Business ManagementStudy Manuals

Advanced Diploma inBusiness Management

INTERNATIONALBUSINESS CASE STUDY

The Association of Business Executives

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The Association of Business Executives (ABE) and RRC Business Training

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Advanced Diploma in Business Management

INTERNATIONAL BUSINESS CASE STUDY

Contents

Unit Title Page

1 An Introduction 1What Constitutes a Case? 2Preparing for Your Exam 2Preliminary Study 4You as Case Analyst 4Checklist 5

2 Case Presentation and Content 6Case Presentation 8Evaluation of Information and Data 9Checklist 11

3 Analysis 13Identifying the Problem(s) 14Analysis 14Checklist 17

4 Solving the Case Study Problem: The Examination 19Solving the Problem 20The Case Study Examination 21

5 Review 23Learning from Cases 24Case Study Learning and Management 27Your ABE Examination – Checklist 28

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Study Unit 1

An Introduction

Contents Page

A. What Constitutes a Case? 2

B. Preparing for Your Exam 2

C. Preliminary Study 4

First Reading – the Case as a Scenario 4

D. You as Case Analyst 4

E. Checklist 5

2 An Introduction

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A. WHAT CONSTITUTES A CASE?

The Case Study method of training is now extensively used in professional managementtraining to give the trainee an insight into "real life" situations. The study of problems andsolutions through the case method has long been a training feature of law and medicine andis now used to train managers and administrators in industry and government by enablingpersonnel to obtain historical experience from case analysis.

Simply, this means asking the questions:

What has happened in the past?

What is the current situation?

What should be done now and for the future?

In detail, you, as case analyst, are required to bring to the study the knowledge of businessprinciples and techniques, understanding of human behaviour in the work environment, andability to assess the pressures and influences which affect an organisation.

A case, therefore, is not just a limited description of a situation, an example crystallised andstatic, but is dynamic in the sense that it is the result of past events and changes inorganisation or personnel, and is subject to future influences from within and from outsidethe organisation which may affect decisions.

In the main, cases are actual "real-life" situations studied within an organisation, often by anindependent case writer, and created on the basis of information and data obtained,preferably factual but sometimes assumptions resulting from discussions with personnelinvolved in the case situation.

B. PREPARING FOR YOUR EXAM

The ABE Examination Board supplies the actual case upon which you are to be examinedapproximately four weeks before the actual examination date, to enable you to study thecase and make an assessment of it. You may take notes and refer to them in yourexamination itself. This booklet will enable you to be thoroughly prepared for your exam.

Some of the criteria used in assessing Case Study submissions are shown in Table 1.1.

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Table 1.1: Criteria For the Grading of Case Studies (Good and Bad Examples)

Grade Knowledge andComprehension

Analysis andApplication

Communication Skills

1(Distinction)

Quotes appropriatetheoretical knowledgee.g. theories andtechniques.Demonstratesadequatecomprehension ofknowledge, e.g. by useof illustrative example,analogy or explanation.

Appliestheories/principlescorrectly to thecircumstances quoted.Analyses the situationand inter-relatesmaterial from variousparts of the case.Considers andevaluates alternativesolutions where theseexist. Evaluation leadsto selection of afeasible solution (notnecessarily the 'best'solution).

Logical structuring ofthe entire answer.Analysis and evaluationare developedcomprehensively, i.e.no faults or gaps in thelogic. Answer is welllaid out, well presented(use of headings,illustrations, tables, etc)and well written(legible, grammaticallycorrect and effectivestyle of writing).

2(Very good

pass)

Quotes appropriatetheoretical knowledgee.g. theories (correctlyattributed), principlesand techniques.Demonstratesadequatecomprehension ofknowledge, e.g. by useof illustrative examples,analogy or explanation.

Application oftheories/principlesshows someweaknesses, e.g.failure to recognise alllimitations or to use allevidence available.Alternative solutionsare not fully evaluated,even if the 'right'solution is reached.

Logical structuring ofthe entire answer.Analysis and evaluationare developedcomprehensively, i.e.no faults or gaps in thelogic. Answer is welllaid out, well presented(use of headings,illustrations, tables etc)and well written(legible, grammaticallycorrect and effectivestyle of writing).

