MGMT 202 Marketing Management

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A Case Analysis Guide

WHAT IS A CASE ?
A case is a real life business situation. In the process of analyzing
these business problems, you should put yourself in the role that the
case assigns you and try and solve whatever problem exists in the best
possible way. You must remember: there are no right or wrong answers
in most business situations. However, there certainly are wrong
answers. It is your responsibility to come up with what you think is the
best solution, having considered all possible repercussions. Naturally, it
helps to approach a case analysis in an organized way. A
recommended format is given below.

I. SITUATION ANALYSIS:
What is happening in the case?
What background information do you have at your disposal that will
make you more familiar with the industry that the particular situation
belongs to (e.g. a case on General Motors deals with the automobile
and transportation industries)? You must cover all the data in the case
that you think is relevant, as well as any environmental factors you
think are important.

II. PROBLEM DEFINITION:

Now that you have a feel for what the situation is about, you are in a
position to define the problem that is facing the individual or the
organization. This is the most difficult and crucial part of any case
analysis, as an incorrect problem definition will result in solutions that
do not help at all. It is just like a doctor treating you for a headache
when actually the problem is eyestrain. You must try and state the
problem (there may be more than one problem, in which case you must
prioritize them) in a manner that is not just a rehash of what the case
says (e.g. Mr. X needs to refine his distribution strategy to meet the
growing demand from late night shoppers). Further, you must define
any assumptions you are making.

III. SWOT ANALYSIS:

Given your problem definition, identify the strengths, weaknesses,
opportunities and threats that face the organization. Strengths and
weaknesses are internal to the organization and opportunities and
threats are external. (See SWOT checklist)
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SOLUTION POSSIBILITIES:
You are now in a position to look at and list possible alternate courses
of action for management to follow. It is useful to first determine what
objectives you want the organization to achieve. For each of the
objectives you must choose the best strategies amongst several. In
order to do this, you must evaluate the advantages and disadvantages
of each strategy. Based on such an evaluation, choose the strategy
that you feel achieve the stated objective best. Use a sensible rule to
eliminate untenable strategies and think of possible short and long run
consequences of each strategy.

IV. RECOMMENDATION:
Based on the situation analysis and the problem definition, consider all
the best strategies you have identified and see if they agree with one
another. If they do not, try to reconcile them. Finally, prioritize these
best strategies based on the situation analysis and problem definitions.
Justify your prioritization. Case analyses are very powerful learning
tools - if you put in the effort! Good luck!

SWOT Checklist
Internal Strengths
Many product lines
Broad market coverage
Manufacturing competence
Good marketing skills
Good material management
systems
R&D skills and leadership
Information system competencies
Human resource competencies
Brand name recognition
Cost or differentiation advantage
New-venture management
expertise
Appropriate organizational structure Inappropriate organizational structure
Appropriate control systems
Ability to manage strategic change
Well-developed corporate strategy
Good financial management
Internal Weaknesses
Obsolete, narrow product lines
Rising manufacturing costs
Decline in R&D innovations
Poor marketing plan
Poor materials management systems
Inadequate human resources
Inadequate information systems
Loss of brand name capital
Growth without direction
Loss of corporate direction
Infighting among divisions
Inappropriate control systems
High conflict and politics
Poor financial management
Loss of customer good will

Environmental Opportunities Environmental Threats

New market segments
Demand for broader
product/service range
Change in demographics
Foreign markets opening/changing
New technology
Rapid market growth
New forms of industry competition
Changes in demographic factors
Political/reg. environment easing
Attacks on core business(es)
Increases in domestic competition
Increase in foreign competition
Change in consumer tastes
Rise in new/substitute products
Increase in industry rivalry
Increase in regional competition
Downturn in the economy
Declining barriers to entry
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THE CASE METHOD

One of the basic objectives of the case method is to introduce a measure of
realism to business education. The case method forces students to deal with
problems as they actually occur in a business environment. Each case is
simply a written description of the facts surrounding a particular business
situation. With the case approach, it is the students responsibility to develop
solutions to the problems while the instructor plays several supporting roles.

