This is a sophisticated operations and strategy case that requires candidates to move beyond traditional profitability analysis. The case tests ability to synthesize quantitative financial impact ($84M revenue loss) with qualitative strategic factors, and to recommend a time-phased solution combining short-term tactical actions (cloud-seeding) with long-term structural improvements (watershed planning). The PESTEL framework guidance indicates the case expects holistic thinking across financial, operational, political, social, and environmental dimensions.
The Panama Canal is one of the most important maritime routes in the world. The canal serves around 144 trade routes that represent about 3% of world trade. The Panama Canal’s biggest asset, however, is its water. Water management has become an increasingly important concern for the Panama Canal Administration due to irregular rainfall and changing weather patterns in the last decade. Water levels in the Panama Canal are critical to avoid delays in transit that can cost millions of dollars to the maritime and logistics businesses, ultimately affecting the Panama Canal’s bottom line.
The Administrator of the Panama Canal has hired you to help evaluate what are the business implications of improving the canal’s water management. What set of criteria would you use to evaluate these implications?