Revised June 20, 2004

CASE ANALYSIS & PRESENTATION GUIDE

PROF. K. THOMAS CHANDY

PURPOSE The case method is a surrogate for personal experience in learning about complex business situations. By studying, analyzing, and solving a number of case studies you will:

Gain experience in problem solving and business decision-making. Improve your skills in diagnosing complex business problems. Integrate what you have learned from all your previous business courses and apply that knowledge to tangible situations. Develop logical analysis skills. Learn to present information and recommendations in a clear and concise manner.

THE CASES All the cases used in this course are based on real situations. Some may have been disguised to maintain the anonymity of the companies and people involved. Each case contains a different blend of information and anecdotes about an organization, its business environment, and the people who manage it. However, as Russell L. Ackoff, one of the pioneers in management education points out, a case cannot fully reflect the complex sets of interacting problems that constitute reality. Instead, a case is an abstraction, extracted out of reality through the analysis of the case-writer (Detrick, 2002). Thus, no case will ever contain all the facts you would like to know in order to make the best possible decision. The result is a situation not unlike that faced by actual managers. Most managers seldom, if ever, have all the information they would like to have in a situation. Even the facts they have are usually subject to a considerable degree of uncertainty. In some circumstances information is too expensive to obtain or requires too much time to find. In spite of all these problems, experienced managers are still able to consistently make good decisions. Solving cases puts you on the path to making good decisions when you have to deal with actual business situations.

The starting point for this case writing guide was one prepared some years ago by Gerard Rossy at California State University, Northridge. I am grateful to him and to Pierre Loewe of Strategos for their initial input to this guide. It has, however, changed considerably over the years as I have revised it at the end of each semester to reflect what I have learned from my students at Northridge, Pepperdine, Claremont, Indiana, Xavier Institute of Management & Entrepreneurship, DC School of Management & Technology and Binghamton University. Though I have received a great deal of help from my colleagues and my students in refining this document, any errors are mine alone

Case analysis & writing guide Revised June 20, 2004

ASSUMPTIONS If you find that information you need to analyze a case is missing or incomplete you have the same two choices that general managers have. You can do research to get that information or you can make reasonable assumptions based on the information you already have. All cases will require that you make some assumptions. It is important that you make them carefully and that they are stated clearly. If you have to make assumptions in your case analysis, make them explicit and explain why you believe they are justified. Do not confuse your assumptions with the facts in the case. OUTSIDE INFORMATION Some of your assumptions and, possibly, part of your solution of the case may be based on information you have obtained from outside sources. You should not hesitate to draw upon specialized knowledge you already possess as a result of your work experience or other courses you have taken in the past. When you feel it could help your analysis, you may do outside research on the historical context or the business environment in which the case is situated. If you make use of any outside information be sure to

identify it as such cite the source, and only use data from, or before, the time period of the case.

HOW TO APPROACH A CASE Cases cannot be solved quickly or in just one sitting. The complex nature of business cases requires you to apply both your conscious and unconscious thought processes in an iterative manner. While your conscious mind orders the facts and systematically analyzes each important aspect, your unconscious mind integrates the diverse aspects of the total situation and helps generate solutions which deal with the complete problem. For this reason it is important not to rush to solve a case. Do it over an extended period of time and in manageable chunks. Do not try to do it the night before it is due. First, read the case over to get a general understanding of the facts and the more obvious issues. Then review it a second time, making note of what you think are the important facts, and how these facts relate to one another. (You can make these notes either on a piece of paper or in the margins of the case study). After you have completed this second reading put the case away and give your subconscious a chance to do its work. Sleep on it. Work by Jan Born at the University of Lbeck, Germany, Robert Stickgold at MIT and other scientists confirm that sleep boosts lateral thinking enhances learning and inspires insight (Abdulla, 2004; Hopkin, 2004; Wagner et al., 2004). Thus, some time for reflection will give you better insight into the case and its solution. When you return to the case the critical issues should stand out much more clearly than they did when you first read it. You will then be able to be able to apply appropriate frameworks and theoretical models to the facts of the case more effectively than if you had rushed directly into this phase of the analysis.

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Working in groups is a very useful approach to solving cases. Each individual may see the situation from a different perspective. Your group discussions will help surface these different points of view and will help you take advantage of the alternative perspectives. However, when you are required to provide an individual case analysis, your final written report should be done alone and should reflect your unique analysis and set of recommendations. It is essential that your report is:

Fact-based, Rigidly structured, and Hypothesis-driven (Rasiel, 1999: 3).

