Case Study Methodology For Business Decisions

What is a Case Study?

A case study presents an account of what happened to a business or industry over a number of years.

It chronicles the events that managers had to deal with : 1. Changes in the competitive environment, 2. Charts the managers response 3. Usually involves changing the business- or corporate-level strategy

What is Case Study Method?

Robert K. Yin defines the case study research method as: an empirical inquiry that investigates a contemporary phenomenon within its reallife context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used

Features of Case Study Method

Uses multiple sources of evidence Real life context Empirical Progress of a company or industry Focus on competitive environment and strategic/operational changes

ADVANTAGES
Use small data sets (such as one or two companies) Generalizes about trends in relevant industries Real life in the sense that a company or companies have been chosen as the source of the data Only method possible in some areas of inquiry

 It involves detailed, holistic investigation (for example, all aspects of a particular company) Data is contextual (relative to a certain industry)

A range of different measurement techniques can be applied

The histories and stories that can be told about the company can be illuminating

DISADVANTAGES
Does not ensure reliability or generality of findings. Intense exposure to study of the case biases the findings. Useful only as an exploratory (not explanatory) tool. Contextual nature of evidence is limiting

Case Study Learning

Learning comes more from weighing the pros / cons of the fundamental principles Practicing the analysis process.

How to Solve Case Study

Study Contemplate Decide Implement

Case Study Analysis

Analyse the problem with the company or industry Write a report based on findings

No right way

Structure of Case Analysis

Problem Statement

Issue Analysis
Presentation & Discussion Of Alternatives Plan Of Action

Summary

Problem Identification and Analysis

In this section you should identify all the major problems in the case in behavioral terms Most of the cases contain a strategic problem
Some cases Tactical perspective Apparent tactical problem disguises fundamental strategic problem

 Try to get to underlying causes of problems, not just symptoms You should link each problem identified to relevant theory and also to actual evidence from the case Refer to Industry trends Remember you must integrate theory and reference

Statement of Major Problems / Issue Analysis

You will identify a number of problemstoo many students attempt to actually solve the problems It is crucial to make it very clear which are the major two or three problems or key issues, that must be solved first This section should consist of a short concise statement of the problems you are going to solve in the remainder of the case Check back to ensure that you are actually attempting to solve them, rather than focusing on other minor problems that you may have identified This section is crucial to a good case report

An Issue Analysis might contain

Facts : Especially numerical information Opinions : of the current management, key personnel & of yours Assumptions : should be clearly stated since solutions depend on them

Generation of Solutions
Identify and evaluate a number of the more appropriate solutions (at least two to three for each major problem identified) Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and disadvantages

It is not necessary to make a statement in this section as to which alternative is considered best this is stated in the next section. Do not integrate or recommend theory in this section. Practical solutions to the problems are required.

 Alternative 1

Advantages

Disadvantages

Alternative 2
Alternative 3

Recommendations
State which of the alternative solutions (either singly or in combination) identified in previous section are recommended

Justify your choice, explaining how it will solve the major problems identified.
Integration of relevant theory Recommend precise courses of action that the company needs to take.

Findings

Conclusions

Recommendations

Findings are factual and verifiable statements of what happened or what was found Conclusions are your own ideas that you deduce from your findings Recommendations are what you want to be done

Implementation POA
Write your recommendations in the form of an action plan.

Explain how you will implement the recommended solutions. What should be done, by Whom When in What sequence, What will it cost (rough estimates) and other such issues

Remember, if a recommended solution cannot be realistically implemented, then it is no solution at all.

 Recognise that there is rarely one single case solution. Recognise that there may be two or more alternatives which if properly implemented will solve the problem

Have a contingency plan

Your POA should support / defend the chosen alternatives Most good POAs will have business / market / product focus

What to do
Read the case thoroughly.

First time to get an overview of the industry, the company, the people, and the situation. Helps form an Idea about the basic problem.

Read the case again more slowly, making notes as you go.
Define the central issue. Many cases will involve several issues or problems.
Identify the statements which help define the problem and separate them from the more trivial issues After identifying what appears to be a major underlying issue, examine related problems

Reinforce..

Will not have adequate information.

Identify information gap & make realistic assumptions

Define the firm's goals (only if applicable).

