0 1 | C A S E : A L P H A AV I A T I O N

CALCULATIONS FOR INTERVIEWER

What is the CM potential of each route? What is the payback period?
Route 1 Route 2 Route 3 Route 1 Route 2 Route 3
SEA - MINN FAY - DALL NYC - DC SEA - MINN FAY - DALL NYC - DC

# of Seats per Plane 240 120 120 Terminal Construction $ 100,000 $ 2,500,000 $ 5,000,000
x Average % Filled 90% 60% 80% + Equipment Purchase $ 1,000,000 $ 3,000,000 $ 1,000,000
Average # of Passengers 216 72 96 + Additional Staff Required 10.00 100.00 50.00
x Average Flight Distance (mi) 1,400 550 200 * Training per Staff Member $ 100,000 $ 1,000,000 $ 500,000
A Available Seat Miles (ASM) 302,400 39,600 19,200 D Total Upfront Cost $ 1,200,000 $ 6,500,000 $ 6,500,000

Revenue/ASM $ 0.12 $ 0.22 $ 0.18 Total Upfront Cost $ 1,200,000 $ 6,500,000 $ 6,500,000
- Cost/ASM $ 0.11 $ 0.09 $ 0.12 / Annual CM/route $ 1,814,400 $ 3,088,800 $ 2,073,600
B CM/ASM $ 0.01 $ 0.13 $ 0.06 D / C Payback (Years) 0.7 2.1 3.1
Payback (Months) 8 25 38
ASM 302,400 39,600 19,200
x CM/ASM $ 0.01 $ 0.13 $ 0.06
AxB CM/flight $ 3,024 $ 5,148 $ 1,152
Key: weigh the shorter payback period with the
x Flights per day 2 2 6
riskiness of the investment (passenger availability,
x Flying days per year 300 300 300
competition, start-up time, operational considerations)
C Annual CM/route $ 1,814,400 $ 3,088,800 $ 2,073,600
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 0 1 | C A S E : A L P H A AV I A T I O N

EXHIBIT 3
Upfront Costs

Route 1 Route 2 Route 3

Seattle → Minneapolis Fayetteville → Dallas NYC → DC
Terminal Construction 100k 2.5M 5M
Equipment Purchase 1M 3M 1M
Additional Staff Required* 10 100 50

* 10k/person will be required for training

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0 1 | C A S E : A L P H A AV I A T I O N

EXHIBIT 4
Route Financials (Per ASM)

Route Financials per Filled Seat

Revenue Cost

$0.22
$0.18
$0.12 $0.11 $0.09 $0.12

Route 1 Route 2 Route 3

Seattle – Minneapolis Fayetteville – Dallas NYC - DC

Route’s Average
90% 60% 80%
% Seat Fill Rate

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0 1 | C A S E : A L P H A AV I A T I O N

BRAINSTORMING
Your client has identified that attracting business travelers will be key to long-term growth and
profitability. Please brainstorm some ideas on how your client can increase business travelers in the
next 3 years.

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

In-flight amenities External partnerships Flight structure Misc.

• Upgraded WiFi • Preferred status with Concur and • Early morning and late afternoon • Revenue-based loyalty program
other corporate booking sites time slots to accommodate
• Extra legroom and business class business schedule • Perks for Elite Status
cabins (lower price sensitivity) • Alliance networks with smaller,
regional airlines (continuous • No penalty rebook or cancellation
• Priority boarding for business service)
travelers

Best candidates display:

Ability to integrate disparate data on route mapping with brainstorming ideas – i.e. how can the client best design the selected route to appeal
to business travelers in that destination. If time allows, the interviewer should ask the candidate why an airline would grow its base of business
travelers.
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0 1 | C A S E : A L P H A AV I A T I O N

CONCLUSION
To conclude, the interviewee should provide the following:
Recommendation:
• No clear “right answer” – the case is meant to test a candidate’s ability to deal with ambiguity. A good answer will consider
both the quantitative and qualitative advantages of the three routes, and how each aligns with the client’s long-term goals.
The information in the case is purposely spread out and difficult to interpret, so candidates should maintain composure
and organization when providing their final recommendation.
Risks:
• Competitive activity at destination airport – possibility of a price war
• Pending local legislation at destination city – could prevent or hinder monopolistic activity or make airline travel
prohibitively expensive for carriers and passengers
• Decrease in passenger interest in destination cities
Next Steps:
• Regulatory and operational planning schedule to implement route.

