forge relationships with other coaches. Many schools
have been participating at the Competition for a long time and their coaches are very
open and willing to giving advice to other schools. Even though it is the goal of each
coach to win the competition, another goal is to continually improve the competition as a
whole.

Past team members are a great source of help when new teams are preparing for the
competition. They are able to describe the competition to new teams in terms of the
pressures, stress, competition level, among other topics. Past participants can also help
prepare new teams by participating in the preparation period and attempt to spot pitfalls
they encountered. This will give the new team time to remove these pitfalls and ensure
greater success at the Competition. They can also act as judges during the practice
cases. Having stood in front of judges in the previous year (or earlier), past participants
understand the level of questioning that will be present at the competition.

19
 12. Conclusion

The purpose of this guide is to provide advice to all teams that prepare for the NIBS
Case Competition. We acknowledge that there are certainly many approaches to case
analysis and competition and we have attempted to provide you with some strategies
that veteran schools in the Competition follow. We hope that you find some of this
information useful. We certainly cannot guarantee a win at the competition but we can
say with certainty that all participants (students and coaches) will experience a
challenging yet rewarding week that you will cherish and remember always!

20
Appendix A – Case Study References

Ellet, William. The Case Study Handbook: How to Read, Discuss, and
Write Persuasively About Cases, Harvard Business School Press. 2007.

Erskine, James A., Michiel R. Leenders, and Louise-A. Mauffette-

Leenders. Teaching with Cases, 3rd edition. London, On: Richard Ivey
School of Business, 2003.

Mauffette-Leenders, Louise-A., James A. Erskine, and Michiel R.

Leenders. Learning with Cases, 3rd edition. London, On: Richard Ivey
School of Business, 2005.

21
Appendix B – Sample Scoring Criteria

JUDGE EVALUATION & COMMENT SHEET

Team: Case Number: Numerical Ranking:

Key Issues:
.
Definition of problem and key
issues
Rating: _____/10

Analysis:
.
Qualitative and quantitative Rating _____/20
Analysis of company & industry

Alternatives & Recommendation

Evaluation of Feasible Alternatives,

Solutions and Recommendation
.
Realism and practicality of
solutions
.
Strategic orientation and focus
.
Logical tie-in to analysis
.. Justification of recommendation
Rating_____/25

Implementation and Plan of Action

.
Consideration of cost and control

22
issues
.
Timeline and analysis of Rating _____/25
unforeseen problems

Organization of Material & Overall Presentation

.
Ability to defend position

Clarity & Style of presentation

.
Delivery
.
Smoothness and balance of
Group, teamwork
Rating_____/10

Questions & Answers

.. Presentation
style/communication skills
.. Creativity, professionalism
.
Use of time
Rating_____/10

Total _____/100

23
Appendix C - Sample Case

APPLE: ANOTHER BYTE

INTRODUCTION
Philip Schiller, Apple’s Senior Vice President of Worldwide Product Marketing,
opened the Keynote Address at MacWorld 2009 with ―It is an incredibly exciting
time at Apple‖. Backed by pictures of new Apple Stores, he talked of the 3.4
million customers that visit the stores on a weekly basis. He spoke of the biggest
fiscal year for Mac’s ever—9.7 million units sold with a product growth rate twice
the industry average. The iPod line holds 70% of the worldwide MP3 market
share. Over six billion songs have been downloaded from the iTunes Music
Store by 75 million account holders; the iTunes Music Store has over 10 million
songs available for purchase and download. The iPhone has been an incredible
success and is revolutionizing the mobile telephone industry.
However, all is not well. Although the Mac business has been Apple’s strongest
growth driver, a combination of the huge drop in the PC market due to the global
economic slowdown, a stale desktop Mac lineup, and a perking up in the one
area of the PC market where Apple doesn’t participate (the low-end, ultra-cheap
―netbooks‖) may lead to a loss this year. At the same time, Fortune magazine
reports that the market for MP3 players is ―shrinking rapidly‖; the year-to-year
spending growth rate has flattened and may turn negative in 2009. There is even
concern in the iPhone market. Competition from Samsung’s Soul U900,
Research in Motion’s Blackberry line and other mobile device producers
threatens the iPhone’s position as the market’s innovation leader.
Probably more serious than these concerns is CEO Stephen Jobs’ health. A
pancreatic cancer survivor, Mr. Jobs has looked notably thin and pale in recent
appearances. The condition is serious enough to require a leave of absence for
medical reasons. Originally attributed to a hormone imbalance in his first letter to
employees and shareholders, the follow-up communication called the condition
―more complex‖. Given Mr. Jobs’ tenacity and dedication, there is a great deal of
uncertainty over his health and his return to Apple. Figures 1 and 2 are
January’s communications with Apple employees and shareholders.

