ELTU3012 Business Communication II

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MODULE 2 MEETINGS

2A UNDERSTANDING AND ANALYZING BUSINESS CASES

OBJECTIVES

1. To understand what a business case is

2. To determine the benefits of business case analysis
3. To analyze a business case

LEARNING OUTCOMES

Upon completion of the course, students will be able to:

1. define what a business case is
2. understand the benefits of business case analysis
3. analyze key features of a business case

RECOMMENDED READING

Ellet, W. (2007). The case study handbook: How to read, discuss, and write
persuasively about cases. Boston: Harvard Business Review Press.

Erskine, J.A., Leenders, M.R., & Mauffette-Leenders, L.A. (2003). Teaching with
cases (3rd ed.). London, ON: Ivey.

Gerson, S. J., & Gerson, S. M. (2010). Workplace writing: Planning, packaging,

and perfecting communication. Upper Saddle River, NJ: Prentice Hall.

Holden, G. (2011). Business reports for busy people. Pompton plains. NJ: Career
Press.

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Kolin, P. C. (2013). Successful writing at work (10th ed.). Boston, MA: Cengage
Learning.

Kuiper, S., & Clippinger, D. A. (2013). Contemporary business reports (5th ed.).
Mason, OH: Cengage Learning.

Shapio, B. P. (2016). Participating in a case study. https://www.hbs.edu/teaching/

Documents/HBS_Brochure_for_Companies_Regarding_Field_Cases.pdf

WHAT IS A BUSINESS CASE?

According to Shapio (2016) “a case is a description of a management situation…

and is not written to illustrate the correct or incorrect handling of an
administrative situation, nor is there an editorial bias that implies a particular
conclusion…”. Furthermore, Ellet (2007, p.13) identified three important must-
have characteristics of a business case which are “a significant business issue or
issues, sufficient information on which to base conclusions, and no stated
conclusions”.

In other words, whether a case is real or an imagined scenario, a few key

concepts are involved, namely: there are problems to identify, theories to apply
for resolutions and a course of action to recommend.

TASK 1: WARM-UP DISCUSSIONS

1. Do you have experience analyzing any business cases? Please share within
your group.

2. How did you come up with a set of recommendations for the case?

3. Were there challenges you encountered in cracking the case? How did you
overcome the challenges?

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WHAT ARE THE BENEFITS OF ANALYZING BUSINESS CASES?

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HOW TO APPROACH A BUSINESS CASE?

Many cases document real-life business situations or imagined business scenarios.

When presented with a case, one has to assume the role of a decision maker or
leader, read through the situation that leads to problem identification, analyze
the causes and consider alternative solutions, and make recommendations. In
reality, many tasks and projects are specifically assigned to employees to
demonstrate their abilities in critical thinking, problem solving skills and
teamwork. That may include analyzing business problems and developing
tentative solutions from a leadership perspective. Many management consulting
companies screen candidates by introducing case interviews that are designed to
test the candidate's analytical skills and "soft" skills to propose viable solutions to
complex business problems and to think like a consultant. It is quite common
that there is no right answer to the case.

In analyzing a case you should:

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TASK 2: AT FIRST GLANCE - ANALYZING A CASE ANALYSIS

Read the case analysis Training Needs Assessment of the McDonald’s Corporate
Restaurants. In your group, discuss the case analysis, answer the following
questions and provide suggestions for improvements (Language & Content).

• Is there a Thesis Statement?

• Where is the Problem Statement?

• Locate the Writer’s Solution(s)

A Training Needs Assessment of the McDonald’s Corporate Restaurants and

the Possible Outcomes of Modifying Their Training Program

Summary
In the fast food industry, it is not uncommon for customers to expect
unsatisfactory service. Quality is becoming one of the widely addressed concerns
among these types of restaurant chains. Since it has become a common standard
for chains such as Burger King and McDonald’s to underperform in terms of
service and quality. The only “justifiable ” reasons for this are the low costs of
food and the quick service, hence being deemed a “fast food” restaurant. Other
widely known facts regarding these establishments are the minimal level of
qualifications required for holding a job, and the level of pay that reflects it.
Many of the employees that work in this type of industry know that this is not an
ideal career. Many workers have minimal education and/ or work experience,
and are often younger. The quality of food and the competence of the employees
is also evident of this. For this training needs assessment, I will be discussing
possible outcomes in modifying the training program of McDonald’s corporate
restaurants.

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Training Needs Assessment

Many of the employees who work for McDonald’s are high school students
without a formal education. This is why it is justifiable for this fast food chain to
pay their workers such low wages. It is a common industry practice to start
common crew members off at minimum wage. Even the supervisors who oversee
the operation of these establishments make an average of $18,230 annually
(Bradford, 2013). The hard work and stress that is required to function at one of
these places can make employees feel like they want to give up. A negative
mindset can have detrimental effects on an employee’s work performance. Still,
the low pay and high turnover rates make many employees indispensable. This
allows them to get away with poor work ethics and less-than-adequate training.
By providing a more higher hygienic standards, reasonable pay and a training
program which is more enforced, McDonald’s has the potential to reclaim its
positive status in the fast food market.

