How real-world cases work as business school teaching tools

Business case studies are the closest thing to a window on to 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 US coffee chain Starbucks has gone through its digital transformation; or how a Ukrainian subsidiary of a German beer brand navigates a tricky business relationship.

Kamran Kashani, professor emeritus of marketing and global strategy at the Institute for Management Development, in Switzerland, thinks case studies are at the heart of what it means to truly study how businesses work — a great tool to teach future corporate leaders about real issues tackled by the heads of some of the largest organisations in the world.

A key importance, of teaching cases to MBA students and executives, Kashani argues, is that it brings “business and management realities into the confines of a classroom”.

Academics have incentives, too. Christopher Bartlett spent his career at Harvard Business School, where he says the development of “good classroom material”, mainly cases, was “applauded”.

Harvard — unlike most business schools — recognises teaching contributions like cases in its promotion of faculty. At the same time, he adds, the school’s focus is on building case studies that bring “new knowledge” to future chief executives.

Almost all great cases capture a specific, relevant management issue that requires a decision

What are the secrets of a good case? “Almost all great cases capture a specific, relevant management issue that requires a decision,” says Bartlett. “It contains the richness of the context in which that decision must be made, and sufficient information and data that allow students to make a well-reasoned, defensible argument for their case in class.”

Bartlett among the academics whose work has been featured by the Case Centre, one of several leading publishers of teaching cases. A sample of some of the top cases it has featured follows below.

The Case Centre’s awards are in nine categories and given to case studies used by the largest number of organisations in the past calendar year. Recent contributions have dealt with 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 world’s largest apparel retailers? More importantly, how can it remain relevant as consumer tastes change faster than ever? Zara’s decentralised management approach and its ability to adapt quickly to shifting consumer tastes has been at the heart of its success.

The subsidiary of Inditex has mastered the art of “accurate” fashion — quickly adapting runway trends into mass-market designs. Despite its success, critics wondered if Zara required a “major overhaul” of its operations to account for growth in the online world.

The case analyses how Zara develops its fast-response strategy. New shipments come to stores twice a week to ensure there is a fresh pipeline of products. This strategy has helped Zara keep low inventory levels and sustain an image of exclusivity.

The Spanish retailer puts great focus on its physical stores rather than huge marketing campaigns, and it relies primarily on word of mouth to draw in shoppers. Contrary to its rivals, its business model shuns traditional fast fashion. Instead, the focus is on empowering teams across the organisation to make quick decisions.

This case study is an effective tool for MBA students, because it offers an in-depth look at Zara’s strategic management and operations — and its global expansion. In particular, detailed analysis of its supply chain, and its responsive design-to-distribution model, gives students insights into operations management and the role technology plays in retail.

Starbucks’ digital transformation

It’s the AI, stupid. US coffee chain Starbucks is arguably better known for its caramel macchiatos and skinny lattes than it is for its successful digital transformation. But sales of the former were reliant on the latter. The group’s rapid expansion had caused the quality of its offering to deteriorate. To tackle the issue, then chief executive Howard Schultz started a technology transformation, launching the Starbucks Rewards programme and mobile app to boost customer engagement and operational efficiency.

Starbucks also embraced new AI and mobile technology, introducing new features such as Deep Brew, an AI engine that personalises customer experience. Implemented in 2017, its Digital Flywheel programme focused on four key areas: personalisation, payment, mobile ordering and rewards. The pandemic and the need to rely on technology cemented Starbucks’ competitive edge.

This case gives MBA students valuable insight into a company’s digital transformation and customer experience management as ways to remain competitive. It offers a lesson on how traditional businesses can reinvent themselves using technology while keeping their core brand value and identity.

MBA students often complain about a 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 Life Group

In 2010, Heather Larson, alongside her father, Jeff, was exploring the launch of the Healthy Life Group to market Nutrifusion, a tasteless powder derived from fruits and vegetables that can be added to foods such as bagels to boost their health benefits. She secured exclusive distribution rights in Canada and planned to collaborate with local supermarket chain Loblaws to integrate Nutrifusion into its President’s Choice-branded products.

Predicted first-year sales were 36,500 packs of cookies, 50,000 bagels and 28,000 bags of chips — all infused with Nutrifusion. However, the Larsons needed to analyse their financial projections and the risks of relying solely on one supermarket chain to distribute their product.

Consumer demand for healthy products was growing, 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 watched their spending?

This case study gives future executives an understanding of concepts such as market entry strategy, distribution challenges and financial forecasting.

Through this real-world entrepreneurial venture, MBA students can understand risks, especially those related to relying on a single distribution channel and the challenges of bringing a niche product to market.

Leadership on tap: Wolfgang Keller’s challenge

Wolfgang Keller, managing director of Königsbräu-TAK, a Ukrainian subsidiary of a German beer company, was confronted with a managerial dilemma with his commercial director, Dmitri Brodsky. While Keller managed to turn around the struggling subsidiary, his relationship with Brodsky was strained from the beginning.

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 handle urgent matters that Brodsky had failed to tackle in time. This exacerbated tensions between them, as Brodsky perceived Keller’s involvement as interference, while Keller viewed 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 dig 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 get students to reflect on leadership, team dynamics, communication and performance management.

The case also deals with issues of ethical leadership and personal development. Keller is anxious about Brodsky’s underperformance, but he must also balance the obligation to give Brodsky a fair chance to succeed.