24
 FIGURE 1
JANUARY 5 2009 LETTER
January 5, 2009

1. Letter from Apple CEO Steve Jobs

Dear Apple Community,

For the first time in a decade, I’m getting to spend the holiday season with my family, rather than
intensely preparing for a Macworld keynote.

Unfortunately, my decision to have Phil deliver the Macworld keynote set off another flurry of
rumors about my health, with some even publishing stories of me on my deathbed.

I’ve decided to share something very personal with the Apple community so that we can all relax
and enjoy the show tomorrow.

As many of you know, I have been losing weight throughout 2008. The reason has been a mystery
to me and my doctors. A few weeks ago, I decided that getting to the root cause of this and
reversing it needed to become my #1 priority.

Fortunately, after further testing, my doctors think they have found the cause—a hormone
imbalance that has been “robbing” me of the proteins my body needs to be healthy. Sophisticated
blood tests have confirmed this diagnosis.

The remedy for this nutritional problem is relatively simple and straightforward, and I’ve already
begun treatment. But, just like I didn’t lose this much weight and body mass in a week or a
month, my doctors expect it will take me until late this Spring to regain it. I will continue as
Apple’s CEO during my recovery.

I have given more than my all to Apple for the past 11 years now. I will be the first one to step up
and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple’s CEO. I
hope the Apple community will support me in my recovery and know that I will always put what is
best for Apple first.

So now I’ve said more than I wanted to say, and all that I am going to say, about this.

Steve

25
 FIGURE 2
JANUARY 14 2009 LETTER
January 14, 2009

2. Apple Media Advisory

Apple CEO Steve Jobs today sent the following email to all Apple employees:

Team,

I am sure all of you saw my letter last week sharing something very personal with the Apple
community. Unfortunately, the curiosity over my personal health continues to be a distraction not
only for me and my family, but everyone else at Apple as well. In addition, during the past week I
have learned that my health-related issues are more complex than I originally thought.

In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple
to focus on delivering extraordinary products, I have decided to take a medical leave of absence
until the end of June.

I have asked Tim Cook to be responsible for Apple’s day to day operations, and I know he and the
rest of the executive management team will do a great job. As CEO, I plan to remain involved in
major strategic decisions while I am out. Our board of directors fully supports this plan.

I look forward to seeing all of you this summer.

Steve

APPLE

One Infinite Loop, Apple's street address, is a programming private joke — it

refers to a routine that never ends. But it is also an apt description of the travails
of parking at the Cupertino California campus. Like most things in Silicon Valley,
Apple's lots are egalitarian; there are no reserved spots for managers or higher-
ups. Even if you're a Porsche-driving senior executive, you should be prepared to
circle the lot hunting for a space if you arrive after 10 am. But there is one
Mercedes that doesn't need to search for very long, and it belongs to Steve Jobs.
If there's no easy-to-find spot and he's in a hurry, Jobs has been known to pull up
to Apple's front entrance and park in a handicapped space. (Sometimes he takes
up two spaces.) It's become a piece of Apple lore — and a running gag at the
company. Employees have stuck notes under his windshield wiper: "Park
Different." They have also converted the minimalist wheelchair symbol on the
pavement into a Mercedes logo. Jobs' fabled attitude toward parking reflects his
approach to business: For him, the regular rules do not apply.

26
When Jobs retook the helm of Apple in 1997, the company was struggling to
survive. Today it has a market cap of $105 billion, placing it ahead of Dell and
behind Intel. Its iPod commands 70 percent of the MP3 player market. Over six
billion songs have been purchased from iTunes. The iPhone is reshaping the
entire wireless industry. Even the underdog Mac operating system has begun to
nibble into Windows' once-unassailable dominance; last year, its share of the US
market topped 9 percent, more than triple its portion in 2003.

