®

National Case Study Competition

August 2019
 Case statement (1 of 2)

● Company details
– Global Cineplex Company (GCC) is the one of the world’s largest movie theater chains, with the US as
its primary business base, along with parts of Europe
– After a spate of acquisitions in 2016 and early 2017, its growth has slowed/stagnated and its margins
have declined, negatively impacting its share price

● Current scenario
– The GCC management team is now planning a calibrated expansion into Asian markets and has
identified India as a potential target
– The team’s objectives are as follows
◆ First three years: A modest investment to test the waters – opening four to six properties in India,
with a goal of at least breaking even by the end of three years. The team has expressly decided not
to take a “big bang” approach such as acquiring an existing large national theater chain
◆ After three years: Depending on the level of success in the first three years, GCC is willing to invest
more in India

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 Case statement (2 of 2)

The GCC management team has hired your team to advise them on their India investment and go-to-market
strategy (for the first three years)

● Key decisions to be made:

– Determine the cities for the four to six properties: Should they be Tier-1, Tier-2, or Tier-3 cities, or a
combination, including the name(s) of the city/cities
– Whether to build (as part of a mall or a standalone property) or buy (a smaller/local cineplex or theater
chain). If the suggestion is to buy a small/local cineplex or theater chain, please suggest a potential list
of targets
– Value proposition and pricing
– Format: Single-screen or multiplex (approximate number of screens)
– Any other key points that GCC needs to consider

● Alternative options?: While all the above analysis needs to be done for a modest test investment for the
management team, the CEO has separately asked for your views (short and quick analysis) on whether
this modest approach is the right way or whether GCC should make a big-bang investment

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Data points

Balance Sheet ($000) 2015 2016 2017 2018 H1 2019 Cash Flow ($000) 2015 2016 2017 2018 H1 2019
Cash and Cash Equivalents 211.3 207.1 310.0 313.3 190.5 Cash Flow from 467.6 431.7 537.4 523.2 153.6
Current Assets 414.4 683.6 872.4 781.3 590.0 Operating Activities
Net PP&E 1401.9 3035.9 3116.5 3039.6 7412.8 Cash Flow from -509.4 -1354.7 -959.3 -317.2 -221.3
Investing Activities
Total Intangible Assets 2644.1 4298.1 5312.2 5140.8 4960.6
Cash Flow from 35.3 918.3 492.3 -194.8 -54.5
Total Assets 5088.3 8641.8 9805.9 9495.8 13514.9 Financing Activities
Short-term and Current 18.8 81.2 87.7 82.2 603.1 Effect of Exchange -0.4 0.6 17.7 -5.5 -.0.6
Long-term Debt Rate Fluctuations
Current Liabilities 712.2 1189.2 1409.4 1328.1 1713.9 Other Cash Flow 0.0 0.0 0.0 0.0 0.0
Non-current Long-term Debt 1995.9 4355.1 4799.0 5201.0 9674.5 Net Increase in -7.0 -4.2 88.1 5.7 -122.8
Total Liabilities 3548.3 6631.1 7692.7 8097.8 12189.8 Cash and Cash
Total Mezzanine Level Items 1.4 1.1 0.8 0.4 0.0 Equivalents

Equity Attributable to Parent 1538.7 2009.7 2112.4 1397.6 1325.1 Recurring Levered 69.8 50.7 -94.4 76.5 -53.7
Company Free Cash Flow

Total Equity 1538.7 2009.7 2112.4 1397.6 1325.1

Total Capitalization, at Book 3554.7 6447.1 6999.9 6681.2 11602.7 City Tier Examples
Value Tier 1 cities Delhi NCR, Mumbai, Bangalore, Chennai, Kolkata,
Hyderabad, Pune
Tier 2 cities Major state capitals such as Lucknow, Jaipur,
Income statement ($000) 2015 2016 2017 2018 H1 2019
Chandigarh, Patna, etc.
Operating Revenue, Net 2946.9 3235.8 5079.2 5460.8 2706.5
Tier 3 cities Smaller state capitals and other big cities such as
Cost of Revenue 2396.8 2590.5 4178.2 4409.6 2309.0 Kanpur, Ranchi. Trivandrum, etc.
Reported Net Operating 237.1 212.9 102.0 265.0 71.8
Income
Recurring EBIT 279.3 314.0 231.4 412.8 95.0
Recurring EBITDA 512.2 582.3 770.0 950.6 320.0
Net Income before Taxes 163.5 149.6 -333.1 123.7 -69.7
Net Income before Extra 103.9 111.7 -487.2 110.1 -80.8
Net Income 103.9 111.7 -487.2 110.1 -80.8

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 Submission process and evaluation criteria

Submission Process
● MS PowerPoint deck, with supporting Excel, if any
● The deck should be designed assuming that you are an Analyst with Everest Group, making a
presentation to the senior GCC management
● Deck structure
– Cover slide: Select a team name with two members in each team; include the team name and team
member names on the cover slide
– Slide 2: Executive summary – key recommendations on the case solution
– Four to five pages of detailed content supporting your findings
– Last page: CEO response
◆ Two to three sentences on why you think the CEO separately asked you for your views on the size
of the investment
◆ A short paragraph responding to the CEO’s question: is the modest approach is the right one and
supporting logic

Evaluation Criteria

● Good structuring with sufficient breadth and depth to the solution

● Clarity of thought with frameworks and numerical analysis, where necessary
● Quality of executive summary (ability to succinctly cover key points)
● Visual layout (a deck worthy of presenting to the CXO level)

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Award details

Get a chance to win!

Award details
● First prize (campus level): INR 100,000
● First prize (national level): INR 150,000
● Certificates for top three teams at campus and national level
● Direct entry to internship interview process for the top three teams at the campus

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Key dates

August 13: Case challenge to be circulated to the registered teams

1 August 25, midnight: submission of presentation to PlaceComm

Campus September 10: announcement of finalists

semifinals

September 12, 2019: leadership & pre-placement talk by Karthik H, Partner, Everest Group
2
Finalists to present their case solutions
Campus
finals Announcement of winners

Second week of November 2019: engagement at Everest Group office, Gurgaon

3
Finalists to present their case solutions
National
finals Award ceremony

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