Benefits & Limitations

The case method becomes an effective teaching device when students are
encouraged to analyze the data presented and to formulate their own set of
recommendations. Since each case is different, the solution that is developed
for one case cannot be randomly applied to other problems. This raises a
question of what students actually learn by working with business cases. One
obvious benefit is that the preparation and discussion of case studies help
students improve their skills at oral and written expression. In addition, the
case method provides an easy way for students to learn about current
business practices and methods. Perhaps the most important advantage of
the case method is the experience it provides in thinking logically about
different sets of data. It seems clear that the development of the student'
analytical ability and judgement is the most valuable and lasting benefit
derived from the case method. Most cases are drawn from the experience of
real firms. Typically, the names and locations are disguised to protect the
interest of the companies involved. In addition, final decisions are usually
omitted to enhance the problem-solving orientation of the cases, thus
permitting students to reach their own conclusions without being forced to
criticize the actions taken by others. The case approach departs from the
typical business situation in that the businessman normally does not have the
facts presented as clearly and neatly as they are in cases. Problem solving in
business usually involves extensive data collection, something that has been
essentially completed for students who work with cases.

A Framework for Analysis

There are many ways for students to approach the analysis of business
cases. The following four-step procedure is a logical and practical way to
begin.

1. Define the problem

2. Formulate the alternatives
3. Analyze the alternatives
4. Recommend a solution

Defining the Problem Once the student is familiar with the facts of the case, it
is important that he/she isolate the central problem. Until this is done, it is
usually impossible to proceed with an effective analysis. The questions at the
end of the case do not always focus directly on the principal issues. They are
designed to help the student start his/her analysis. Students should look on
the questions as guidelines for actions rather than as specific issues to be
resolved. In no way are the questions designed to limit the scope or breadth
of the discussion. The case should be considered a problem in the
management of the marketing mix, not as specific issues concerned only with
some narrow phase of the management.
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Selecting the Alternatives The second step is the definition of possible

alternatives available to resolve the problem around which the case is
organized. Some of these may be obvious from the materials supplied in the
case and from the statement of the main issue. One alternative that should
always be considered is the maintenance of the status quo. Sometimes doing
nothing is the best course of action to follow. But, only sometimes!

The Analysis The most crucial aspect of the case method is the analysis of
alternatives. To analyze is to separate into parts so as to find out the nature,
proportion, function, and underlying relationship among a set of variables.
Thus, to analyze is to dig into and work with the facts to uncover associations
that may be used to evaluate possible courses of action. The students
analysis should begin with a careful evaluation of the facts presented in the
case. He/she should be sensitive to the problem of sorting relevant material
from that which is peripheral or irrelevant. In the case, information designed
to distract and confuse the imperceptive reader has been included. In
reviewing a case, the student may be very careful to distinguish between fact
and opinion. It is also the students responsibility to make sure that the facts
are consistent and reliable. Sometimes cases contain errors (either by
accident or design), and the instructor may prefer to remain silent.
Sometimes the most important facts in a case are obscurely buried in some
chance remark or seemingly minor statistical exhibit. It is the responsibility of
the student to carefully sift through the data to uncover all of the relationships
that apply to the alternatives being considered. This usually means that the
quantitative information must be examined, using a variety of ratios, graphs,
tables, or other forms of analysis. It is rare that the data supplied in a case
are presented in the form most appropriate to finding a solution, and
instructors expect students to work out the numbers. Frequently, students will
find gaps in the data provided in the cases. This means that assumptions
must be made if the analysis is to continue.

