How To Solve A Case (Its Format & Method)

Case Analysis

Approaches to attack a case study and its components

Analyzing A Case Study.

Whenever you analyze a case, remember that you are not an outsider, but a part of the management around whom the case is being presented. Remember to undergo a through analysis, so that you can convince the reader that your analysis is backed with sound arguments and supported by concrete solutions.

 Remember there might not be just 1 right

answer to the case but several options of feasible strategies available. As there is no one single solution to the case, similarly there is no single way to prepare the case.

General Guideline
Step 1: Skim the case and breeze through it. Skim it

for the 1st time

Ask yourself questions like What sort of organization does the case concern, the nature of the industry in which it is operating, External Environment, managements problems.

Step 2: Carefully read the case the 2nd time and start

making notes.

Seek to identify the key problem facts, such as what decision are to be made, who is going to make these decisions, objectives of the organization and each key player. What are the resources & constraints in the case. Make sure to use the quantitative data as well

Reading The Case

There will be a lot of information overload

in some cases, irrelevant information, too little information or ambiguous information or relevant information dispersed throughout the case. Dont get worried but try to make the best of it.

What to Do in a Case Study?

In the case study it is required by you to logically attack the case study. Identify the alternative course of action that the management might take. List the Pros and Cons of each alternative. Always keep in mind the objectives of the organization. Develop short term tactics for long term strategies and give a comprehensive implementation plan of the desired strategy.

What is Required?
In a case you students will be identifying

and clarifying problems/ opportunities being faced by the management of a company. Analyze the qualitative information and quantitative data.

Steps To Case Analysis.

All to gather the case study includes

various steps. In some cases you will not have information regarding some of the steps. Your objective is to use whatever information is given, to the best of your abilities. The following are the Steps that are commonly used in a case study.

STEPS TO SOLVE A CASE

1. 2. 3.
I. II.

Introduction Situation Analysis Identification of Problems

Main Problem Sub Problem

4. 5. 6.

7.
8.

Development of Alternatives Evaluation of Alternatives Selection of the Best Alternative Implementation plan Recommendations.

1 ] INTRODUCTION

In the introduction you will give a short synopsis of the case. Inform the reader what industry does the company belongs, what the time of the case, who are the key players, what issue is at hand.

Remember not to reveal any hard facts in the introduction part as they have to be utilized in the upcoming steps. Usually an introduction would include the following:

Introduction

Time of case Industry of operations Time of establishment of company Key People Important dates if any in the case Size of company Main Line of business of the company. Geographic Area (e.g. Region, Country or City in which operations are being held) Others Remember: NO HARD FACTS.

2 ] A SITUATION ANALYSIS

Elements of Situational Analysis

Macro Environmental

Analysis

KSFs

DEEP-LIST Analysis

USPs
Market Analysis

Industry Analysis Mission Goal Objectives Segment and Target Market Marketing Mix PLC/CLC/ Portfolio Analysis

Market Share Sales Growth Rates

SWOT analysis Ansoff Matrix

Competitive Analysis
Financial Analysis Strategic Analysis

The Macro Environment

DEEP-LIST analysis

Demographic Ecological Economic Political Legal Informational Social Technological

Give the factors of the above that effect the

case only

An Industry Analysis

Porters 5 Forces Model.

Threat of New Entrants

Bargaining Power of Suppliers

Industry Competitors

Internal Rivalry

Bargaining Power of Buyer

Threat of Substitutes

Solutions From Porters 5 Forces Model.

By analyzing this model you will have to identify either a industry is

Attractive Unattractive Moderate.

Remember these Five forces can have the following effects.

Either a force e.g

Bargaining power of suppliers can be HIGHER OR LOWER.

If it is Higher, then it is NEGATIVE FOR THE COMPANY. If it is LOWER, then it is POSITEVE FOR THE COMPANY.

So a force that is is Negative A Force that is is Positive for the company. A Force can also have a Moderate (~) effect

(-)
Bargaining Power of Suppliers

Threat of New Entrants

(~)
Industry Competitors

Internal Rivalry

Bargaining Power of Buyer

Threat of Substitutes

(+)

Solutions From Porters 5 Forces Model.

Analysis Continued.

You will evaluate these five forces and see how many are positive, Negative or Moderate. Then At the end, you will after looking at the positive and negative forces, give conclusion about the ATTRACTIVENESS OF THE INDUSTRY.

Remember that an unattractive industry does not means that profitability will also be Negative. A company can make profits even in an unattractive industry and vise versa.

e.g. Nishat Mills is making a profit, although the Textile industry of Pakistan is UNATTRACTIVE.

Mission/Goals & Objectives

Find any explicit or implicit statement of the firms mission. Goals and Objectives:

Look for the expressed or implied goals and objectives of the firm The importance of this is that after your analysis you can have a good picture of either the company is really achieving/following its mission/goals and objectives or not.

Marketing Mix
Marketing mix = Objectives + 4 Ps + STP 4 Ps are Product Price Place Promotion STP stands for segmentation, targeting and positioning.