It's hard to see how any of this would have happened had Jobs acquiesced to the
standard touchy-feely philosophies of Silicon Valley. Apple creates must-have
products the old-fashioned way: by locking the doors and sweating and bleeding
until something emerges perfectly formed. In Cupertino, innovation doesn't come
from coddling employees and collecting whatever froth rises to the surface; it is
the product of an intense, hard-fought process, where people's feelings are
irrelevant.

Jobs is a notorious micromanager. No product escapes Cupertino without

meeting Jobs' exacting standards, which are said to cover such esoteric details
as the number of screws on the bottom of a laptop and the curve of a monitor's
corners. "He would scrutinize everything, down to the pixel level," says Cordell
Ratzlaff, a former manager charged with creating the OS X interface.

But Jobs' employees remain devoted. That's because his autocracy is balanced
by his famous charisma — he can make the task of designing a power supply
feel like a mission from God. Andy Hertzfeld, lead designer of the original
Macintosh OS, says Jobs imbued him and his coworkers with "messianic zeal."
And because Jobs' approval is so hard to win, Apple staffers labor tirelessly to
please him. "He has the ability to pull the best out of people," says Ratzlaff, who
worked closely with Jobs on OS X for 18 months. "I learned a tremendous
amount from him."

In keeping with this culture, Apple's secrecy approaches paranoia. Talking to

outsiders is forbidden; employees are warned against telling their families what
they are working on. Phil Schiller, Apple's marketing chief, once told Fortune
magazine he couldn't share the release date of a new iPod with his own son.
Even Jobs is subject to the rules. When he took home a prototype of Apple's
boom box, the iPod Hi-Fi, he kept it concealed under a cloth.

Secrecy has also served Apple's marketing efforts well, building up feverish
anticipation for every announcement. In the weeks before Macworld Expo,
Apple's annual trade show, the tech media has been filled with predictions about
what product will be unveiled in his keynote address. Consumer-tech Web sites
liveblog the speech as it happens, generating their biggest traffic of the year. In
the days that follow, practically every media outlet covers the announcements.
Harvard business professor David Yoffie has said that the introduction of the
iPhone resulted in headlines worth $400 million in advertising.

27
Still, Apple's radical opacity has, on the whole, been a rousing success — and it's
a tactic that most competitors can't mimic. Intel and Microsoft, for instance, sell
their chips and software through partnerships with PC companies; they publish
product road maps months in advance so their partners can create the machines
to use them. Console makers like Sony and Microsoft work hand in hand with
developers so they can announce a full roster of games when their PlayStations
and Xboxes launch. But because Apple creates all of the hardware and software
in-house, it can keep those products under wraps. Fundamentally the company
bears more resemblance to an old-school industrial manufacturer like General
Motors than to the typical tech firm.

All this plays to Steve Jobs' strengths. No other company has proven as adept at
giving customers what they want before they know they want it. Undoubtedly, this
is due to Jobs' unique creative vision. But it's also a function of his management
practices. By exerting unrelenting control over his employees, his image, and
even his customers, Jobs exerts unrelenting control over his products and how
they're used. And in a consumer-focused tech industry, the products are what
matter. "Everything that's happening is playing to his values," says Geoffrey
Moore, author of the marketing tome Crossing the Chasm. "He's at the absolute
epicenter of the digitization of life. He's totally in the zone."

THE LINEUP
THE MAC
The Mac line and its predecessors of personal computers has been around in
various guises and forms since the mid-1980’s. The first iMac was introduced in
1998 and the personal computer line has served as the cornerstone of Apple’s
lineup ever since. In 1999 the Power Mac G3 Blue & White was introduced. Its
mini-tower design included an easy-to-open latch that made it simple to upgrade
or repair. The design (or variations of it) has been seen in all Mac mini-towers
since its introduction.
Also in 1999, the first iBook was introduced. With its rugged and colorful design,
Apple targeted the product to education markets. The iBook sported the first
version of Mac OS X Server, QuickTime, and other new server technologies.
The 2001 update was the first notebook to have a metal case that has been used
in all higher-end Apple notebooks since that time; a more traditional white plastic
case was also introduced for Apple's lower-end notebooks.
In 2006, the first Macs to run Intel processors were introduced at the Macworld
Expo in January. The first available Intel Macs were the iMac and the MacBook
Pro, although Apple completed the transition of all Mac product lines to Intel by
the end of the year. Later that year, Mac OS X 10.5 Leopard ships, selling more
than 2 million copies in the first weekend. The MacBook Air, released in 2008,
becomes the lightest and thinnest Mac notebook ever produced.
The current Mac line features three notebooks (the MacBook, the MacBook Pro,
and the MacBook Air) and three desktops (the iMac, the Mac mini, and the Mac
Pro). All are marketed as a combination of ―Brains and Beauty‖—the world’s

28
most advanced operation system in an aesthetically pleasing glass and
aluminum case. Each is shipped with the latest operating updates installed and
is ready to go when received. Figure 3 shows the 2008 Apple MacBook Line.

