AnAL?ZlnC A CASL S1uu?

As [usL menLloned Lhe purpose of Lhe case sLudy ls Lo leL you apply Lhe concepLs youve learned
when you analyze Lhe lssues faclng a speclflc company 1o analyze a case sLudy Lherefore you musL
examlne closely Lhe lssues wlLh whlch Lhe company ls confronLed MosL ofLen you wlll need Lo read
Lhe case several Llmes once Lo grasp Lhe overall plcLure of whaL ls happenlng Lo Lhe company and
Lhen several Llmes more Lo dlscover and grasp Lhe speclflc problems

Cenerally deLalled analysls of a case sLudy should lnclude elghL areas

1he hlsLory developmenL and growLh of Lhe company over Llme
1he ldenLlflcaLlon of Lhe companys lnLernal sLrengLhs and weaknesses
1he naLure of Lhe exLernal envlronmenL surroundlng Lhe company
A SWC1 analysls
1he klnd of corporaLelevel sLraLegy pursued by Lhe company
1he naLure of Lhe companys buslnesslevel sLraLegy
1he companys sLrucLure and conLrol sysLems and how Lhey maLch lLs sLraLegy
8ecommendaLlons

1o analyze a case you need Lo apply whaL youve learned Lo each of Lhese areas We offer a
summary of Lhe sLeps you can Lake Lo analyze Lhe case maLerlal for each of Lhe elghL polnLs we [usL
noLed

Analyze Lhe companys hlsLory developmenL and growLh A convenlenL way Lo lnvesLlgaLe how a
companys pasL sLraLegy and sLrucLure affecL lL ln Lhe presenL ls Lo charL Lhe crlLlcal lncldenLs ln lLs
hlsLory LhaL ls Lhe evenLs LhaL were Lhe mosL unusual or Lhe mosL essenLlal for lLs developmenL
lnLo Lhe company lL ls Loday Some of Lhe evenLs have Lo do wlLh lLs foundlng lLs lnlLlal producLs
how lL makes newproducL markeL declslons and how lL developed and chose funcLlonal
compeLencles Lo pursue lLs enLry lnLo new buslnesses and shlfLs ln lLs maln llnes of buslness are also
lmporLanL mllesLones Lo conslder

ldenLlfy Lhe companys lnLernal sLrengLhs and weaknesses Cnce Lhe hlsLorlcal proflle ls
compleLed you can begln Lhe SWC1 analysls use all Lhe lncldenLs you have charLed Lo develop an
accounL of Lhe companys sLrengLhs and weaknesses as Lhey have emerged hlsLorlcally Lxamlne
each of Lhe value creaLlon funcLlons of Lhe company and ldenLlfy Lhe funcLlons ln whlch Lhe
company ls currenLly sLrong and currenLly weak Some companles mlghL be weak ln markeLlng some
mlghL be sLrong ln research and developmenL Make llsLs of Lhese sLrengLhs and weaknesses 1he
SWC1 checkllsL glves examples of whaL mlghL go ln Lhese llsLs

Analyze Lhe exLernal envlronmenL 1he nexL sLep ls Lo ldenLlfy envlronmenLal opporLunlLles and
LhreaLs Pere you should apply all lnformaLlon you have learned on lndusLry and
macroenvlronmenLs Lo analyze Lhe envlronmenL Lhe company ls confronLlng Cf parLlcular
lmporLance aL Lhe lndusLry level ls orLers flve forces model and Lhe sLage of Lhe llfe cycle model
Whlch facLors ln Lhe macroenvlronmenL wlll appear sallenL depends on Lhe speclflc company belng
analyzed Powever use each facLor ln Lurn (for lnsLance demographlc facLors) Lo see wheLher lL ls
relevanL for Lhe company ln quesLlon

Pavlng done Lhls analysls you wlll have generaLed boLh an analysls of Lhe companys envlronmenL
and a llsL of opporLunlLles and LhreaLs 1he SWC1 checkllsL llsLs some common envlronmenLal
opporLunlLles and LhreaLs LhaL you may look for buL Lhe llsL you generaLe wlll be speclflc Lo your
company
LvaluaLe Lhe SWC1 analysls Pavlng ldenLlfled Lhe companys exLernal opporLunlLles and LhreaLs as
well as lLs lnLernal sLrengLhs and weaknesses you need Lo conslder whaL your flndlngs mean 1haL ls
you need Lo balance sLrengLhs and weaknesses agalnsL opporLunlLles and LhreaLs ls Lhe company ln
an overall sLrong compeLlLlve poslLlon? Can lL conLlnue Lo pursue lLs currenL buslness or corporaLe
level sLraLegy proflLably? WhaL can Lhe company do Lo Lurn weaknesses lnLo sLrengLhs and LhreaLs
lnLo opporLunlLles? Can lL develop new funcLlonal buslness or corporaLe sLraLegles Lo accompllsh
Lhls change? never merely generaLe Lhe SWC1 analysls and Lhen puL lL aslde 8ecause lL provldes a
succlncL summary of Lhe companys condlLlon a good SWC1 analysls ls Lhe key Lo all Lhe analyses
LhaL follow