Inconsistencies between a firm's goals and its performance may further highlight the problems discovered Identifying the firm's goals will provide a guide for the remaining analysis. - Identify the constraints to the problem (only if applicable). The constraints may limit the solutions available to the firm. Typical constraints include limited finances, lack of additional production capacity, personnel limitations, strong competitors, relationships with suppliers and customers, and so on. Constraints have to be considered when suggesting a solution.

Identify all the relevant alternatives

The list should include all the relevant alternatives that could solve the problem(s) that were identified. Use your creativity in coming up with alternative solutions. Even when solutions are suggested in the case, you may be able to suggest better solutions. - Select the best alternative. Evaluate each alternative in light of the available information. Resist the temptation to jump to this step early in the case analysis You will also need to explain the logic you used to choose one alternative and reject the others.

Develop an implementation plan

Plan for effective implementation of your decision. Don't overlook this step. It is important as a future manager to be able to explain how to implement the decision.

Analysis of Case
Identification of problem(s) Use of theory to evaluate and recommend actions

Things you can cover (1)

Human resources/people management issues - E.g : New manager finds people unresponsive to his/her new changes. Why? Background to problem? How can they overcome resistance? Cultural or ethical problems

Leadership issue
Change scenario

Things you can cover (2)

Analyse the company's history, development, and growth. What circumstances led to the company being established? What products did it make initially and what does it make now? How does the company make new product decisions? How has the company evolved over time? How has it chosen its marketing strategies, etc? How did the company take steps to enter new markets? How and why did the company choose to merge or takeover another company? What were the main changes to the company during its history? (e.g., types of employees, strategic direction, etc.)

Things you can cover (3)

Identify internal strengths and weaknesses You will need to: Look at the value creation functions of the company Outline the functions in which the company is currently strong and currently weak. Make lists of these strengths and weaknesses

Analyse the external environment

The environmental factors relevant to the industry The environmental factors that effect companies The particular stage of the lifecycle that the company is in Other factors (for instance, demographic factors, global financial changes, etc)

Things you can cover (5)

Evaluate the SWOT analysis Is the competitive position of the company strong or not? Can the strategic direction of the company continue? How can the company consolidate its strengths, enhance its opportunities, overcome its threats and minimise its weaknesses? Can it change its corporate strategies to achieve the above or is something else needed? SWOT not simply give a shopping list of the key factors. Elaborate and discuss each factor in detail and provide evidence for your claims.

Things you can cover (6)

Analyse corporate-level strategy
Using information available, try to assess the strategic corporate directions of the company. The following are very important: - line(s) of business of the company - its subsidiaries and acquisitions - the relationship among the company's core and non-core businesses

Questions such as the following will need to be answered: - Are resources exchanged freely between different parts of the company? - Is synergy between the subsidiaries warranted or needed? - What is role of the companys portfolio of investments?

 How diversified is the company? Does the company operate as a core business Is the company functioning as it should given the current environment? Could changes in strategic direction and corporate culture make a difference to its operations? Could weaknesses become strengths given certain changes/environmental factors? Should the company consider merging or diversifying? Has the strategy changed during its development as a company? Were these changes good or bad overall? Why? What improvements can be made to the companys product lines? etc.

 Analyse Business-level strategy

The aim of the companys global competitive strategyi.e., is it differentiation, low cost, or targeted markets?, etc. The value of the investment goals of the company given its strategic focus and the stage in the lifecycle of the company The product range of the company, its differentiation, and competitiveness. How is the company using strategies to build competitive advantage? (quality, efficiency, innovation, responsiveness to customer needs, etc)

Things you can cover (7)

What is the marketing strategy of each of the business levels in the company? What production techniques are being used and how can they be improved?
Is the company doing research and development? Is it effective and adequately tied to corporate aims? Does the corporate strategy accurately reflect the aims of the company in terms of producing low-cost or differentiated products? Has the company developed the right competencies in terms of staffing, production techniques, marketing, etc? Can the company simultaneously pursue both a low-cost and a differentiation strategy?

Things you can cover (8)

Analyse structure and control systems
Different corporate strategies require different structures. Issues you might like to consider: Is the hierarchy or decentralized control of the company adequate given the levels in the company? Does it use a functional structure when it should be using a product structure ? Are the appropriate control systems being used? Are appropriate rewards being given to managers? Is cooperation among divisions being encouraged by a suitable reward system?