FIGURE 3
APPLE MACBOOK LINE
(2008)

Mac sales have increased each year since 2003, accounting for approximately
44% of total revenues for Apple in 2008. This was an increase from 2007 (43%)
and 2006 (38%). The rate of recent growth in Mac Sales has outpaced the
industry. Apple, like other computer manufacturers, has seen a shift in consumer
preference toward notebook computers; this trend continues to accelerate.
Figure 4 shows the desktop and notebook sales by year from 1999-2008.

29
 FIGURE 4
APPLE DESKTOP AND NOTEBOOK SALES 1999-2008
(Thousands of Units)

THE iPOD

Tony Fadell, a former employee of General Magic and Phillips, envisioned a brand new
MP3 player. Unlike the bulky flash memory-based MP3 players from other companies,
Fadell wanted to deliver a small hard drive-based player that was linked with a content
delivery system where users could legally obtain and download music. Rebuffed by
several companies, Fadell turned to Apple, which years before had sworn off consumer
electronics. He was hired in early 2001 and was given a deadline of one year to release
a successful product.

The initial iPods used 5 GB Toshiba hard drives that were the size of a quarter, ARM
processors, a large high resolution display, a lithium polymer battery, and the most
recognizable aesthetic feature of the device - the scroll wheel. Instead of using skip
buttons, a user could spin a wheel on the front of the device to scroll through a list of
songs to find the song the user wanted to play. The same wheel was also used to control
the menus of the system. As a result, it was much easier to navigate through the iPod's
playlist than the comparable players.

A major hardware revision came in 2003. The third generation iPod had no mechanical
buttons. The function buttons were moved to just below the screen and were solid
state, like the scroll wheel. The new version also sported a new dock connector that
supported both FireWire and USB 2.0, making it easier for PC users to connect to their
iPods. In addition, the new model incorporated lithium-ion batteries. Capacities ranged
from 10 GB up to 40 GB. The most important 2003 update to the iPod was not actually a

30
hardware or software feature. It was the iTunes Music Store. The iPod now had a fully
legal supply of content, and made it easier for Apple to rationalize cutting the price of
the iPod now that it had another revenue source.

2004 saw several significant events. Early in 2004, the iPod mini was released. The mini
had a capacity of 4 GB and was available in five different colors. Because of its size, the
controls of the iPod had to be rearranged to fit on the mini. The function buttons were
moved to the scroll wheel under a small screen. At $249, the mini cost much less than
many flash-based players available at the time and it had a much higher capacity. In
mid-2004, Newsweek featured the iPod and Steve Jobs on the front cover. In October,
Apple released the color iPod photo. The iPod photo was identical to an ordinary iPod,
but it had a larger battery and more hard drive capacity in addition to a color display.
The device did not play movies, but users could browse photo albums. It also showed
album covers for songs while they played.

Apple released its first flash-based iPod Shuffle in early 2005. The new player was the
size of a pack of gum and costs $99 (for the 512 MB version). This made it a great value
among MP3 players, with most comparably priced players providing half the storage
capacity. Later that year, the iPod nano was introduced as the successor to the iPod
mini and the fifth generation iPod was released. This release was as significant to Apple
as the creation of the iTunes Music Store back in 2002; the fifth generation iPod was
capable of playing videos purchased online. Both the nano and video-enabled iPod
were equipped with more features including a calendar, address book and games,
making the devices behave more like PDA’s than pure music players.

In September 2006, Apple replaced the original iPod nano with a more rugged,
aluminum-clad model. The 2G nano remained tiny, gained a brighter screen and an
improved battery life. At the same time that Apple introduced the second generation
nano, the company unveiled the second generation iPod shuffle. Like the new nano, it
was encased in aluminum and like the original shuffle, it had no screen. Unlike any
previous iPod, it had a built-in clip. And it remained tiny, barely big enough for a
clickwheel.

