An Approach to Case Analysis

An Approach to Case Analysis

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1. Situation Audit
2. Problem Statement
3. Identify Alternatives
4. Develop Critical Issues
5. Analysis
6. Recommendations

Step 1: Situation Audit

A synopsis and evaluation of the organizations
current situation, opportunities and problems.
A. Summarize the organizational mission and
objectives expressed or implied in the case.
B. Assess any relevant environmental information
available. Political, legal, societal, consumer,
economic, or technological forces that present
significant opportunities or threats

Step 1: Situation Audit

C. Assess the organizations position in each
product-market in which it competes

break down into logical target markets

estimate demand
determine end-user characteristics
identify industry practices and trends
geographic concentration.

Step 1: Situation Audit

D. Analyze competition
identify competitors that satisfy same customer
needs
their relative size and market share
likely profitability
their marketing strategy
marketing and non-marketing strengths and
limitations.

Step 1: Situation Audit

E. Critically assess the organizations strengths
and weaknesses
are goals and objectives clearly stated and realistic
financial position and strength
calculate appropriate financial rations to assess
liquidity, growth, stability, etc.
compare with industry or competitors
determine break-even points

Step 1: Situation Audit

F. State any assumptions you may have made
and defend them.

Step 2: Identify Problem

Statement
Identify what appears to be the main problem,
opportunity or issue in the case
Be careful not to confuse possible symptoms with
the problem
Try to write a one-sentence question that is specific
enough to communicate the main concern. For
example:
Should product A be added to or deleted from the product
line?
What is the best market program positioning strategy for
product Z?

Step 3: Identify Alternatives

Prepare your list in two stages:
1. Prepare an initial list of alternatives which
includes all the actions you feel could be
appropriate.
2. Refine the initial list and combine similar
actions. Focus on those alternatives that are
feasible given the existing financial,
productive, managerial, marketing,
technological and other constraints.

Step 4: Develop Critical Issues

Identify the factors that should be considered
in making a decision regarding this
particular problem area.
What are the main criteria you will use to
evaluate your strategic alternatives?

Step 4: Develop Critical issues

The single most important critical issue in most
decisions is the expected profitability
Others may include such factors as:
Required level on initial investment
Impact on market share
Tax considerations
The impact on employees, the local economy,
the environment, consumer attitudes toward
the company, etc.

Step 5: Analysis
Evaluate the pros and cons of each strategic
alternative identified.
Assess the advantages and disadvantages of each
alternative in terms of the critical issues you
have developed.
Can be done in point or numerical form to help
you organize your thoughts and clearly
illustrates the logic of your thinking to others.

Step 6: Recommendations
The action recommendations you propose
should flow directly from your analysis.
The first part of your recommendations
should spell out the specific actions to be
taken and why.
These recommendations should be specific and
operational

Step 6: Recommendations
The second part of your recommendations
should discuss implementation.
State clearly who should do what, when and
where.
This should indicate your recommendations are
both possible and practical.

Step 6: Recommendations
The third part of your recommendations
should include a tentative budget.
Illustrates that your proposed solution will be
worth the cost and is within the financial
capabilities of the firm.
Make your best estimate if accurate figures are
not available. Shows that you have at least
considered the cost implications of your
recommendations