Things you can cover (9)

Make Recommendations
You will need to recommend precise courses of action that the company needs to take. Recommendations might include: an increase in spending on specific research and development projects the divesting of certain businesses, a change from a strategy of unrelated to related diversification an increase in the level of integration among divisions by using task forces and teams

Headings for Writing the Solution

Statement of the Problem : Describe what needs to be achieved through proposed solution. The Case : Very brief narration of the situation / provide a context for the various issues to be looked at.

Scope of Analysis : What aspects of the case are being analysed.

Possible Solutions & Evaluations Best Solution Conclusion

Requirements
Knowledge of the subject Analytical

Critical thinking go beyond obvious & question

Ability to evaluate use judgement Ability to infer

Techniques
Stratifications Benchmarking Force field analysis (driving & restraining forces) Flowcharting SWOT 5 Force Model 7 S Frame work Nature of high performance business Vertical Integration Ansoff Product Grid BGC Matrix

Root cause analysis (5 whys & 5 hows)

1.why are customers dissatisfied? becoz they are not receiving purchases on time 2.why are they not receiving on time? Because we are backordered on stock. 3.why are we backordered? Becoz we changed suppliers. 4. Why we changed suppliers? Becoz the original supplier was late in shipments 5. Why havent we found another supplier? Becoz we have not yet looked for one.

How to Think
Teaching Thinking -- A Guide for the Perplexed

He who learns but does not think is lost (Chinese Proverb)

DeBonos Characterization of a Good Thinker

Confident in his / her thinking In control of his/her thinking

Does not drift from idea to idea or emotion to emotion

Has a clear idea of what he/she wants to do

Defines the thinking task and then sets out to carry it out

Has a clear focus and a broad view of the situation Values wisdom over cleverness

Likes thinking even when it isnt particularly successful

Confident and decisive but humble

 Robust in thought but practical where this is demanded Doesnt wallow in over-intellectualization, nitpicking or a dither of indecision Able to discern his/her progress after thinking Practices and observes thinking

Levels of Thinking
Knowledge: recalling information; repeating information with no changes
(ex: recalling dates; memorizing definitions for a history exam)

Comprehension: Understanding ideas; using rules and following directions

(ex: explaining a mathematical law; knowing how the human ear functions; explaining a definition in psychology)

Application: Applying knowledge to a new situation

(ex: using knowledge to solve a new physics problem)

 Analysis: Seeing relationships; breaking information into parts; analyzing how things work
(ex: comparing two poems by the same author)

Synthesis: Putting ideas and information together in a unique way; creating something new
(ex: designing a new computer program)

Evaluation: Making judgments; assessing value or worth of information

(ex: evaluating the effectiveness of an argument opposing the death penalty)

EXERCISE : A CAPITAL OFFENSE

At a meeting called for this purpose, Art Thompson, the CEO of Paramount Metal Products, informed his top management team of his growing concern that their aggressive expansion plans might not be funded by United Industries, Paramounts corporate parent. During the ensuing discussion, Andrea Nagle, director of corporate planning, argued that Paramounts plants needed to be running at or near capacity if the company was to have any hope of receiving expansion capital from its parent. This assertion was quickly challenged by Brad Haugen, VP of Manufacturing, who retorted, If Andrea thinks that all we have to do to get capital is to have our factories running full-bore, shes terribly nave.
To wipe away the smirks and chuckles that followed Haugens comment, how should Andrea have responded?

Exercise 2
RIL is going through a crisis of sorts. The brothers are fighting over controls & the investor public are watching with keen interest. The government is an onlooker too & this belies the hopes thousands of small investors who need some assurance that they would not loose. In the stock market not many believe that this will have a negative impact. What do you feel ?

Grow zone

Know zone

WHY THINKING SHOULDNT BE TAUGHT

People dont need to be taught how to think.
Thinking skills are acquired naturally, in the course of everyday life.

Thinking is domain or task-specific.

Theres nothing useful to be learned about thinking in general.

Thinking cant be taught.

Its mostly a matter of mental habits, dispositions, and capacities (e.g., intuition) that cant be acquired through formal education.

