WHAT TO EXPECT FROM IN-CLASS

CASE DISCUSSIONS

As you will learn, classroom discussions of cases differsignificantly from lectures. The case method calls foryour instructor to guide the discussion and to solicitalternative views as a way of encouraging your activeparticipation when analyzing a case. When alternativeviews are not forthcoming, your instructor might takea position just to challenge you and your peers torespond thoughtfully as a way of generating additionalalternatives. Instructors will often evaluate your workin terms of both the quantity and the quality of yourcontributions to in-class case discussions. The in-classdiscussions are important in that you can derive sig-nificant benefit from having your ideas and recom-mendations examined against those of your peers andfrom responding to challenges by other class membersand/or the instructor.

During case discussions, your instructor will likelylisten, question, and probe to extend the analysis ofcase issues. In the course of these actions, your peersand/or your instructor may challenge an individual’sviews and the validity of alternative perspectives thathave been expressed. These challenges are offered in aconstructive manner; their intent is to help all who areanalyzing a case develop their analytical and commu-nication skills. Commonly, instructors will encourageyou and your peers to be innovative and original whendeveloping and presenting ideas. Over the course of anindividual discussion, you are likely to develop a morecomplex view of the case as a result of listening to andthinking about the diverse inputs offered by your peersand instructor. Among other benefits, experience withmultiple case discussions will increase your knowledge

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of the advantages and disadvantages of group decision-making processes.

Both your peers and your instructor will valuecomments that help identify problems and solutions.To offer relevant contributions, you are encouraged touse independent thought and, through discussionswith your peers outside class, to refine your thinking.We also encourage you to avoid using phrases such as“I think,” “I believe,” and “I feel” when analyzing acase. Instead, consider using a less emotion-ladenphrase, such as “My analysis shows. . . .” This high-lights the logical nature of the approach you havetaken to analyze the case. When preparing for an in-class case discussion, plan to use the case data toexplain your assessment of the situation. Assume thatyour peers and instructor are familiar with the basicfacts of the case. In addition, it is good practice to pre-pare notes regarding your analysis of case facts beforeclass discussions and use them when explaining yourperspectives. Effective notes signal to classmates andthe instructor that you are prepared to discuss the casethoroughly. Moreover, thorough notes eliminate theneed for you to memorize the facts and figures neededto successfully discuss a case.

The case analysis process described here will helpprepare you to effectively discuss a case during classmeetings. Using this process helps you consider theissues required to identify a focal firm’s problems andto propose strategic actions through which the firmcan improve its competitiveness. In some instances,your instructor may ask you to prepare an oral orwritten analysis of a particular case. Typically, such anassignment demands even more thorough study andanalysis of the case contents. At your instructor’s dis-cretion, oral and written analyses may be completed by

Preparing an Effective Case Analysis

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individuals or by groups of three or more people. Theinformation and insights gained through completingthe six steps shown in Table 1 are often valuable whendeveloping an oral or written analysis. However, whenpreparing an oral or written presentation, you mustconsider the overall framework in which your infor-mation and inputs will be presented. Such a frame-work is the focus of the next section.

PREPARING AN ORAL OR WRITTEN

CASE PRESENTATION

Experience shows that two types of thinking (analysisand synthesis) are necessary to develop an effectiveoral or written presentation (see Exhibit 1). In theanalysis stage, you should first analyze the generalexternal environmental issues affecting the firm. Next,

An Effective Case Analysis ProcessTABLE1

Step 1: Gaining Familiarity a. In general—determine who, what, how, where, and when (the critical facts of the case).

b. In detail—identify the places, persons, activities, andcontexts of the situation.

c. Recognize the degree of certainty/uncertainty ofacquired information.

Step 2: Recognizing Symptoms a. List all indicators (including stated “problems”) thatsomething is not as expected or as desired.

b. Ensure that symptoms are not assumed to be the problem (symptoms should lead to identification of the problem).

Step 3: Identifying Goals a. Identify critical statements by major parties (for example, people, groups, the work unit, and so on).

b. List all goals of the major parties that exist or can bereasonably inferred.

