orientation to case method 1
TRANSCRIPT
ORIENTATION
TO THE
CASE METHOD
I am Confuse
d!No
I am Not Confuse
d!
Only the curious will learn and
Only the resolute overcome
the obstacles to learning.
The QUEST QUOTIENT has always
been more important than
INTELLIGENCE QUOTIENT
What is a Case study?
A description of a management situation
A teaching vehicle which has a good story, material for analysis and should pose decision question /action
Example :Whether to launch a new product?
Market AnalysisCompetitor AnalysisCustomer AnalysisBreak-even and Financial Analysis
What are the goals of a case?
GOALSNo one can provide skills they can only help acquire and improve skills
The classroom may not be the best place to get the view of abusiness activity
CONSTRAINTS
Provides students the skills to be effective managers
Provides a view of variety of chosen corporate setting and enables one to appreciate and grapple with management problems and for business thinking.
This fundamental shift causes many new case method students to be confused and uncertain about how they should go about learning.
Receiving Knowledge Versus Making It
In the lecture method, learners
receive knowledge from an expert.
In the case method, learners
make the knowledge with the assistance of an expert
How does the case study compare with other teaching pedagogues?
Case Problem Set
Role Play
Lecture
Knowledge
Technique
Skills
Philosophy
Approaches
PROBLEMS ENCOUNTERED IN CASES
Information that includes “noise”—irrelevancies, dead ends, and false, biased, or limited testimony by characters in the case.
Unstated information that must be inferred from the information that is stated.
A nonlinear structure in which related evidence is scattered throughout the text and is often disguised or left to inference
Need For Theory in Case Analysis
Get into the car and it does not start?
Engine? Fuel? Electrical System?
Similarly Case Study requires strong theoretical base for Meaningful analysis
Is Engine Turning Over?
What is Fuel Gauge Showing?
Are Headlights On?
You can know the name of a bird in all the languages of the world, butwhen you're finished, you'll know Absolutely nothing whatsoever about the bird...
So let's look at the bird and see what it's doing -- that's what counts.
I learned very early the difference between knowing the name of something and knowing something.
TYPES OF CASES
PROBLEM CASEDECISION CASE
EVALUATION CASE
PROBLEM SCENARIO
It is a situation in which there is a significant outcome or performance, and there is no explicit explanation of the outcome or
performance
For example
An accounting manager of a manufacturer notices that two good retail customers suddenly have accounts payable that are large and overdue enough to be worrisome.
What’s The Real Problem?
Symptoms – POOR MARKS
Symptomatic Cure –TUTORIALS
Real Problem - DSYLEXIA
Immediate Treatment - SPECIAL LEARNING TECHNIQUES
Long Term Treatment - DEVELOP ALTERNATE LEARNING MODEL
DECISION CASE
An executive must decide whether to:
Launch a product
Move a plant
Pursue a merger
Provide financing for a
planned expansion
Sign a controversial labour agreement
Solving A Decision Case
•Decisions Options
•Decision Criteria
•Relevant Evidence
The goal is to determine the decision that creates the best fit between the available evidence and the criteria
EVALUATION CASE
Evaluations express a judgment about the worth, value, or effectiveness of a performance, act, or outcome
SOLVING AN EVALUATION CASE
• Evaluation Criteria
• Relevant Evidence
How to prepare for a case
Read quickly – who is the protagonist, what is his/her situation.
Re-read -Highlight and Distinguish important information.
Decide on the action issues. Decide what analysis questions will help solve action
issues. Use data, make assumptions and answer the analysis
questions. Arrive at alternative solutions. Choose a solution that best solves the action issues
DISCUSS THE MANAGEMENT LEARNING
4 P’s of the case method
•Preparation
•Promptness
•Presence
•Participation
Good Case Analysis
•Be complete•Avoid rehashing case facts•Make reasonable assumptions•Don’t confuse symptoms with problems
Sales down – symptom not problem•Don’t confuse opportunity with taking action
Large market but no resources•Make good use of evidence developed in the situation analysis•Recognize Alternatives•Reach a clear decision
Overview of Case Framework
Situation Analysis
Generation and Evaluation of Alternatives
Decision
Financial Analysis of
Alternatives
Problems andOpportunities
Overview of Analysis Structure
SITUATIONAL ANALYSIS‡ Nature of Demand ‡ Nature of Competition‡ Environmental Climate‡ Industry Cost Structure‡ Skills of the firm‡ Distribution structure ‡ Firm’s Financial resources
PROBLEMS AND OPPORTUNITIES‡ Key Problem Areas‡ Key Opportunities‡ On Balance situation is
GENERATION OF ALTERNATIVES‡ Define objectives/ criteria
‡ Evaluate Alternatives
DECISION
Aim for success, not perfection. Never give up your right to be wrong
Because then you will lose the ability to learn new things
and move forward with your life.
Dr.David Burns
ROSE - SITUATIONAL ANALYSIS
Nature of Demand Product has irregular demand. It is expensive for companies to maintain “top of mind” awareness for
unpredictable product purchases. NO VISIBLE BENEFITS OF CREATING A BRAND IN PARTY-WARE CATEGORY.
