CASE ANALYSIS GUIDELINES



CASE ANALYSIS GUIDELINES

Strategic Management, Dr. Stone

THE COMPREHENSIVE CASE ANALYSIS

1. Identify the case issues

This section, although first in your document, is derived only after you have conducted a detailed internal and external analysis. There may be many issues, with each having one or two related secondary issues. Often the case issues are described in the introduction to the case, developed throughout the case and summarized at the end. It is important that you read the case thoroughly, conduct a preliminary or even detailed data analysis, and then give a clear and accurate statement of the issues.

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. • What is the Key Strategic Issue faced by this organization (KSR)? Phrase the KSR in the form of a question. That is, “the key strategic faced by this firm is how can it blah blah blah?”

. • What is the root cause of today’s situation? Usually root causes can be pinpointed to either poor strategic decisions made earlier in time (thus it’s important for you to understand the chronology of important actions and decisions made by the organization), or poor implementation at a functional level.

2. Analyze conditions in the environment

The Industry Environment (Five-forces analysis)

• How attractive is the industry? Look at overall industry profits, excess capacity, size, number of competitors, market power and market share of the leaders, economic and business forces, capital requirements, competitive rivalries, the key factors for success in the industry

• What is causing change to the industry? Look at product, manufacturing, or marketing innovations, substitute products, entry barriers, exit barriers, regulatory pressures.

• What are the factors (strengths/weaknesses) that will determine success for any firm in this industry in the future (Key Success Factors, or KSF)

• How does the firm compare to its closest rival? Look at product line positions on strategic group maps, economies of scale, brand loyalty?

• What are the threats from new entrants? What role do substitutes play? What is the threat from buyers and suppliers? How do industry competitors manage the threats from these sources?

The Remote Environment (STEEPDG analysis)

• What national and international developments influence the firm: changes in social values, attitudes, lifestyles, work ethics, equality standards, education levels?

• What significant technical forces impact the firm: cost of raw materials, Internet, personnel training?

• What are the directions in the firm’s national and international markets: economic growth, inflation, capital availability, purchasing power, interest rates?

• What shifts are forming in national and global governments: taxation, regulation, antitrust, foreign trade, environmental protection, spending?

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After completing the data analysis, identify specific opportunities and threats originating in the external environment. You may put these into a table.

3. Internal Analysis

Tangible and Intangible Resources

• How sound is the firm’s financial position: financial ratios, short term debt capacity, long term debt capacity, equity amounts, working capital?

• How does the firm’s financial health compare with: economic trends, with industry trends?

• How advanced is the firm’s operating capacity: flexibility, personnel skills, quality, operating costs?

• Are there any specific human resources?

Management Capacities (processes and procedures)

• How effective is the firm’s R&D: innovative products, manufacturing operations, patents, quality, reliability?

• How formal is the firm’s planning process mission statement, short term focus, long term focus, monitoring of market trends, objectives, growth strategies, stability strategies, implementation efforts?

• How well is the company organized around its strategy mix: flexibility, openness and trust, retention, development and training of key people?

• What leadership qualities exist: motivations, abilities to inspire, coordination of interdepartmental operations, communication styles, achievement orientations?

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Identify the organization’s core competence(s) and sources of competitive advantage (superior efficiency, superior customer responsiveness, superior innovation, and superior quality). How does the organization implement these sources in its industry? What specific strengths and weaknesses have you identified in this internal analysis? You may put these into a table.

4. Analysis

Identify the organization’s generic strategy (overall low cost, differentiation, focus, combination) and any/all business level strategies that it follows.

Complete a SWOT analysis using the SWOT matrix to determine the potential grand strategies available to the organization.

Compare the firm’s strengths and weaknesses relative to its competitors. Are there any opportunities to exploit competitors’ weaknesses or take advantage of current or potential opportunities in the external environment?

5. Alternate Strategies

1. Based on the data and your strategic analysis, create three viable alternate strategies that the organization can use to address its strategic issue. Re-state the strategic issue at the beginning of this section to set the background for your recommendations and to ensure that you are actually proposing to solve the strategic issue, rather than tactical or functional problems. One of the recommended strategies can be the current strategy employed by the organization at the time of the case.

6. Recommended Strategy

Of the three alternatives, pick the one that you believe will best solve the organization’s strategic issue. You absolutely must substantiate your recommendation with specific data from your analysis. That is you must justify your recommendation with data.

7. Implementation Plan

Describe a plan that the firm must undertake to implement you strategy. Remember that you are solving the organization’s strategic issue. You may propose a phased implementation plan (e.g., address problems first by doing a, b and c, and then implement a growth plan by doing d, e and f).

THE CASE BRIEF

A Case Brief is a document to guide your contribution to class discussion. It should summarize the important historical events which led up to the current situation and describe the “key strategic issue” faced by the firm at the time of writing. If the case was written in the past, do NOT look for more recent or supplemental information. All you have is the information contained in the case document itself. After identifying the key strategic issue, evaluate the external environment and the industry to place the case into context. Does the case describe factors in the industry or within the firm that can give you some insight into the case (these are opportunities or threats to the firm). Identify the firm’s internal strengths and weaknesses. Finally, identify one future strategic move that the firm can make, support your suggestion with facts, and describe what the firm needs to do to implement your suggestion. An adequate Case Brief should be approximately three to four double-spaced pages.

Use the following Case Brief Outline in your papers.

. I. Introduction and History

. II. Key Strategic Issue

. III. Competitors and External Opportunities and Threats

. IV. Internal Strengths and Weaknesses

. V. Future Strategic Move and Factual Support

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