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CASE
102 United Standard

David Ohrvall
Founder of MBACASE.com
 United Standard
Lagos, Nigeria 102
Is United strong enough to deal with this business blow? START
RRR

L AG O S C I TY FAC TS

PPExplosive growth
has been fueled
by Nigerias oil
industry
PPCenter of the
Nigerian movie
industry, known as
Nollywood
PPPredicted to be one
of worlds 10 largest
cities by 2010

T r a i n Profile

Type Region Analysis Industry Number

1
C a s e S ta r t
Lagos, Nigeria
Population: 7M
ROADMAP

Exit a Business
5 LEVEL

1
Currency: Naira, NGN
Metals & Mining
or Market

Solo Practice with Video Assist 55

60
5 Partner Practice
50 10

45 15

1. Find your videos 40

35 25
20
1. Set up
30

2. Set up 2. Present the case question

10 minutes
3. Listen to question 3. Recap
4. Recap 4. Create your plan
5. Create your plan 5. Present your plan
6. Present your plan 6. Stop and study
7. Stop and study 7. Reinforce
8. Reinforce

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United Standard 102

Lagos, Nigeria START
RRR

Interview Guide Feedback

Case Situation & Question Physical Skills Weak Strong

Body Language
United Standard is a European metal fabricator. They produce metal beams for the booming Nigerian a 2 3
Verbal
construction market. One of their production facilities in Lagos has continued to struggle to produce a 2 3
Listening
high-quality metal. Due to several poor grades during inspection reports, the Nigerian government a 2 3
is now demanding that United shut the facility down. They say the tensile strength of the metal is not Thinking Skills
the proper quality for construction.
Hypothesis Generation
a 2 3
What should United do? Initial Plan & Output
a 2 3
Data Analysis
a 2 3
Basic Business Intuition
a 2 3

Case Twist
Local labor unions have rallied community support to Total Score / 21
keep the plant open.
Video 1
How does this affect your approach? Case Question
(Interviewer)

Click or scan QR to see video.

Ca se St a r t S e l f St u d y R e m i n d e rs
Listen to Question Recap & Ask for a Minute Create Your Plan Present Plan Stop & Study Reinforce

Read the question out Briefly recap the situa- Using the paper below, Turn your plan toward Review the roadmaps Do the start again with
loud like an interviewer tion, the complication, fill in the sections. the interviewer (or and the Post Case the video interviewer,
or watch the MBACASE and your task. Speak out mirror or webcam) and Review page to see or find a live partner
video interviewer. loud just like you would present it piece by piece. what you missed. Mark and get some feedback.
in an interview. up your plan to make it Incorporate what you
better. learned the first time.
2
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United Standard 102

Lagos, Nigeria START
RRR

My Initial Plan and Output Todays date:

Questions Im thinking about: Topics I know to cover:

Profit Tree Approach: Topic Bucket Approach:

3
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United Standard 102

Lagos, Nigeria START
RRR

Post Case Review Questions to Consider

Sample Case Starts What does shut down mean? Do they have
to close the location or can they continue to
Profit Tree Approach:
P W  ill customers demand a discount for potential delays?
May stay the same
produce some material?
How will they source product to Nigeria going
X
C  an we stabilize volume with promotions? forward?
Volume may drop as customers cancel orders What cost increases?
Revenues V
My Takeaways
p FC
A
 s we reach full capacity at other locations, FC may be
optimized Im doing well with:
+ S hipping charges will increase as we ship from other locations
Costs VC Employee costs may go up with overtime at other locations
Input costs in certain markets may go up as we increase
I need to work on:
(unit VC production and need scarce supplies
How to maintain
x volume)
profit during
shutdown? Additional Study: For more questions to
consider, review Section 13: Roadmaps.

Topic Bucket Approach: How should they exit this business?

Sales / Financial
Strategy Operations Competitors
Revenue Assets

Have to exit due to How to change current Can other facilities Can we sell facility How will they attempt
quality. sales? produce this steel? and assets? How to steal share? Video 2 Video 3
Plan & Structure Recap & Tips
Is this the only option Lose customers? Will What other facilities much? Can they absorb our (Candidate) (David Ohrvall)
or will govt. officials they cancel orders? will be affected? Value of equip alone? customers?
give 2nd chance? Can we supply from (plant suppliers) Can we transfer Where are they weak?
Turn this into an other factories? equip. to other United Click or scan QR to see video.
advantage? location?
4