Nature of Competition Private Label brands like Party! have muscle power INTENSE CATEGORY COMPETITION
Environmental Climate Price sensitivity high if the order value is very high. Social gatherings on the rise. Outsourcing of parties and weddings to event management companies/
contractors. GROWING DEMAND
ROSE - SITUATIONAL ANALYSIS
Skills of the firm Weakness
No core competence in building brands and creating promotions. No market power to charge a premium Rose might be able to create a brand, what about equity?
Strengths Ability to design, print, and manufacture high-quality paper
goods. Rose could probably get away with a modest price premium New line’s superior quality and the company’s emphasis on selling
its products through independent stores, where less price-sensitive consumers usually shop.
ROSE - SITUATIONAL ANALYSIS
Distribution structure Rose distributes through several distributors and individual
retailers. Largely sold through the push of retailers. Largely dependent on retailers to have products at the right place
at the right time. BUYING POWER OF BUYER HIGH
Firm’s Financial resources Limited resources to build a brand. FINANCIAL MUSCLE POWER?
OPTION 1Produce for Party! a line of premium private-label products
UPSIDE B2B marketing. Regular Demand. Stable growth. Good returns. Rose will gain clout with Party! due to the procurement
efficiencies that Party! will generate by dealing with just one vendor.
Tom can use that clout to convince the chain to continue carrying the commodity party-ware products of Rose.
Retailers build their own brand equity by selling top-quality merchandise. Party! will therefore need high-quality specs and creative designs.
If Party! Myopically insists on cheap, low-quality products, Tom should pass on Party!’s offer and take the idea to some of the other large retailers.
Can launch its own brand after few years of market experience.
DOWNSIDE Cannot launch Rose as a national brand for some years. Market opportunity does not wait for any player. As Party’s brand gains strength, Rose will be pressured to reduce
its margins. Will need to expend on technological innovations for the
company’s survival. Consolidation in the retailing industry is inevitable as the
shakeouts in grocery show. Independents will be affected by Tom’s decision to produce
Party!’s line. Independent retailers will need sustained marketing activity. Better packaging and point-of-sale displays by Rose will offer
added value to the independents.
OPTION 1Produce for Party! a line of premium private-label products
OPTION 2Create a brand and invest in its developmentUPSIDE
In every product category branding is important. Branding of commodities a trend to stay. Brands offer the comfort of familiarity in an increasingly hostile
world. (Toilet Paper) Branding allows to charge a premium for the products. Parties are happy occasions, where consumers will happily spend
that extra 7% to do things right. Advertising isn’t the only way to build awareness. The most important branding vehicle is the product itself. The intelligent development of the brand name and innovative
uses of the logo can work. A logo will serve as a brand ambassador at every party. Develop unique product packaging and point-of-sale display
materials. A supplier can build a strong business by maintaining a direct
relationship with consumers, over retailers’ heads.
OPTION 2 Create a brand and invest in its development
DOWNSIDE Limited Market Size, so Intra category competition will be fierce. If Party! and Rose simultaneously launch branded lines, they will
end up competing for the same consumer, and they will compromise the success of both brands.
Rose has limited resources so ability to compete low. Branding effort unlikely to reach the intended TA as Rose has
several distribution channels. Branding is not important when it comes to party ware because
most people don’t buy such products on a regular basis. Building brand awareness will cost the company a great deal of
money Rose’s rivals will outprice it in the short run. Large retailers would not allow a supplier to build supplier’s brand
and use premium pricing.
OPTION 3Become the Category Manager for Party!
Propose that Party! appoint Rose as the party-ware Category Manager.
Can create a party zone of dedicated retail shelf space in every store. Focused display will enhance sales. This cost-savings opportunity since the party zone would allow Party!
to reduce the number of lines and assortments carried by Party! Rose could manage the chain’s party-ware inventory and promotions. Rose’s commodity products that sell only on price are ideal
candidates for retailer branding.
WHAT DOES PARTY! GET Rose will add value to their operations. Rose will develop new products, better packaging, and merchandising Rose will manage entire supply chain to store-level inventory. Rose will develop a deep understanding of the consumer.
OPTION 4DO NOTHING
Will leave the door open for rivals to exploit both opportunities.
Rival may launch a pioneering brand in the industry category
Rival may attempt a private-label development in a commodity market
Will exert pressure on Rose sales in the lone run.
OPTION 5
Do both projects
Capital To Be Injected – Source? Segregation of resources difficult. Enhanced Capacity Enhanced Marketing Effort Confusion in Distribution
Bob’s Meltdown - Problem Definition
Bob Dunn’s behavior - The big problem at Concord?
No - Jay Nguyen’s at fault. Jay has clearly been struggling for some time with fundamental issues about the company and its future.
He needs to do some deep—and fast— thinking about where he’s taking Concord Machines and what he wants from each member of his executive team.
CEOs can’t have secret agendas.