Thinking skills dont transfer.

Students arent able to apply their knowledge of thinking in new situations.

APPROACHES TO THINKING
The Domains approach.
In marketing courses, you learn how to solve marketing problems.

Deductive logic.
Held to be the universal core and model of effective thought.

Formal decision theoretic methods.

Prescriptions for making rational choices.

Soft critical thinking.

Asking questions; encouraging students to think.

Functional models of problem solving/decision making.

The simple step-by-step way to solve any problem.

 Discussions regarding the culpability of CEOs at Enron and other scandal-ridden corporations might take the following set of statements into account:
The CEO either knew what was going on or he didnt know. If he knew, then hes guilty of any crime committed with his knowledge. If he didnt know, then hes guilty of ignorance, not performing the CEOs oversight role effectively.

What can be concluded from this set of statements? What kind of argument is this?

 A SIMPLE CASE OF LOGIC

WHAT DOES ONE LEARN WHEN LEARNING HOW TO THINK?

General knowledge of how the world works.
Much of this knowledge is embedded in, and acquired with, ones natural language.

Meta cognitive skills.

The ability to monitor and control ones thinking.

The cognitive virtues.

Dispositions or habits of mind that support effective thinking.

Abstraction skills
Necessary for bringing past experience to bear on current situations.

 Engineers at Florida Power and Light were responsible for filling out forms to retire obsolete pieces of equipment. Even though FPL accountants gave engineers an eighthour course on completing the paperwork, 80% of the documents had mistakes.
A Toyota worker had to date-and-time stamp over 2000 suggestions submitted by employees each month. This protected against the possibility that an idea had been submitted simultaneously by more than one employee. But this had never happened. Toyota saved eight hours a month by discontinuing stamping. A hospital performed two additional operations a week as a result of better procedures for preparing instrument tables. Previously, 70% of tables were improperly prepared, causing delays while nurses searched for equipment.

 LEARNING BY ABSTRACTION

THE COGNITIVE VIRTUES

The cognitive virtues are mental habits or dispositions that make thought more likely to achieve its goals. They include:
Thoughtfulness: Good thinkers are reflective or mindful. Strategic: Thinking should be disciplined and planful. Unbiased: Thinking should be objective, unaffected by irrelevant considerations. Validity: Good thinkers have a passion for truth. Clarity: Thinking should be as clear and precise as the topic allows.

 Soundness: Arguments are cogent and rigorous. Flexibility: Beliefs are revised in light of new evidence. Depth: Good thinkers try to understand deep causes and meanings. Breadth: Good thinking is complete and comprehensive. Open-mindedness: Good thinkers consider the viewpoints of others.

EXERCISE : COMMON MENTAL MISTAKES

I have a friend who is a professor. My friend likes to write poetry, is rather shy, and is small in stature. Is my friend more likely to be a professor of psychology or of Chinese studies? A group of students was given two equivalent versions of an aptitude test. The ten students who scored highest on each test were identified and given the other test, the one he or she hadnt taken the first time. How do you think their scores on the second test compared with their scores on the first one? Were they better, worse, or about the same? A banker has been approached by a corporate borrower that is having trouble repaying its loan. The borrower has asked for an additional loan, arguing that this new capital will enable the company to turn the corner. What thinking mistake might the banker be making in recommending that the loan be approved?

THE CONTENT OF THINKING SKILLS

Learning how to think involves learning the following kinds of content:
Concepts: Basic units of meaning, relatively abstract, that enable one to conceive problematic realities in productive ways. Thus, sunk cost, ambiguity, presenting problem, and dependent variable. Principles: General guidelines that shape and direct thought. For instance, claims should be supported by evidence and/or arguments. Heuristics: Informal, quick-and-dirty, pieces of advice that can usefully guide thought and action. Thus, to identify larger systemic problems, ask, How did we get into this mess? Pitfalls: Common mental mistakes that are made in general or in certain kinds of situations. Methods: Relatively formal techniques or procedures for achieving certain goals. For instance, stratification, cause-andeffect diagrams, the nominal group technique.

