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Case Analysis Worksheet

This form can be used to organize your thoughts about a case. As you perform your
analysis remain open to the fact that your interpretation of the facts may change and
therefore you should constantly revisit your answers.

Define the Problem: Describe the type of case and what problem(s) or issue(s)
should be the focus for your analysis.
 Stanford Business School's Case Study on Crocs's supply chain system sows the
importance of flexible supply chains when uncertainties exist in forecasting customer
demand.
 Over the years, they have developed a flexible supply chain model with a focus on
customer needs.

List any outside concepts that can be applied: Write down any principles,
frameworks or theories that can be applied to this case.
 Using the Five Forces model by Porter
 Importance of Supply Chain efficiency
 The industry itself has low entry and exit barriers, high rivalry industry, high availabilit
of
substitutes.
 Cost advantages are low because of a saturated market, there is chance for profit
because
Cost advantages still exist through production outsourcing.

List relevant qualitative data: evidence related to or based on the quality or


character of something.
 Rapid growth from 2005-2007. In Q3 2007, revenues were ($142 million)
Were three times reported revenues in Q1 2006.
 Rapid growth stalled after 2007. ROA declined following 2007.

List relevant quantitative data: evidence related to or based on the amount or


number of something.
 In its start, Crocs maintained raw materials and sent them to Italy for compounding.
Then, they would ship to Canada for manufacture.
 In early 2005, Crocs expanded to China and European markets. It outsourced to
Manufacturing nits in these countries. This expansion helped for it to have a flexible
supply chain for foreign markets.
 By 2007, Crocs had purchased more locations for compounding materials. It did not
Have to rely just on its Italian plant anymore. This allowed for more flexibility in
deciding
The color of the products because shipping times were shorter.

Copyright © 2011 Harvard Business School Publishing This document is for use only with the
Harvard Business Publishing ‘Case Analysis Coach’.
Case Analysis Worksheet

Describe the results of your analysis: What evidence have you accumulated that
supports one interpretation over another.
 Greater vertical integration helped the company expand but had its own problems
 Contract manufacturing made the supply chain extremely flexible and agile
 But with more and more integration, the cost advantages lost.
 Also, contract manufacturing may have hurt the business in terms of intellectual
property
 After 2007, there were many more substitutes on the market for Crocs. Manufacturers
Started producing knock-offs that were cheaper and nearly the same.
 The cost advantages that Crocs had from outsourcing declined the more integration.

Describe alternative actions: List and prioritize possible recommendations or


actions that come out of your analysis.
 Crocs management became focused on growth and integration but did not prioritize
The uncertainty of consumer demand.
 Growth expanded but declined as demand for Crocs fell. I think a big part of this
Was that they became less fashionable when many knock offs entered the market.
 Crocs had bought many plants but it saw little ROA and more money was tied up in
Inventory the more it had integrated.

Describe your preferred action plan: Write a clear statement of what you would
recommend including short, medium and long-term steps to be carried out.
 In the short term, Crocs should try and reduce its inventory
 Crocs management should also focus on making consumer demand forecasting a very
Strong priority. They should not just take for granted their past success.
 Crocs should reduce ownership in manufacturing plants where intellectual property
Is not a risk. Or it should restructure manufacturing to have control over its design bu
Can attain greater cost savings by outsourcing.
 Crocs should hire the best designers possible to come up with a new innovative design
Because it is not as fashionable nowadays.

Copyright © 2011 Harvard Business School Publishing This document is for use only with the
Harvard Business Publishing ‘Case Analysis Coach’.