1 (c) Copyright 2011 Mortensen Consulting Group LLC Session #4 Strategic Management Dr. Mark H. Mortensen Sessions 211 and 212 M-W PA 407

Mortensen Consulting Group LLC 2 You Will be Prepared for Today Iff You: Have the book – Does anyone NOT have a book? Have read Chapter 1

Mortensen Consulting Group LLC Today’s Material Introduction to Case Study Methodology Chapter 2 – Corporate Governance 3 (c) Copyright 2011 Mortensen Consulting Group LLC

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 4 Introduction to Case Study Methodology

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 5 Case Study Analysis Document 1. Title page 2. Table of Contents 3. Executive Summary 4. Problem Identification and Analysis 5. Statement of Major Problems 6. Generation and Evaluation of Alternatives 7. Recommendations(s) 8. Implementation 9. Bibliography 10. Appendices

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 6 3. Executive Summary/Abstract Brief overview of the case, setting the scene and noting any important assumptions made Give a synopsis of the case report, noting very briefly the major problems identified and the recommended solutions Approximately one page.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 7 What to Include … The history, development, and growth of the company over time The identification of the company’s internal strengths and weaknesses The nature of the external environment surrounding the company A SWOT analysis (or another kind of analysis) The kind of corporate-level strategy pursued by the company The nature of the company’s business-level strategy The company’s structure and control systems and how they match its strategy Recommendations and implementation plan

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 8 4. Problem Identification and Analysis In this section, identify all of the major problems in the case Try to get underlying causes of problems, not just symptoms You should link each problem identified to relevant theory and also to actual evidence in the case Remember you must integrate theory and reference all non-original work.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 9 5. Statement of Major Problems Identify the problems – don’t try to solve them here Chose a small number of major items – two or three problems or issues – that must be solved first Short, concise statement of the problems you are going to solve in the remainder of the case Half a page is adequate.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC Generation of Solutions Identify and evaluate a number of the more appropriate solutions (at least two or three for each major problem identified) Each alternative solution should be briefly outlined and then evaluated in terms of its advantages and disadvantages (strong and weak points) It is not necessary to make a statement in this section as to which alternative is considered best – this is stated in the next section Do not integrate or recommend theory in this section. Practical solutions to the problem are required.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC Recommendations State which of the alternative solutions (either singly or in combination) identified in previous sections are recommended Justify your choice, explaining how it will solve the major problems identified in section 6 Recommend precise courses of action that the company needs to take.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 12 A Warning Don’t confuse Findings, Conclusions, and Recommendations Findings are factual and verifiable statements of what happened or what was found. Conclusions are your own ideas that you deduce from your findings. Recommendations are what you want done.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC Implementation Write your recommendations in the form of a action plan. It is good to include a timetable of what should be done when. Explain how you would implement the recommended solutions: What should be done by whom When In what sequence What it will cost (rough estimates) and other such issues Remember, if a recommended solution cannot be realistically implemented by that company, in a reasonable amount of time, then it is no solution at all.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 14 Doing a Case Study -1 Read the case thoroughly. Read the case thoroughly. Read the case thoroughly.  The first time to get an overview of the industry, the company, the people and the situation.  Read the case again more slowly, making notes as you go. Define the central issue. Many cases will involve several issues or problems.  Identify the most important problems and separate them from the more trivial issues  After identifying what appears to be a major underlying issue, examine the related problems.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 15 Doing a Case Study - 2 Define the firm’s goals (only if applicable)  Inconsistencies between a firm’s goals and its performance may further highlight the problems discovered in step 2  Identifying the firm’s goals will provide a guide for the remaining analysis. Identify the constraints to the problem (only if applicable)  The constraints may limit the solutions available to the firm  Typical constraints include limited finances, lack of additional production capacity, personnel limitations, strong competitors, relationships with suppliers and customers, and so on.  Constraints have to be considered when suggesting a solution.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 16 Doing a Case Study - 3 Identify all the relevant alternatives  The list should include all the relevant alternatives that could solve the problem(s) that were identified  Use your creativity in coming up with alternative solutions  Even when solutions are suggested in the case, you may be able to suggest better solutions Select the best alternative  Evaluate each alternative in light of the available information  Resist the temptation to jump to this step early in the analysis  You will also need to explain the logic you used to choose one alternative and reject the others.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 17 Doing a Case Study - 4 Develop an implementation plan  Plan for effective implementation of your decision. Lack of an implementation plan, even for a very good decisions can lead to disaster for a firm and for you  Don’t overlook this step. It is important as a future manager to be able to explain how to implement the decision.

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 18 Doing a Case Study - 5 Write it all down Write Sections 1-3 Check for spelling and grammar Check for readability Ask yourself “If I read this, would I understand it? Would I be impressed? Would I be convinced?”

Mortensen Consulting Group LLC (c) Copyright 2008 Mortensen Consulting Group LLC 19 References Davies, Dr. Martin, Case Study Analysis and Case Study Method, University of Melbourne,

Mortensen Consulting Group LLC 20 Reminder for Next Class (Weds.) DUE: nothing If you haven’t, read Chapter 1 Read Chapter 2 If you haven’t, buy the required case studies from Harvard Business School web site and scan through the Apple Case Study.