CASE ANALYSIS vs. CASE PRESENTATION While you might analyze a case for the sole reason of enhancing your own comprehension of a class of problems, there will be many occasions when you will wish to persuade others to accept your perspective and understanding of a business situation. In order to do so, you will need to communicate your findings to them, either in writing or orally. The steps you should follow in each phaseanalysis and communication (in writing or orally)are detailed below. Though analysis naturally precedes communication, this guide will first address communication in order to give you a sense of what information you have to bring together in your analysis. SUGGESTED OUTLINE FOR COMPREHENSIVE WRITTEN REPORTS Communicating your findings effectively requires more than merely telling your audience the steps you went through in your analysis. An effective report clearly and concisely communicates the information a manager requires to carry out his or her primary functiondecision making. Write these assignments as if the CEO (or General Manager, or SBU head) of the company had asked you to provide her with totally candid input on the situation(s) and what she should do about it (them). She has asked you specific questions, and expects crisp answers and/or recommendations in response to each question. She is a former English major who likes reports written in plain, clear English (not in business-school-speak), and hates spelling mistakes. The format of such reports will, of course, vary with its purpose and content. In general, however, each report should include the following: 1. Cover Page The cover page should give the title of the report, the names of the authors and the date. This page is not numbered. 2. Executive Summary: A management report is not a mystery novel. Its purpose is to illuminate a situation and its solution, not create suspense and confusion. Let the reader know where you are going by providing an executive summary of your report. This summary should identify the major problem/key issues that confront management and summarize your findings and recommendations.

Case analysis & writing guide Revised June 20, 2004

It should motivate the reader to go on to read the main body of the report itself in order to understand the rationale for those recommendations. The executive summary should be written only after you have completed your analysis. It should be a brief, stand-alone document not exceeding one page in length. It should follow immediately after the cover page. This page should not be numbered. 3. Main Body of Report The main body of the report should present the conclusions of the seven-step analysis discussed in a subsequent section below. However, the order of presentation should not follow the sequence of the analysis. Rather you should write deductively:

Problem statement/Key issues: Start with a statement of the problem/key management issues you have identified through your analysis (see Step #4 in the analysis process described on pages 7-11). Concentrate on the critical issues facing the organization. Supporting argument: Next, you should explain why you have concluded that this is the key issue or issues. To do this, explain how the data of your situational analysis (see Steps #1 and #2 below) and the key change drivers (Step #3 below) when observed through the lens of your theoretical models/frameworks (Step #5 below) leads to your finding of what the key management issues are. Alternative strategies: You can now lay out the alternative strategies available to the organization (see Step #6 below). Limit yourself to the three or four best options. Using appropriate theoretical models or frameworks, explain why these options are viable, point out the benefits and costs you expect from each and how the implementation of each strategy will affect the situation. Avoid cop-outs such as: "Hire a new president who can solve the problem." "Liquidate the problem division." "Fire everyone." "Conduct market research." "Delegate more authority to lower management." "Hire a management consultant to solve the problem."

Recommendation: Identify which alternative strategy you recommend. Explain your recommendation. This explanation should flow naturally from your earlier discussion of alternatives. Effective managers are willing to confront the real issues, even if they are sensitive. The best solutions often involve taking calculated risks. Be willing to take those risks in presenting your solution. A conservative, risk-free solution is often not the best one. Implementation plan: Finally, present an implementation plan for your recommended strategy (see Step #7 below).

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When writing your report be sure to back up your points above with a well thought out rationale based on applying specific theoretical models or analytical frameworks to the data available to you. Do not waste space summarizing information already found in the case. Assume the reader is already completely familiar with the situation as described. You should, however, refer to specific data or facts when necessary to support your analysis or conclusions. Your report should be clear, concise, and objective. Don't embellish your analysis with flowery language, hyperbole, or unsupported personal opinions. Differentiate between facts, opinions, and assumptions. Assess all evidence in the case to determine its accuracy, reliability, and relevance. If different facts in the case seem in conflict with each other, your report should try to resolve the discrepancy. Deal explicitly with any differences of opinion between characters in the case. Use only information that was available on the date the case ends. Do not take advantage of information that has become available subsequent to that date. 4. References: Provide complete citations for any concepts or facts from sources other than your textbooks, the case study, or class lectures and discussions. 5. Appendices (if any): Attach tables, charts, diagrams, financial analyses, etc. to support your report. However, the mere replication of diagrams from the readings or from the case provides little insight. Be sure that any appendices are referenced in the body of your report. If you are not going to reference them in the body of the paper, don't include them. OTHER SUGGESTIONS In addition to the guidelines above, consider the following suggestions when appropriate:

Provide headings at the beginning of each major section of the report. Prioritize lists. Explain any terms or statements whose meanings may be ambiguous. Evaluate whether your report adequately satisfies the needs of your intended audience. Distinguish explicitly between facts, opinion and assumptions.

