4. Case Analysis Techniques

8/7/2019 4. Case Analysis Techniques

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Case AnalysisTechniques



Why Analyze ManagementCases?

• Case analysisA method of learning complex strategicmanagement concepts ( )

Places students in the middle of an actualsituation and challenges them to figure out

what to do.



Why Analyze ManagementCases?

Theoretical concepts ( ) are a great aid tounderstanding, but by themselves they do not helpresolve ( ) real business problems or challenges.

Also needed are analytical skills ( ) andtechniques ( ) that can be applied to the data to“fill in” the facts ( ) and premises ( ) assumed in the theories.



Skills Developed from CaseAnalysis

• Differentiate ( )Evaluate many different elements of asituation at onceDifferentiating between the factors that areinfluencing the situationUnderstanding that problems are often

complex and multilayered ( )




• Speculate ( )Envision explanation that might not readily beapparent ( )

Imagine different scenarios ( )

Contemplate ( ) the outcome of adecision

Deal with uncertainty ( ) and incompleteknowledge




• Integrate ( )Have an organization-wide perspective ()

Integrate the impact of various decisions andenvironmental influences on all parts of theorganization



How to Conduct a CaseAnalysis

• Prepare for a case discussionInvestigate ( )

Analyze ( )

Research potential solutions( )

Gather the advice of others

( )

Become immersed in facts, options, andimplications ( , )



Extensive before class preparation and in class participation are required to ensure the class’ success.Preparation for a case discussion should begin withreading the assigned case to formulate theories or hypotheses ( ) about what is going on as you read,modifying or rejecting them as new information surfaces.Finally, one of the best tips for success in this class is to getsome study buddies – classmates you bounce ideas off of.

You’ll find that each person sees things the other misses,and vice versa. Collectively, you’ll be much better prepared.





• Put yourself “inside” the caseThink like an actual participant( )

Try different perspectives( )




• Step 1: Become familiar with the case infoRead quickly through the case one timeUse initial read-through to assess possiblelinks to strategic concepts ( )

Read the case again, making notesEvaluate application of strategic concepts

After forming first recommendation, thumbthrough the case again to assessconsequences of actions you propose




• Step 2: Identify problems ( )Some cases have more than one problemAvoid getting hung up on symptoms ( )

Articulate the problem ( )

Some problems are not apparent until after you do the analysis




• Step 3: Conduct strategic analysesDetermine which strategic issues areinvolvedUse strategic tools to conduct the analysisTest your own assumptions ( ) about thecase




• Step 4: Propose alternative solutions( )

Develop a list of options first without judging them

Do nothing is often a reasonable alternativeEvaluate alternatives ( )

Can the company afford it?Is the solution likely to evoke a competitive response?Will employees accept the change?How will it affect other stakeholders ( )?How does it fit with the vision, mission, objectives?Will the culture or values of the company change?




• Step 5: Make recommendations( )

Make a set of recommendations that your analysis

supportsDescribe exactly what needs to be doneExplain why this course of action will solve the problemInclude suggestions for how best to implement ( ) the

proposed solutionThe solution you propose must solve the problem youidentified



Tools to Conduct Analysis

• Porter’s Fiveforces analysis

• Value chainanalysis

• SWOT analysis

• PESTEL analysis• BCG Matrix

• Financial ratioanalysis



Situational Analysis

• General Environment Analysis ( )TechnologyDemographic TrendsEconomic TrendsPolitical / Legal EnvironmentSociocultural EnvironmentGlobal EnvironmentConclusions: Key Trends & their Impact on theFirm




• Industry Analysis (Porter’s Five Forces) ()Threat of New EntrantsIntensity of Rivalry Among CompetitorsProduct Substitutes ( )

Bargaining Power of Suppliers

Bargaining Power of BuyersConclusions: Attractiveness of the Industry

• Competitor Analysis ( )

Analyze Major competitors




• Key Success Factors ( )Keys to the Firm’s Future Success

• StrategiesBusiness LevelCorporate LevelInternational LevelFunctional Level




• Resources & Capabilities Analysis ( )

Tangible ( ) Resources (e.g., PP&E, Financial)Intangible ( ) Resources (e.g., Reputation,

knowhow, culture, relationships, intellectual property)Value-Chain Analysis:

Each of the primary & support activitiesConclusions about the Firm’s SCA

What are the firm’s core competencies

( )?