On September 5, 2007, Apple unveiled a completely revised iPod line. The iPod touch,
which looks a lot like the iPhone, is basically an iPhone without the phone and camera.
The traditional full-sized iPod was renamed the iPod classic and a 160 GB model was
released. The iPod nano was morphed from a slim, brushed aluminum design to a
wider, powder finished aluminum with a new high resolution two-inch display. The iPod
shuffle also received a powdered aluminum finish facelift. The iTunes Wi-Fi Music Store

31
for the iPhone and iPod touch was also opened. Figure 5 shows the Apple iPod family in
2008.

2.1.1
2.1.2 FIGURE 5
2.1.3 APPLE iPOD FAMILY (2008)
2.1.4

Since its initial release in 2002, iPod sales have grown every year. Apple’s
continual innovations and diversification of the product line has maintained the
iPod’s position as ―THE‖ MP3 player. Many consumers own more than one unit
and multiple websites and Internet forums are devoted to rumors and ―inside
information‖ about forthcoming models. Table 1 shows Apple iPod sales by year
from 2002-2008.
TABLE 1
APPLE IPOD SALES 2002-2008
(Thousands of Units)
2002 381
2003 939
2004 4,416
2005 22,497
2006 39,409
2007 51,630
2008 54,828

The iPod has dominated the personal MP3 player market since its initial release,
not only in market share as measured by the number of units sold but also in
market share as measured by dollar volume of sales. Table 2 shows Apple iPod
market share as measured by number of units sold and dollar volume of sales
from 2004-2008.

TABLE 2

32
 APPLE iPOD MARKET SHARE 2004-2008

Year By Units Sold By Dollar Volume

2004 56% 71%
2005 72% 83%
2006 72% 85%
2007 70% 84%

Even as sales have increased, the iPod share of Apple total revenue has
declined. In 2006, iPod and related music sales accounted for almost one-half of
Apple revenues; this percentage declined to 45% in 2007 and 38% in 2008. The
further decline in 2008 is at least partially the result of the release of the iPhone.
iPhone sales in 2008 accounted for 6% of total Apple revenues.

iPhone

In 2002, shortly after the first iPod was released, Jobs started thinking about
developing a cell phone. He saw millions of Americans lugging separate phones
and MP3 players; naturally, consumers would prefer just one device. He also saw
a future in which cell phones and mobile email devices would amass ever more
features, eventually challenging the iPod's dominance as a music player. To
protect his new product line, Jobs knew he would eventually need to venture into
the wireless world.

If the idea was obvious, so were the obstacles. Data networks were sluggish and
not ready for a full-blown handheld Internet device. An iPhone would require
Apple to create a completely new operating system; the iPod's OS wasn't
sophisticated enough to manage complicated networking or graphics, and even a
scaled-down version of OS X would be too much for a cell phone chip to handle.
Apple would be facing strong competition, too: In 2003, consumers had flocked to
the Palm Treo 600, which merged a phone, PDA, and BlackBerry into one slick
package. That proved there was demand for a so-called convergence device, but
it also raised the bar for Apple's engineers.

Then there were the wireless carriers. Jobs knew they dictated what to build and how
to build it, and that they treated the hardware as little more than a vehicle to get users
onto their networks. Jobs, a notorious control freak himself, wasn't about to let a group
of suits tell him how to design his phone. Steve Jobs announced the iPhone during the
Macworld Expo keynote address in January 2007. The iPod-sized device runs OS X and is
unlike any smartphone that preceded it. Unlike any previous iPod, there's no scrollwheel
at all. Unlike the traditional cellphone, there are no buttons for dialing phone numbers.
The iPhone has only one button; everything else is handled via its 3.5" 480 x 320
touchscreen. The iPhone has all the functionality of a video iPod and the ability to
automatically rotate screen content based on the iPhone's orientation.

33
The iPhone was released on Friday, June 29, 2007. It was first available only in the US
and sold exclusively through The Apple Store and AT&T Wireless company stores. Apple
reported sales of 270,000 units in its first shipment, and AT&T noted that 147,000 were
activated that first weekend. By the end of 2007, it was the best selling cell phone that
ATT had ever carried and total sales reached 1.4 million units.