4(Marginal

fail)

Shows a reasonablegrasp of basictheories/principles butsome elements appearto be lacking.Comprehension is notfully proven, e.g. basicfacts are quoted(correctly) but notexplained, noillustrative examplesused.

Circumstancesinadequately analysedand hence fails torecognise majorproblems which needto be considered.

Does not demonstratethe ability to applyknowledge whichhe/she obviously has ina practical way (theseare common faults,often demonstrated bymere repetition ofmaterial from the casestudy).

Answer is adequatelypresented, given thelimitations of analysisand application.Structure is poor,although knowledge isreasonably clear.Grammar is at amarginal level.

4 An Introduction

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Grade Knowledge andComprehension

Analysis andApplication

Communication Skills

5(Clear fail)

Answer revealsfundamental gaps ormisunderstandings inbasic knowledge, andfails to reveal adequatecomprehension even ofcorrect theories andprinciples.

Poor analysis ofcircumstances.Applications totallyunsatisfactory due to alack of knowledge andcomprehension.

Answer very poorlypresented, and difficultto follow.

C. PRELIMINARY STUDY

First Reading – the Case as a Scenario

In order to relate your studies to a practical case, we have included an example of our ABEInternational Business Case Study and suggested answers in the appendix at the end of thisworkbook. You should use it for reference and to test your understanding of the principles ofcase analysis and examination techniques.

The first reading should be a "read through" only. Do not consciously try to make anyjudgments at this stage. They will come later. The object is to read as you would read aplay – the case constitutes a scenario in which previous events and current situationsprovide a historical background and present the personnel and their relationships as the playopens. The Case Study is the first act. Read it informally, without pausing, and delay yourformal study so as to allow a period during which you digest what you have read. In thisway, you give time for ideas to develop. Do not be tempted to grasp a point which appearsto you to have immediate interest; it cannot be studied in isolation and so it is better to obtainan overall impression of events at the first reading and study the detail later when you lookfor problems, recognise them and consider what to do.

D. YOU AS CASE ANALYST

Your initial reading of the Sample Case will provide a general picture of developing eventsand the personnel involved, against a background of corporate development over a period oftime.

Exhibits in the form of performance data and other documents are given as a source ofinformation, to indicate the degree of sophistication of management of the organisation.

From this information, you must assess the strengths and weaknesses of the enterprise, theextent of problems existing, and how to remedy them.

You will learn to:

(a) Understand the underlying causes of problems appearing in failures of performancethrough organisational or personnel inadequacies;

(b) Evaluate facts and opinions and differentiate between them;

(c) Determine

What is happening and why;

What should be happening;

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How to remedy the situation.

We shall proceed as follows in the ensuing Study Units:

Case presentation, in which you will study the purpose and objectives of case studyand the methods of dealing with particular features of the case;

Evaluation of the data and information provided;

Identification of the problem, not always immediately apparent as the root cause butseen in the inadequacies of performance and morale;

Analysis of the problem situations and their cause by assessment of:

(i) Organisation,

(ii) Personnel,

(iii) Systems and procedures,

(iv) Corporate strengths and weaknesses,

(v) Barriers to co-operative effort.

Solving the problems, testing the creative ability of the analyst to see potentialalternative solutions and predict results, subject to possible contingency factors.

The Case Study method of training is an extension of the conventional teaching methods oflectures/study manuals and note-taking. It provides an opportunity for those of you with awide study background to become involved in a "real-life" situation and, by analysingproblems and seeking to solve them, obtain an understanding of the causes of suchproblems first-hand and the confidence to make recommendations and decisions. It is, infact, a replication of the process followed by most Consultants.

You must consider what the case writer is trying to convey to you, in a teaching context. Thefirst reading of the sample case may lead you to the point of view that the problems centreon human resources and their attitudes and relationships. This may be so, but you will findother reasons within the organisation as a whole which will lead you to take a wider view andunderstanding of where matters went wrong, what ought to have been done and what youconsider should be done.

The successful operation of many businesses is based on a wide business understanding ofeconomics, business law, trade conditions and the knowledge that success depends on theinter-dependency of all the disciplines which make up the total enterprise. Interface barrierswithin an organisation, whether vertically between manager and subordinate or horizontallybetween managers, should have no place in an organisation directed towards the benefit ofall involved.

