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AP Business Case Studies

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Real companies for every task + how to analyze any case

Case studies are at the heart of AP Business with Personal Finance — almost every topic is taught through a short story about a real business, and the exam and projects reward students who can analyze them. This page shows you how to approach any case, then gives you 31 real-company case studies, one for each project task in Units 1–4, each with reading, practice, and discussion questions and sample answers.

The Reading Questions (every case)

Whatever the business, start with the same three reading questions. They make sure you understood the basics before you analyze:

  1. Which business does the case feature, and what product or service does it provide?
  2. Who are the key people, and what roles do they play? Which other stakeholders have an interest in the business?
  3. What opportunity and/or challenge does the business face?

How to Approach Any Case Study

Step 1 · Read for the basics

Answer the three reading questions

Before any analysis, pin down the business, the people and stakeholders, and the core opportunity or challenge. If you can't answer these, reread — everything else builds on them.

Step 2 · Analyze with the unit

Apply the concepts you're studying

Connect the case to the unit's ideas — value, competitive advantage, and ethics in Unit 1; customers and the marketing mix in Unit 2; saving, credit, and financial statements in Unit 3; leadership, KPIs, and strategy in Unit 4. Ask why the business made each decision.

Step 3 · Apply and transfer

Use it on a new situation

The exam rarely asks you to repeat a case — it asks you to apply the same thinking to a new scenario. Practice by transferring the lesson to a product or business you know.

Real-Company Case Studies by Unit

One case for each project task. Each follows the course's case format: the case, three reading questions, three practice questions tied to that task's learning objectives, discussion questions, an application activity, and key takeaways, with collapsible sample answers. Teachers can print any case as a student handout with the answers hidden.

Unit 1Unit 2Unit 3Unit 4

Unit 1: Foundations of Market Entry

Task 1 · Topic 1.1, 1.4 Airbnb → Setting the Stage by Adding Value Two designers struggling to pay rent rented out air mattresses in 2007. Learn how Airbnb creates value for guests and hosts — and captures some through fees. Task 2 · Topic 1.2, 1.4 Warby Parker → Solution Fit and Competitive Advantage Analysis Frustrated by pricey glasses, four business students sold frames online at one low price. See how Warby Parker built solution fit and competitive advantage. Task 3 · Topic 1.3 Peloton → PESTEL Forces Stay-at-home orders sent Peloton’s sales soaring — then recalls, reopening, and tariffs hit. Use PESTEL to analyze the connected-fitness boom and bust. Task 4 · Topic 1.5 Patagonia → Guiding Principles — Mission and Vision Patagonia rewrote its mission in 2018, updated its values in 2022, and gave the company to a trust and a nonprofit. See how purpose drives its decisions. Task 5 · Topic 1.6 CVS Health → Business Ethics and Profits with Purpose CVS gave up about $2 billion a year in tobacco-related sales, renamed itself CVS Health, and tested whether ethics and long-term profit can point the same way. Task 6 · Topic 1.8 Toyota → From Raw to Customer Ready: The Supply Chain Toyota’s lean, just-in-time supply chain broke down after the 2011 earthquake; the safety net it built helped it keep production going longer than rivals in the 2021 chip shortage. Task 7 · Topic 1.7 Spanx → Organization, Roles, and Responsibilities Sara Blakely started Spanx alone with $5,000, built a team as it grew, and sold a majority stake to Blackstone in 2021 at a $1.2 billion valuation. Task 8 · Topic 1.1–1.8 Scrub Daddy → Culminating Event: Problem-Solution Fit Pitch Aaron Krause turned a failed hand scrubber into a smiley-face sponge, proved demand with real sales, and won a Shark Tank deal that launched a cleaning-products company.

Unit 2: Marketing

Task 1 · Topic 2.1 Lululemon → Marketing to Customers Lululemon built a brand around imagined customers named Ocean and Duke, then used ambassadors and a free membership program to deepen relationships with millions of guests. Task 2 · Topic 2.2 Crumbl → Consumer Behavior Crumbl turned a weekly rotating cookie menu, a pink box, and social media buzz into more than 1,000 bakeries, then saw average sales per store fall. Task 3 · Topic 2.3 LEGO → Market Research LEGO spent four years studying girls and their parents before launching LEGO Friends in 2012, then turned to new research when critics and kids asked for change. Task 4 · Topic 2.4 Crocs → Product Crocs grew from a foam boat shoe into an $847 million brand, crashed in 2008, and came back by embracing its “ugly” clog with charms and collaborations. Task 5 · Topic 2.5 Costco → Price and Pricing Strategies Costco keeps markups low and held its hot dog combo at $1.50 for decades, while membership fees, raised in 2024, equal nearly two-thirds of its profit. Task 6 · Topic 2.6 Nike → Place and Channels Nike spent years shifting sales to its own stores and apps, then rebuilt ties with retailers when direct sales slumped—a real-world test of direct versus indirect channels. Task 7 · Topic 2.7 Duolingo → Promotion and Marketing Duolingo grew mostly through buzz instead of big ad budgets, using a chaotic owl on TikTok, push notifications, streaks, and a 2025 stunt in which its mascot “died.” Task 8 · Topic 2.1–2.7 Liquid Death → Culminating Event — Marketing Fair Liquid Death sells water in tallboy cans with a skull logo, priced like premium water and promoted with stunts, growing from online-only sales in 2019 to 60,000-plus stores.