Step 4: Conducting the Analysis a. Decide which ideas, models, and theories seem useful.b. Apply these conceptual tools to the situation.c. As new information is revealed, cycle back to substeps

a and b.

Step 5: Making the Diagnosis a. Identify predicaments (goal inconsistencies).b. Identify problems (discrepancies between goals and

performance).c. Prioritize predicaments/problems regarding timing,

importance, and so on.

Step 6: Doing the Action Planning a. Specify and prioritize the criteria used to choose action alternatives.

b. Discover or invent feasible action alternatives.c. Examine the probable consequences of action

alternatives.d. Select a course of action.e. Design an implementation plan/schedule.f. Create a plan for assessing the action to be

implemented.

Source: C. C. Lundberg and C. Enz, 1993, A framework for student case preparation, Case Research Journal, 13 (Summer): 144. Reprinted by permission ofNACRA, North American Case Research Association.

your environmental analysis should focus on the par-ticular industry or industries in which a firm operates.Finally, you should examine companies against whichthe focal firm competes. By studying the three levels ofthe external environment (general, industry, and com-petitor), you will be able to identify a firm’s opportu-nities and threats. Following the external environmen-tal analysis is the analysis of the firm’s internalenvironment, which identifies the firm’s strengths andweaknesses.

As noted in Exhibit 1, you must then change thefocus from analysis to synthesis. Specifically, you mustsynthesize information gained from your analysis ofthe firm’s internal and external environments. Synthe-sizing information enables you to generate alternativesthat can resolve the problems or challenges facing the

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focal firm. Once you identify a best alternative from anevaluation based on predetermined criteria and goals,you must explore implementation actions.

Ty p e s o f Th i n k i n g i n Ca s eP r e p a ra t i o n : A n a l ys i s a n d Sy n t h e s i sTable 2 outlines the sections that should be includedin either an oral or a written presentation: introduc-tion (strategic profile and purpose), situation analysis,statements of strengths/weaknesses and opportuni-ties/threats, strategy formulation, and implementation.These sections are described in the following discus-sion. Familiarity with the contents of your book’s 13chapters is helpful because the general outline for an

Types of Thinking in Case Preparation: Analysis and SynthesisEXHIBIT1

ANALYSIS

External environment

General environmentIndustry environment

Competitor environment

Internal environment

Statements ofstrengths,weaknesses,opportunities,and threats

AlternativesEvaluations of alternatives

Implementation

SYNTHESIS

six segments of the general environment (see Table 3).Many of the segment issues shown in Table 3 for thesix segments are explained more fully in Chapter 2 ofyour book. The objective you should have in evaluat-ing these trends is to be able to predict the segmentsthat you expect to have the most significant influenceon your focal firm over the next several years (saythree to five years) and to explain your reasoning foryour predictions.

Industry Analysis Porter’s five-forces model is auseful tool for analyzing the industry or industries inwhich your firm competes. We explain how to use thistool in Chapter 2. In this part of your analysis, youwant to determine the attractiveness of the industry orindustries in which the focal firm is competing. Asattractiveness increases, so does the possibility thatyour focal firm will be able to earn above-averagereturns by using its chosen strategies. After evaluatingthe power of the five forces relative to your focal firm,you should evaluate how attractive the industry is inwhich your focal firm is competing.

Competitor Analysis Firms also need to analyzeeach of their primary competitors. This analysisshould identify competitors’ current strategies, vision,mission, capabilities, core competencies, and a com-petitive response profile. We explain these items in

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oral or a written presentation shown in Table 2 isbased on an understanding of the strategic manage-ment process detailed in those chapters. We follow thediscussions of the parts of Table 2 with a few commentsabout the “process” to use to present the results ofyour case analysis in either an oral or written format.

S t ra t e g i c P r o f i l e a n d Ca s e A n a l ys i s Pu r p o s eThe strategic profile should briefly present the criticalfacts from the case that have affected the focal firm’shistorical strategic direction and performance. Thecase facts should not be restated in the profile; rather,these comments should show how the critical factslead to a particular focus for your analysis. This pri-mary focus should be emphasized in this section’s con-clusion. In addition, this section should state impor-tant assumptions about case facts on which youranalyses may be based.