E. CHECKLIST

1. From your first reading, what is your general assessment of the case?

2. Have you any views on possible organisational problems?

3. Do you consider that in further detailed studies you will be faced with additionalproblems?

4. What are the strategic implications of this global venture?

6 An Introduction

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Study Unit 2

Case Presentation and Content

Contents Page

A. Case Presentation 8

Case Features 8

Framework of the Case 8

B. Evaluation of Information and Data 9

Extent and Adequacy 9

Collection and Arrangement 9

Related Information and Data 10

C. Checklist 11

8 Case Presentation and Content

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A. CASE PRESENTATION

Case Features

Whilst each case is different in form and detail, there is a fundamental basic structure whichenables the analyst to assess the main activities involved. In a study of a global tradingorganisation, for example, the main features presented will be:

Current situation within the company and the business environment

Organisational, objectives and strategies

History of change and development

Human Resources – attitudes and relationships

Functional performances related to company strategies.

These features are presented in different degrees of intensity and detail according to theteaching purpose of the case writer and real life events which form the structure of the case.

It is the analyst's aim to understand and evaluate the main features of the case and thedegree of emphasis given to the constituent parts, identifying problems and restructuring toimprove performance.

The study of a case which emphasises a particular area of an organisation is directed toassessing the extent to which this major resource area provides an efficient service andcontributes to organisational profitability. From the evidence given, you must determinehow far these two objectives are fulfilled and the reasons for any shortcomings which youfind in the purchasing operations, taking into account the company organisation andoperations as a whole.

We look, therefore, not only at the strengths and weaknesses of the discipline concerned,but at those of the company in terms of its organisation, plans and objectives, humanresources, direction and performance.

Framework of the Case

At this stage, having obtained a general idea of the situation, you will find it useful duringsubsequent readings to make notes of ideas which come to mind. These need notnecessarily be in any particular order initially, but will form the basis for a more formalarrangement.

You will find that the main features of case study which we outlined earlier, appear in anycase you may encounter. You will need to develop your understanding of the "currentsituation" of the case you are given in terms of organisation and human resources and theevents leading up to it. The following headings may be useful.

(a) Current situation

What sort of organisation are you dealing with?

Is it large or small?

What does it do?

Where does it operate?

Who are the key players?

How long have they been there?

What are their aims?

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(b) Company organisation

How is the company controlled?

Who makes decisions?

(c) Company sites

Where is the company situated?

Is there more than one site?

Does this cause logistical problems?

(d) Company staff

How many are there?

Over how many sites?

What sort of age groupings/nationalities?

(e) Company problems

What problems have you identified so far?

No doubt there are other problems, not yet identified.

B. EVALUATION OF INFORMATION AND DATA

Extent and Adequacy

The information given in the case may, in some respects, be sufficient, but there may beinadequate overall information and data to make a judgment.

This is particularly so in the provision of data. Sets of figures and general summaries maynot identify clearly the objectives, rate of change and extent of change. The use of keyratios to indicate operating performances is a valuable aid to management evaluation ofperformance, and, if not given in the case details, should be computed where possible fromthe information given.

It is useful for you to work out this information, to be retained in your dossier of notes bothfor the more detailed analysis to follow and for examination purposes. The introduction oftechniques in support of judgments will indicate to the examiner the extent of the analyst'swork.

Check your case to assess the performance figures given to you in the case and how youcan obtain more sensitive indicators, both operating and financial.

Collection and Arrangement

The case presentation notes in the earlier part of this study unit show how basic informationcan be collated to produce a history of events and the involvement of personnel. You mayfind this arrangement of the main features of the case a suitable way of making preliminarynotes from which the detailed analysis can proceed. Remember that you must take into theexamination room the Case Study supplied to you in advance for study and analysis uponwhich you are to be examined. You may also take with you any notes, references and booksto help you in answering the questions.

It is prudent therefore to have notes and references carefully arranged for easy access toavoid unnecessary delay in looking up material.

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You may find it useful to have noted the main features of the case, describing:

(a) Organisation and management

The structure should be charted, if not already given in chart form in the case details.

(b) Time-span

The history of events as far as they are chronicled involves:

Foundation of the company

Development and changes

Acquisitions

Divestments.

This will help you to make judgments on corporate objectives.

(c) Human resources

List the people involved:

Their positions in the company and in transactions with the company

Attitudes

Successes and failures

Other information you think relevant.

(d) Performance

Outline in broad terms the fulfilment of objectives and shortcomings.