• Performance AppraisalProfitability Ratios (ROA, ROE, ROS)Liquidity Ratios (Current & Quick)Leverage Ratios (D:E, L-T Debt:Equity)Activity Ratios (Inventory Turnover, Total AssetTurnover, A/R Turnover)

Conclusions about Firm’s Financial Condition



SWOT Analysis

Strengths (based onanalysis of):

• Strategies•

R&C’s• Performance

Opportunities (based onanalysis of):• General Environment•

Industry Environment• Main Competitors

Weaknesses (based on

analysis of):• Strategies• R&C’s• Performance

Threats (based on

analysis of):• General Environment• Industry Environment• Main Competitors



Financial Ratio Analysis

• Financial ratio analysis ( )Method of evaluating a company’sperformance and financial well-being throughratios of accounting values, including short-term solvency, long-term solvency, assetutilization, profitability, and market valueratios.



How to Get the Mostfrom Case Analysis

• Keep an open mind• Take a stand for what you believe• Draw on your own personal experience• Participate and persuade (convince)• Be concise ( ) and to the point



How to Get the Mostfrom Case Analysis (cont.)

• Think out of the box (be creative)• Learn from the insights of others• Apply insights from other case analyses• Critically analyze your own performance• Conduct outside research



Preparing for OralPresentation of your

Case Analysis



Preparing an Oral CasePresentation

• Organize your thoughts• Emphasize strategic analysis• Be logical and consistent• Defend your position• Share presentation responsibilities



• Introduction of Team• Outline of presentation• Company Overview (Introduction)• Problem Identification• Strategic Analysis• Alternatives (Strategic Choices)

• Recommendation• Conclusion/Wrap Up of pertinent information• 15-20 minutes in length

PresentationRequirements



Example

• Here are five tips to “wow” your audiencelike Steve Jobs, co-founder of Apple:

Sell the benefitPractice, Practice, and Practice Some MoreKeep It VisualExude Passion, Energy, and EnthusiasmAt the end of your presentation add moresuspense by stating “and one more thing..."

Source: Gallo, Carmine. “How to Wow 'Em Like Steve Jobs,” Business Week . April 6, 2006



Writing up yourAnalysis of Case

Studies



Preparing a Written CaseAnalysis

• Be thorough• Coordinate team efforts• Avoid restating the obvious• Present information graphically• Exercise quality control



1. Include:a) Cover sheet with:

a) Class and sectionb) Group namec) List of group membersd) Case name and number

b) Historical Overview/Company Profilec) Identify problem(s)d) Strategic Analysis

e) Alternativesf) Recommendation(s)2. Be thorough, but brief and concise.3. Use charts and graphs to consolidate information and keep it

interesting.

4. Pattern report on presentation

Report Requirements



• Format-Business style writing3-5 pages in lengthTimes New Roman font, 12 pt., 1 inch marginsSingle-space paragraphsDouble-space between paragraphs and after headersSection headers in bold; sub-headers italicized; no punctuationafter headersAll type should be left justified (do not indent paragraphs)Charts and graphs should be in-line, not in appendix

• Watch paragraph lengths, grammar, spelling• Consistent formatting throughout• Use charts, graphs, images and bullets; be creative but professional;

graphs should not be to big

Report Requirements



Sections of your CaseAnalysis

• Executive Summary• Analysis of Situation

• Strategic Alternatives• Selected Strategy• Implementation Plans



Executive Summary

• Short, 100-150 words• Separate page

• Ticket to see the boss• Highlights, very direct, not reporting



Executive SummarySample

Atlas aims to focus its operations on a commitment to growthin sales and profitability in conjunction with its new corporatestrategy and structure. Atlas can achieve this high growththrough utilization of its current excess capacity. It willcontinue to serve as a source for high quality/differentiatedproducts in addition to penetrating another segment under adifferent product name to help Atlas achieve this growth whileminimizing risk. The evolution of Atlas into a corporation willinclude functional strategy changes in organizationalstructure, planning, and risk reduction. This will beaccomplished through establishing clearer lines of authority toencourage organizational focus on a common goal, hiring of an executive to replace Jerry Nelson, and hiring a financialcontroller/planner to resolve current problems and reducerisks.



Situation Analysis

• Concepts and theories used to discussmain points

•ANALYZE, DON’T REPORT• Use facts from the case, analyze goals,objectives, predicaments, problems, etc.



Strategic Alternatives

• Come up with the three you think are the mostviable

• Discuss the two you didn’t select and indicatewhy you didn’t select them

• Discuss your chosen alternative last and thiswill lead into a description in great detail in the

next section



Selected Strategy

• Discuss in greater detail the strategy you havechosen and how it resolves the problems andpredicaments presented in the situation analysis

section• Be as specific as possible, use numbers, facts,

exhibits, etc. to present



Implementation Plans

• Be specific and logical• Address potential risks and how

stakeholders might react

4. Case Analysis Techniques

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