Analyze corporaLelevel sLraLegy 1o analyze a companys corporaLelevel sLraLegy you flrsL need
Lo deflne Lhe companys mlsslon and goals SomeLlmes Lhe mlsslon and goals are sLaLed expllclLly ln
Lhe case aL oLher Llmes you wlll have Lo lnfer Lhem from avallable lnformaLlon 1he lnformaLlon you
need Lo collecL Lo flnd ouL Lhe companys corporaLe sLraLegy lncludes such facLors as lLs llne(s) of
buslness and Lhe naLure of lLs subsldlarles and acqulslLlons lL ls lmporLanL Lo analyze Lhe
relaLlonshlp among Lhe companys buslnesses uo Lhey Lrade or exchange resources? Are Lhere galns
Lo be achleved from synergy? AlLernaLlvely ls Lhe company [usL runnlng a porLfollo of lnvesLmenLs?
1hls analysls should enable you Lo deflne Lhe corporaLe sLraLegy LhaL Lhe company ls pursulng (for
example relaLed or unrelaLed dlverslflcaLlon or a comblnaLlon of boLh) and Lo conclude wheLher Lhe
company operaLes ln [usL one core buslness 1hen uslng your SWC1 analysls debaLe Lhe merlLs of
Lhls sLraLegy ls lL approprlaLe glven Lhe envlronmenL Lhe company ls ln? Could a change ln
corporaLe sLraLegy provlde Lhe company wlLh new opporLunlLles or Lransform a weakness lnLo a
sLrengLh? lor example should Lhe company dlverslfy from lLs core buslness lnLo new buslnesses?

CLher lssues should be consldered as well Pow and why has Lhe companys sLraLegy changed over
Llme? WhaL ls Lhe clalmed raLlonale for any changes? CfLen lL ls a good ldea Lo analyze Lhe
companys buslnesses or producLs Lo assess lLs slLuaLlon and ldenLlfy whlch dlvlslons conLrlbuLe Lhe
mosL Lo or deLracL from lLs compeLlLlve advanLage lL ls also useful Lo explore how Lhe company has
bullL lLs porLfollo over Llme uld lL acqulre new buslnesses or dld lL lnLernally venLure lLs own? All
Lhese facLors provlde clues abouL Lhe company and lndlcaLe ways of lmprovlng lLs fuLure
performance

Analyze buslnesslevel sLraLegy Cnce you know Lhe companys corporaLelevel sLraLegy and have
done Lhe SWC1 analysls Lhe nexL sLep ls Lo ldenLlfy Lhe companys buslnesslevel sLraLegy lf Lhe
company ls a slnglebuslness company lLs buslnesslevel sLraLegy ls ldenLlcal Lo lLs corporaLelevel
sLraLegy lf Lhe company ls ln many buslnesses each buslness wlll have lLs own buslnesslevel
sLraLegy ?ou wlll need Lo ldenLlfy Lhe companys generlc compeLlLlve sLraLegy dlfferenLlaLlon low
cosL or focus and lLs lnvesLmenL sLraLegy glven Lhe companys relaLlve compeLlLlve poslLlon and
Lhe sLage of Lhe llfe cycle 1he company also may markeL dlfferenL producLs uslng dlfferenL buslness
level sLraLegles lor example lL may offer a lowcosL producL range and a llne of dlfferenLlaLed
producLs 8e sure Lo glve a full accounL of a companys buslnesslevel sLraLegy Lo show how lL
compeLes

ldenLlfylng Lhe funcLlonal sLraLegles LhaL a company pursues Lo bulld compeLlLlve advanLage
Lhrough superlor efflclency quallLy lnnovaLlon and cusLomer responslveness and Lo achleve lLs
buslnesslevel sLraLegy ls very lmporLanL 1he SWC1 analysls wlll have provlded you wlLh lnformaLlon
on Lhe companys funcLlonal compeLencles ?ou should furLher lnvesLlgaLe lLs producLlon markeLlng
or research and developmenL sLraLegy Lo galn a plcLure of where Lhe company ls golng lor example
pursulng a lowcosL or a dlfferenLlaLlon sLraLegy successfully requlres a very dlfferenL seL of
compeLencles Pas Lhe company developed Lhe rlghL ones? lf lL has how can lL explolL Lhem furLher?
Can lL pursue boLh a lowcosL and a dlfferenLlaLlon sLraLegy slmulLaneously?