By extracting such points of reference from the case details, the analyst is able to:

Relate personnel to circumstances;

Investigate personnel attitudes and relationships;

Deduce possible areas of conflict within the organisation and external pressuresaffecting performance.

Related Information and Data

(a) If applicable, note the changes in personnel and organisation upon results.

(b) Ask questions; study your notes for evidence to support your judgments andpredictions.

(c) Your notes, both general and detailed, will provide the basic data upon which to makean evaluation as a further step towards the final analysis and recommendations.

In many ways, the Case Analysis is similar to the procedures for Operational Research:

Identify the problem,

Collect data,

Analyse,

Create models,

Project alternative solutions,

Make recommendations,

Choose the optimum solution.

It may equally be considered the route to successful decision-making in complex situations.

Case Presentation and Content 11

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C. CHECKLIST

If you have not already done so, try to visualise the company described in your case.Although you may not work in this particular industry, you no doubt have some experience ofthe sort of problems which can occur.

Now recall the summary we made in Section A of this Study Unit. What questions come intoyour mind when you review the case so far? At this stage I would give you the followingthoughts; you will undoubtedly have others:

1. Organisation and Management

Is this appropriate for the size of the organisation? Is there the right balance betweencentralisation and decentralisation?

2. Problems

The problems described are real, but are they merely the tip of an iceberg? Are theremore major problems waiting to surface?

3. Human Resources

Is there the right mixture of age levels and abilities, or is another problem waiting todevelop in this area?

4. Acquisitions/Divestments

Should the company expand into other areas, or should it concentrate on its coreactivities?

Study the details of the case study and then answer the questions raised.

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Study Unit 3

Analysis

Contents Page

A. Identifying the Problem(s) 14

Problem Areas 14

Symptoms 14

B. Analysis 14

Evaluation 14

Subjective Judgment Factor in Case Analysis 14

Knowledge and Use of Techniques 14

Assessments 15

Inter-related Activities Affecting Functional Performance 16

C. Checklist 17

14 Analysis

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A. IDENTIFYING THE PROBLEM(S)

Problem Areas

Understanding the situation within an organisation is the first step towards identifying theproblem (or problems) and asking why it has occurred, to what extent, how long it hasexisted and what are the results now and for the future.

Problems may be organisational or a question of personal relationships, but what we seeinitially are often the symptoms only.

Symptoms

Just as the medical adviser's first study of an illness is of the symptoms, so, in studying anorganisation, you may see only the symptoms arising from underlying problems within theorganisation. For Example, problems of late delivery and high prices, apparently requiringan organisational upheaval in one area, may in fact be caused by inefficient inventory controlallowing insufficient lead times to allow for efficient production. Apparent high prices may bedue to a lack of a standardisation policy and therefore design reluctance to consider thesavings potential of standardisation and use of acceptable commercial tolerances availablein the supply market at lower prices.

Problems present symptoms and their solution normally dispels the surface symptoms. Butbe wary – there are cases where symptoms may still appear when the problem has beensolved. For example, a bad image created by late payment of bills may linger in the shapeof a poor credit reputation. This does not necessarily apply to all cases, but is an example ofhow strong symptoms appear and why the identification of a problem must depend on therealisation by the analyst of the need to diagnose underlying problems rather than theirsymptoms.

B. ANALYSIS

Evaluation

So far, in speaking of information, we have been concerned with facts. Minutes of meetings,copies of letters, operating statements, financial results, constitute evidence.

Verbal references to discussions, or opinions given by personnel in the case, may in fact betrue, but it is for the analyst to judge and if satisfied to make an assumption. The"grapevine" as an information channel of communication may represent the truth, but it mustbe treated warily.

Subjective Judgment Factor in Case Analysis

However objective you, the analyst, try to be in assessing a case, the mere fact of studyingevents, their development and the people involved, will lead to a feeling of participation.

The assumptions which we discussed in the Evaluation section require a subjective interest.This should be understood and tempered with a controlled objectivity.

Acceptance of a concept must be based on evidence. An assumption should be related tothe evidence and not be mere opinion.

Knowledge and Use of Techniques

The Case Study in which you will be examined will be "broadly based within the general fieldof international business and will assume a sound knowledge of relevant subjects at Diplomaor equivalent level.

