Alternative Strategies
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how_to_conduct_a_case_analysis.pptxChapter 3
Marketing Decision Making
and Case Analysis
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Familiarity with decision analysis is important for FOUR reasons:
It is a fundamental tool for considering “what if” situations
It forces the case analyst to quantify outcomes associated with specific actions
It is useful in a variety of settings – product, communication, channel, or pricing decisions
4. It can be used in determining the value of “perfect” information
How to Conduct a Case Analysis
Identify key “facts and assumptions”
Become familiar with the issue(s) at hand
Put yourself “inside” the case
Think like an actual participant
Strategic decision maker
Outside consultant
Do not rush to a conclusion
Do not “work the numbers” until you understand their meaning
Do not confuse supposition with fact
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Consider Relevant Information
“The truly successful managers and leaders of the [twenty-first] century will…be characterized not by how they can access information, but how they can access the most relevant information and differentiate it from the exponentially multiplying masses of non-relevant information.”
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Consider Relevant Information Points to Remember
Resist the temptation to consider everything in a case as a “fact”
Create relevant information, if not available, by blending together data given in the case
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How to Conduct a Case Analysis
Become familiar with the material
Read quickly through the case one time
Use initial read-through to assess possible links to strategic concepts
Read the case again, making notes
Evaluate application of strategic concepts
After forming first recommendation, thumb through the case again to assess consequences of actions you propose
Instructor will be more interested in the analyses and process than in absolute correctness
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How to Conduct a Case Analysis: Situation Analysis
Use strategic tools to conduct the situation analysis
Five-forces analysis
Life cycle analysis
KSF’s
Distinctive Competencies (Porter’s generic strategies) and match with KSFs
SWOT analysis Table
Segmentation analysis
Specific positioning statement
Test your own assumptions about the case
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PROBLEM DEFINITION
“A problem well defined is half solved.”
— John Dewey
Problem definition framework includes:
Constraints
Success Measures
Objectives
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Cutting through to the heart of a problem is a bit like peeling an onion
take off one layer at a time
Eliminate symptoms by asking
“What caused this to occur?”
When the researcher can no longer answer this question, the real problem is at hand.
Symptoms versus Problems
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Identify problems
Symptoms vs.. Problems: avoid getting hung up on symptoms
Some cases have more than one problem
Articulate the problem
Writing down a problem statement gives you a reference point when you proceed through the case analysis
Some problems are not apparent until after you do the analysis
How to Conduct a Case Analysis: Problem Identification
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For example, when a St. Louis manufacturer of pumps faced a 7-percent decline in sales from the previous year, managers asked, “What caused this?”
A look at sales across the product line showed that sales were up or about the same on all items except large, heavy-duty submersible pumps, whose sales were down almost 60 percent.
They then asked, “What caused this?” Sales of the pump in the eastern and central divisions were about the same as in the previous year.
However, in the western region, sales were zero! Once again they asked, “What caused this?”
Further investigation revealed that a Japanese manufacturer was dumping a similar submersible pump in western markets at about 50 percent of the St. Louis manufacturer’s wholesale price.
This was the true problem.
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Now construct a problem for this scenario:
Effectively counter competitive pressures of pricing (objective) given our current distribution and pricing system (constraint) to increase overall performance of the unit (success measure).
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Let us construct a problem definition for USPS:
To offer a clearly defined advantage to consumers to take care of their mailing needs (objective) given our current obsolete modes of operation (constraint) to increase the overall performance of USPS (success measure).
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How to Conduct a Case Analysis: Strategic Alternatives
Propose alternative solutions
Develop a list of options first without judging them
Do nothing is often a reasonable alternative
Evaluate alternatives (pros and cons of each option)
Can the company afford it?
Is the solution likely to evoke a competitive response?
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?
Provide quantitative analysis to drive your recommendation
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How to Conduct a Case Analysis: Recommendation
Make recommendations
The solution you propose must solve the problem you identified
Make a focused recommendation that complements your analysis
Make sure the recommendation is part of your strategic alternatives
Describe exactly what needs to be done
Explain why this course of action will solve the problem
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How to Conduct a Case Analysis: Implementation
Include suggestions for how best to implement the proposed solution
Organize around four p’s (remember HR)
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Evaluate the Decision Process
Did I define the problem accurately?
Did I identify all pertinent alternatives and uncertainties? Were my assumptions realistic?
Did I consider all information relevant to the decision?
Did I recommend the appropriate course of action?
Did I consider how my recommendation could be implemented?
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Points to Remember
Always connect the problem(s), alternatives, and recommendations
Often, the problem is stated in the case; you just have to look for it
Support your assertions with case information
Make sure your recommendations do not go against the established norms of the industry (advertising, distribution etc)
Stay with the time frame and the information of the case
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Presentation Requirements
Introduction of Team
Outline of presentation
Brief Overview of the Case
Situation Analysis
Problem Identification
Alternatives
Recommendation
Implementation
Conclusion/Wrap Up
20 minutes in length
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Submission Requirements
On day of presentation, submit the following:
Copy of slides
Print 6 to a page; needed for reference only
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Group Assignments
Format-Business style writing
Times New Roman font, 12 pt., 1 inch margins
Single-space paragraphs
Double-space between paragraphs and after headers
Section headers in bold; sub-headers italicized; no punctuation after headers
All type should be left justified (do not indent paragraphs)
Charts and graphs should be in-line, not in appendix
Watch paragraph length, grammar, spelling
Consistent formatting throughout
Use Tables as much as possible
Use charts, graphs, images and bullets; be creative but professional; graphs should not be too big
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