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UVA Darden School of Business 2010-20 case book
INTERVIEWER FEEDBACK FORM Case Name _________________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
❑ Clarifying Questions + Framework
❑ Good Questions
Feedback:
1 2 3 4 5
❑ Structured
❑ MECE
❑ Creativity
❑ Exhibits + Quantitative Ability
❑ Accuracy Feedback:
❑ Speed 1 2 3 4 5
❑ Insights Presented
❑ Errors / Guidance Needed

❑ Brainstorm + Conclusion
❑ Creative & Structured 1 2 3 4 5 Feedback:
❑ Good Business Judgment
❑ Recommendation Strength

❑ Presence & Non-Verbal

❑ Confidence
❑ Poise / Posture
Feedback:
1 2 3 4 5
❑ Clear & Concise
❑ Body Language
❑ Coachability

Total: _____ / 20
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0 1 | C A S E : A L P H A AV I A T I O N - A P P E N D I X

EXHIBIT 1
Route Map
Route 3

New York → DC
Route 1
200 mi
3 roundtrips/day
Seattle → Minneapolis
120 passenger capacity
1,400 mi
1 roundtrip/day
240 passenger capacity

Route 2

Fayetteville → Dallas
550 mi
1 roundtrip/day
120 passenger capacity
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 0 1 | C A S E : A L P H A AV I A T I O N - A P P E N D I X

EXHIBIT 2
Route Research

Route 1 Route 2 Route 3

Seattle → Minneapolis Fayetteville → Dallas NYC → DC
Potential for Growth* Low High Medium
Risk of Flight Disruption** Low High Medium
Competition for Route*** High Low High
Time to Establish Operations 3 months 2 months 12 months

* Projected 5-year increase in passenger volume

** Historical data on flight cancellations due to weather and operations
*** Current competitors flying the same route
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 0 1 | C A S E : A L P H A AV I A T I O N - A P P E N D I X

EXHIBIT 3
Upfront Costs

Route 1 Route 2 Route 3

Seattle → Minneapolis Fayetteville → Dallas NYC → DC
Terminal Construction 100k 2.5M 5M
Equipment Purchase 1M 3M 1M
Additional Staff Required* 10 100 50

* 10k/person will be required for training

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0 1 | C A S E : A L P H A AV I A T I O N - A P P E N D I X

EXHIBIT 4
Route Financials (Per ASM)

Route Financials per Filled Seat

Revenue Cost

$0.22
$0.18
$0.12 $0.11 $0.09 $0.12

Route 1 Route 2 Route 3

Seattle – Minneapolis Fayetteville – Dallas NYC - DC

Route’s Average
90% 60% 80%
% Seat Fill Rate

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UVA Darden School of Business 2019-20 case book
Back IT On Up
EYP | Round 2 | Tech

51
02 | CASE: BACK IT ON UP

BACK IT ON UP
EY Parthenon | Round 1 | Technology B E H AV I O R A L
INTERVIEW
Prompt: BackupCo is a data backup and disaster recovery company. It’s QUESTION:
primary headquarters is in Boston, its client services department is in South
Carolina, and its development is split between Texas and Ukraine. To expand
its product offerings, reach, and revenue, it is considering purchasing 1. Describe a
CloudCo, a cloud backup provider headquartered in Southern California. Our time you’ve
firm has been hired to evaluate this potential acquisition. How would you disagreed with a
begin considering this deal? manager or
colleague. How
did you navigate
Clarifying Information: Note: Provide this only if corresponding questions are asked. the situation?
1. What does BackupCo Produce? / What is data backup and disaster recovery?

BackupCo produces physical backup appliances that site on site at client locations, as well as software that clients
can deploy on their own devices. These products help protect data by duplicating emails, databases, sales data etc.
to alternate locations. It only sells B2B.

