SIGMA PRESENTS

CASE STUDIES
TASK-1
SIGMA INDUCTIONS 2023

DEADLINE
20 AUG 2023,11:59PM

EXTENDED DEADLINE
21 AUG 2023, 11:59PM (POINTS DEDUCTED)
Que:1) CRISIS MANAGEMENT PROBLEM SOLVING:

TASK 1:

Given are two real-life scenario cases where crises have shaped up. Required actions
were taken at needed times. You are supposed to assess the situation and give the
most appropriate answer for each question that follows it. You are also required to
provide any alternative, creative and more effective solutions if any ( this gives you
brownie points ofcourse! )

Case 1:

Two black men were arrested and handcuffed without even making any kind of
purchase from Starbucks at Philadelphia. They were apparently waiting for one of their
colleagues to join them there. The event happened a year ago and ever since then,
Starbucks, being more of a culture rather than a coffee service, has managed to rectify
the mistake on its part and come out as reliable and has acquired a good label in the
market. Let’s see what exactly happened.

Thursday, April 12th, 2018

Starbucks manager called up the local police in Philadelphia and instructed them to
proceed with handcuffing two black men who were waiting at the cafe and hadn’t made
any purchases yet. Some people at the cafe shot the whole thing and made it go viral
on the Internet overnight. People started defaming the chain as a whole.
#BoycottStarbucks, #StarbucksWhileBlack etc started becoming the trend at that time.
Later on, then CEO Starbucks, Kevin Johnson put out a public statement saying the
whole happening was “disheartening”. The Philadelphia police took to Facebook to
inform the public that they have done nothing wrong and is clean from their part.

Monday, April 16th, 2018

CEO, Kevin Johnson was seen giving official word and his stand about the whole event
on GMA ( Good Morning America ) and described the actions as “reprehensible” and
“wrong.” He continued to use strong words throughout his interview and managed to
impress the anchors and the audience alike with his candour and genuineness. Kevin
then went on to attend many media events and spoke at length about the situation
trying to connect with the people directly.

Here’s a link to the interview he first gave on that day: https://youtu.be/1Cz6MF46_yA

Tuesday, April 17th

Starbucks announced that they are closing all US stores of their for “racial-bias” training
and this created a good impression in the public’s eye. The same day the police release
the 911 call, radio traffic and the police report.

Wednesday, April 18th

Starbucks Executive Chairman Howard Schultz appears on CBS This Morning and says
he is “ashamed” and “embarrassed.”

Thursday, April 19th

Rashon Nelson and Donte Robinson, the two black men who got arrested, appeared on
the GMA talk show, this being the second time GMA is hosting something regarding the
whole incident, previously the CEO of Starbucks. The two men then put out a statement
saying, they wanted the firm to do something bring about a change in them and the
whole community to make it more welcoming, approachable and to avoid any more
problems.

Wednesday, May 2nd

Starbucks and the city announce separate settlements with the arrested men. The city
paid each $1 and set up a $200,000 program for young entrepreneurs as requested by
Nelson and Robinson. The Starbucks settlement included a financial settlement, the
ability for Nelson and Robinson to complete bachelor’s degree through an online
program with Arizona State University created for Starbucks employees. The settlement
also included a mentoring relationship with Chief Executive Johnson.

Case 2:

21st May 2015

The Indian food inspectors got allegation over Nestle’s 2 Minute Maggi Noodles that,
they are selling hazardous packets of noodles with high levels of ingredients dangerous
to human health, the issue primarily stemming from the state of Uttar Pradesh.

1st June, 2015

Nestlé continues to keep its customers up to date on the investigation into the safety of
Maggi noodles in India. On the official Maggi noodles India Facebook page, Twitter and
website, Nestlé states that extensive testing reveals no excess lead in Maggi noodles.

2nd June 2015

Nestlé uses Twitter and Facebook to answer customers questions about the levels of
MSG and lead found in their noodles. The company continues to re-assure customers
that the noodles are safe and that they are a transparent company working closely with
authorities in India to resolve the issue. As well as Nestlé explains the science behind
the tests, what lead and MSG are and gives an informative breakdown of the
ingredients in their product.

