mbca case competition delegate package

MBCA Case

Competition

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Welcome

Welcome to the MBCA – UTM Accenture Case Competition 2015! The event is a business competition where students will work in teams to solve the case pro-vided. Participants will analyze the quantitative and qualitative information pro-vided and deliver a recommendation for the stated company. The competition is based on an elimination process. There will be two rounds of presentations. For the first round, the teams will be broken up into 3 rooms for judging/scoring. The top teams will move on to the final round of presentations, which will feature our whole panel of judges and will allow for everyone to watch. The focus of the Case Competition is to provide participants with experience in reading and analyzing cases. We believe in experiential learning through team-work and professional communication. We are very excited to meet the teams and see the wealth of knowledge you have to offer. Good luck to all teams!

MANAGEMENT & BUSINESS

CONSULTING ASSOCIATION

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ITINERARY March 14, Saturday



10:45 AM – 11:30 AM

Registration & Refreshments

11:30 AM – 12:00 PM

Opening Ceremony [IB120]

12:00 PM – 1:00 PM

Lunch

1:00 PM – 2:30 PM

1st Round of Case Presentations [IB260, IB270, IB280]

2:30 PM – 3:30 PM

Workshops: “The Whole Package” & “Mini Case Competition Challenge” [IB270, IB280]

4:00 PM – 4:30 PM Key-note Speaker

4:45 PM – 5:30 PM

Final Round of Case Presentations [IB120]

5:30 PM – 6:00 PM

Closing Ceremonies [IB120] & Announcement of the Winner

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Judging/Scoring will be based on a 100-point scale. The first round will break up teams into groups for judging in separate rooms. Only ONE team will enter the room to present their findings at a time. Teams will have 15 minutes to present, and 5 minutes to answer questions. The case competition will be a process of elimination and final teams will present to our panel of judges and our viewers. Selected candidates will only be announced at the time of the final presentation round. Teams will be judged on the following criteria: Problem Definition and Analysis (25 points) Definition of problem and key issues Qualitative and quantitative analyses Analysis of company & industry

Alternatives and Recommendations (15 points) Evaluation of feasible and actionable alternatives Solutions and final recommendation Justification of recommendation Realism and practicality of solutions Strategic orientation and focus Logical tie-in to analysis

Implementation and Plan of Action (20 points) Consideration of cost and control issues Timeline and analysis of potential problems

Organization of Material and Overall Presentation (25 points) Ability to defend position if and/or when questioned Clarity and style of presentation

Delivery Questions & Answers (15 points) Presentation style Communication skills Poise Creativity Professionalism Use of Time



Judging process and criterion

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MBCA CASE ANALYSIS

MBCA Case Competition March 14, 2015 FastMart Entry into Canada FastMart, one of the largest retailers in the United States, is considering entry into the Canadian retail market In light of Target’s recent exit. Johnson (the CEO) has hired your team to consult for him and propose a strategy to enter the Canadian market. Overview of the Client: FastMart is a major U.S. retailer incorporated in New York on 1914. FastMart is typically referred to as “the second Target” with a similar retail operation (identical logistics and distribution system). Fastmart sells products through three formats of discount stores: Hyper FastMart, Urban FastMart, and Express FastMart. Hyper FastMart are ap-proximately 150,000 sq ft located in more suburban areas and sell a large selection of general merchandise (i.e. electronics, household items, fashion items, everyday essentials, home furnishings and décor) and groceries. Urban FastMarts are approximately 50,000 square foot located in more urban areas and stock groceries, electron-ics, prescriptions, cosmetics, clothing, kitchen products and furniture. The final format Express FastMarts are approximately 20,000 square feet located in densely populated urban areas with a small selection of groceries, prescription, cosmetics, and personal care items. In addition to its multi-format stores, Consumers can also pur-chase goods through FastMart’s extensive E-commerce channel. In addition to its sales of general merchandise and groceries, Fastmart also offers the FastCard, a Mastercard that offers customers reward dollars per purchase. Transferrable Strengths into the Canadian Market: FastMart has several strengths that may be transferrable to the Canadian market. FastMart has been pushing its omni-channel initiatives in conjunction with it’s e-commerce channel to drive greater sales. For example, FastMart has recently implemented an omni-channel initiative where customers can order products online, then pay and pick up their purchased products in-store. More importantly, Canadian customers are already familiar with Fast-Mart’s user-friendly e-commerce interface. In addition, Canadian customers are also familiar with the FastMart brand and often shop at FastMart whenever they cross the border for its quality and cheap products. Client Ask: As Johnson looks at his annual reports and the list of complaints from shareholders over the slow revenue growth, he explores the option of entering the Canadian Market. While Target’s recent exit has sent a message to interna-tional retailers that entry into Canada is complex, he sees this as an opportunity to learn from Target’s mistakes and launch a more successful entry. He has hired your team of consultants and requested for a strategy for mar-ket entry, which will then be presented to the board of directors. There are several essential factors he wants in-corporated in this strategy including: market segmentation and sizing, speed and costs of entry, flexibility of entry and exit, payback period, and short- and long-term objectives. Your team has also been told to include any other relevant factors and to be sure you have convincing information to justify a strong return on investment.

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2014 2013 2012

FINANCIAL RESULTS: (in millions) Total revenues 65,357 64,948 63,367

Cost of sales 44,062 44,157 42,929 SG&A 13,078 12,954 12,670

Credit card expenses 1,521 1,609 837

Depreciation and amortization 2,023 1,826 1,659

Earnings from continuing operations before interest expense and income taxes

4,673

4,402

5,272

Net interest expense 801 866 647

Earnings from continuing operations before income taxes

3,872 3,536 4,625

Provision for income taxes 1,384 1,322 1,776

Earnings from continuing operations $2,488 $2,214 $2,289

PER SHARE: Basic earnings per share $3.31 $2.87 $3.37

Diluted earnings per share $3.30 $2.86 $3.33

Cash dividends declared $0.67 $0.62 $0.54

FINANCIAL POSITION: (in millions)

Total assets $44,533 $44,106 $44,560

Capital expenditures $1,729 $3,547 $4,369

Long-term debt, including current portion $16,814 $18,752 $17,090

Net debt $15,288 $18,562 $15,239

Shareholders’ Investment $15,347 $13,712 $15,307

U.S. RETAIL SEGMENT FINANCIAL RATIOS:

Comparable-stores sales growth (2.5%) (2.9%) 3.0%

Gross margin (% of sales) 30.5% 29.8% 30.2%

SG&A (% of sales) 20.5% 20.4% 20.4%

EBIT margin (% of sales) 6.9% 6.5% 7.1%

OTHER:

Common shares outstanding (in millions) 744.6 752.7 818.7

Cash flow provided by operations (in millions) $5,881 $4,430 $4,125

Revenues per square foot $287 $301 $318

Square footage growth 4.2% 7.0% 8.3%

Total number of stores 1,740 1,682 1,591

Hyper FastMart 1,489 1,443 1,381

Urban FastMart 251 239 210

Express FastMart 3 - -

Total number of distribution centers 37 34 32

FastMart Annual Reports 2012-2014

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Contact us

Thank you for your interest and participation in the MBCA Case Competition. The MBCA looks forward to collaborating with you in the future to provide even more opportunities for you at the University of Toronto—Mississauga. If you are interested in becoming involved with the MBCA or have any questions, please contact us: Andy J. Kim Email: [email protected] | 416 624 4677 Sam Gharagouzlee Email: [email protected] | 647 833 1154

mbca case competition delegate package

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