2. Does it sell its products worldwide?

BackupCo does 100 Million dollars worth of business in North America and the remainder of its business in EMEA
and APAC.
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02 | CASE: BACK IT ON UP

Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Valuation Synergies Risk (a few of these is fine)

• DCF • Revenue • Regulatory Risks

• Comparables • Cross-Sell • Key talent retention
• EBITDA Multiple • Up-Sell • Loss of key customers
• Cost • Overly optimistic synergy
• Headcount estimates
• Reduction/relocation • Culture
• Non-Headcount • Brand deterioration
• Scale • Overestimate cost savings
• CAPEX reduction • Cost/Vendor relationship risks
• R&D consolidation • Extended timeline
• Shared costs (IT, vendors, licenses)
• Dis-synergies
• Lost customers
• Process breakdown

How to Move Forward:

To move forward, the interviewee should note that we should look try to get a valuation and compare that to the expected benefit. They should ask for info on potential
valuation methods – guide them to a DCF

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02 | CASE: BACK IT ON UP

Question 1 (The location of these question slides in your case is completely up to you)
• How would you value CloudCo?

Exhibit or Question Guidance:

• The candidate should recognize that there are several ways to perform a valuation – DCF, Comparables, Multiples – guide them to a DCF.
• Candidate should ask if there is a hurdle rate. When this is brought up, provide:
- Hurdle rate is 13%, expected growth rate will be 3%
• The candidate should then note they need cash flows – provide them with exhibit 1 and give them the following information
- In 2019, CloudCo sold 3 tiers of subscriptions based on data size of the customer. Assume these are all inclusive profit numbers.
• Tier 1 – 10$ per Gigabyte per month, Tier 2 – 8$ per Gigabyte per month, Tier 3 –5$ per Gigabyte per month
• Candidate should do the math as follows:

Tier 1 Tier 2 Tier 3

Terabytes Sold 10 25 40
Should then use the 6M in the
Gigabytes Sold 10,000 25,000 40,000
discount in perpetuity formula
Price Per gigabyte 10 8 5
(CF/WACC-G) = 6M/13%-3% =
Monthly Profit 100,000 200,000 200,000
60M
Sum per month 500,000
Yearly Profit 6,000,000
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02 | CASE: BACK IT ON UP

EXHIBIT 1
2019 Revenue in Terabytes of Data Protected

25

20

10
15 10
10

10
10
8

7 8
5
2
4
2 2 2
0
Q1 Q2 Q3 Q4
Tier 1 Tier 2 Tier 3

Note: 1TB = 1000GB

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02 | CASE: BACK IT ON UP

Question 2 (The location of these question slides in your case is completely up to you)
• Assuming we expect a standalone valuation 60M, how much do you think BackupCo should be willing to pay for
CloudCo?

Exhibit or Question Guidance:

The candidate should realize that the standalone value is typically going to be lower than a combined value if synergies are able to be captured. If the candidate
does not realize this, push the candidate to think about this. When they have moved in this direction, provide exhibit 2.
Revenue Synergies Revenue/Gig in 2019 Gigs
Increase in Revenue from Tier 1 1 10000 10000*1 =10000
Increase in Revenue from Tier 2 1 25000 25000*1 =25000 BackupCo should be
Increase in Revenue from Tier 3 1 40000 40000*1 =40000
Total revenue increase per month 75,000
willing to pay UP TO
Revenue increase per year 75000*12 900,000 71.7M
Cost Synergies % of Revenue Synergies
SG&A 10% =.1*900k 90,000
Headcount 15% =.15*900k 135,000
R&D 5% =.05*900k 45,000
270,000

Total Yearly Profit Increase =1,170,000

DCF to Find Combined Value =7,170,000/.1 = 71,700,000

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02 | CASE: BACK IT ON UP

EXHIBIT 2
Post Acquisition Costs and Revenue Projections

Revenue Synergies Revenue Increase Per Gigabyte Sold in 2019

Tier 1 Expansion 1
Tier 2 Expansion 1
Tier 3 Expansion 1

Cost Synergies % of Revenue Synergies

SG&A 10%
Headcount 15%
R&D 5%

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02 | CASE: BACK IT ON UP

Question 3 (optional)
• We’ve been asked to develop a proposed M&A structure for BackupCo’s acquisition. How might you design this?