Students should be aware of and able to defend the assumptions they make.
It is also important to realize that a competent analysis is not one-sided. A
review of a business situation is not sound unless both sides of important
issues are examined. This does not mean that every point must be
mentioned, but major opposing arguments should be refuted where possible.
Students sometimes view the facts and decide that they do not have enough
information to reach a decision. They recommend that the decision be
postponed pending the result of further research. Normally, get more
information is not an acceptable solution in a business case. Decisions often
cannot wait the length of time necessary to conduct good research. In
addition, it is unlikely that we can ever expect to have all the information that
we think we need. Because of the cost of research and the penalties of delay,
business decisions are almost always made under conditions of uncertainty.
When a student says that he/she needs more information, the instructor may
be tempted to conclude that he/she does not know how to analyze the facts
available or is too lazy to collect more information. Students are expected to
base their analysis on the evidence presented in the case, but this does not
mean that other information cannot be used. Students should utilize facts that
are available in the trade, and information that is general or public knowledge.
It is also appropriate to incorporate relevant concepts from other disciplines,
such as accounting, statistics, economics, psychology, and sociology. The
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criterion in using outside material is that it must be appropriate to the
particular situation. It would be unfair, for example, to use census data
published in 1976 to make decisions in a case dated 1970.

Recommendations After the student has carefully analyzed the data and
alternatives, he is in a position to make his/her recommendations. It is quite
possible that more than one course of action will look attractive. This is not an
unusual situation, as most cases do not have a single right solution. Still,
the student must come up with a set of specific recommendations. To arrive
at a solution, the student must judge the relative risks and opportunities
offered by the various alternatives. The optimum choice is the one that
provides the best balance between profit opportunities and the risks and costs
of failure. Students should make a clear-cut decision and avoid qualifications
and other obvious hedges. Instructors are much more concerned with the
way a particular decision was reached than they are with the individual
alternative selected. If the student feels that the collection of additional
information is the only feasible solution to a case, he/she must provide
support for this decision. First, he/she should state exactly what the research
will show and how this information will be used. In addition, he/she should
indicate the research methodology to be followed and the anticipated cost of
the study. After he/she has completed these tasks, he/she will be in a position
to decide whether additional research is needed.

Writing the Report: When instructors read reports, they look to see whether
the student fully understands the situation and whether his/her interpretation
of the facts is reasonable. They also like to see papers that are objective,
balanced, consistent, and decisive. Perhaps the most common error made by
students in writing case reports is to repeat the facts that have been provided.
Instead of analyzing the data in light of the alternatives, students frequently
repeat statements that appear in the cases, with no clear objective in mind.
Nothing upsets an instructor more than reading a paper that devotes several
pages to telling him/her what he/she already knows about the case. Another
deficiency often observed in written reports is a lack of adequate organization.
Students who have this fault will begin with the first thought that comes into
their heads and continue, in almost random fashion, until they run out of
ideas. The end result is a paper that has no beginning, and no end, and often
consists of one long paragraph. In one system of organization that has
proven effective, the report is divided into three sections. The sections are
designated by Roman numerals and arranged in the following order:

I. Problem Statement
II. Analysis A. Subheadings
III. Recommendations The problem statement is brief; it rarely runs more
than one or two sentences. The analysis section makes up the bulk of
the report and should include a number of subheadings. The first
subheading might be a statement of the possible alternatives. Other
subheadings might include evaluations of the data or discussion of the
influence of the data on the various alternatives. Some of the topics
might be considered in the analysis section include: 1. Customer
demand; 2. Competition, types and possible reactions; 3. Distribution
Channels; 4. Product Characteristics; 5. Advertising and promotion; 6.
Price; 7. Effect on company sales, costs, and profits. The
recommendation section should be relatively short and concise. This is
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not the place to evaluate the facts or to hedge your position. There is
no optimum length for a written case analysis. It all depends on the
amount of data provided in the case.

The report should be long enough to adequately cover the subject but not so
long as to bore the instructor. It is fairly obvious that written reports must be
neat, legible, and free of errors in grammar and spelling. Business professors
are not hired to teach English composition, but they do expect certain
minimum standards of performance in written expression. Their standards of
written work are reflections of what the business community expects from
MBA graduates. Summary Case analysis is designed to give the students an
opportunity to develop a productive and meaningful way of thinking and
expressing themselves about business problems. It must be remembered,
however, that solutions to problems are worthless unless they can be sold to
those in a position to act on the recommendations. The case approach
provides students with practical experience in convincing others of the
soundness of their reasoning. The case method also helps train students to
use logic to solve realistic business issues. In addition, the case method
requires student involvement and brings a little excitement to what might
otherwise be a dull subject.