The iPhone 3G was introduced in 22 markets on July 11, 2008, and its software was
available as an upgrade for owners of the original iPhone. Perhaps the most significant
change was the introduction of the iPhone App Store, where iPhone owners could
download free and commercial programs for their iPhones. The '08 iPhone is available
in 8 GB and 16 GB configurations worldwide and a 4 GB configuration in select market.
Apple sold over 11.5 million iPhones worldwide in 2008. Figure 6 shows the ’08 iPhone.

2.1.5 FIGURE 6
2.1.6 APPLE iPhone (2008)

WHAT’S NEXT FOR APPLE?

The Mac, iPod, and iPhone have been hugely successful products for Apple.
Primarily due to sales of these product lines, firm revenues increased almost
four-fold from 2004-2008 while earning per share (EPS) increased from $0.36 in
2004 to $5.36 in 2008. Table 3 shows revenue and earnings per share for Apple
from 2004-2008.
TABLE 3
APPLE REVENUE AND EARNINGS
2004-2008
YEAR REVENUE EPS

34
 ($ billions)
2004 8,279 $0.36
2005 13,931 $1.55
2006 19,315 $2.27
2007 24,006 $3.93
2008 32,479 $5.36

However, increased competition and the global economic slowdown have

reduced the earnings per share forecast to $5.18 in 2009.
Technology remains the most highly competitive industry in the global economy.
Apple has thrived in this environment due to a combination of hard work,
innovative design, and a focus on customer need satisfaction; a driving force
behind their success has been the leadership of Steve Jobs. What’s next?

35
Apple: Another Byte
 Agenda

• Strategic Issue
• Recommendation
• Environmental Analysis
• Firm Analysis
• Options
• Implementation
• Conclusion
 Strategic Issue

• Apple is facing a projected decline in earnings 
per share in 2009 and must assess the future 
leadership of the organization
 Recommendation

• Apple must manage, plan, and execute a 
transition from one CEO to the next emphasizing 
positive outcomes for all key stakeholders

• Apple must introduce new products to target the 
decline in the PC market and to address their 
stagnant product line
Personal Technology Industry
 Personal Technology Industry

Key Success Factors
•Branding – Product recognition in the industry
•Innovation – Creating new products through R&D
•User friendliness – Ease of use for consumer
•Sales and marketing – Ability to effectively sell products
•Strong Management – Ability to enable the firm to be 
innovative and efficient
•Distribution – Assembly of products and worldwide consumers
 Personal Technology Industry

Trends 
•Increased demand for portability
•Increased notebook sales
•Increased “netbook” segment
•Stabilized growth in desktop market
•Increase in smartphone sales
•Increased competition and offerings
•Decrease in MP3 player sales
Analysis of Apple
 Analysis of Apple

Strengths Weaknesses

•Brand Loyalty •Steve Jobs – dependency

•Steve Jobs – strong leader •Limited to premium segment
•Corporate culture ‐ •Corporate culture
innovation
•Research and Development
•Viral marketing – Consumer 
promotions through groups
 Apple’s Roots of Competitive Advantage

Resources
•Capital
•Unique facilities
•Proprietary technology
•Brand
Differentiation
Strategy
Superior quality
Superior innovation
Distinctive Competencies
Superior customer 
Competitive 
responsiveness
Advantage

Capabilities
•Cultural norms and 
Superior 
values
•Innovation
Profitability
•Control systems
Options
 Option 1:

Maintain leadership and introduce new products
• Allows Steve Jobs to remain as CEO with Tim Cook running 
day‐to‐day operations
• Maintain current roll out of products with incremental 
innovations as well as introducing a radical new addition to 
the product line

Advantages Disadvantages
•Keeps Steve Jobs as focal point •Does not solve leadership issue
•Addresses EPS issue through 
new product
 Option 2:

Change leadership and maintain status quo in 
production
• Introduce succession planning
• Maintain current introduction of incremental innovation

Advantages Disadvantages
•Succession plan in place •Does not address EPS issue
•Stock price does not fall due to  •Potential loss of customers due 
stability to departure of Steve Jobs
 Option 3:

Change leadership and introduce new products

• Introduce succession planning
• Incremental innovation of existing products
• Introduce new product(s) to consumers

Advantages Disadvantages
•Addresses EPS issue •Possible loss of brand loyalty 
•Addresses leadership issue with customers
•Stock price does not fall
•Increases product hype
 Decision Matrix