EXERCISE : CONCEPTUAL CONFUSIONS

During a meeting convened to address a serious sales shortfall, a marketing executive protested that defining the problem as sales below budget was a mistake, since sales below budget isnt a problem, but is instead a symptom.
Is sales below budget a problem, a symptom, or what?

We all know that a cause is whatever is responsible for or produces an effect. Less widely recognized is the notion of condition, passive enabling factors that may be necessary for the effect to occur, but which do not actively bring it about. Most of us are also familiar with the following bumper-sticker argument against gun control: Guns dont kill people; people do.
Analyzed in terms of causes and conditions, is this a true statement? Does the statement make a sound argument against gun control?

GENERIC THINKING TASKS

Much of the knowledge required for effective thinking pertains to various generic thinking tasks we encounter in our personal lives and professional pursuits. These include:
Research: Finding out certain knowable facts about a situation. Diagnosis: Identifying the causes of a problem. Alternative Generation: Coming up with possibilities, options, or good ideas. Design: Developing complex artifacts that satisfy certain criteria and constraints. Prediction: Forecasting the likely future under specified conditions. Evaluation: Assessing the goodness of entities or alternatives according to certain criteria. Negotiation: Attempting to reach an agreement among two or more parties over an issue.

EXERCISE : DIAGNOSING CAUSES

Difficulties were being experienced in a printed circuit board production process due to eyelets that were too small for boards. Necessary engineering change forms and waivers were approved, allowing a slightly larger eyelet to be used. Unfortunately, when the next lot of PC boards reached the line, the new eyelets fit much too loosely. What went wrong?

A manufacturer produced motor shafts that didnt fit properly. Believing its equipment couldnt hold the required tolerances, management decided to buy a new machine. But a consultant found that shaft variation was minimal after machine downtime for lunch, breaks, etc. What caused the variation?

TOPICS FOR THINKING SKILLS INSTRUCTION

Fundamentals:
Conceptual foundations. The psychology of thinking. Language and thought.

Critical Thinking:
Inquiry. Reasoning. Inferential errors. Argumentation.

TOPICS FOR THINKING SKILLS INSTRUCTION

Managerial Thinking:
Thinking in group and organizational contexts. Problem solving.

Problem-Solving Tasks:
Problem identification. Problem definition. Problem analysis. Diagnosis. Alternative generation. Design. Decision making. Negotiation.

EXERCISE : INFERENTIAL ERRORS

Everyone has a right to his own property. Therefore, even though Jones has been declared insane, you had no right to take away his machine gun. Asked why his company was in three major lines of business, a corporate executive replied, A company is like a stool. It needs at least three legs to be stable. This proposal has been kicked around for more than twenty years now. If there were any merit in the idea, it would have been implemented a long time ago. There is intelligent life in outer space, for no one has been able to prove that there isnt. I fail to see why hunting should be considered cruel when it gives tremendous pleasure to many people and employment to even more.

WRITTEN ASSIGNMENTS Analysis of thinking: A two page paper that requires students to describe and analyze an episode from their past where their thinking was less effective than it should have been.

Critique of argument: A two page paper in which students analyze a short ineffective argumentsay, from a letter to the editor of a newspaperand identify its major inadequacies.
Argument analysis: Students are asked to analyze an extended argument, reporting their findings in a five-to-six page paper. Problem formulation: Students identify and define problems based on their reading of a lengthy Harvard-type case. Fiveto-six pages. Problem analysis: A five-to-six page paper in which students analyze
and offer recommendations regarding problems identified in a more focused case.

Approaches Characteristics
Theories, programs, ideas examples

The Skills Approach

De Bono CoRT Ennis - Taxonomy of critical chinking Beyer - Direct teaching of thinking Perkins - Thinking frames Perkins & Swartz - Graphic organizers Swartz & Parks Infusion Sternberg Intelligence implied Treffinger, Isaksen & Dorval - Creative problem polving Johnson & Blair Informal logic Chaffee - thinking critically Whimbey & Lochhead - Problem solving Feuerstein. Instrumental Enrichment Lipman - Philosophy for children

The Dispositions Approach

Perkins - Dispositions theory of thinking Tishman - Thinking dispositions Costa Habits of mind Baron -Theory of rationality Langer Mindfulness Barrel Thoughtfulness Facione - Critical thinking dispositions Passmore - Critical thinking as a character trait Siegel - The spirit of the critical thinker Sternberg Successful intelligence Golman - Emotional Intelligence Lipman - Philosophy for children