Outcome 1
As minimum wage gradually increases, the difference in pay between common
crew members and their floor supervisors will also decrease. Many fast food
chains, including McDonald’s, start their crew members close to minimum wage,
which does not significantly affect their prices (Katz & Krueger, 1992). This lack
of price change is mainly reflected in the salary cuts of higher-ups within the
company. When employees are not making enough money for the stress and fast-
paced labor that they are required to endure, they will naturally feel less inclined
to do a good job. This also applies to trainers and employees in positions of
authority. If workers are paid appropriate wages, they will likely be motivated to
work harder.

Outcome 2
Training programs of many fast food chains are very simplistic and not taken
seriously very often. At McDonald’s new crew members are required to watch
videos before watching other people do their job. In many instances, job training
is not enforced thoroughly. If a program in which verifiable progress is being
made, new employees will likely face less confusion in their position.

Outcome 3
The quality of fast food is one of the most notable consequences of consuming it.
It is common for unmotivated employees to not take their personal hygiene
seriously. In turn, this negatively affects the sanitation and quality of the food

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(Egan, 2007). When food service establishments take the time to enforce thorough
and basic sanitation procedures, the quality and safety of their products is
ensured.

Expected Performance
When employees are appropriately compensated and standards are strictly
enforced, the quality of service will likely improve. Fast food establishments are
no exception. In order for customers to receive satisfactory service and products,
employees must be properly trained, properly motivated, and all products
should be cooked and distributed safely.

References
Bradford, H. (2013, February 1). Chipotle Salary Can Top $95,000 Annually.
Retrieved from http://www.huffingtonpost.com/2013/02/01/chipotle-
salary_n_2601611.html

Egan, M. B. (2007). A review of food safety and food hygiene training studies in
the commercial sector. Food Control, 18(10), 1180-1190.

Katz, L., & Krueger, A. (1992). The Effect of the Minimum Wage on the Fast Food
Industry. doi:10.3386/w3997

ADDITIONAL RESOURCES
Additional information on business case analysis samples:

Google: Strategic Analysis of Starbucks Corporation

Starbucks Case Study

Deloitte Case Competition 2013

Deloitte: Mad Hats: Corporate Operating Strategy
https://www.slideshare.net/ryanamenges/deloitte-slides-display

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TASK 3: PREPARING FOR THE BUSINESS CASE ANALYSIS

(PRACTICE)

In order to help you understand what a business case analysis is like before you
submit the Business Case Analysis assignment, you will conduct a business case
analysis, in a group of four.

Assume that your group is writing an analysis report based on the discussion
questions of a case study. The following case and discussion questions of the case
are provided below:

Case study: Josh Hardy and the #SaveJosh Army: How Corporate Risk Escalates and
Accelerates through Social Media

Authors: Larcker, D.F.; Larcker, S.M.; Tayan, B.

Published: Stanford Business School. Stanford Closer Look Series. April 2014

On March 5, biotechnology company Chimerix refused to provide a potentially life-saving drug to 7-year
old Josh Hardy who was battling cancer. The drug had not yet received FDA approval, and the company
had discontinued its “compassionate use” program to dedicate resources to Phase 3 testing of the drug.
One week later, following a massive social media onslaught that captured national attention, the company
relented.

We ask:
1. Why aren’t more companies prepared to deal with the reputational risks that emerge through online
channels?
2. How should information gathered from social media outlets be used to supplement a comprehensive risk
management program?
3. Are stories such as this one a board-level issue? If so, at what point do they become one?
4. *If Chimerix were your company, what would you do differently here in Hong Kong?
*The last question has been modified from the original in order for students to consider cultural
differences

Topics: Corporate governance; Social media; Monitoring; Reputation risks; Corporate risk
management
Source: https://www.gsb.stanford.edu/sites/gsb/files/publication-pdf/cgri-closer-look-40-hardy-
josh.pdf

Here are more questions your group may consider regarding analyzing the Josh
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Hardy case:

• Current issues about social media and corporate reactions

• The importance of social media on corporate image
• Background of the high-growth development of social media in
business activities and corporate management.
• Summary of the Josh Hardy case and its influence on Chimerix.
• Risk management measures and social media
• The level of management for solving related social media crisis
• Strategic ways to solving social media crisis
• Escalation procedures to the Board
• Our approach to the issue
• How should we react to and deal with the social media as a member
of a board of directors?
• If Chimerix were your company, what would you do differently in
Taiwan/Malaysia/Singapore/Indonesia?

C A S E A N A LY S I S OF JOSH HARDY
Discuss and brainstorm the Josh Hardy case in your group and fill in the notes in
the following boxes. Limit your notes to about 200-300 words.

1. INTRODUCTION/BACKGROUND

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2 . E V A L U AT I O N OF THE CASE/PROPOSED SOLUTIONS

3 . R E C O M M E N D AT I O N S AND CONCLUSION

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