1. Maintain Leadership 2. Succession Strategy 3. Succession Strategy

Decision Criteria New Product Line Status Quo Production New Product Line
Branding 2 1 3
Innovation 3 0 3
User Friendliness 3 1 3
Sales and Marketing 2 1 3
Strong Management 1 3 3
Distribution 1 1 2
Total 12 7 17

Rankings
3 = Focuses On This Criteria
2 = Targets Criteria Effectively
1 = Somewhat Targets Criteria
0 = Does Little To Target Criteria
 Recommendation

• Apple must manage, plan, and execute a 
transition from one CEO to the next emphasizing 
positive outcomes for all key stakeholders

• Apple must introduce new products to target the 
decline in the PC market and to address their 
stagnant product line
 Recommendation

• We recommend Option 3: Change leadership 
and introduce new products because it 
targets:
– Key success factors identified

– Growth potential in EPS

– Leadership issues
Implementation
 Implementation
Short Term
Mar 2009 – Sep 2009

• Succession Strategy
– Board of directors, Steve Jobs and an outside 
consulting group must:
• Develop a methodical approach to identify desirable 
CEO characteristics
• Draw out a short list of potential candidates 
Tim Cook – responsible for current operations
Philip Schiller – worldwide marketing
Tony Fadell – innovator
External to company – no prior obligations to firm
 Implementation
Short Term
Mar 2009 – Sep 2009

• Research and Development
– Identify a new product and begin research and design 
• Netbook
– Continue to develop incremental innovations to 
exiting product lines
• Marketing
– Announce that a new product is to be developed – but 
no further details
– Allow consumer hype
– Decrease price of iPhone by 10%
 Netbook Lifecycle

Netbooks
Profitability

Maturity
Decline

Growth

Introduction

Time
Implication:
•Growing demand
•Willingness to pay
•Potential technological innovation
 Implementation
Short Term
Mar 2009 – Sep 2009

• Operations
– Increase production of iPhone by 100%
– Maintain current production of iPod Nano
– Reduce production of iPod Classic by 50%
– Increase laptop production by 30%
– Maintain production of desktops
 Implementation
Medium Term
Sep 2009 – Mar 2010

• Succession Strategy
– Determine the candidate whose characteristics 
best fit the firm’s strategic needs 
• Marketing 
– Announce release of Apple’s new netbook line 
“iNet” at MacWorld Expo 2010
• Operations
– Reduce production of iPod Classic by 25%
– Begin production of iNet
 Implementation
Long Term
Mar 2010 – Sep 2010

• Succession Strategy
– Introduce new responsibilities to the selected 
candidate such as overseeing management team 
meetings, approving products, and representing 
Apple to the public
• Research and Development
– Develop and modify existing smart‐phone 
technology to target business consumers
 Implementation
Long Term
Mar 2010 – Sep 2010

• Marketing
– Market new iNet as THE all‐in‐one, user‐friendly 
netbook
– Utilize viral marketing resources
– Increase market share of iPhone especially to 
businesses
• Distribution
– Begin distribution through existing channels
• Apple store
• Online
 Competitive Response

• Competitors in Netbook segment
– Dell
– Acer
•Lower prices of existing products
– Asus
•Increase innovation
– Toshiba
– Etc.
iNet Sales Forecast

Revenue (millions) 2010 2011

Units 8 11
Sales 5,600 7,700

Assumptions ‐ unit price $700

EPS 2009 2010 2011

Growth as % of 2008 
sales ‐ 17.24% 27.55%
 Conclusion

• Apple is facing a projected decline in earnings per 
share in 2009 and must assess the future 
leadership of the organization

• In order to address this issue, Apple should 
change leadership and introduce new products

THANK YOU
Appendices
 Competitive Landscape

• Computer Division • Smartphones • MP3

– Toshiba – Samsung – Samsung
– Acer – Sony – Creative
– Gateway – Nokia – Microsoft
– HP – RIM – Sony
– Asus – Palm
Revenue and EPS growth comparison

Year Revenue (Billions) % Growth EPS % Growth

2005 $                     13,931  ‐ 1.55 ‐
2006 $                     19,315  38% 2.27 46%
2007 $                     24,006  24% 3.93 73%
2008 $                     32,479  35% 5.36 36%

Average Revenue Growth 32.33%
Average EPS Growth 51.67%
EPS Growth / Revenue Growth 159.79%