S i t u a t i o n A n a l ys i sAs shown in Table 2, a general starting place for com-pleting a situation analysis is the general environment.

General Environmental Analysis Your analysis ofthe general environment should focus on trends in the

General Outline for an Oral or Written PresentationTABLE2

I. Strategic Profile and Case Analysis Purpose

II. Situation AnalysisA. General environmental analysisB. Industry analysisC. Competitor analysisD. Internal analysis

III. Identification of Environmental Opportunities and Threats and Firm Strengths andWeaknesses (SWOT Analysis)

IV. Strategy FormulationA. Strategic alternativesB. Alternative evaluationC. Alternative choice

V. Strategic Alternative ImplementationA. Action itemsB. Action plan

Chapter 2. This information is useful to the focal firmin formulating an appropriate strategy and in predict-ing competitors’ probable responses. Sources that canbe used to gather information about an industry andcompanies with whom the focal firm competes arelisted in Appendix I. Included in this list is a widerange of publications, such as periodicals, newspapers,

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bibliographies, directories of companies, industryratios, forecasts, rankings/ratings, and other valuablestatistics.

Internal Analysis Assessing a firm’s strengths andweaknesses through a value-chain analysis facilitatesmoving from the external environment to the internal

Sample General Environmental CategoriesTABLE3

Technological Trends• Information technology continues to become cheaper with more practical applications• Database technology enables organization of complex data and distribution of information• Telecommunications technology and networks increasingly provide fast transmission of all

sources of data, including voice, written communications, and video information• Computerized design and manufacturing technologies continue to facilitate quality

and flexibility

Demographic Trends• Regional changes in population due to migration• Changing ethnic composition of the population• Aging of the population• Aging of the “baby boom” generation

Economic Trends• Interest rates• Inflation rates• Savings rates• Exchange rates• Trade deficits• Budget deficits

Political/Legal Trends• Antitrust enforcement• Tax policy changes• Environmental protection laws• Extent of regulation/deregulation• Privatizing state monopolies• State-owned industries

Sociocultural Trends• Women in the workforce• Awareness of health and fitness issues• Concern for the environment• Concern for customers

Global Trends• Currency exchange rates• Free-trade agreements• Trade deficits

environment. Analyzing the primary and supportactivities of the value chain will help you understandhow external environmental trends affect the specificactivities of a firm. Such analysis helps highlightstrengths and weaknesses (see Chapter 3 for an expla-nation and use of the value chain).

For purposes of preparing an oral or a written pre-sentation, it is important to note that strengths are inter-nal resources and capabilities that have the potential tobe core competencies. Weaknesses, on the other hand,are internal resources and capabilities that have thepotential to place a firm at a competitive disadvantagerelative to its rivals. Therefore, some of a firm’s resourcesand capabilities are strengths; others are weaknesses.

When you evaluate the internal characteristics ofthe firm, your analysis of the functional activitiesemphasized is critical. For instance, if the strategy ofthe firm is primarily technology-driven, it is impor-tant to evaluate the firm’s R&D activities. If the strat-egy is market-driven, marketing activities are of para-mount importance. If a firm has financial difficulties,critical financial ratios would require careful evalua-tion. In fact, because of the importance of financialhealth, most cases require financial analyses. AppendixII lists and operationally defines several commonfinancial ratios. Included are tables describing prof-itability, liquidity, leverage, activity, and shareholders’return ratios. Leadership, organizational culture, struc-ture, and control systems are other characteristics offirms you should examine to fully understand the“internal” part of your firm.