Exhibit or Question Guidance:

The candidate should draw the below. Instead of putting functions under IMO/PMO, territory is acceptable, but is not preferred given the type of company

Engineering

Executive Integration Supply Chain

steering MGMT
committee Office/PMO Sales & Marketing

Finance/HR
Synergy
MGMT Office Product

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02 | CASE: BACK IT ON UP

CONCLUSION
To conclude, the interviewee should provide the following:
Recommendation:
• BackupCo should look to try and purchase CloudCo for less than 71M
• Strong synergies and potential for upsell make it very attractive
Risks:
• Want to ensure that we can capture the full value of the synergies we projected, so we will want to make sure we validate
this information against previous transactions
• Want to devise a strategy to ensure we retain key customers
• Want to make sure we put in place a retention program to prevent loss of key talent
Next Steps:
• Approach CloudCo to validate interest and gain further information for synergy refinement

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UVA Darden School of Business 2010-20 case book
INTERVIEWER FEEDBACK FORM Case Name _________________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
❑ Clarifying Questions + Framework
❑ Good Questions
Feedback:
1 2 3 4 5
❑ Structured
❑ MECE
❑ Creativity
❑ Exhibits + Quantitative Ability
❑ Accuracy Feedback:
❑ Speed 1 2 3 4 5
❑ Insights Presented
❑ Errors / Guidance Needed

❑ Brainstorm + Conclusion
❑ Creative & Structured 1 2 3 4 5 Feedback:
❑ Good Business Judgment
❑ Recommendation Strength

❑ Presence & Non-Verbal

❑ Confidence
❑ Poise / Posture
Feedback:
1 2 3 4 5
❑ Clear & Concise
❑ Body Language
❑ Coachability

Total: _____ / 20
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02 | CASE: BACK IT ON UP - APPENDIX

EXHIBIT 1
2019 Revenue in Terabytes of Data Protected

25

20

10
15 10
10

10
10
8

7 8
5
2
4
2 2 2
0
Q1 Q2 Q3 Q4
Tier 1 Tier 2 Tier 3

Note: 1TB = 1000GB

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02 | CASE: BACK IT ON UP - APPENDIX

EXHIBIT 2
Post Acquisition Costs and Revenue Projections

Revenue Synergies Revenue Increase Per Gigabyte Sold in 2019

Tier 1 Expansion 1
Tier 2 Expansion 1
Tier 3 Expansion 1

Cost Synergies % of Revenue Synergies

SG&A 10%
Headcount 15%
R&D 5%

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UVA Darden School of Business 2019-20 case book
 The Big Shot
Bain | Round 1 | Media/Entertainment

63
03 | CASE: THE BIG SHOT
B E H AV I O R A L
INTERVIEW
THE BIG SHOT QUESTION:

Bain | Round 1 | Media/Entertainment

1. Describe the
Prompt: best leader
Our client, Lights Camera Action Entertainment (LCA), is a major movie you've worked
production house. After a disappointing summer filled with numerous box with.
office flops, the CEO of LCA has approached us to decide which movie the
company should release next.
2 . Te l l m e a b o u t
Clarifying Information: Note: Provide this only if corresponding questions are asked. a time when you
dealt with
1. What is LCA’s business model? LCA is a production house in the US but release movies across major global ambiguity at
markets. They have a distribution network of domestic and international theatres and get a share of the ticket sales.
workplace.
2. What movies do they produce? They've been in the business for the past decade and have a good mix of movies
across different genres.

3. What happened over summer? The COVID-19 pandemic has wreaked havoc on the movie industry.

4. What is the financial situation of the company? Even though the company did not have a major hit over summer,
the company has ample cash reserves from investors. The board has indicated, however, that they expect a hit soon,
or else the CEO will be looking for a new job.

5. Do they have any financial target? The board is concerned about ROI after the recent flops and has classified a hit
as a movie that has an ROI > 50%.
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03 | CASE: THE BIG SHOT

Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Financial Non-Financial
Revenues Costs Internal External
• Number of theaters at • Actors • Sequel of prior hit • Macroeconomic trends
release • Sets • Saturation of series • Actor popularity
• Price of tickets • Special effects • Expertise in a genre • Genre reach
• Fill rate at theater • Advertising • Exclusive deals with actors • Trending theme for the season/pop culture
• Merchandise licensing • Editing • Adaption from popular novels/books • Clashes with other movie release dates
• Sequel potential • Sound • Competition from Netflix and other
• Production Design streaming media

How to Move Forward:

The candidate should recognize that this is a profitability case. Good candidates will also realize that there are other factors
that determine the success of movies.
A good understanding of the breakdown of tickets sales at a theatre level is key to moving forward – the interviewer should
push candidates to get granular while calculating revenue (theaters * seats * fill rate * ticket sales).
Once you get to this point, hand the student Exhibit 1 and 2.
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03 | CASE: THE BIG SHOT

