Guide to Case Analysis

Why use cases in this course?

They give you the chance to actively analyze and make recommendations on messy real life business situations with absolutely no risk. Ideally, you would be working in the firm, but it would be very difficult to parachute you all into an ongoing business situation for pedagogic purposes!

Cases are used for analysis and discussion. There is no right or wrong “answer” to a case analysis. You may know afterwards what the company actually did, but this does not necessarily mean that they chose the right alternative and implemented it well.

Cases fall into three categories:

Specific evaluation cases: This type of case describes what a company did. The discussion revolves around the evaluation of the soundness of the decision.

Specific decision cases: In this type of case, management faces a problem. The student (and executive involved) is required to analyze the situation and the possible alternatives and to make a decision.

General evaluation and appraisal cases: These cases include unstructured information.

It is up to the participants to evaluate how things are going, if there are problems calling for action, and if so, what action to take.

Getting ready to prepare a case:

The first step in preparing a case report is to identify the problem posed. Unless you can define the problem in a specific, clear and meaningful way, you cannot solve it. It is necessary to form the rightquestion to get the right answer.

The next step is to analyze the problem with the facts at hand. Don’t give up because you don’t have all the facts you would like. Use what you have. Use them systematically in a logical progression to build an argument that supports your solution to the problem. It is useful to think in terms of “findings’’ – key facts which underlie and create the identified problem.

The final step is to state your solution to the problem, making it clear why your solution follows from your analysis. Elaborate on your solution by stating recommendations. Given your solution, what actions should be taken to correct the problem? Do not get more specific than the facts will allow. But do not beso general as to lose specific relevance with the problem.

Do not think as you write. Read the case at least three times, think, then write what the reader should know from your thinking. Therefore, proceed in two steps: 1.) prepare the case and 2.) formal write-up.

Preparing a case:

In preparing an analysis, read through the case and look for the main problems that you will address. Develop a rationale for your belief that the problems identified are in fact major problems. In addition, assemble the facts presented in the case that address various problems.

Once you have assembled all the information provided, develop a framework for analysis. This framework should:

1. Identify problem areas.2. Provide evidence that indicates why the problem is a problem and the alternative

ways it may be resolved.3. Choose a course of action that you feel is based on the soundest assumption.

By following this strategy, you will be able to develop an integrated analysis and you will avoid

focusing on issues for which there are little data.

Writing Up a Case and Organization. In the formal write-up, use the following headings: 1. Background (one or two short paragraphs): briefly state the context.2. Problem Statement (one or two short paragraphs): state the purpose of your report. Specify theproblem(s) to be addressed in your report. For less complex cases, the Problem Statement may be one sentence.3. Recommendations (anywhere from a few short paragraphs to one page): State the manner in which each of the problems you have identified should be resolved. In this section, only your recommendations should be given. Your reasons for the recommendations should appear in the Analysis section. If you feel more comfortable placing your recommendations after the Analysis section, then please do so.4. Analysis (two-thirds of your paper): This is the heart of your report. It entails marshaling factual data which support your problem identification and your recommended course of action. In essence, it is the link between problems and recommendations. It is also two-thirds of your grade on the report!In this section, be sure to separate different issues by using headings. For example, if the first issue you address in your analysis is the “target market”, use that term as a paragraph heading. If the next issue is “demand forecasting”, use that as a paragraph heading.

Remember that there is no “correct answer” in case analysis, only good and bad analysis.

Style. Write your report as a memo, not as a thesis. Assume that the reader is in a hurry (she is). Be concise, meaning leaving out excess verbiage and connecting prose. Don’t make the reader feel she is wading through something. The reader should be swept along by the flow of the report. Points should leap out; they should force the reader’s attention. Use bullet points, bold and underlined fonts,larger fonts to increase attention.

Use spacing to highlight points Use bullet points and numbers to avoid transitional sentences Use, above all, a strong logical flow from problem to findings to recommendations to

replace connecting prose – the logic should stand by itself without the need for excess language

Common Errors in Analysis and Write-up

1. Format outline above is not followed. Subheadings not used in the analysis section.

2. Background, Problem, and Recommendations sections are too long. No more than half a page is generally needed for each. Use outline form and bullet points throughout the written report. There is no need for complete prose. However, don’t use shorthand that is unintelligible, even to you at some later point in time.

3. Focus centers on minor issues or issues for which there is little or no data. Let the case facts guide you to the selection of issues. If there is little or no data addressing an issue, don’t dwell on it in your analysis.

4. Rehashing of case data. Assume the reader is familiar with the case. Present case data only when it is needed to support a line of reasoning you are developing. Don’t summarize the case situation as a preamble to your analysis (you did this in the Background section), and don’t present case facts unless you are going to drive a point with them. This is a big problem in first-time case analyses.

5. Noncritical evaluation of case data. Before you use evidence presented in the case, ask yourself if it was collected in a sound manner and whether it is relevant to the issue that you are addressing. This does not give you license to eliminate all data. Rather, you want to qualify the conclusions you reach by evaluating the quality of the data on which a conclusion is based.

6. Failure to provide a rationale for eliminating unchosen alternatives. It is important to show that the recommended course of action is likely to deal effectively with the problems identified. It is equally important to provide a rationale for dismissing unchosen alternative courses of action.

7. Failure to present analytical work in an understandable manner. When doing computations, be sure your presentation (usually in an appendix) is sufficiently detailed so the reader can replicate the analysis. This requires you to indicate where the data came from and to show how it is analyzed.

8. Neglecting important quantitative analysis (e.g. market potential estimation or breakeven analysis).

9. Emphasizing quantitative analyses (with questionable underlying assumptions) to the exclusion of critical qualitative issues.

10.Recommending that management collect more information without specifying precisely what information is needed, how it will be obtained, and whether it will be cost-effective to collect. This is a big trap for many students – you will never have the ideal information to make a decision.

11.Failure to evaluate the validity and reliability of case data. The case writer is not perfect. Before you use evidence presented in the case, ask yourself if it was collected in a sound manner and whether or not it is relevant to the issues you are addressing. If necessary, you may want to qualify conclusions you reach by evaluating the quality of the data on which a conclusion is based.