Case essay writing
344 Appendix
How to Analyze Cases Before discussing how to analyze a case, it may be useful to comment on how not to prepare a case. We see two common failings in case preparation that often go hand-in-hand. First, students often do not apply conceptual frameworks in a rigorous and systematic manner. Second, many students do not devote suffi- cient time to reading, analyzing, and discussing a case before class. Many stu- dents succumb to the temptation to quickly read a case and latch on to the most visible issues that present themselves. Thus, they come to class prepared to make only a few superficial observations about a case. Often, they entirely miss the deeper issues around why a firm is in the situation that it is in and how it can better its performance. Applying the frameworks systematically may take more time and effort in the beginning, but it will generally lead to deeper insights about the cases and a more profound understanding of the concepts in the chapters. As you gain experience in this systematic approach to analyzing cases, many of you will find that your preparation time will decrease. This appendix offers a framework that will assist you as you analyze cases. The framework is important, but no framework can substitute for hard work. There are no great shortcuts to analyzing cases, and there is no single right method for preparing a case. The following approach, however, may help you develop your ability to analyze cases.
1. Skim through the case very quickly. Pay particular attention to the exhibits. The objective in this step is to gain familiarity with the broad facts of the case. What apparent challenges or opportunities does the company face? What information is provided? You may find it especially useful to focus on the first and last few paragraphs of the case in this step.
2. Read the case more carefully and make notes, underline, etc. What appear to be important facts? The conceptual frameworks in the chapters will be essen- tial in helping you identify the key facts. Throughout the course, you will want to address central questions such as the following: • What is the firm's performance? • What is the firm's mission? strategy? goals? • What are the resources involved in the firm's value chain? How do they
compare to competitors on cost and differentiation? • Does the firm have a competitive advantage? • Are the firm's advantages and disadvantages temporary or sustainable? • What is the value of the firm's resources? • Are the firm's resources rare? • Are the firm's resources costly to imitate? • Is the firm organized sufficiently to exploit its resources?
Depending on the case, you may also want to consider other frameworks and questions, where appropriate. Each chapter provides concepts and frame- works that you may want to consider. For example: • What are the five forces? How do they influence industry opportunities and
threats? (Chapter 2) • What are the sources of cost differences in an industry? (Chapter 4) • What are the bases and potential bases for product differentiation in an
industry? (Chapter 5)
Each chapter suggests more specific questions and concepts than those above. You will want to consider these concepts in detail. In some cases, the instructor may offer direction about which concepts to apply to a given case. In other instances, you may be left to use your judgment in choosing which concepts to focus on in analyzing a case.
3. Define the basic Issues. lhis is perhaps the most important step and also the stage of analysis that requires the most wisdom and judgment. Cases are rarely like tidy problem sets where the issues or problems are explicitly stated and the tools needed to address those issues are prescribed. Generally, you need to determine what the key issues are. In doing this, it may help for you to begin by asking: What are the fundamental issues in the case? Which concepts matter most in providing insight into those issues? One trap to avoid in defining basic issues is doing what some decision-making scholars label "plunging-in," which is drawing conclusions without first thinking about the crux of the issues involved in a decision.1 Many students have a tendency to seize the first issues that are prominently mentioned in a case. As an antidote to this trap, you may want to consider a case from the perspective of different conceptual frames.
4. Develop and elaborate your analysis of the key issues. As with all of the steps, there is no substitute for painstaking work in this stage. You need to take the key issues you have defined in Step 3, examine the facts that you have noted in Step 2, and assess what are the key facts. What does quantitative analysis reveal? Here it is not just ratio analysis that we are concerned with. Just as body temperature, blood pressure, and pulse rate may reveal something about a person's health but little about the causes of a sickness, ratio analysis typi- cally tells us more about the health of a company than the causes of its per- formance. You should assemble facts and analysis to support your point of view. Opinions unsupported by factual evidence and analysis are generally not persuasive. lhis stage of the analysis involves organizing the facts in the case. You will want to develop specific hypotheses about what factors relate to success in a particular setting. Often, you will find it helpful to draw diagrams to clarify your thinking.
5. Draw conclusions and formulate a set of recommendations. You may be uncomfortable drawing conclusions and making recommendations because you do not have complete information. This is an eternal dilemma for managers. Managers who wait for complete information to do something, however, usu- ally act too late. Nevertheless, you should strive to do the most complete analy- sis that you can under reasonable time constraints. Recommendations should also flow naturally from your analysis. Too often, students formulate their rec- ommendations in an ad hoc way. In formulating recommendations, you should be clear about priorities and the sequence of actions that you recommend.
6. Prepare for class discussion. Students who diligently work through the first five steps and rigorously examine a case should be well prepared for class discussion. You may find it helpful to make some notes and bring them to class. Over the years, we have observed that many of the students who are low contributors to class discussions bring few or no notes to class. Once in class, a case discussion usually begins with a provocative question from the instructor.
1 J.E. Russo and P. J. H. Schoemaker (1989). Decision Traps: Tm Ten Barriers to Brilliant Decision-Making and How to Overcome Them. New York: Fireside.
Appendix 345
346 Appendix
Many instructors will "cold call"-direct a question to a specific student who has not been forewarned. Students who have thoroughly analyzed and dis- cussed the case before coming to class will be much better prepared for these surprise calls. They will also be better prepared to contribute to the analysis, argument, and persuasion that will take place in the class discussion. Discus- sions can move rapidly. You will hear new insights from fellow students. Preparation helps you to absorb, learn, and contribute to the insights that emerge from class discussion.
Summary Students who embark in the case method soon learn that analyzing cases is a complex process. Having a clear conceptual approach such as the VRIO frame- work does not eliminate the complexity. This systematic approach, however, does allow the analyst to manage the complexity of real-world business situa- tions. In the end, though, neither cases nor real-world businesses conclude their analyses with tidy solutions that resolve all the uncertainties and ambiguities a business faces. However, the case method coupled with a good theory such as the VRIO approach and hard work do make it more likely that you will gener- ate valuable insights into the strategic challenges of firms and develop the strategic skills needed to lead a firm.