1. Business Case Analysis (BCA)By
Priyanka Darshana
MBA (AUS), ACMA (UK), CGMA, ACMA (SL), B.B Marketing sp

2. BCA
Case study analysis is an integral part of a course in strategic management. The purpose of a case study is to provide students with experience of the strategic management problems that actual organizations face…

3. Introduction to case study
A case study is a particular account of a set of circumstances faced by an industry, specific organization or individual.
It provides information about a real life business situation and gives examples of how strategic issues are managed by real organizations.
A case study describes an actual situation, such as the current state of an industry and factors influencing it or, for example, specific problems facing an organization.
When undertaking such analysis, you would be expected to utilize relevant theoretical concepts and frameworks.

4. Objective of Business Case study
Increase your understanding of what managers should and should not do in guiding a business to success.
Build your skills in sizing up company resource strengths and weaknesses and in conducting strategic analysis in a variety of industries and competitive situations.
Get valuable practice in identifying strategic issues that need to be addressed, evaluating strategic alternatives, and formulating workable plans of action.
Enhance your sense of business judgment
Gaining in-depth exposure to different industries and companies, thereby acquiring something close to actual business experience.

5. Approach to case study analysis
Read the case study
Situational analysis
Problem/decision statement
Strategic analysis
Strategic alternative
Recommendation

6. Step 01: Situational analysis
The situation phase of the problem solving process is basically a synopsis and evaluation of a firm current situation.
Situational analysis
Internal analysis
External analysis

7. Models of situational analysis
Internal analysis
SWOT Analysis
Financial Analysis
External Analysis
PESTEL Analysis
Industry analysis (5Fs)
Competitor analysis

8. Situational analysis : Internal organizational assessment
SWOT analysis is the conventional management technique which is used to assess the company current position.
Evaluate the strength, weakness , opportunities and threat

9. Financial analysis for diagnosing the firm current strategy
Strategy formulation
Assess the current situation
Identify the current strategy of the firm and assess how well that strategy is doing in terms of financial performance
Identify the inadequacies of firm value drivers and reason for deviations-Internally driven or external driven
Strategic or operational level actions

10. Financial Analysis Profitability analysis Key expenses analysis
Short term liquidity
Business efficiency
Financial gearing
Investors

11. Situational analysis: External analysis
PESTEL Analysis
Political factors
Economic factors
Social and cultural factors
Technological factors
Ecological factors
Legal factors

12. Situational analysis: Five forces analysis
Industry or sector profitability is determined by FIVE competitive forces
Barraging power of the customer
Bargaining power of the supplier
Threat of new entrants
Threat of substitutes
Revelry

13. Industry analysis variables

14. Situational analysis: Competitor analysis
Competitors are the companies who competing in a same market segment –Narrow definition
Identify the strategic group/Competitor profiling matrix
Broader definition of the competitor

15. Step 02: Problem/Decision statement
The identification and clear presentation of the problem(s) , opportunity or issue(s) facing the company is the most critical part of the analysis framework.
▸Only a problem properly defined can be addressed.
▸Tools used in Step 02 can help you to identify the problems / issues of the organization.

16. Problem/Decision statement
Example
How can XYZ Plc survive?
What factors drive the declining trends of company sales?
How to drive the XYZ Plc growth in 5 years

17. Strategic analysis
Strategic analysis will facilitate firm to identify the possible alternatives available to address the problem/issue or the decision.
Models of strategic analysis
Ansoff matrix /Market growth share matrix
Expansion policy matrix
BCG product portfolio analysis

18. Market option matrix and Expansion method matrix
Corporate strategic options
Market penetration
Product development
Market development
Diversification –Related
Unrelated
Company
Inside
Outside
Internal development
Mergers & Acquisition
Joint venture
Alliances
Franchises
Exporting
Overseas office
Overseas manufacture
Multinational operation
Global operation
Licensing
Home country
Geographical location
International

19. The BCG “Portfolio” Matrix
Market Share
High
Low
Stars
Question Marks ? ? ?
High ?
Anticipated
Growth
Rate
Cash Cows
Dogs
Low

20. Strategic alternative
Strategic alternatives are the strategic options or actions that appear to be viable solution to the problem, issue or the decision situation that you have posed.
List all possible alternative available to the current strategic issue or to drive the decision.

21. Evaluation of strategic alternative
Evaluate the each alternative using Jhonson and Scholes 3 strategic test .
Financial feasible to the shareholders
Acceptable to the other stakeholders
Suitable to the organization current objective and the competitive position

22. Recommendation
This is the final stage of the business case analysis. If your analysis has been through the action recommendation that your propose should flow directly from it.
First part of your recommendation section address what specific actions should be taken and why with justifications
The second part of the recommendation should address the implementation. State clearly who should do what, when and where. Implementation plan shows that your recommendations are both possible and practical.

23. Workshop 02 - Conduct a business case analysis
ILO Addressed:
ILO 05 - Analyze, discuss and present some cases; ILO 06 - Comment on other’s analysis with a clear position
Key Activities: Exercise - Each team to present their analysis on the selected business case; Teams in the audience to present their critical comments and debates on the business case analysis presented
Mandatory Readings:
Selected Case Studies from:
Compaq in crisis
Gillette and the men’s wet-shaving market
Beefing up the beefless Mac: McDonald’s expansion strategies in India
Southwest Airlines

24. Workshop 02:
Each team would be assigned a case study presentation for which they should listen to carefully when presented by another team, and when given the time should draw critical comments and debate for and/or against the points that were presented by the presentation team. Each team would be allowed a time of 10 minutes for their critical comments and debate.