IDENTIFICATION OF ENVIRONMENTAL

OPPORTUNITIES AND THREATS AND

FIRM STRENGTHS AND WEAKNESSES

(SWOT ANALYSIS)The outcome of the situation analysis is the identifica-tion of a firm’s strengths and weaknesses and its envi-ronmental threats and opportunities. The next steprequires that you analyze the strengths and weaknessesand the opportunities and threats for configurationsthat benefit or do not benefit your firm’s efforts toperform well. Case analysts, and organizational strate-gists as well, seek to match a firm’s strengths with itsexternal environmental opportunities. In addition,strengths are chosen to prevent any serious environ-mental threat from negatively affecting the firm’s per-formance. The key objective of conducting a SWOT

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analysis is to determine how to position the firm so itcan take advantage of opportunities, while simultane-ously avoiding or minimizing environmental threats.Results from a SWOT analysis yield valuable insightsinto the selection of a firm’s strategies. The analysis ofa case should not be overemphasized relative to thesynthesis of results gained from your analytical efforts.You may be tempted to emphasize the results from theanalysis in your oral or written case analysis. It isimportant, however, that you make an equal effort todevelop and evaluate alternatives and to design imple-mentation of the chosen strategy.

STRATEGY FORMULATION—STRATEGIC

ALTERNATIVES, ALTERNATIVE EVALUATION,AND ALTERNATIVE CHOICE

Developing alternatives is often one of the most diffi-cult steps in preparing an oral or written presentation.Development of three to four alternative strategies iscommon (see Chapter 4 for business-level strategyalternatives and Chapter 6 for corporate-level strategyalternatives). Each alternative should be feasible (itshould match the firm’s strengths, capabilities, andespecially core competencies), and feasibility should bedemonstrated. In addition, you should show how eachalternative takes advantage of environmental opportu-nities or protects against environmental threats. Devel-oping carefully thought-out alternatives requires syn-thesis of your analyses’ results and creates greatercredibility in oral and written case presentations.

Once you develop strong alternatives, you mustevaluate the set to choose the best one. Your choiceshould be defensible and provide benefits over theother alternatives. Therefore, it is important that bothalternative development and evaluation of alternativesare thorough. You should explain and defend yourchoice of the best alternative.

STRATEGIC ALTERNATIVE

IMPLEMENTATION—ACTION ITEMS

AND ACTION PLAN

After selecting the most appropriate strategy (the onemost likely to help your firm earn above-averagereturns), you must turn your attention to implementa-tion-related issues. Effective synthesis is important toensure that you have considered and evaluated all critical

implementation issues. Issues you might considerinclude the structural changes necessary to implementthe new strategy. In addition, leadership changes andnew controls or incentives may be necessary to imple-ment strategic actions. The implementation actionsyou recommend should be explicit and thoroughlyexplained. Occasionally, careful evaluation of imple-mentation actions may show the strategy to be lessfavorable than you thought originally. A strategy isonly as good as the firm’s ability to implement it.

PROCESS ISSUES

You should ensure that your presentation (either oralor written) is logical and consistent throughout. Forexample, if your presentation identifies one purpose,but your analysis focuses on issues that differ from thestated purpose, the logical inconsistency will be appar-ent. Likewise, your alternatives should flow from theconfiguration of strengths, weaknesses, opportunities,and threats you identified by analyzing your firm’sexternal and internal environments.

Thoroughness and clarity also are critical to aneffective presentation. Thoroughness is represented by

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the comprehensiveness of the analysis and alternativegeneration. Furthermore, clarity in the results of theanalyses, selection of the best alternative strategy, anddesign of implementation actions are important. Forexample, your statement of the strengths and weak-nesses should flow clearly and logically from youranalysis of your firm’s internal environment.

Presentations (oral or written) that show logicalconsistency, thoroughness, clarity of purpose, effectiveanalyses, and feasible recommendations (strategy andimplementation) are more effective and are likely to bemore positively received by your instructor and peers.Furthermore, developing the skills necessary to makesuch presentations will enhance your future job per-formance and career success.

NOTES

1. C. Christensen, 1989, Teaching and the Case Method, Boston:Harvard Business School Publishing Division; C. C. Lundberg,1993, Introduction to the case method, in C. M. Vance (ed.),Mastering Management Education, Newbury Park, Calif.: Sage.

2. C. C. Lundberg and C. Enz, 1993, A framework for studentcase preparation, Case Research Journal 13 (Summer): 133.

3. J. Soltis, 1971, John Dewey, in L. E. Deighton (ed.), Encyclope-dia of Education, New York: Macmillan and Free Press.