Critical Analysis and Writing

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PresenterPresentation Notes45 minutes

Critical Analysis: What

What to do:

Analyse decisions made by business people Understand their rationale (reasons for making that particular decision)

Provide recommendations about future actions

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PresenterPresentation NotesYou will be applying key concepts and frameworks to real business scenarios. This is a crucial part of your learning.

In the capstone unit at the end of your degree, you will have an entire unit dedicated to one large case study where you will provide recommendations and strategy to a real world business in need of your expertise.

Critical Analysis: Why

1. Learn to solve complex problems

2. Deal with the unexpected

3. Persuading others

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Descriptive

Analytical

Critical Analysis

Persuasive

PresenterPresentation NotesWarn students that they will often be given complex problems often with incomplete information and/or competing information. They will be asked to synthesise diverse and conflicting sources in their research.

We do not have one right answer in mind, it is not formula. Marks are based on the strength of their arguments.

Making informed recommendations that are supported by research and an extended rationale that includes key arguments, counter-arguments and the rebuttal of those arguments. Thats the big picture. Thats where we are heading. But we will not get there overnight. We need to start by laying a solid foundation one that will support each layer as we build it. That foundation involves the ability to read business texts and summarise them by paraphrasing key ideas. It also involves academic honesty and the BSRG.

Critical Analysis and Writing

1. Understand the question and

context

What is the questions asking?

What else do we know?

2. Conduct research and analyse the

situation

What information

are we missing?

What do we need to

research?

What is happening to the business?

3. Develop possible

solutions and evaluate options

What does analysis suggest?

What are the possible options?

Which ones are better?

4. Recommend a course of action and argue for it

State your recommendationsBuild an

argument to support them

Key steps:

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PresenterPresentation NotesExplain the key steps we are going through each in a bit more detail, but key idea is: What are we being asked to do? What do we know about the situation? What are the options we can recommend and which ones seem stronger? How can we argue for our options?

1. Understand the question and context

What is the question actually asking?

What is happening? When?Who is involved?What are the facts?

Do we have additional information about the case?

What is our deliverable?5

PresenterPresentation NotesFind out as much as you can about the caseWhat is the company? What does it do? How does it make money?What is happening? Has anything changed?What are we expected to ACTUALLY write

Critical Analysis Example : Food wars

You are a junior strategy analyst at Coles. Given the recent controversy around food discounting (Food wars), you have been asked by senior management to provide a recommendation as to whether Coles should continue the discounting or not.

In your answer provide a clear rationale for your recommendation.

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PresenterPresentation NotesLets pretend this is the question

Food Wars

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PresenterPresentation NotesExplain the situation. You might want to refer to the article here to get a refresherhttp://www.brisbanetimes.com.au/business/driving-down-prices-in-a-battle-for-even-bigger-slice-of-the-pie-20120727-22zi7.html

What is happening in the case?

Understanding the case

What happened? - When? - Who was involved? - What are the facts?

Milk Wars

Coles selling milk at below cost prices to attract customers

Milk producers fear pressure to lower their prices

Woolworths sides with the milk producers

Coles continues to discount the milk, denies plans to pressure producers

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PresenterPresentation NotesLets understand the context a bit better

What is happening in the case?

Understanding the case

What happened? - When? - Who was involved? - What are the facts?

Fruit Wars

Coles introduces weekly fruit deals selling fruit and vegetables at high discount

Fruit and vegetable producers fear further pressure from supermarkets

Coles and Woolworths remain profitable, analysts attribute this to decreasing margins for certain products

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Understanding the question

Provide a recommendation as to whether Coles should continue the discounting or not

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2 Options to argue for

Discounting is good for Coles

Discounting is bad for Coles

PresenterPresentation NotesNow what is our deliverable?

Understanding the question

Based on the particular case, you may be asked to:

Argue for one option Choose between a set of options

Generate a set of options yourself and recommend one

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PresenterPresentation NotesTheir Case Study 1 is the open ended type with generating a set of options/solutions yourself

2. Conduct research and analyse the situation

Find out more about what happened

Research similar situations

What kind of things we could look for here?

Use your business knowledge, concepts and frameworks to conduct analysis

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Retail consumer behaviour

Cost leadership strategy in food

retail

Supplier relationships and

consumer demand

PresenterPresentation NotesGet students to give you some ideasPossible options fly in on clickBasically its all about informed research, evidence and analysis

3. Develop possible solutions and evaluate options

Continue discounting Increases sales of

discounted product (e.g. Milk)

Increases customer traffic so people buy other products (Gruen Transfer)

Positive for brand as it is good for everyday Australian

Stop discounting Damages supplier relationships

Damages brand image through Farmer abuse

Creates stronger ethical image for competition

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PresenterPresentation NotesLet say based on our research we think these are the arguments FOR each of the options. Weighing these up will allow us to choose one of them.

3. Develop possible solutions and evaluate options

Continue discounting Increases sales of

discounted product (e.g. Milk)

Increases customer traffic so people buy other products (Gruen Transfer)

Positive for brand as it is good for everyday Australian

Stop discounting Damages supplier relationships

Damages brand image through Farmer abuse

Creates stronger ethical image for competition

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How to decide on the best recommendation and rationale?

The rationale is the argument to persuade your reader that the recommendation is valid.

1. Use quality research2. Apply key concepts and frameworks

3. Use a A-CA-R format

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PresenterPresentation NotesAsk if anyone knows what A-CR-R format is...

Argument, Counterargument, Rebuttal

4. Recommend a course of action and argue for it

Developing an informed answer

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Recommendation : Coles should proceed with discountingRationale: Reasons why discounting is good

Argument for discounting Theory/ConceptColes attracts more customers who buy more items than just food staples giving Coles higher market share.