EXHIBIT 1
LCA movie options

Total Production Costs Forecasted Theatre

Movie Name​ Genre​
(Millions $)​ Attendance (%)​

Project Huntington Comedy​ 50​ 80​

Life at Ivy Drama​ 100​ 60​

Case Wars Action​ 75​ 75​

Paws at Pav Animation​ 90​ 80​

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03 | CASE: THE BIG SHOT

EXHIBIT 2
Global Movie Industry Statistics

Anticipated Theater Demand By Genre*

Comedy

Drama

Action

Animated

0 500 1000 1500 2000 2500

Domestic International
*Average theater run of 30 days

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03 | CASE: THE BIG SHOT

Question 1
• Which of the genres is the most profitable option for the production house?

Exhibit or Question Guidance:

Hand the student Exhibits 1 and 2. The candidate should realize that they cannot do a profitability analysis without number of seats in a
theatre and price of a ticket. Provide Exhibit 3, when the candidate asks for the above information.
Provide only when asked – Assume 30 days of revenue.
LCA revenue from each theatre type:

LCA No. of No. of

Theatre type Monthly earnings
revenues/ticket shows/day seats/show

International $1 5 400 $1 * 5 * 400 * 30 = $60,000

Domestic $1.5 10 200 $1.5 * 10 * 200 * 30 = $90,000

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03 | CASE: THE BIG SHOT

EXHIBIT 3
Global Theatres Statistics

Theatre type​ LCA revenues/ticket​ No. of shows/day​ No. of seats/show​

International $1 5​ 400​
Domestic $1.5​ 10​ 200​

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03 | CASE: THE BIG SHOT

Exhibit/Question Solution Guidance:

Total Monthly earnings

Genres​ International Domestic Total

80%*1,000*60,000 = 80%*1,500*90,000 =
Comedy​ 48M + 108M = 156M​
48,000,000 ​ 108,000,000​
60%*500*60,000 = 60%*1000*90,000 =
Drama​ 18M + 54M = 72M​
18,000​,000 54,000​,000
75%*1,500*60,000 = 75%*2,000*90,000 =
Action​ 67.5M + 135M = 202.5M
67,500,000​ 135,000,000​
80%*750*60,000 = 80%*1,000*90,000 =
Animation​ 36M + 72M = 108M​
36,000,000​ 72,000​,000

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03 | CASE: THE BIG SHOT

Exhibit or Question Guidance:

Profit for one month:
Genre Revenue ($) Costs ($) Profit ($)
Comedy 156,000,000 50,000,000 106,000,000
Drama 72,000,000 100,000,000 -28,000,000
Action 202,500,000 75,000,000 127,500,000
Animation 108,000,000 90,000,000 18,000,000

Exhibit Analysis:
ROI for each genre:
Good candidates should not calculate the profitability for all the 4 movies. From
Genre ROI (Millions $) the Exhibit 1, it is clear that “Life at Ivy” will be the least successful and can be
disregarded.
Comedy 106/50 = 2.12
From Exhibit 2, a great candidate should disregard “Paws at Pav” as it is
Drama -28/100 = -0.28 screened at fewer theatres.

Action 127.5/75 = 1.7 After calculations:

Animation 18/90 = 0.2 2 movies stand out – however, even though the comedy movie makes less profits,
it has a greater ROI which is what LCA needs.
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03 | CASE: THE BIG SHOT

BRAINSTORMING
Other than the profitability analysis, what are the other strategic decisions that LCA should consider
for the success of their next movie?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Release Timing: Monetization: Content/Marketing:

• Strategic release dates to coincide with • Merchandise sales from these movie category, • Using the marketing budget to drive
holidays/popular events, such as romcom during e.g.: water tumblers, limited edition gadgets, t- awareness and buzz for the movie using
Valentine’s weekend, Holiday films over Christmas shirts etc. appropriate channels

• Avoiding clashes with other popular movies or large • Potential for movie sequels based on popularity • Casting the right actors, production and
sporting events during the release direction, sound crew
• Releasing the movie on other platforms such as
Netflix, Hulu, and obtaining television streaming • Theme/story of the movie to align with
rights. ongoing social and pop culture, macro-
economic trends
• Impact of initial reviews on the theatre fill rates
for subsequent weeks.

