BUSINESS ORGANISATION AND MANAGEMENT I

0. CASE METHOD INTRODUCTION

The case method was developed as a more practical way of learning. It’s not only about helping
you learn but also developing skills.

WHAT IS CASE?
A case is a description of a situation, commonly involving a decision, challenge, opportunity or a
problem faced by someone in an organization.

It allows you to step figuratively into the position of a decision maker. The idea is to solve the case
based on the information that you have of it (no need of additional information).
● We’ll have to put ourselves in the shoes of the decision maker and solve the case.

INVENTORY OF SKILLS DEVELOPED BY THE CASE METHOD

With this methodology we can develop:
● Analytical skills
● Decision making skills
● Application skills
● Oral communication skills
● Time management skills
● Interpersonal or social skills
● Creative skills
● Written communication skills

THE DECISION MAKER HAS TO:

1. Identify the problem and/or the opportunity
2. Analyze the presented situation
3. Generate and eval uate courses of action
4. Select an alternative and justify
5. Suggest and implement an action plan
Objective: Improving our decision making process

THE THREE STAGE LEARNING PROCESS:

 1. CASE METHODOLOGY (HBS APPROACH)
____________________________________________________________________________________________________

1.1 INDIVIDUAL PREPARATION

● Define the problem or decision to make
● Separate relevant from irrelevant
information
● Separate facts from opinions
● Analyze information
● Generate different courses of action and evaluate
them
● Select one course and justify strong as you can
● Communicate your ideas as clear and concise as
possible. Try to be very persuasive about them.

1.2 SMALL GROUP DISCUSSION

● Everybody must be well prepared before
small group discussion, surfers are not
welcomed
● Everybody has to participate actively
● No leader is required during discussion
● Nobody record the discussed issues
● No consensus is needed to achieve
● Clarify personal disagreements outside the class
● Establish a time limit to the discussion

1.3 GROUP DISCUSSION

● There is no unique solution ● Be tolerant and respect other opinions
● Use active listening during the discussion ● Support with logical and strong arguments
● Participate actively with suggestion with your proposals
increase the level of the discussion

1.4. INDIVIDUAL REFLECTION: when discussing, we are not going to get only one correct solution and it’s
important to make an individual reflection.

● Elaborate a list of the ideas you think were really important during discussion
● Compare your ideas with the ones developed during class:
○ What will you do different from now?
○ What will you keep the same?

2. INDIVIDUAL PREPARATION

2.1. SHORT CYCLE PROCESS: before starting the case (20-25 min)
Purpose Get a good feel or size-up for the case.

Step 1 Read the opening and ending paragraphs

Step 2 Who? What? Why? When? How?

Step 3 Quick look at the case exhibits

Step 4 Quick review of case subtitles

Step 5 Skim case body: read the case superficially

Step 6 Read assignment questions and reflect

2.2. LONG CYCLE PROCESS (2 hours)
Purpose Analyze and solve the case

Part 1 Read the case

Part 2 Who? What? Why? When? How?

Step A Define the issue

Step B Analyze the case data

Step C Generate alternatives

Step D Select decisions

Step E Analyze and evaluate alternatives

Step F Select preferred alternative

Step G Develop an action and implementation plan

→ Example:
2.3. DECISION CRITERIA: Which decisions is more...
QUANTITATIVE QUALITATIVE

Profit Cash flow Competitive advantage Flexibility

Cost Inventory turn Consumer satisfaction Safety

Return on investment Productivity Employee morale Visual appeal

Market share Staff turnover Corporate image Obsolescence

Production capacity Quality Ease of implementation Cultural sensitivity

Delivery time Growth rate Sinergy Motivation

Risk Quantity Ethics Goodwill

2.4. ALTERNATIVE ANALYSIS

2.5. SIMPLIFIED DECISION TREE DIAGRAM

2.6. QUALITATIVE AND QUANTITATIVE ALTERNATIVE ASSESSMENT

 3. EXAMPLE

→ This friday a friend comes to visit me from outside Barcelona and whenever we see each other
we do some activity related to seeing a movie because we both like cinema a lot.

→ We have only from 8 to 11 pm on Friday to see us and do the activity

1. SITUATION:
● Who is the decision maker? Two decision makers
● What problem are you facing? We have to find a way to see the film together
● Why? Because it’s a kind of tradition or ritual
● When? This friday (deadline)

2. ALTERNATIVES GENERATION: we have to analyse each alternative

Go to the cinema Netflix Stay at home and watch

National TV

Advantages The infrastructure More variety of movies For free

Premieres Reproduction flexibility No displacement
Popcorn Location independent accessibility Comfort
Half price Full fridge

Disadvantages Price They are noy premieres Very old movies

Displacement Internet connection Advertisements
Limited hours Device size Not flexible
Limited Tickets Netflix subscription

3. CRITERIA
● Schedule ● Displacement
● Budget ● Quality
● Novelty ● ...

4. EVALUATION MATRIX
Alternatives Schedule Budgets Newness Transport Quality
(Friday from 8 to 11 pm) (10 €)

CINEMA + - + - +

NETFLIX + + N (neutral) + N (neutral)

HOME - - - N (neutral) -

*Put ticks or plus sign if it’s possible and negative sign or a cross if it’s not
*Everyone's matrix would be different depending on everyone’s opinion
 4. EXERCISE

SITUATION: Lockhurst Hotel international

Who is the decision maker? Mr. Alex Jones, vice president of Canadian operations of Lockhurst Hotels
International

What problem are we facing? The director of Ontario (John Shipley) has been offered a job at another firm, so
we have to find someone who can take up his job. So our problem is to assess
the best candidate for the position of DO. Ontario.

Why? His director of Ontorio operations, John Shipely, had received an offer of
employment with another hotel chain at an increase in salary of $20,000 per year.

When? April 1, 2017, as that is when John Shipley has to accept or decline the new job
offer, so the time is 2 weeks

The case is that we have to choose whether to hire Jim Martin or Don Mix, or do nothing and wait
until John Shipley makes a decision:

2. IMMEDIATE AND BASIC ISSUES

IMMEDIATE BASIC

Budget available Company productivity

Transition Company results
Organization environment Potencial looses

L H
L

H X

Don Mix Jim Martin John Shipley PROBLEM: find the vest D.O

3. ALTERNATIVES GENERATION
JIM MARTIN DON MIX JOHN SHIPLEY

Advantages Was well known for his technical In a year or so, he could be just as Was well liked by all
ability effective as John Shipely employees.

Bring new ideas He would be happy to accept this No transition, he knows the
promotion and would start at a company and the position.
salary $10,000 below John
Shipley’s present level.

Disadvantages Abrasive personality
Might antagonize managers and
employees to such an extent that
operations could deteriorate so
that severe losses might occur.
Fire in a year if is personality
antagonize
Would have to be paid $25,000
more than Shipley’s current salary
Would require some further training
and experience, that means time
and money.
In a year or so, he could be just as
effective as John Shipely
Not as efficient as Mr. Jones
would have liked him to be.
May leave the job (it is an
opinion so he have to decide if
we believe Mr. Jones or not)
Pay > 20.000$ to keep him.
Know how my company
operates so he could act as
a transfer person.
 4. EVALUATION MATRIX
Salary Experien Transition Abiliabilt Technica Motivation Personalit Efficiency
ce y l ability y

JIM - + - N + + - +
MARTIN

DON MIX + - N + - + N -

JOHN N + + + N N + N
SHIPLEY

6. MISSING INFORMATION
→ Budget
→ Market salary and base salary
→ Past jobs
→ Personal situation of each candidate
→ Some opinion of past chief
→ ...