2019-03-16

Management Concepts II

Case study analysis

An overview

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Lecture based on

Phillips, P., Moutinho, L. (2018).

Contemporary Issues in Strategic
Management. Routledge.

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Case study analysis

• Case study analysis enables to make a connection
between management theory and practice
• It is an examination of a critical point in the life of an
organisation taking the position of a decision-maker
• It requires applying analytical skills to identify and
solve whatever problems appear in the organization
• Studying cases helps students to develop the
experience to make decisions in the real world
• At Harvard Business School 80 % of class time is spent
on case study analysis.h
(Phillips, Moutinho, 2018, p. 80)

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Case study analysis – outline

Outline processes
• Analysis
• Identification of options
• Selection of a preferred option
• Recommendations

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(Source: Phillips, Moutinho, 2018, p. 82)

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Case study analysis – approach

• Formalized plan of action
• Try to understand all elements in a particular
business situation
• Use a systematic approach
• Follow a systematic set of principles and
procedures
• Analyze the data presented
• Formulate a set of recommendations
(Phillips, Moutinho, 2018, p. 83-91)

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Case study analysis – steps

• Case study overview
• Pre-case analysis
• Structuring the analysis
• Sizing up the situation
• Situation analysis
• Problem identification
• Statement and evaluation of alternatives
• Recommended solution and justification
• Writing the report
(Phillips, Moutinho, 2018, p. 83-91)
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Case study overview

• First – get a broader picture, an overview of the whole
organization by skimming over the case study quickly
• What time of organisation is it?
• What are some of the general factors at work?
• What kind of problems is the organization having?
• Next – go over the case study again,
underline/indentify the key statements, and find out
what are the key problem areas
• Write up the first section of the case study analysis –
an overview of the situaion

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Pre-case analysis
• Sift through the data for useful information
• Carefully analyse the data
• Make assumptions – „educated guesses”
• Avoid making strong assumptions – stay open
to other considerations

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Structuring the analysis

• Avoid unstructured case study analysis
• This may encourage guessing and
unsupported conclusions
• Aim towards in-depth analysis to discover
underlying difficulties in company
managemet, of which the current problems
may just be symptom

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Sizing up the situation

• One-page paper„sizing up the situation”
• Description of the situation in the case study
including the underlying situation which gives
rise to the present problems
• Without solving the problems or making any
recommendations
• Writing up the essential facts and the basic
assumptions that can be made on the basis of
the information presented in the case study
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Sizing up the situation – mental steps

(Phillips, Moutinho, 2018, p. 84)
” i) Look at the product or products now being
produced or contemplated and provide a tentative
classification into categories such as convenience
goods, shopping goods, accessories, and so on, and
specify the apparent target market of the company.
Something about the company’s product policy and
overall strategy might be noted. The type of market
situation (pure competition, monopolistic competition,
and so on) and the stage of the product in its lifecycle
should also be considered. Further, some thought
should be given to the degree of brand preference
achieved or sought.”

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Sizing up the situation – mental steps

(Phillips, Moutinho, 2018, p. 84)
• „ ii) Develop a “reasonable” marketing mix on the
basis of the preliminary judgements in step l. This
should be merely a quickly developed “ideal” based
primarily on the product classification.
• iv) Rethink the nature of the product and the target
market(s) before condemning the company’s
procedure if it differs from the student’s “ideal.” The
student should try to give the company management
the benefit of the doubt, but should not accept
everything as “right.”
• v) Size up the situation, including the strengths and
weaknesses of various elements of the marketing mix.”

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Situation analysis
• Once the key problem areas are identified, all
aspects of the organisation are critically
evaluated
• General areas
– the organisation
– the customer
– the competition
– the environment
• Financial analysis
(Phillips, Moutinho, 2018, p. 83-91)
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Situation analysis
• Financial analysis
– Balance sheet/ income statement analysis
(vertically and horizontally)
– Ratio analysis (trends in the company’s financial
performance)
– Other quantitative analysis (e.g. break-even
analysis, marketing profitability analysis)
– Overall financial assessment (general statements
regarding the financial position of the firm)

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Situation analysis - selected financial ratios

(Phillips, Moutinho, 2018, p. 86)

Note: For more examples of financial ratios read Phillips and

Moutinho, 2018, p. 86.
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Problem identification
• Formal description of the problems existing in
the organization drawing on the strategic
management theory and practice
– Definition of all problem areas (ncreasing
inventory costs, declining profitability and
declining customer service quality)
– Priotization of problems (major/ minor)
– Focusing the analysis around one or two major
problems
(Phillips, Moutinho, 2018, p. 83-91)
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Statement and evaluation of

alternatives
• Develop as many possible solutions as you
can, and then reduce them to a set of realistic
alternatives.
• Examine critically the advantages and
disadvantages of the remaining alternatives to
reach a solution.

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Statement and evaluation of

alternatives
• List the realistic alternative solutions to each
major problem.
• Each alternative should be a completely
different way of solving the problem.
• Then list the specific advantages and
disadvantages of carrying out each alternative.
• List the pros and the cons of each alternative
solution (e.g. in a table).

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Recommended solution and

justification
• Make recommendations on the course of action.
• State the alternatives you selected and explain
why. (One alternative for each major problem.)
• Take into consideration the constraints on the
organization, e.g. strength of competition,
company resources, production capacity,
budgets, and philosophies and capabilities of top
management. (Phillips, Moutinho, 2018, p. 89)

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Recommended solution and

justification
• There must be a statement of clear decision.
• „Part of the skill of decision-making is to be
forced to reach a decision under ambiguous
circumstances and then be prepared to
defend this decision.” (Phillips, Moutinho,
2018, p. 89)

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Recommended solution and

justification – implementation
• Some case study analyses also ask for an
implementation strategy
• Formulate answers to questions
– How/ when will it be accomplished?
– Who will do it?
– Where will it be done?
– How much is the projected revenue/
contribution?

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Writing the report

• Writing reports from a case study analysis is an
important skill
• The paper should be objective, balanced, consistent
and decisive
• Do not just repeat facts and statements from the case
study
• Pay attention to structure and organisation of the
report
• Do not write in long paragraphs, and use an outline
• Make sure the narrative is logical and readable

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Review questions
1. What is the purpose of case studies?
2. What are the main stages/ steps of the
format for case study analysis?
3. What are the key guidelines for writing the
section Recommended Solution and
Justification of a case study report?

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Reference
• Phillips, P., Moutinho, L. (2018). Contemporary
Issues in Strategic Management. Routledge.

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