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It will cover a situation dealing with a range of international business issues at strategic level.It is your task to analyse what has happened to cause current problems and to askquestions. You have to consider what will be the result if the current situation is allowed tocontinue without adjustment and, by predicting alternative paths in future operations, offerstrategic solutions or, as is often the case, alternative solutions.

Alternative solutions are based on predictions of what may happen as a result of followingdifferent courses of action. The analyst's job may end at this point, but a recommendationmay be asked for and given.

Assessments

Remember that a Case given to you for examination is primarily a description of a situation.As we begin the study, it is the opening act of a play, a dramatic piece. As we first see it, orread it, we are faced with:

A situation;

A previous history of events;

People and relationships;

Problems, now and predictable.

Whilst in the play the action unfolds as we watch, the Case Study does not provide thisfacility but requires us to search for the real problems and consider how they can be solved.

Since we are dealing with a commercial situation, we shall need to assess the manyingredients of:

Organisation

Human Resources

Systems

Planning – resources, opportunities, positive and negative influences within andoutside the company.

Let us examine them in more detail.

(a) Organisation

All society in various degrees has an organised base – rules and regulations, structure,systems, morals and ethics. In the multinational company, the organisation isstructured to combine the efforts of many skills and professional expertise to obtain themaximum benefit from a concerted effort, whether in manufacturing or distribution, inone or more parts of the world.

To relate the structure of an organisation to the objectives of the company is a complexproblem in itself, and failure to do so will be revealed in monitoring actual results. Thisarea is therefore a fruitful source of information to the analyst when studying a case.

Consider the structure, draw a chart, visualise the communication channels andpersonal relationships involved at all levels, and you will understand the fertile groundin which problems may grow and the need for control and constructive direction.

(b) Human resources – attitudes and relationships

An organisation as charted shows the structure of relationships and the levels and typeof authority – line and staff. It does not show the human aspect and the need to makethe organisation work through teamwork. The ability of people of different character invaried disciplines and locations, and of different nationalities, to combine at all levels inseeking maximum use of skills is essential to the benefit of the whole organisation.

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Ambition, stress, frustration, desire for status, often lead to less than maximum co-operation and interface barriers between parts of an organisation.

Lack of communication may appear as a problem of organisation, whereas it is often asymptom of a problem arising from inadequate co-operation between people.

The inability of management to judge personnel because of lack of comprehensive jobdescriptions or staff appraisal techniques is a further factor associated withunsatisfactory performance.

(c) Systems and techniques

Systems consist of procedures, operational methods linked by formalcommunication channels, enabling work to proceed efficiently.

Techniques are in the main directed to providing information and data in aconcentrated form as an aid to control.

Management services, in the form of O & M recommendations by systems analysts,ensure that a department is administered efficiently, with suitable equipment, formalwork flow charts, job "stations" and appropriate workload. The use of computercontrolled systems of data processing has increased the efficiency of systems controlsin disciplines with a large volume of paperwork, formerly difficult to control as a unifiedsystem within a department and with related departments.

Inefficient control of systems is a cause of problems, the symptoms of which aremanifest in delay and inaccuracies.

(d) Planning

Resources

A company operates by setting OBJECTIVES.

To fulfil the objectives there must be PLANNING.

Plans, to be successful, require adequate RESOURCES.

Optimum utilisation of resources and the avoidance of problems rests with skilledMANAGEMENT.

Finance management

Working capital, cash liquidity and cash flow, access to investment funds, requireskilled finance management to support continuous and successful trading. Withsound financial support, opportunities may be taken to expand, in productrange and markets, research and development. Without sufficient workingcapital or the ability to raise funds, competitiveness suffers.

Influences within and outside the company

In assessing the history of events in the life of a company, the effect ofsociological or economic changes, if not foreseen, can create problems, asproducts become unpopular, or inflation prices a product out of the market ascosts of materials and wages increase.

Inter-related Activities Affecting Functional Performance

The management of input of materials or goods into a manufacturing or distributiveorganisation and the distribution of the end product from the factory or over the counter, are"linked" systems.

This, in manufacturing, materials management overlaps with physical distributionmanagement at the production stage.

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In distribution, purchasing and sales personnel form a combined merchandising exercise.

In all cases, the success or failure of functional performance directly affects the overallperformance of the company.

