This case does not require any complicated analysis of the industry (customers, market or competitors). However, it covers an issue, which is quite often faced by businesses all around the world. Should we do it in-house or should we hire someone to do it elsewhere (outsource)?
These problems always have two sides: a financial/economical side (measured in dollars) and a strategic side (difficult to translate into money/costs but as relevant as the economics).
The case does NOT require any specific framework. However, a very clear analysis structure should be laid out from the beginning of the case and followed throughout.
Remember, the interviewer wishes to measure how organized and structured the interviewee is.
Your client, BusCo, is a passenger bus company in Uganda, Africa. Due to the poor road conditions, maintenance plays a very important role in the reliability and quality of BusCo’s services.
BusCo outsourced all of its bus maintenance operations to MaintainCo in the last years. However, especially last year, BusCo was very disappointed with the maintenance provided. The bad service caused delays in service as well as trip cancellations.
Now BusCo is considering doing its maintenance in-house. However, an investment amortization period of 4 years or less is required.
The CEO wants to know from you if they should pursue the in-house maintenance strategy next year?
If the interviewee solves the case very quickly, you can come up with more challenging questions to ask them.