GRAMMAR, WRITING STYLE AND EDITING Spelling, punctuation, grammar, as well as the overall appearance and readability of the report, will also significantly influence your grade. Every written product or presentation you turn out, now and in the future, will be judged on both its content and appearance. As such it will reflect directly on you as a professional and will influence the effectiveness of your presentation. Do not submit any report to me that you would not be willing to give a client or your manager. Prepare your case assignments carefully and turn in a quality product.

Case analysis & writing guide Revised June 20, 2004

Every report should be prepared on a word processor, spell-checked, and then reviewed for errors that the program may have missed. Make sure that you PROOF-READ YOUR REPORTS before submitting them. Spelling mistakes and grammatical errors create a very bad impression and detract from the impact of your report. FORM OF THE REPORT You will be asked to submit either a "full-length" report or a short "brief". Each of these documents must adhere to the following guidelines with respect to form: 1. Full-Length Report

The length of the report may not exceed 10 pages double-spaced (not including references, appendices, the one-page executive summary or the cover page). Use only a 12 point font (preferably Helvetica, Times or Times Roman). The entire report, including exhibits or appendices must be in black ink and on standard white letter-size paper. Use 1 inch margins all around. There is no reason to use folders binders, or fancy covers. Do not add unnecessary blank sheets. Staple the report together at the top left hand corner. All tables, graphs, charts, spreadsheets, and computations should be presented in appropriately labeled appendices and must be referenced in the body of the report. You may use bold or underlined section headings. Number the pages: Include a running footer with sequential page numbers.

2. Briefs No cover page is required. No executive summary is required. The length of the report may not exceed 3 pages double-spaced (not including appendices or references). Any pages beyond the maximum of three will not be read (with the exception of any tables, charts, or graphs in the Appendices). Use only a 12 point font (preferably Helvetica, Times or Times Roman). The entire report, including exhibits or appendices must be in black ink and on standard white letter-size paper. Use 1 inch margins all around.

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Because you are limited to 3 double-spaced pages, the brief's content should focus only on the most critical issues. You will be judged not only by what you choose to discuss but also by what you choose to exclude. It is especially important to concentrate on valueadded discussions and avoid repeating facts that are in the case and known to the reader. If you only had three pages to influence (and impress) the president of this organization, what would you say? You may use bullets to identify the major problem(s)/key issue(s); competitive environment analysis and internal analysis, key change drivers, appropriate theoretical models or frameworks and a brief discussion and recommendations. There is no reason to use folders binders, or fancy covers. Do not add unnecessary blank sheets. Staple the report together at the top left hand corner. All tables, graphs, charts, spreadsheets, and computations should be presented in appropriately labeled appendices and must be referenced in the body of the report. You may use bold or underlined section headings. Number the pages: Include a running footer with sequential page numbers.

You can only prepare a good written report if you have first thoroughly analyzed the case. The next section describes how you should go about analyzing a case. ANALYZING THE CASE: THE SEVEN STEPS TO SUCCESS As you will have noted on page 2, effective case analysis is an iterative process. This process will lead you to the identification of the key issues faced by the organizations management, the development of a recommendation to address those issues and a plan for implementing your
Step #4 Identify key management issues (Hypothesis)

Step #1 Map the business landscape

Step # 2 Analyze the firm

Step #3 Identify change drivers

No/Not sure

Step #5(b) Are these really the key management issues Yes

Step #5(a) Select appropriate frameworks & theoretical models

Step #6 Develop recommendations Step #7 Develop implementation plan

Fig. 1: The iterative process of case analysis: Seven steps for success

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recommendation. The iterative process of case analysis is shown diagrammatically in Fig.1 and each of the seven steps is described below. Step #1: Mapping the Business Landscape: The firm or organization you are studying is embedded within a business landscape. Mapping that landscape is an essential prerequisite to understanding and assessing the options available to your client. Begin with an analysis of the competitive environment at the most macro-level the level of the general environmentand move down to the industry level. These two levels comprise the external environment in which the firm competes. For this reason, this analysis is often termed "external analysis". General Environment: The general environment is the national or global economy within which the firm operates (see Fig. 2). You should analyze the economic conditions, social factors, technology, government regulation and supports, and macro environmental trends that are of strategic importance to the firm. By beginning your analysis at this level you will force yourself to "think outside the box."