I have indicated areas in which problems may occur, and it is for you to note any of theseareas which appear in a Case Analysis and make an assessment of whether they are thesource of problems or can be traced as such from apparently unrelated symptoms. It is yourskill in carrying out the assessment which will lead you to a final analysis and suggest waysto solve the problems which you have identified.

C. CHECKLIST

As a "self help" exercise, draw up a list of the main features of the sample case and add thenotes which you have collected to the appropriate sections of the list.

In this way, you will formalise ideas and relate them to events and personalities and move astep forward to analysing the problems and deciding how they should be resolved.

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Study Unit 4

Solving the Case Study Problem: The Examination

Contents Page

A. Solving the Problem 20

Case Analysis and Creativity 20

Forecasting Results in a Multi-Choice Situation 20

Contingency Planning 20

B. The Case Study Examination 21

Role of the Case Analyst 21

How to Prepare? 21

Answering the Questions 21

Problem Situations 22

20 Solving the Case Study Problem: The Examination

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A. SOLVING THE PROBLEM

Case Analysis and Creativity

A determination to find one way of resolving a problem situation with the certainty it would bethe right one ignores the fact that, in a dynamic industrial organisation, many variables haveto be taken into account which may lead to the possibility of more than one solution.

The evaluation of alternatives calls for creative skills on the part of the analyst in projectingforward results and predicting events arising from different decisions, influenced as they areby pressures within the organisation and by social, political and economic changes.

It is important therefore that the analyst should approach the Case Study with confidence inhis or her ability to identify the problem and create a solution from the information and dataprovided, though conscious of the need to consider other possibilities of changing conditionswithin and external to the case as presented.

Case Analysis is considered a creative exercise in which the analyst brings personalknowledge and experience to the study of problems, and, having analysed a situation,undertakes a creative reconstruction to solve the problem.

Forecasting Results in a Multi-Choice Situation

As a case analyst, you must consider the alternative ways in which a situation could developand the effect on performance. Only after consideration of the possible results of alternativeactions can the assessment be judged and a recommendation made and justified.

Contingency Planning

In considering alternative solutions, it is important to take into account the possibilities ofunforeseen contingencies, reinforcing the need to prepare alternatives even if one solutionappears predominant.

The analyst's predictions of events, as distinct from forecasting quantitative results, shouldtake account of what is likely to happen in an organisation if a certain course of action istaken, and equally what would be the effect of changing conditions within the organisation orthe environment upon the structure of the organisation and the personnel within it.

The creation of a solution to a problem situation in an industrial context is dependent on twoimportant factors in case analysis:

Is it possible to create alternative solutions from the information given?

Since predictions are made primarily on information provided, mainly historical, finaljudgment must take into account contingency planning as a feature of anyreconstruction programme.

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B. THE CASE STUDY EXAMINATION

Role of the Case Analyst

What is expected of you? It is required that you bring to the analysis:

A sound knowledge of the International Business syllabus and all related subjects, andthat you apply their essential theories, principles and techniques to a realistic businesssituation.

The ability to identify problems and provide a solution or alternative solutions ifappropriate to the problem, and make a recommendation which can be justified.

The communication skills to produce a logical, clear analysis, and, if necessary,present a well-written report, i.e. legible and free from grammatical and spellingmistakes.

How to Prepare?

Since you receive the Case Study ahead of the examination date, you are able to make anassessment and build up a collection of notes which you are allowed to take into theexamination room with your copy of the Case Study. This will give you confidence in makinga sound analysis and dealing with the examination questions.

Make good use therefore of the pre-examination period:

Make notes of facts, opinions, organisations, human resources – at first in a generalway, but later in more detail as you understand the situations, identify problems andanalyse their causes.

Learn to recognise symptoms. These often appearing at first sight to be theproblems which you are looking for – poor performance, loss situation, communicationfailures, complaints. The problems lie much deeper and you are required to search forthe underlying causes.

Identify problems – in recognising symptoms, for example, international barriers andcommunication failures. The basic problem may emerge as a personality clashbetween managers or lack of confidence by one department in another's efficiency.

Support the diagnosis with facts and figures where relevant. Treat the impulse tomake assumptions with care. Be objective and seek to link any assumptions withevidence.

Collate and summarise your material so it is available for easy reference to supportand justify your analysis, enabling you to reproduce your ideas clearly and logically inthe examination.