Segmentation & Target Market

Segments Dealing in:
1. 2. 3. 4. Demographics Geographic Psychographics Media Graphics

Define the appropriate Target market that the firm seeks to pursue.
Customer Profiling

PORTFOLIO ANALYSIS
Analyze the different business portfolio and various aspects of it and apply the appropriate model according to case. Models applicable may be BCG matrix GE matrix Porters 5 force model etc.

DEFINE LIFE CYCLES IF APPLICABLE

PLC/CLC/ILC ILC: Industry Life Cycle CLC: Company Life Cycle PLC: Product Life Cycle

Example of Portfolio Analysis

The BCG Matrix

Though this is a portfolio analysis that is meant to analyze different businesses in the entire portfolio. Identify where the Product/ Products or units of the company fall in this matrix.

BCG Framew ork

High

?
% of Market growth

Low High Market share Low

KSF

This part will identify the KSFs of the business or in other words the KEY SUCCESS FACTORS KSFs are thing that are important while operating in an industry. Remember you have to list the factors for the industry and NOT the internal company factors. These are the Key Factors for Success for any business operations in an INDUSTRY.

USP

The Unique Selling Preposition helps identify the main differentiation upon which the company is banking upon. The USPs have to be identified so that the Positioning strategy of the company can be analyzed.

Market Analysis

Market Share:

Look at Quantitative or Qualitative information that describes the past and current market Share position

Sales

Sales Growth rates or Sales figures will be plugged here. This will help you to analyze the next point. You will analyze the TRENDS in the patterns of Growth or Decline of the above two factors.

Growth Rates

Competitive Analysis

Here you can analyze the Share Analysis of different competitors or the Product Attribute Analysis

Product Attribute Analysis Competitor A.

Attribute Price

Importance ( L/M/H )

Rating (1-5)

Impact

Quality
Features Benefits Style Overall Rating: Remarks:

SWOT ANALYSIS

Here look at the strengths/weaknesses/opportunities/threats Remember

Opportunities and Threats are External Strengths and Weaknesses are Internal.

THE SWOT MATRIX

STRENGTHS

Match MatchOPPORTUNITIES

Convert
WEAKNESSES Minimize/Avoid

Convert THREATS Minimize/Avoid

Quantitative Assessment of Elements within the SWOT Matrix

STRENGTHS
Size and Capacity Experience Individual Benefit

OPPORTUNITIES
A currently untapped market Growth & popularity of marketing discipline Field innovation Increased competition

WEAKNESSES
Away from core value Adding value to customer Maintain long term focus Certification program Awareness and value

THREATS
Business colleges Business might not care about the program Other certification programs

Ansoffs Product-Market Expansion Grid

Ansoff's matrix provides four different growth strategies:

Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. Market Development - the firm seeks growth by targeting its existing products to new market segments. Product Development - the firms develops new products targeted to its existing market segments. Diversification - the firm grows by diversifying into new businesses by developing new products for new markets.

3] Problem Identification

IDENTIFICATION OF MAIN PROBLEM

Remember to distinguish the Symptoms from the problem! Problems are identified in terms of

Time Impact.
i.e.

if the time to solve the problem is less, and if not solved the impact will be very high, it is the Main Problem

IDENTIFICATION OF SUB PROBLEM

Sub Problems have to be identified, so you will only list them over here. The treatment to the sub problems will be dealt at the last stage of case analysis. List a maximum of three (3) sub problems over here.

Analyze & Record the Problems & core elements. Major problem or Issue Description of Problem or Issue: ________________________________________ ________________________________________ ____________________________ Evidence that this is a major problem: Facts: _______________________________ Symptoms or other effects: _______________ Opinions: _____________________________ Assumptions: __________________________

4] Alternatives to the Main Problem

Give at least three (3) viable alternatives over here that can solve the main problem These alternatives can also be your strategies that you wish to implement.

5 ] EVALUATION OF EACH ALTERNATIVE

Here you have to Evaluate each individual alternative separately. You will look at the Cost and Benefits of each alternative, or in other words the Pros and Cons. To do this you will use the following Table.

Alternative #1: ____________________ Pros Cons 1. . 1. . 2. . 2. . 3. . 3. .

6 ] Selection of Best Alternative

This is the solution to your problem. Here you will after having performed an analysis on all the alternatives, select one alternative that:

Has more Pros then Cons Solves the problem completely Is your final Solution for the case

7 ] IMPLEMENTATION

Implementation means to bring the best suited alternative to the practical form. Here you will give details in how will you implement the alternative. Basically you will answer the following:

What to do? When to do it? How to do it? Who will be responsible for the implementation? Costs (if you can give the implementation costs)?

8 ] RECOMMENDATION/S

These usually help or rectify all the sub problems that you have solved. Recommendations can be given in bullet form or they can be given in paragraph form as well. You might want to give recommendations to each of the sub problems that the company is facing.

PITFALLS TO AVOID IN SOLVING A CASE.

Common Mistakes that analysts make.

PITFALLS TO AVOID IN A CASE.

Inadequately Defining the problem Searching for the answer. Assuming the case away. Complaining of not having enough information Recommending research or consultants. Not thinking.

Relying too much on generalizations. Postulating a different situation Focusing too narrowly. Abandoning realism Setting up Straw Man alternatives. Rehashing case material Getting discouraged