Industry National or Global Economy Firm

Fig.2: Levels of analysis

Business Environment: The business environment is determined by the industry in which the firm competes. How is the industry creating value? Analyze the industry structure and competitive position. Describe the major strategic groups. What are the basic economics of the industry and its key success factors? Although mapping the business landscape is the first of the seven analytical steps, you will have to return to it through one or more iterations as you seek to clearly identify the key management issues (Step #4). First, make an assessment of the business environment based on your initial reading of the case, and then proceed to steps 2 through 5 described below. The next iteration begins after step 5 where you select appropriate frameworks and theoretical models to interpret the data you have identified as salient. At this point you should return to your analysis of the business environment and apply the selected frameworks/models to data to carry out a more in-depth analysis. Your findings from this analysis should inform your follow-on iteration of steps 2 through 5. Step #2: Analyze the firm Now move down to the level of the firm and do an "internal analysis" to assess the strategic fit of the firm's present strategy and organization with its external competitive environment. Here, too, you make a first assessment after your initial reading of the case and then return to apply the frameworks/models you select in step 5 to carry out an in-depth analysis which is now also informed by the in-depth analysis of the business environment you have just completed.

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A. Mission, Long Range Objectives, Current Strategy, and Performance Identify the firm's vision, mission, purpose, and management values/philosophy. Identify the firm's business level strategy. What is its competitive strategy? What is its investment and growth strategy? In the case of a diversified firm, what is the business mix and how do the various businesses relate to each other? Who are the key stakeholders? Is the firm's business level strategy aligned with the corporate strategy of its parent? What are the firm's long range business objectives? Does it have both quantitative and qualitative objectives and how are they defined? Do these goals make sense in light of your analyses of the situation? How well or poorly has the firm been performing? What historical factors are critical to its present situation? B. Organizational Analysis How is the firm creating value? How is the firm organized?

Structure: How is the organization structured? Is its structure aligned with its strategy?

People: Who are the people working in the firm? Are their skills and training aligned with the needs of the firm's strategy and structure? How are they recruited? How are they motivated? How are they rewarded? How are authority and responsibility allocated? Who are the main actors in the situation? How do their personalities and values influence the situation?

Culture: What is the culture of the organization? Is the culture strong or weak? If it is strong, how is it preserved? How does the organization's culture influence the behavior of its individual members? How does it influence the organization's performance? Technology: What technology does the firm use? How does it affect the way that individuals and groups interact within the firm? How does it affect the business processes of the firm? How is technological innovation and change handled in the firm? Is technological change in the firm rapid or slow? Is it taking place faster or slower than the industry?

Business Processes: What is the process whereby the organization's work gets accomplished? Is the process aligned with the organization's strategy, structure, culture and human resources? If not how can it be brought into alignment? Leadership: Who are the firm's leaders? What is their leadership style? Is it appropriate? What are the firm's strengths, distinctive competencies and weaknesses? Appraise the firm's resources, strengths, and distinctive competencies and also its weaknesses in each organizational area. What are its major competitive advantages and disadvantages? Think of why the firm's current resources are the product of its past decisions and how it might form the basis for future strategy. For diversified firms analyze the logic of the firm's portfolio of businesses and the process or criteria by which products/businesses are added and deleted.