Answering the Questions

You have no doubt been urged many times to read the examination questions carefully fortheir meaning and extent and to answer directly what the question requires. This exhortationbears repetition.

Marshall your main points – give brief explanations, supported by examples oftechniques and data charts where relevant and helpful.

Plan the presentation – clearly written in short paragraphs in logical order.

Justify recommendations by reasoned arguments.

Plan to use the time allowed to give adequate time to each question.

Plan the content and structure of each answer.

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Make sure your handwriting is legible.

Do not assume the examiner can read your mind. Explain your answer.

In the pre-examination stage when you study the case, you may find it helpful to try to predictpossible questions and note them with the points which you consider would answer them.Ask yourself what points you see as particularly suitable to test by questioning. At least havea number which seem obvious areas to question. Although this technique can be consideredas a "spin-off" to your analysis of what problems are evident within the case details and whatshould be done to resolve them, you should be careful not to put too much emphasis on it.

Problem Situations

Cases specifically directed to International Business can involve you in problem situations inmanufacturing, distributive or service organisations in many parts of the world. Within thesevaried spheres of operations, problems arise in similar ways, in organisation, planning,personnel attitudes and relationships, procedures, systems, techniques, laws and socio-economic pressures. You must be prepared to undertake a Case Study in any of thesefields, from knowledge and experience acquired in your work and studies, and with theadded advantage of a pre-examination period to study the case upon which you are to beexamined.

It may be that the Case Study relates to an industry which is unfamiliar to you. Do someresearch as to how the sort of business described would operate in real life.

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Study Unit 5

Review

Contents Page

A. Learning from Cases 24

Principles and Practice 24

Preparation and Analysis 24

B. Case Study Learning and Management 27

C. Your ABE Examination – Checklist 28

24 Review

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A. LEARNING FROM CASES

Principles and Practice

The use of the Case Study method in support of management and professional training isdirected to the following key objectives:

Examination of business situations on a "real life" basis;

Identification of problems affecting performance;

Analysis of causes;

Solving the problem(s).

The study and analysis must be pursued scientifically, based on facts, and the assessmentmade objectively.

The creativity and judgment of the analyst in producing alternative solutions should besupported by statistical models, wherever relevant, taking into account variables andcontingency planning to enable predictions to be made with most chance of success.

Preparation and Analysis

The practical steps to be taken in conducting a Case Study require that the initial approachto the case should be the preparatory period, the collection of information upon which theanalysis will be made.

We can indicate the specific elements of each period as follows:

(a) Preparation

First reading – general impressions.

Subsequent readings:

(i) Compile notes of information and data as they interest you in yourreadings. Do not aim to keep them in any particular order at this stage.

(ii) "Fill in" with organisation charts and lists of personnel and events.

(iii) Sort, observe relationships in facts as well as personnel.

(iv) Tabulate for easy access to information under examination conditions.Method of tabulating can be to your own preference. The aim is to showcausal relationships between events and people – what has happened inthe past and what have been the results to produce the current situation.

The simplest way of marshalling your information is to collect it under sections andmake a short synopsis of each with the detailed notes and charts attached. Thesubject headings could be as follows, but you would modify them as you wished:

Organisation

(i) corporate

(ii) functional

(iii) charts

Objectives

(i) policy

(ii) planning – corporate

– functional

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Human Resources

(i) related to organisation

(ii) careers

(iii) attitudes

(iv) relationships, within the organisation and within the business environment –for example, with suppliers or customers.

History of Events

(i) changes, developments

(ii) crisis points

(iii) related to personnel

Performance

(i) data, corporate and functional

(ii) targets, controls

(iii) systems and techniques

(iv) effects of change

This will give you an overall "picture" of the material you have acquired, and the detail,enabling you to make an evaluation of the strengths and weaknesses of the case andthe adequacy of the information.

You may feel that in certain areas you would have liked to have more information. Ifyou have to answer a question on which you think that sufficient factual informationhas not been provided in the case, your answer may be subject to assumptions whichyou have had to make to proceed with the analysis. Explain this in your answer andjustify your assumptions as far as you can by related evidence.

(b) Analysis

Once you have marshalled all the information you consider essential, you can proceedto analyse the information and data which you have acquired.

Evaluation

Is your information entirely factual or have you collected opinions? Howsubstantial is the anecdotal evidence?

