Case Study 2

J. Robert Collins

August, 2017

Introduction

Case Study and Analysis is generally more complicated and time consuming than the student realizes. A good case analysis seeks to determine as many facts as possible and draw reasoned conclusions from performing appropriate analyses. Often the analyses will require financial, market, and global trends analysis. Proper analysis will always focus on facts (which include, in many situations, numbers) and the conclusions that can be drawn from the facts. Often the facts will be determined only after “digging” into available information. Case information is always more than is stated in the written case and requires the student to perform independent research – often painstaking. Students should be aware that when reporting on a case analysis “I feels” and “I thinks” are not acceptable statements to make. Following are some additional points regarding case analysis and reporting:

(1) Prepare for the case analysis and report

a. Allow time to have a good understanding of the case. Read carefully, take notes as needed. It may take several readings to fully grasp the issues of the case.

b. First do a quick reading. Look for

-principles in the case

-the situation or issues; what are the strategies

-timelines for decisions if any

-what decisions are required

c. Look over exhibits and data

d. Look at the case sub-titles (i.e. the categories of information provided)

e. Review the case questions

f. Fully understand the assignment requirements

(2) Accomplishing the Case Analysis. Note that these are general statements and may not apply in every case.

a. Investigate and Analyze the Company’s History and Growth. Investigate the company’s founding, critical incidents, structure, and growth.

b. Identify Corporate Level Strategy. Identify and evaluate the company’s mission, goals, and corporate strategy. Identify and assess the company’s line(s) of business, its subsidiaries, and acquisitions. Debate the pros and cons of the company strategy.

c. Identify Business Level Strategy. (If the company has a single business, the corporate and business level strategies are the same.) Identify and analyze competitive strategy, marketing strategy, costs, and general focus for each business.

d. Perform financial and market analyses. How is the company performing in general and with respect to the market? (i.e. competition).

e. Identify Strengths and Weaknesses within the Company. Make a list of the value creation functions of the company. Which ones are stronger; which ones are weaker.

f. Gather information on the external environment. Identify opportunities and threats. Especially note the competition, bargaining power of the company, and the threat of substitute products.

g. Analyze Implementations. Identify and analyze the structure and control systems that the company is using to implement its business strategies. Consider organizational change, levels of hierarchy, employee rewards, conflicts, and other issues important to the company.

h. Analyze Findings. Based on the information gathered, construct an evaluation. Compare strengths and weaknesses with opportunities and threats. Is the company in a strong competitive position and can it continue on its current strategy successfully.

i. Construct the report and make recommendations. Pull together all the information gathered to address the questions of the case. Remember to be analytical and not descriptive. Allow yourself enough time to properly write the case analysis. Make good use of tables, charts, and numerical analysis. Eliminate unnecessary narrative.

j. Remember that “I feel”, “I believe”, “I think” are not acceptable. Acceptable are “the analysis indicates”, “the data shows”, “the report concluded”, etc.

(3) Case Analysis Requirements for this Course – this addresses primarily the format and minimum content for case analysis submittals.

a. Name and Title - Make sure you include a title page. Place your name and the course number, the date, and the title of the case on this page.

b. Summary Statement of the Case – Include first a summary statement of the case. Identify the company, the principals, the situations.

c. Address the case questions – First, write the question then write the response to that question. Repeat this process for each question to be addressed in the case. This is where many of the facts that have been determined will be presented.

(4) Summary of Tips and Best Practices

a. Prepare properly for the case analysis – see section (1)

b. Detailed reading of the case; identify the key issues, etc.

c. Allow enough time to properly research and peerform the case analysis

d. Apply the case analysis steps – see (2)

e. Write the case and put the analysis into the format required – see (3)

Note: Please refer to the “Guide to Case Analysis”, p. CA1, Thompson, Peteraf, Gamble and Strickland, “Crafting and Executing Strategy, The Quest for Competitive Advantage”, 20e, McGraw-Hill.

Especially note Table 1. Key Financial Ratios: How to Calculate Them and What they Mean, pp CA4-5 and Table 2. The Ten Commandments of Case Analysis, p. CA11.

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