Bob’s Meltdown – KEY ISSUES
Legal Issue Review the potential risks the company faces should
Annette bring legal action for assault or harassment.
People Management Issue Has loaded too much responsibility for profit generation
to Bob. Did not give a thorough orientation to Annette of the
business, neither oriented top managers to knowledge management.
The company grapevine - People are buzzing about this incident
Contingency plans need to be put in place immediately for legal issue.
Explain to Annette needs to understand that she made big errors.
Jay should have Annette formulate a detailed strategy for engaging and involving her peers in KM.
He needs to explain to Bob the risks the company faces as a result of his actions and seek apology.
He needs Bob to delegate day-to-day decisions and firefights to his lieutenants; Bob cannot, and should not, continue to do everything himself.
Issue resolution needs to be communicated through the ranks.
Draw-up detailed business plan for Concorde
Bob’s Meltdown- SOLUTION
Trap Ease Group has hired Martha House to market a patented, innovative mousetrap Target Group is housewives whom it believes will be attracted to the safety and cleanliness that its trap offers. (The trap traps the mouse alive with no baiting and no mess) The trap is marketed directly to large retail store chains such as Safeway and Kmart. The traps are sold in packages of two and are priced at $2.49—about five to ten times the price of the traditional, spring-loaded trap. Promotion is through trade shows and personal selling. Trap Ease Symptoms - Sales are disappointingly slow
TRAP EASE - SYNOPSIS
CUSTOMER ANALYSIS
Target Group -housewives as they are reluctant to set and bait traditional spring-loaded traps.
Also concerned about the safety of children and pets that may be around the home because once the spring-loaded trap has caught a mouse, one often has a mess resulting from its action.
Besides being unpleasant, the mess presents health concerns due to the diseases, which may be carried by mice.
Identified need gap for the TG – Safety and Cleanliness
TRAP EASE - SITUATIONAL ANALYSIS
COMPETITOR ANALYSIS
Trap Ease faces competition from both price ends: Conventional Mouse Traps target Low Income Consumers while Exterminators target High Income Consumers.
Trap – Ease Benefit/Sacrifice ratio not superior to competitors.
TRAP EASE - SITUATIONAL ANALYSIS
COMPANY ANALYSIS
Product: Trap-Ease is a patented mousetrap that is designed to allow consumers to avoid the safety and cleanliness problems associated with traditional mousetraps.
Problem Area: Problem of a live mice in the trap for hours together.
Price: $1.25 per trap, when sold in packages of two is five to ten times more expensive than traditional traps.
Problem Area: More mice more traps – Higher cost of eradication.
TRAP EASE - SITUATIONAL ANALYSIS
COMPANY ANALYSIS
Place: Products are distributed directly to national chains.
Problem Area: Company lacks truck and distribution facilities.
Promotion: Appearances at trade shows and point-of-purchase display. Middlemen advertise
Problem Area: No advertising targeted to the end-consumer.
TRAP EASE - SITUATIONAL ANALYSIS
TRAP EASE- PROBLEMS AND OPPORTUNITIES
‡ KEY PROBLEM AREAS
No Target Group Insights – 7 O model
Market Size for traps / mice termination not known
Marketing Mix Strategy needs correction
‡ KEY OPPORTUNITIES
• Patented Innovative product
• Demand for traps exists
‡ ON BALANCE SITUATION
Is viable with corrections in marketing program
TRAP EASE-SUGGESTED ALTERNATIVE 1
TG = HousewivesNeed Gap = Safety and CleanlinessDemand = Seasonal Buying Behavior = Emergency Product
• Current marketing mix unattractive• Prices need to be lowered as value
delivered low.• Huge resources required for advertising
and reaching to end-consumer• Huge resources required for setting up
national distribution system• May therefore not be financially viable
Need Gap = Disease Control where food is handled and poisons / rat control measures may be inappropriate and rat disposal may not be a problem.
Demand = Synchronized all year
Buying Behavior = Industrial Supplies, not much price negotiation, access to supplier important.
TRAP EASE-SUGGESTED ALTERNATIVE 2
POTENTIAL TARGETS
Restaurants because of the presence of food also because they cannot use chemicals near food.
Food wholesalers or warehouses where large quantities of food may be stored in the channel of distribution.
Food manufacturers also need rodent protection.
Research laboratories because when rats run loose a researcher would be interested in the ability to capture a mouse without harming it.
Exterminators because they must work in areas where chemicals would not be allowed and traditional traps would have the same messiness problem
TRAP EASE-SUGGESTED ALTERNATIVE 2
MARKETING MIXProduct: Redesign develop larger sizes of the trap Price: Industrial buyers may negotiate price. Work on costs.Lower distribution /selling expenses by dealing directly Place: Customers small in number and not very dispersed. However no field force. Appoint Sole Selling Agents Promotion: Trade promotion strategy. Appearing
at trade shows – avoids pursuing expensive media options.Advertising in trade magazines. Sell to exterminators and they become the sales force
TRAP EASE-SUGGESTED ALTERNATIVE 2