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03 | CASE: THE BIG SHOT

CONCLUSION
To conclude, the interviewee should provide the following:
Recommendation:
• Recommend “Project Huntington”
• Analysis to support the recommendation – walk through the math, and recognize the lower cost to produce and higher
ROI
Risks:
Any concerns with the plan, example:
• The impact of the critics and popular reviews on the theatre fill rates for subsequent periods.
• Audience preferences might change, and theatres might change their genre preferences
Next Steps:
• Investing in releasing the movie from the category selected, choosing an appropriate release date and launching an ad
campaign.
• Analyzing the scope of the future revenues from sequels or partners for sale of merchandise.

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INTERVIEWER FEEDBACK FORM Case Name _________________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
❑ Clarifying Questions + Framework
❑ Good Questions
Feedback:
1 2 3 4 5
❑ Structured
❑ MECE
❑ Creativity
❑ Exhibits + Quantitative Ability
❑ Accuracy Feedback:
❑ Speed 1 2 3 4 5
❑ Insights Presented
❑ Errors / Guidance Needed

❑ Brainstorm + Conclusion
❑ Creative & Structured 1 2 3 4 5 Feedback:
❑ Good Business Judgment
❑ Recommendation Strength

❑ Presence & Non-Verbal

❑ Confidence
❑ Poise / Posture
Feedback:
1 2 3 4 5
❑ Clear & Concise
❑ Body Language
❑ Coachability

Total: _____ / 20
74
03 | CASE: THE BIG SHOT - APPENDIX

EXHIBIT 1
LCA movie options

Total Production Costs Forecasted Theatre

Movie Name​ Genre​
(Millions $)​ Attendance (%)​

Project Huntington Comedy​ 50​ 80​

Life at Ivy Drama​ 100​ 60​

Case Wars Action​ 75​ 75​

Paws at Pav Animation​ 90​ 80​

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03 | CASE: THE BIG SHOT - APPENDIX

EXHIBIT 2
Global Movie Industry Statistics

Anticipated Theater Demand By Genre*

Comedy

Drama

Action

Animated

0 500 1000 1500 2000 2500

Domestic International
*Average theater run of 30 days

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03 | CASE: THE BIG SHOT - APPENDIX

EXHIBIT 3
Global Theatres Statistics

Theatre type​ LCA revenues/ticket​ No. of shows/day​ No. of seats/show​

International $1 5​ 400​
Domestic $1.5​ 10​ 200​

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Contagion Containment
BCG | Round 2 | Non-profit

78
0 4 | C A S E : C O N TA G I O N C O N TA I N M E N T

CONTAGION CONTAINMENT B E H AV I O R A L
INTERVIEW
BCG | Round 2 | Non-profit QUESTION:

Prompt: 1 . Te l l m e a b o u t
Your client is the International Olympic Committee (IOC), and the Summer Olympics are a couple a failure.
months away. A viral outbreak has occurred in a country across the globe and has begun to spread.
There is a real threat that the outbreak reaches pandemic levels and arrives in the host country within a 2. How have you
few weeks or months. Should the outbreak reach the host country, there is an 80% probability of a low- used data to
severity outbreak and a 20% chance of a high-severity outbreak. The modern Olympics, which date to
bring clarity to
an ambiguous
1896, have been cancelled previously only during wartime. Recently, the Rio Games in Brazil went on problem?
as scheduled in 2016 despite the outbreak of the Zika virus.

Because countries bear a large cost to host the Olympics, the IOC has decided to be particularly
cautious about the host country bearing significant unexpected costs. However, the IOC is unsure
whether to cancel or move forward with the Olympics and would like your firm’s insight on how they
should proceed.
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0 4 | C A S E : C O N TA G I O N C O N TA I N M E N T

Clarifying Information: Provide only if asked.

1. Objective: Make a decision on whether to proceed or not by considering minimizing unexpected economic costs to host country while
maximizing IOC revenue.
2. Timeline: The IOC must make a decision today regarding the event.
3. The IOC: The International Olympic Committee (IOC) is a not-for-profit independent international organization that is committed to
building a better world through sport. While the IOC may consider input from the host country, the IOC is the decision-maker.
4. The Virus: Like the seasonal flu, this virus is an infectious respiratory illness. It can spread from person to person through droplets in
the air from an infected person coughing, sneezing or talking. However, unlike the flu, no vaccine currently available. Research is being
conducted but the timeline is uncertain.
5. Host Country: The host country is a developed nation. GDP is 3 trillion.

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