2 An Approach to Case Analysis formt1. Situation Audit2. Problem Statement3. Identify Alternatives4. Develop Critical Issues5. Analysis6. Recommendations2
3 Step 1: Situation AuditA synopsis and evaluation of the organizations’ current situation, opportunities and problems.A. Summarize the organizational mission and objectives expressed or implied in the case.B. Assess any relevant environmental information available. Political, legal, societal, consumer, economic, or technological forces that present significant opportunities or threats3
4 Step 1: Situation AuditC. Assess the organization’s position in each product-market in which it competesbreak down into logical target marketsestimate demanddetermine end-user characteristicsidentify industry practices and trendsgeographic concentration.4
5 Step 1: Situation Audit D. Analyze competition identify competitors that satisfy same customer needstheir relative size and market sharelikely profitabilitytheir marketing strategymarketing and non-marketing strengths and limitations.5
6 Step 1: Situation AuditE. Critically assess the organization’s strengths and weaknessesare goals and objectives clearly stated and realisticfinancial position and strengthcalculate appropriate financial rations to assess liquidity, growth, stability, etc.compare with industry or competitorsdetermine break-even points6
7 Step 1: Situation AuditF. State any assumptions you may have made and defend them.7
8 Step 2: Identify Problem Statement Identify what appears to be the main problem, opportunity or issue in the caseBe careful not to confuse possible symptoms with the problemTry to write a one-sentence question that is specific enough to communicate the main concern. For example:Should product A be added to or deleted from the product line?What is the best market program positioning strategy for product Z?
9 Step 3: Identify Alternatives Prepare your list in two stages:Prepare an initial list of alternatives which includes all the actions you feel could be appropriate.Refine the initial list and combine similar actions. Focus on those alternatives that are feasible given the existing financial, productive, managerial, marketing, technological and other constraints.
10 Step 4: Develop Critical Issues Identify the factors that should be considered in making a decision regarding this particular problem area.What are the main criteria you will use to evaluate your strategic alternatives?
11 Step 4: Develop Critical issues The single most important critical issue in most decisions is the “expected profitability”Others may include such factors as:Required level on initial investmentImpact on market shareTax considerationsThe impact on employees, the local economy, the environment, consumer attitudes toward the company, etc.
12 Step 5: AnalysisEvaluate the pros and cons of each strategic alternative identified.Assess the advantages and disadvantages of each alternative in terms of the critical issues you have developed.Can be done in point or numerical form to help you organize your thoughts and clearly illustrates the logic of your thinking to others.
13 Step 6: Recommendations The action recommendations you propose should flow directly from your analysis.The first part of your recommendations should spell out the specific actions to be taken and why.These recommendations should be specific and operational
14 Step 6: Recommendations The second part of your recommendations should discuss implementation.State clearly who should do what, when and where.This should indicate your recommendations are both possible and practical.
15 Step 6: Recommendations The third part of your recommendations should include a tentative budget.Illustrates that your proposed solution will be worth the cost and is within the financial capabilities of the firm.Make your best estimate if accurate figures are not available. Shows that you have at least considered the cost implications of your recommendations