Inside scoop on the May Management Case Study Exam
We have spoken to our Management Case Study lecturer, Precious Nyamazana, about the upcoming Case Study Exam and here is what she had to say.
According to Precious, you will probably feel a lot of time pressure during your exam, but she suggests you do not neglect question planning. Even if you simply write down headings, that is also planning. Her advice is to read through each question carefully, understand the requirement and then plan how you will approach it before you attempt to answer.
We asked her to speculate on what is likely to appear in your exam and she says there might be a lot of focus on the importance of cost planning and good decision making. She also suggests you build your understanding on how to handle the human aspect of a business, how to deal with stakeholders and get the most out of your workforce.
In your final preparation, be sure to attempt as many exam-standard questions as you can lay your hands on and spend twice the amount of time on analysing your question against the suggested answer, than you've spent on attempting your answer.
Your best way to prepare for a Case Study exam is to attend Exam Prep Classes over two weekends. IBTC aims to get a 100% pass rate for these exams!
Below is an overview of the May 2018 Management pre-seen.
MSC MAY PRE-SEEN OVERVIEW
What is it about?
- Menta is a leading multinational public transportation group with a divisional structure.
- It employs more than 35,000 people worldwide.
- Menta offers local (city and rural) and long-distance (inter-city) bus services in several developed and developing countries.
- It is organised into three regions: Central Eurozone, Western International and Eastern International. Segment financial information has been provided pertaining to each of these regions.
- The types of bus vehicles in use are: Inter-city – single-decker, comfortable seats, air conditioning City services – mixture of single-decker and double-decker, seating safe/functional, priority to maximise passenger numbers Rural services – usually smaller
- In long-distance services, the cost will be greater due to higher fuel and driver expenses (usually a couple of drivers).
What kind of company is featured?
- Menta was established in Centralia by Andrew Whiteford in the 1950's as a road haulage garage (maintenance/repair of goods vehicles and buses).
- It was then inherited by Andrew’s nephews (50% share each): Phil (owned travel agency so originally had no active part in running Menta) and Robert Whiteford (trained mechanic, Menta’s General Manager). In due course Phil started to manage commercial aspects using travel business knowledge/contacts; Robert managed maintenance of buses
- By 1985, Menta had 30 buses operating on 6 inter-city routes. By 1990 Menta had 11 inter-city routes & 7 local bus companies with a fleet of over 450 vehicles & over 2,500 members of staff.
- Menta grows through the acquisition of subsidiaries and complementary businesses e.g. park & ride facilities.
- Centralia provides 70% of Menta’s revenue & Menta has 30% market share in Centralia making them a dominant player in the market.
- Menta is displaying a stronger financial performance than its major competitor Dawlbus.
What problems does it face?
- Competition from local bus companies as some countries have well-established transportation companies with the largest competitor being Dawlbus in Centralia.
- Adverse press coverage –Bus Accident & Blockade following pollution issues.
- Menta being a multinational group operates in many countries. This would mean the group will be exposed to political risk, international risk and exchange rate fluctuations, etc.
- There is a current trend of most governments not being fond of the use of diesel (more polluting than petrol). Instead, governments are encouraging companies to implement clean energy solutions such as the use of electric vehicles.
What strategies did they use to overcome these problems?
- Continued to expand long-distance routes – aggressive competition by cutting fares forcing competitors out of business, allowing Menta to acquire their buses, depots and drivers.
- Organic growth: safe, reliable, customer-centred transport services delivering excellent customer service at competitive rate.
- Acquire business complementing Menta’s existing operations in areas of proven expertise and offer prospective returns that exceed Menta’s weighted average cost of capital.
- Maintain/grow the business by competitively bidding for selected tram franchises, government contracts for education or health transport and other bus contracts.
How IBTC can help you prepare for your case study exam:
Exam Prep Classes for the August sitting begin on 14 July for Sandton and Cape Town. To sign up go to www.ibtc.co.za and click on the book now button and secure a seat in one of our classrooms