Apart from the validity of information, there is also the importance of collectedfacts to the main features of the case and its problems. You must ask yourselfwhether the information is relevant to the analysis or is necessary only to providea total description of the situation and events, i.e. mere "padding".

Diagnosis

Symptoms are evidence of underlying problems. For example, poorperformance figures affecting profits are the symptoms of deeper problems in theorganisation or in the markets in which the company operates.

Solving the problem

The solution is not just a matter of isolating a problem, stating why it hasoccurred and passing judgment on what were the causes and what should bedone. How to deal with the problem must be tested by asking:

(i) Is there more than one possible solution?

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(ii) What would be the results of alternative decisions?

(iii) Is the problem one of human resources

or organisation

or planning to meet objectives with scarce resources?

In the case of the latter, for example, is there scope for building performancemodels to prove results to be expected from the alternative solutions, by usingavailable statistics and, by extrapolation, deducing the effect of variables andcontingency planning on results?

Decision

Choice of a solution from several alternatives is based mainly on:

(i) The objective for which the company is aiming;

(ii) The evaluation of the emphasis to be given to the variables in the case andthe prediction of the outcome which could be expected in choosing fromalternatives.

The quantitative forecasts may need to be "weighted" to take into accountcontingency factors which can upset the best laid plans.

Matters to be included:

(i) Staff appraisal – joint setting of objectives and monitoring of results.

(ii) Encouragement of initiatives:

– Works visits

– Job rotation

– Representation by staff at international meetings

(iii) Introduction of formal procedures directed to a more professionalapproach to operations:

Technical – capability

– capacity

– quality assurance

Financial – techniques of assessment to include the ratio of currentassets to current liabilities to show strength of working capitalin support of a growing order programme

Management – professionalism

– industrial relations

(iv) Use of manuals:

– Statement of principles and objectives

– Organisation within the department and relationship with otherdepartments

– Job descriptions

– Responsibilities

– Procedures

– Training programmes.

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B. CASE STUDY LEARNING AND MANAGEMENT

The contribution of the Case Study to management education lies in the re-creation andpublication of a wide range of varied "real life" business problem situations which can bestudied and analysed in an academic environment.

In this way, the analyst has the best of both worlds, the experience of being involved inproblems which are basically real, and the time to study, consider and produce arecommendation for appraisal.

Decisions are made, on a mature study of the facts of the situation, and often similarpatterns of behaviour and performance will appear in varied cases.

To determine causes of problems which are not at first sight clearly apparent, with probablyinsufficient evidence to be obtained from data and from personnel, requires skilfulmanagement in understanding human behaviour, the strengths and weaknesses of personalcharacter and aptitudes and the ability to reconstruct events, interpret data and identify thereal problems. It requires the capacity to combine qualitative with quantitative assessments,to see a problem clearly and objectively and, having made a decision, implement andmonitor.

A final word: a case may not necessarily be full of unsolved problems. The problems mayhave been the prologue to constructive and successful action. The value of such a case is inrecognising the appropriate ways of dealing with potential difficulties and avoiding futureproblems. You may not always agree with the action taken, but the study will give you anopportunity to make your own analysis and consider whether you could make anyrefinements which would alter the course of events and final results. The case which followsin the Appendix is for you to study, analyse and test your findings.

Approach this as if it were your Case Study examination, that is:

A first reading to give you a general idea of the case situation – events, humanresources, type of organisation.

Subsequent readings for note-taking, collecting and arranging organisation structures,the position and attitudes of personnel within the organisation, history of events, data,systems and techniques for analysis and your ideas of what would constituteconstructive solutions to the problems you have identified.

Write your own summary report on the situation.

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C. YOUR ABE EXAMINATION – CHECKLIST

1. You should acquaint yourself thoroughly with the Case Study before the examination.

2. You must take your copy of the Case Study into the examination.

3. Time allowed: 3 hours

4. Answer ALL questions

5. All questions carry different marks. Note the mark allocation and budget your timeaccordingly

6. Calculators are allowed

7. This is an open book examination and you may consult any previously prepared writtenmaterial or texts during the examination. You must not insert such material into youranswer book. Only answers that are written during the examination on paper suppliedby the examination centre will be marked.

8. Candidates who break ABE regulations, or commit any malpractice, will be disqualifiedfrom the examinations.