The Understanding Approach

Perkins - Understanding performances Gardner Understanding in the disciplines Wiske - Teaching for understanding Wiggins & McTighe - Understanding by design Paul - Critical thinking in the strong sense McPeck - The reflective critical thinker Brown Community of learners Smith - Understanding as good thinking Brooks & Brooks Constructivist instruction Lipman - Philosophy for children Harpaz & Lefstein - Community of thinking

Headings for Writing the Solution

Statement of the Problem : Describe what needs to be achieved through proposed solution. The Case : Very brief narration of the situation / provide a context for the various issues to be looked at.

Scope of Analysis : What aspects of the case are being analysed.

Possible Solutions & Evaluations Best Solution Conclusion

Interview At Mumbai

The Problem :
To determine the best way to reach Mumbai from Pune, in a fit condition for an interview at 11 a.m. the following morning.

The Case
a. An important interview at Mumbai the following morning at 11 a.m. which cannot be postponed. b. You are at Pune & its late in the evening. c. The decision needs to be based on the data given in the narrative since time is not available for more accurate data collection.

C. The boundary limits

Travel between Pune & Mumbai late evening & 11 a.m. the following morning.

Assumptions :
a. Clothes & papers required for the travel & the interview are available.

b. some preparation will be desirable for the interview since the notice for the interview has been received only now.
C..Mumbai & Pune are large cities. It is assumed that the distance between your home & railway station is 2 kms & between your home & airport is 9 kms. d. it is appropriate to reach the interview appropriately dressed & in proper state of mind. eRoad block between Mumbai & Pune

f. Overnight stay at Mumbai

Possible Solutions & Evaluation

Solution 1 :
Travel by a shared taxi & avoid staying overnight. Merits : Time at Pune to prepare. Less local taxi travel Demerits : Delay because all seats to be filled up Relatively costly

Solution 2 Travel by Air Demerits

Merits

Solution 3 Travel by deluxe bus Merits Demerits

Solution 4
Travel by Train Merit Demerit

Best Solution
Travel by first class in train leaving Pune at 11.30 pm

Discussion of Relative merits/ demerits

Management Principle Application

Decision Making techniques

Implementation
Pack your baggage, prepare for interview Purchase tickets Reach Worli by 10.40 a.m.

Conclusion
Traveling first class in the train departing from Pune at 11.30 pm will take one to Mumbai economically, with maximum dependency, in good time & in a good mental & physical state. This mode will also give adequate facilities & time for preparing for the interview & getting ready. The problem thus has been solved in the best possible manner by traveling first class in the train.

Salesmen Costs

Assumptions
All territories A,B,C,D & E are similar & there are no differences between the territories like hilly terrain, backward areas, bulk buyers etc. There are no heterogeneities. No restrictions for retaining particular sales men in a particular territory. No salesmen has special training / relationship to customers.

Management has culled data to optimize sales to salesmen cost.

Boundary Limits
These will be the sales in the 5 territories.

Possible Solutions
Solution 1
Number of customers different in 5 regions, salesmen in smaller territories are making larger number of customer calls. Salary cost of each territory is almost the same. It is thus suggested that some salesmen from territories C,D & E be withdrawn & moved to A & B regions.

Merits : Equitable distribution of salesmen with number of customers.

Demerits Across regions, uniformity of salesmen to customers difficult No control on number of calls / order size Not control other overhead expenses

Solution 2
To lay down maximum & minimum number of calls, effective calls & maximum expenses that may be allowed. Standards say 10 12 calls per customer & on expenses etc. Merits : Standardization process in place Control becomes easy Easy setting of targets. Demerits No guarantee of sales Higher number of calls to near by customers. Stipulated number of calls loose business Follow up.

Solution 3
Number of customers vary between 50 195. Necessary to redistribute the size of territories. Each territory should have 175 200 customers. Each customer should be visited 10-12 times & cost to sales ratio should not exceed 6 %. Merits : Covers all important factors Good customer coverage Improved attention to customers Lesser number of territories

Demerits Some salesmen may become surplus Increase in territory size & distance

Selected Solution