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Is the firm's strategy likely to result in outcomes that will satisfy the interests of key stakeholders? What potential internal conflicts do you see? Step #3: Identify key change drivers The next step is to identify the key change drivers underlying the issue(s). What are the forces driving change? What forces are maintaining the status quo? Do they originate externally or internally? What will the firm's probable future environment look like? What are the implications for the firm? Your analysis must be supported by the facts in the case along with whatever reasonable assumptions you make. Step #4: Identify key management issues Having completed the three-level situational analysis and identified the change drivers you should identify what you believe are the key management issues. These are developments or events that have the potential to influence the organizations current or future strategy (Dutton & Duncan, 1987: 280). In identifying the key issues you need to compare the opportunities and threats arising from the firm's present and probable future environments against its strengths and weaknesses both current and in the future. In your first pass through the analysis process, your definition of the key issues establishes your hypothesis. You then proceed to Step #5 to decide how you will test this hypothesis. On the second or subsequent iterations you will proceed to Step #5 to determine whether or not your hypothesis is confirmed. Step #5: Select appropriate frameworks and theoretical models to test your hypothesis At this point you will want to select the appropriate frameworks or theoretical models that can be used to interpret data available to you, forecast future scenarios and frame action plans. You come equipped with a set of theoretical tools from earlier courses. The readings assigned in this course give you additional theoretical models and frameworks for your tool kit. You can now apply the theoretical models and frameworks you have selected to the data and determine if the issues that you believed are the key ones are in fact the central problems the firm's management faces. If the application of the frameworks/models supports your hypothesis you will be in a position to provide a precise, clear and explicit statement of the problem and critical issues that can be logically supported. You might, however, find that your hypothesis is not supported. For instance, when you applied the frameworks/models you may well conclude that what you believed to be the key management issues are in fact only symptoms of some deeper problem. In such a case you should go back through the analysis process and redefine the key management issues based on the insight you have gained through the in-depth analysis you carried out by applying appropriate frameworks/theoretical models. Step #6: Develop recommended strategy Once you have confirmed the key issues confronting the organizations management you need to identify and evaluate the action alternatives available to them in order to address these issues. These alternatives should include all major strategic options open to the organization that can be considered reasonable in the context of your analysis. Your objective is to define possible actions in response to problems you have identified that will create a sustainable competitive advantage for the organization. In general a good course of action should: 10

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Be ethicalit should be compatible with the values of management, of its implementers and of society. Create a sustainable competitive advantageit should be a long-term solution rather than a short-term fix. Be feasibleit can be implemented at a reasonable cost; infeasible alternatives can be discarded immediately; others must be formally evaluated using specific criteria. Be realistic about constraints imposed by the situation. For example, if the president is incompetent but owns 80% of the stock, don't recommend firing him unless you also provide a strategy for doing it successfully. Also be sensitive to constraints imposed by key customers, major suppliers, competitors, or the government.

Be non-disruptiveit should not cause more problems than it solves. You should now be in a position to recommend a course of action. What is the best combination of alternatives given the available information and resources? This is the solution that should be adopted. Be sure your analysis supports your choice. Propose specific recommendations. They may be an addition to or a substitute for the firm's current strategy and/or mode of organization. Be sure that you include the rationale for your choice and that you have considered the availability of resources to carry out your proposed plan.

Be effectiveit should solve the stated problem(s). Be timelyit should be completed within a reasonable time frame. Be cost-effectiveit should cost less than the problem.

Recommendations should address all major problems/issues you identified.

Recommendations should follow logically from your analysis and the problems/issues identified. Recommendations must be feasible and desirable to the key stakeholders.

Step #7: Implementation The final step is implementation. A solution is not complete until it becomes operational. In strategy, as in invention, success is 5% inspiration and 95% perspiration. You must provide a specific implementation plana reasonable plan of action for carrying out your solution. Be sure to consider all factors necessary for successful implementation--what, who, when, and how much. CASE REPORT GRADING CRITERIA Reports will be evaluated as if they were the result of a paid consulting contract. The report should add value beyond what management already knew from the facts in the case. Was the report worth the fee paid to the consultant? Would the consultant be rehired or offered a position within the company based on the value of their work? 1. Do you adequately understand the facts in the case? Did you read the case carefully enough to identify the important aspects of the organization's internal and external circumstances?

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2. Did you organize your report well and is it internally consistent? Are the strengths and weaknesses you identify consistent with the organization's mission? Have you dealt adequately with the constraints and opportunities facing decision makers? Are your recommendations feasible given your assumptions? 3. Is your analysis deep enough? Does your analysis go into sufficient depth to identify and deal with the critical underlying issues, or is your analysis superficial and trivial? Would a CEO pay you for this report? 4. Have you used theories and concepts from this (and other) classes in making your analysis? Are you trying to get by on your intuition and common sense alone or can you use theories, research, and concepts from the management literature to improve your analysis? 5. Have you used the information in the case creatively? Have you integrated different pieces of information in the case to come up with new insights into the situation, or have you merely followed a formula and repeated what was already stated in the case? 6. Have you presented your analysis and recommendations in a literate and effective manner? Is your report well written and does it communicate clearly; is it free of unnecessary jargon and obfuscation? Are you using a scalpel or a shovel in shaping your analysis? REFERENCES

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