Sustainablecompetitive advantage/Return on Assets

Coles creates an image of caring about the average Australian by offering cheaper staple goods like milk and fruit.

Stakeholder/Increasing revenues

PresenterPresentation NotesSo let say we have the 2 reasons why out argumentsBut this is not enough to persuade the reader

A-CA-R

Argument Statements in support of

your position

Counter Argument Potential challenges to your

position

Rebuttal Supporting your original

statements why the challenges are not persuasive

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PresenterPresentation NotesAsk: Why use this format? Why not just put all your strongest reasons for the recommendation and ignore the rest?

Anticipating and combating objections strengthens your argumentDemonstrates that you are thinking critically and analysing deeply

4. Recommend a course of action and argue for it

Considering counter-arguments

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Issues/Risks counter argumentsColes behaviour is unethical and puts profits before the well-being of farmers and growers, creating fears that it will push the discounting through to producers. This may drive customers away and lower profits.Woolworths supports food producers and depicts Coles as a heartless corporate giant that exploits its market bargaining power over small producers by not caring about the average Australian.

Argument for discounting

Coles attracts more customers who buy more items than just food staples giving Coles higher market share

Coles creates an image of caring about the average Australian by offering cheaper staple goods like milk and fruit

PresenterPresentation NotesWhat counterarguments would you suggest?

Step 4. Developing the Rationale

Dealing with risks: rebuttal (dismissing) the counter-argument

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Dealing with the risks (Rebuttal)Coles actually promised NOT to force the producers to sell at lower prices, which makes the first counter argument speculative.

By discounting food,Coles is indeed maximising the utility of a larger number of people all Australians compared to a small number of producers.

Argument for discounting

Coles attractsmore customers who buy more items than just food staples giving Coles higher market share.

Coles creates an image of caring about the averageAustralian by offering cheaper staple goods like milk and fruit.

Issues/Risks counter argumentsColes behaviour is unethical and puts profits before the well-being of farmers and growers, creating fears that it will push the discounting through to producers. This may drive customers away and lower profits.

Woolworths supports food producers and depicts Coles as a heartless corporate giant that exploits its market bargaining power over small producers by not caring about the average Australian.

Rationale

There are two main reasons for Coles to continue discounting food items in their stores. Firstly, by discounting milk Coles is ensuring that customers are attracted by lower prices and will buy other products together with their milk and fruit (Johnson 2012). This will have a positive impact on Coles market share and profits. Those who oppose this move might argue that discounting is unethical as it exploits food producers and that Coles damaged reputation will actually drive customers away to competition (Lee 2011). However, as Coles has provided multiple public reassurances that it does not intend to pressure producers to drop the price of produce, this viewpoint lacks sufficient grounding to pose a credible threat at this point in time (Davis 2011) .

The second reason to continue food discounting is . . .

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Rationale

There are two main reasons for Coles to continue discounting food items in their stores. Firstly, by discounting milk Coles is ensuring that customers are attracted by lower prices and will buy other products together with their milk and fruit (Johnson 2012). This will have a positive impact on Coles market share and profits. Those who oppose this move might argue that discounting is unethical as it exploits food producers and that Coles damaged reputation will actually drive customers away to competition (Lee 2011). However, as Coles has provided multiple public reassurances that it does not intend to pressure producers to drop the price of produce, this viewpoint lacks sufficient grounding to pose a credible threat at this point in time (Davis 2011) .

Persuasive rationale: ARGUMENT FOR

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Rationale

There are two main reasons for Coles to continue discounting food items in their stores. Firstly, by discounting milk Coles is ensuring that customers are attracted by lower prices and will buy other products together with their milk and fruit (Johnson 2012). This will have a positive impact on Coles market share and profits. Those who oppose this move might argue that discounting is unethical as it exploits food producers and that Coles damaged reputation will actually drive customers away to competition (Lee 2011). However, as Coles has provided multiple public reassurances that it does not intend to pressure producers to drop the price of produce, this viewpoint lacks sufficient grounding to pose a credible threat at this point in time (Davis 2011) .

Persuasive rationale: COUNTER-ARGUMENT

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PresenterPresentation NotesNote the language signifying counterargument (those who oppose, critics argue, opponents note..)

Rationale

There are two main reasons for Coles to continue discounting food items in their stores. Firstly, by discounting milk Coles is ensuring that customers are attracted by lower prices and will buy other products together with their milk and fruit (Johnson 2012). This will have a positive impact on Coles market share and profits. Those who oppose this move might argue that discounting is unethical as it exploits food producers and that Coles damaged reputation will actually drive customers away to competition (Lee 2011). However, as Coles has provided multiple public reassurances that it does not intend to pressure producers to drop the price of produce, this viewpoint lacks sufficient grounding to pose a credible threat at this point in time (Davis 2011) .

Persuasive rationale: REBUTTAL

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PresenterPresentation NotesNote language of transition for rebuttal : However, nevertheless,

Slide Number 1Critical Analysis: WhatCritical Analysis: WhyCritical Analysis and Writing1. Understand the question and contextCritical Analysis Example : Food warsFood WarsWhat is happening in the case?What is happening in the case?Understanding the questionUnderstanding the question2. Conduct research and analyse the situation3. Develop possible solutions and evaluate options3. Develop possible solutions and evaluate optionsHow to decide on the best recommendation and rationale?4. Recommend a course of action and argue for itA-CA-R4. Recommend a course of action and argue for itStep 4. Developing the RationaleRationaleRationaleRationaleRationale