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ANALYZING STRATEGIC MANAGEMENT CASES
CHAPTER 13
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CASE ANALYSIS
Case analysis helps us learn how to ask good questions & to make good decisions.
Why do some firms succeed, and others fail?
Why are some companies' higher performers than others?
What information is needed in the strategic planning process?
How do competing values and beliefs affect strategic decision making?
What skills and capabilities are needed to implement a strategy effectively?
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STEPS OF CASE ANALYSIS
Step 1: Become familiar with the material.
Read quickly through the case one time.
Assess possible links to strategic concepts.
Read the case again, making notes.
Evaluate application of strategic concepts.
Formulate an initial recommendation.
Go through the case again to assess the consequences of actions you propose.
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STEPS OF CASE ANALYSIS
Step 2: Identify problems.
Some cases have more than one problem to solve.
Avoid getting hung up on the case symptom.
Try to articulate the case problems.
Sometimes writing down a problem statement gives you a reference point.
Some problems will not be apparent until after you do the case analysis.
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STEPS OF CASE ANALYSIS
Step 3: Conduct strategic analyses.
Determine which strategic issues are involved.
Use strategic tools to conduct the analysis.
Five Forces analysis
Value-chain analysis
Contingency frameworks, e.g. when to use related rather than unrelated diversification
Financial analysis – using Financial Ratio Analysis.
Test your own assumptions about the case.
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STEPS OF CASE ANALYSIS
Step 4: Propose alternative solutions.
Develop a list of options – what are the possible solutions?
Evaluate the alternatives.
Can the company afford it?
How will competitors respond?
Will employees accept the change?
How will it affect other stakeholders?
How does it fit with the vision, mission & objectives?
Will the culture or values of the company change?
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STEPS OF CASE ANALYSIS
Step 5: Make recommendations.
Make a set of recommendations supported by your analysis.
Describe exactly what needs to be done.
Explain why this course of action will solve the problem.
Indicate how best to implement the proposed solution.
Note: the solution you propose must solve the problem you identified.
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STRATEGIC CASE ANALYSIS PROCESS: GOALS & OBJECTIVES
Analyzing organizational goals & objectives
Has the company developed short-term objectives that are inconsistent with its long-term mission?
Has the company considered all of its stakeholders equally in making critical decisions?
Is the company being faced with an issue that conflicts with one of its long-standing policies?
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STRATEGIC CASE ANALYSIS PROCESS: EXTERNAL ENVIRONMENT
Analyzing the external environment
Does the company follow trends and events in the general environment?
Is the company effectively scanning and monitoring the competitive environment?
Has the company correctly analyzed the impact of the competitive forces in its industry on profitability?
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STRATEGIC CASE ANALYSIS PROCESS: INTERNAL ENVIRONMENT
Analyzing the internal environment
Does the company know how the various components of its value chain are adding value to the firm?
Has the company accurately analyzed the source and vitality of its resources?
Is the company’s financial performance as good as or better than that of its close competitors?
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STRATEGIC CASE ANALYSIS PROCESS: BUSINESS-LEVEL STRATEGIES
Formulating business-level strategies
Has the company chosen the correct competitive strategy given its industry environment and competitive situation?
Does the company use combination strategies effectively?
Is the company using a strategy that is appropriate for the industry life cycle in which it is competing?
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STRATEGIC CASE ANALYSIS PROCESS: CORPORATE-LEVEL STRATEGIES
Formulating corporate-level strategies
Is the company competing in the right businesses given the opportunities and threats that are present in the environment?
Is the corporation managing its portfolio of businesses in a way that creates synergies among the businesses?
Are the motives of the top corporate executives who are pushing diversification strategies appropriate?
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STRATEGIC CASE ANALYSIS PROCESS: CORPORATE-LEVEL STRATEGIES+
Formulating international-level strategies
Is the company’s entry into an international marketplace threatened by the actions of local competitors?
Has the company made the appropriate choices between cost reduction and local adaptation to foreign markets?
Can the company improve its effectiveness by embracing one international strategy over another?
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STRATEGIC CASE ANALYSIS PROCESS: ENTREPRENEURIAL STRATEGIES
Formulating entrepreneurial strategies
Is the company engaged in an ongoing process of opportunity recognition?
Do the entrepreneurs who are launching new ventures have vision, dedication & drive, and a commitment to excellence?
Have strategic principles and tools such as five-forces analysis & value-chain analysis been used in the process of developing strategies to pursue the entrepreneurial opportunity?
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THANK YOU
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