CASE STUDY

• Harvard Business School developed the use of business cases in 1920.

• It analysis in depth description or reports of business problems.

• It reveals the decision making process

CASE STUDIES ANALYSIS FRAMEWORK

4 Steps Process: • Define Problem

• Formulated alternative Course of action to solve problem

• Analyzed alternatives in terms of strength & weakness

• Alternatives accepted Recommended Course of Action

PROBLEM• It does not mean writing up a history of the firm but entails the type of analysis like

1. Environment To study the environment in which the firm is opening like 1.1 Economic Environment: It can have a decided effect on an industry, firm & making program Example – Depressed economy with high employment may not be an ideal solution for implementing a large price increase. Say A/AI

1.2 Social and Cultural Environment

2. Industry

Categorized it by the Standard Industrial Classification (SCI):

• Class

1. A few giants (Oligopolistic) Examples: Aluminium Producers, Cigarette

Manufacturers

2. A few giant s and a relatively small number of “independents”.

Examples: Auto Industry, Oil Industry, Tyre Industry, meat processors

• Possible ImplicationsPrice cutting is fruitless, Antitrust action a hazard, Concerned action leads to a monopolistic situation facing the customers, Very high capital costs to enter the industry

Price cutting by smallerCompanies, Follow –the- leader Pricing, Antitrust action against the giants a hazard, Monopolistic prices,Squeeze on the independentsHigh capital costs to enter the Industry

3.Many small independent firms

Examples: Food Brokers, Sales representatives, Auto Supply parts, Kitchen cabinet manufacturers, Real estate firms, Tanneries

4. Professional Services FirmsExamples: Management Consultants,Marketing Research Firms, Advertising Agencies

5. Government regulated to a degree Examples: Banking, Stock Brokerages, Rail Industry

• Cost of entry low: Special services, Usual Local Market, Threat of regional or national linking into a majour competitor, Sophisticated business practices often lacking

• Confusion of standards, Easy entry (and exit), Secretive pricing, often based on what the traffic will bear

• Entry is usually difficult, Government provides a semimonopoly that may

lead to high profits or inability to survive in a changing world

After initial definition and classification, attention should be paid to such factor as:

1. Technologya. Levelb. Rate of Changec. Technological Threats2. Political-Legal-Social influencesa. Trends in Government controsb. Specific Regulationsc. Social responsibility pressured. Consumer perceptions of industry3. Industrial Guidelines and trendsa. Pricing Policiesb. Promotionc. Product Linesd. Channels of Distributionse. Geographic Concentrationf. Increase or declines in firms or profitability4. Financial Indicatorsa. Financial Ratiosb. Working Capital Requiredc. Capital Structured. Sources and uses of fundse. Salesf. Profitability

The Firm

Key areas of concern objectives,

Constraints, management philosophy,

strengths, weakness, and structure of the

Firm

4. The Marketing Program