Muenster Case Study



16. Recently a

 representative of Union Foundry,

a firm located in the southeast part of the state,called on Terry. The representative knew that Muenster Pump made its own cast pump housings.He claimed that

 new developments in casting pouring

allowed his firm to offer extremely

 attractive prices.

17. Terry requested a


on the

 L-1012 casting housing,

Muenster’s popular size.

18. The L-1012 represents

60 percent

of Muenster’s


for casting housings.19. The


which incorporates the


is sold to distributors for


20. In a week a letter arrived from Union Foundry quoting a



 $90 FOB Muenster.



would be

120 days

after receipt of the

 first order,


60 days

after receipt of all

 additional orders. Minimum orders

were established as

100 units.

22. Terry contacted




and obtained


for the L-1012 housing. The quoteswere




FOB Muenster.23. Terry met with her

Uncle Ned,

discussed her findings with him and asked how much it

 cost Muenster to produce the casting housings in its own foundry.




 not enthusiastic

about Terry’s efforts in this area of the business.

25. Ned informs Terry that there is

 more to this situation

than is apparent. The company produces a

quality housing

that is

 not equaled in the industry.

He feels this is one of the primary



the firm’s


He also feels that the firm can


to requirements

“much quicker thanthose city boys.” 


Terry asks Ned if they’ assume

 all his doubts could be overcome,

how much does it cost thefirm to make the housing? Ned replies that there is

 something else

involved. There are

16 menworking

in their


and if they stop making their own housings, they would have to

 close down the foundry.

There is

 no place,

he feels, in the company where these

 men could work.

27. At this point, Terry decides to

end the discussion

with her Uncle Ned and to return to her office.28. Later that day

 Bob Dorf 

stopped by to see Terry. She

learned from him

that the

 L-1012 housing cost

Muenster about

 $180. Total overhead 

was calculated to be approximately

 200 percent


 direct costs


 materials and labor

for the housings would be about





of the


is for

 fixed costs

such as depreciation, taxes and executivesalaries.29.

Comparison of Relevant Costs:

Make BuyD.L & Materials $60Variable OH 36Fixed OH that can be avoided by not making __0 __TOTAL RELEVANT COSTS $96 $90

Online Application Tool:Here

1. Course Overview

This course introduces students to case study analysis with a multi-disciplinary approach. Through intensive analysis and presentations, students will learn to apply their theoretical knowledge to real business situations. The teaching approach applied in this course is based on the Harvard Case Method.

This course also serves as a preparation for participating in an international case competition. Particularly successful students will be invited to represent the University of Münster and the Chair of International Accounting at an international case competition in August 2017 or in February/March 2018.

2. General information

  • Course in Bachelor's Program (PO 2010, Module Schlüsselqualifikation, 2nd year of studies).
  • Course assessment: Regular attendance and active participation, one written group assignment and two group presentations (3 ECTS). To obtain the credit points, all assessments need to be passed.

3. Learning objective, Contents, and Methodology

Learning objective: After completing this course, students will be familiar with the Case Method and will be able to apply their theoretical knowledge to real business decision problems. Based on the Harvard Case Method, students will interactively learn to read, analyze and discuss case studies in an application-oriented way.

  • Professional skills: Students will get to know various concepts and tools to analyze critical business situations and issues.
  • Social skills: Students will work on various social skills (acting under time pressure, working in teams, defining the personal role, taking on responsibility, handling vague/imperfect results, presenting in English) by evaluating and presenting complex and multilayered problems without sample solution.

Contents and Methodology: The first part of this course mainly contains lectures, discussions, and one written group assignment in order to provide a basic understanding about case study analysis. In the second part, teams of four students will each analyze one case study among themselves and present their results in class. The course will finish with a final case competition and an award ceremony to honor the best-performing teams.

As an additional contribution, particularly successful students will be invited to represent the University of Münster and the Chair of International Accounting at an international case competition in August 2017 or in February/March 2018.

4. Application and Registration

  • The number of participants is limited to 20 students for didactic reasons.
    • Ten students will be chosen based on their current grade average.
    • Ten students will be chosen by random selection.
    • Waiting List: Another five students, chosen by random selection.
  • As this course is very interactive and based on the skills of the participants, the teachers would like to get to know the students better prior to the first session. For this reason, the application asks for information on the students’ background.
  • The online application tool for this course is available here. The application deadline will be March 20, 2017. We will contact you with a final confirmation or rejection on March 23, 2017.
  • Accepted participants still need to register at the examination office (PAM).

5. Literature

  • A folder with suggested readings is available at the Chair of International Accounting (Room J 392).
  • Further, the Case Study Handbook by William Ellet is recommended for preparation:

Ellet, W. (2007): The Case Study Handbook – How to Read, Discuss and Write Persuasively About Cases, Boston 2007. ISBN: 978-1422101582.


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