3rd June, 2015

Nestlé continues to engage in an active dialogue with customers on social media

channels Facebook and Twitter. As well as this the company created a FAQ page on the
official Nestlé website to answer all questions.

4th June, 2015

After re-assuring customers that its noodles are safe, the brand does a U-turn and
decides to recall Maggi noodles produced in India. Nestlé CEO Paul Bulcke spoke to
the media and said that “We are working with authorities to clarify the situation and in
the meantime Nestlé will be withdrawing Maggi noodles from shelves.”

16th June, 2015

Nestlé decided to destroy more than £32million ($50million) worth of Maggi Noodles in
India after they were deemed unsafe by regulators.

3rd July, 2015

After the food safety scare in India Maggi noodles have been tested in other parts of the
world to reassure consumers that they are safe. Results from noodles tested in the UK
found that levels of lead in the product are within EU levels. Shortly after the UK results
were published, Canada also cleared Maggi noodles as safe.
QUESTIONS:

1) From both the case studies given above, evaluate the key differences in the way
the firm took up responsibility of the issue and give suggestions, if any, on how
could they have handled it better.
2) How well did both the parties involve the public and keep them engaged with the
issue in light? What are according to you, are some of the aspects they could
have eliminated and list out 3 replacements for the same. Picturise the public
involvement they could keep hold of, by taking help of relevant data you can find
online. ( preferrably in the form of tables, charts etc.)
3) List out few legal actions companies took inorder to resolve the issue. ( It should
be case specific, giving details about each law, amendment, statement etc
involved. ( secondary research would give you better edge on this! )
4) What do you think re-assuring the public continuously creates on an impact
level? Is it more of positive or negative impact? While Nestle went ahead with
this approach, Starbucks sorted their problem in a different way. Point out the
differences in the two approaches and give the cons of Starbuck’s approach in
light of Nestle’s.
5) Did Starbucks resolve issue by using strong words and statement from their
side? If so, how do you think that impacted the public on the firm’s image? Would
you level it up or down the scale of strong emotions behind the official statement
put out during a crisis faced by any company? Give your views by supporting it
with adequate data.
Que:2) Financial Performance Analysis of SkyLogistics SaaS Solutions

SkyLogistics is a SaaS firm specializing in providing cloud-based solutions for the air cargo industry

in India. The company offers services such as shipment tracking, inventory management, and

real-time analytics to airlines, cargo carriers, and freight forwarders. This case study aims to analyze

the financial performance of SkyLogistics over the past year, considering revenue, costs, profitability,

and factors influencing its financial outcomes.

Additional Information:

● The financial year under analysis is from April 1, 2022, to March 31, 2023.
● SkyLogistics operates three main services: Shipment Tracking, Inventory Management, and
Real-time Analytics.
● The company also provides customization services, which include one-time setup fees and
ongoing support charges for tailored solutions.
Subscription Metrics:

Number of Subscribers at Start

Service of Year Number of Subscribers gained Churn Rate (%)

Shipment Tracking 300 150 5%

Inventory Management 220 140 8%

 Real-time Analytics 500 150 6%

Questions:

1. Analyze the revenue growth rate of each service (Shipment Tracking, Inventory Management,
Real-time Analytics) for the financial year 2022-2023. Determine which service experienced
the highest revenue growth and discuss potential reasons for this growth. Provide ways to
improve this growth.
2. Analyze the profit of each service and identify the most profitable service. Also calculate the
Customer Acquisition Cost (CAC) for each service based on the expenses and the number of
new subscribers/customers acquired during the year. Discuss the effectiveness of the
company's marketing strategies for each service.
3. SkyLogistics is planning to expand its operations to serve international clients. Analyze the
potential financial implications and challenges associated with this expansion. Additionally,
SkyLogistics is considering offering annual subscription plans with discounts to encourage
long-term commitments from customers. Analyze the potential impact of these annual plans
on the company's cash flow and discuss the trade-offs between short-term revenue and
long-term customer loyalty.

Que:3) Pick any one of the following topics and write an article of 800 to 1200
words on it:

1) The rise of fintech startups and their impact on India’s financial services
industry
2) The role of central banks in the economy
3) Exploring the concept of financial bubbles and their impact on markets.
4) Pros and Cons of a cashless society
5) The role of credit rating agencies in financial markets