Unit 3: Business and Personal Finance Management

Task 1 · Topic 3.1 Acorns → Saving for Future Purchases How Acorns used Round-Ups and automatic transfers to make saving easier — and the fees, insurance limits, and interest-rate changes savers still have to weigh. Task 2 · Topic 3.2 Affirm → Borrowing, Credit, and Debt How Affirm’s buy now, pay later loans work, how it judges creditworthiness and earns money without late fees, and why stacked loans, credit reporting, and new rules matter. Task 3 · Topic 3.3 Shake Shack → Accounting and Financial Management Shake Shack grew from a park hot dog cart into a public company with 700+ restaurants. See why it tracks financial data and how accounting and finance use it. Task 4 · Topic 3.4 Chipotle → Business Expenses Steve Ells opened the first Chipotle in a tiny Denver space with a loan from his father. Today, startup costs and rising food and labor expenses shape Chipotle’s profits. Task 5 · Topic 3.5 Chobani → Financial Capital A small-business loan bought Chobani’s first factory. Growth then required a $750 million TPG loan, bonds, and new shareholders. How did the founder balance debt and equity? Task 6 · Topic 3.6 Uber → The Income Statement Uber lost billions for years as revenue soared. Its income statement shows how it reached an operating profit in 2023 and why its net income needs a closer look. Task 7 · Topic 3.7 Bed Bath & Beyond → The Balance Sheet and Net Worth Bed Bath & Beyond spent billions buying back its own stock as sales fell. Its balance sheet shows how cash and equity drained away before its 2023 bankruptcy. Task 8 · Topic 3.8 MoviePass → The Cash Flow Statement MoviePass’s $9.95-a-month plan drew millions of moviegoers, but paying theaters full price drained cash so fast that its parent kept selling stock just to survive. Task 9 · Topic 3.9 FTX → Ethics and Financial Reporting Crypto exchange FTX was valued at $32 billion before collapsing in 2022; its founder was later convicted of fraud for misusing customer deposits and sentenced to 25 years. Task 10 · Topic 3.1–3.9 Gymshark → Culminating Event — Startup Finance Summit Gymshark began with a sewing machine and a screen printer in 2012 and became a £1 billion brand—then learned that rising sales do not guarantee rising profits.

Unit 4: Leading and Measuring Success

Task 1 · Topic 4.1 Microsoft → Leading and Managing for Success How Microsoft dropped stack-ranking reviews and Satya Nadella built a growth-mindset culture, and how leadership, communication, and pay choices shaped its employees. Task 2 · Topic 4.2 Netflix → Evaluating Performance and Using KPIs Netflix stopped reporting quarterly subscriber counts and now judges itself by revenue, operating margin, and engagement — a real-world lesson in choosing KPIs and benchmarks. Task 3 · Topic 4.3 Domino’s → Strategy and Decision Making After years of weak U.S. sales, Domino’s remade its core pizza and admitted its old one disappointed customers — a real decision to analyze with the PACED model. Task 4 · Topic 4.4 Southwest Airlines → Applying Strategic Analysis Frameworks Southwest Airlines gave up open seating and free bags after customer research, rival pressure, and an activist investor pushed for change—a real-world test of Porter’s Five Forces and SWOT. Task 5 · Topic 4.1–4.4 Best Buy → Culminating Event — Putting Strategy into Practice How Hubert Joly’s Renew Blue plan pulled Best Buy back from the brink in the age of Amazon—leadership, KPIs, strategy, and SWOT in one Unit 4 capstone case.

Keep Going

Practice Questions Study Plan Review the Units

Frequently Asked Questions

What is a case study in AP Business?

A short, real-world story about a business used to teach and test course concepts. You read the case, answer questions about it, and apply the ideas to new situations.

How are case studies used on the exam?

The exam is scenario-driven: many multiple-choice questions are set-based (built around a short stimulus), and the free-response questions ask you to analyze a business situation — the same skills you practice on a case study.

How should I study case studies?

Answer the three reading questions first, then analyze the case with the unit's concepts, then practice transferring the lesson to a new business. Use the case studies above and check your thinking against the sample answers.

These cases were written for educational use from public sources, which are listed on each case page. The companies did not review them and are not affiliated with this site; company names are trademarks of their owners. This resource is independent and not affiliated with or endorsed by College Board.