The Importance of MBA Case Competitions

Seeking to foster some of the motivational benefits of competition and simulate common conditions in the global economy, top MBA programs are increasingly embedding structured competitions into the curriculum. Such competitions – where student teams offer valuations of private businesses, assess the viability of merger or acquisition offers, propose placement of private equity, or plan for new business ventures – raise the stakes for MBA students by asking them to demonstrate mastery of advanced business principles for audiences that include recruiters, alumni, professors, and global business executives. Local companies and professional organizations often support these competitions, increasing the applicability and relevance of problems to be solved and enhancing exposure for an MBA school and its students. In addition, formal competitions provide a clear forum in which high quality preparation and team performance is recognized and rewarded, while team shortcomings are exposed. 

At the Rollins MBA in Winter Park, Florida, the students recently participated in three competitions that challenged student business skills and problem solving abilities. The Association for Corporate Growth’s ACG Cup is a case study competition that gives students insight into mergers and acquisitions, investment banking, and private equity. Student teams competed to present valuation and strategic advice to a panel of seasoned M&A professionals. The students also participated in a statewide Venture Plan Challenge, in which they propose ideas and extended plans for new products or businesses to a panel of successful investors and entrepreneurs. In addition, an Elevator Pitch Competition challenged students to give a 90-second pitch for new venture ideas in front of a panel of potential investors. 

Feedback from students who participate in these competitions has been favorable. Given that the problems to be solved rarely have a “correct” answer, most students see the competitions as more realistic than generic case studies or other classroom assignments. As one student noted, “In the real world, you are competing for a bid, clients, etc. There is a direct outcome [of your effort]. Things are not really sugar coated [at work] and you can see who out performed whom.” Another student remarked, “I feel [the competition] accurately simulated the decision making process for a working professional, but still offered a safe environment of a classroom.” Many of these competitions also offer valuable prizes. Since the Venture Challenge began in 2005, 30% of the competition’s winners have successfully launched new ventures, with over $30,000 in prize money awarded in 2011. The 2011-12 Elevator Pitch Competition awarded $1,500 in prize money, and the ACG Cup winners earned $3,000. 

In sum, structured competitions in the MBA program challenge students to directly apply advanced business principles to solve problems for practical and highly cynical judges. Practitioners, investors, and entrepreneurs tend to have little appetite for theories of business steeped in academic jargon. In addition, these competitions provide students with exposure to local and national business professionals and potential employers, offering opportunities for students to network with recruiters, alumni, professors, and global business executives. Lastly, competitions simulate reality in the global business environment where several qualified groups must innovate to distinguish themselves.

Dr. Ronald F. Piccolo is an Associate Professor of Management and Academic Director of the Center for Leadership Development in the Roy E. Crummer Graduate School of Business at Rollins College. He earned a Ph.D. in management from the University of Florida, an M.B.A. from Rollins, and a Bachelors of Science in mathematics from Stetson University. He has served on the faculty at the University of Central Florida and as a visiting scholar at Drexel University in Philadelphia.