1he SWC1 analysls ls especlally lmporLanL aL Lhls polnL lf Lhe lndusLry analysls parLlcularly orLers
model has revealed Lhe LhreaLs Lo Lhe company from Lhe envlronmenL Can Lhe company deal wlLh
Lhese LhreaLs? Pow should lL change lLs buslnesslevel sLraLegy Lo counLer Lhem? 1o evaluaLe Lhe
poLenLlal of a companys buslnesslevel sLraLegy you musL flrsL perform a Lhorough SWC1 analysls
LhaL capLures Lhe essence of lLs problems

Cnce you compleLe Lhls analysls you wlll have a full plcLure of Lhe way Lhe company ls operaLlng
and be ln a poslLlon Lo evaluaLe Lhe poLenLlal of lLs sLraLegy 1hus you wlll be able Lo make
recommendaLlons concernlng Lhe paLLern of lLs fuLure acLlons Powever flrsL you need Lo conslder
sLraLegy lmplemenLaLlon or Lhe way Lhe company Lrles Lo achleve lLs sLraLegy
Analyze sLrucLure and conLrol sysLems 1he alm of Lhls analysls ls Lo ldenLlfy whaL sLrucLure and
conLrol sysLems Lhe company ls uslng Lo lmplemenL lLs sLraLegy and Lo evaluaLe wheLher LhaL
sLrucLure ls Lhe approprlaLe one for Lhe company ulfferenL corporaLe and buslness sLraLegles
requlre dlfferenL sLrucLures lor example does Lhe company have Lhe rlghL level of verLlcal
dlfferenLlaLlon (for lnsLance does lL have Lhe approprlaLe number of levels ln Lhe hlerarchy or
decenLrallzed conLrol?) or horlzonLal dlfferenLlaLlon (does lL use a funcLlonal sLrucLure when lL
should be uslng a producL sLrucLure?)? Slmllarly ls Lhe company uslng Lhe rlghL lnLegraLlon or
conLrol sysLems Lo manage lLs operaLlons? Are managers belng approprlaLely rewarded? Are Lhe
rlghL rewards ln place for encouraglng cooperaLlon among dlvlslons? 1hese are all lssues LhaL should
be consldered

ln some cases Lhere wlll be llLLle lnformaLlon on Lhese lssues whereas ln oLhers Lhere wlll be a loL
Cbvlously ln analyzlng each case you should gear Lhe analysls Loward lLs mosL sallenL lssues lor
example organlzaLlonal confllcL power and pollLlcs wlll be lmporLanL lssues for some companles
1ry Lo analyze why problems ln Lhese areas are occurrlng uo Lhey occur because of bad sLraLegy
formulaLlon or because of bad sLraLegy lmplemenLaLlon?

CrganlzaLlonal change ls an lssue ln many cases because Lhe companles are aLLempLlng Lo alLer
Lhelr sLraLegles or sLrucLures Lo solve sLraLeglc problems 1hus as a parL of Lhe analysls you mlghL
suggesL an acLlon plan LhaL Lhe company ln quesLlon could use Lo achleve lLs goals lor example you
mlghL llsL ln a loglcal sequence Lhe sLeps Lhe company would need Lo follow Lo alLer lLs buslness
level sLraLegy from dlfferenLlaLlon Lo focus
Make recommendaLlons 1he lasL parL of Lhe case analysls process lnvolves maklng
recommendaLlons based on your analysls Cbvlously Lhe quallLy of your recommendaLlons ls a
dlrecL resulL of Lhe Lhoroughness wlLh whlch you prepared Lhe case analysls 1he work you puL lnLo
Lhe case analysls wlll be obvlous Lo Lhe professor from Lhe naLure of your recommendaLlons
8ecommendaLlons are dlrecLed aL solvlng whaLever sLraLeglc problem Lhe company ls faclng and aL
lncreaslng lLs fuLure proflLablllLy ?our recommendaLlons should be ln llne wlLh your analysls LhaL ls
Lhey should follow loglcally from Lhe prevlous dlscusslon lor example your recommendaLlon
generally wlll cenLer on Lhe speclflc ways of changlng funcLlonal buslness and corporaLe sLraLegy
and organlzaLlonal sLrucLure and conLrol Lo lmprove buslness performance 1he seL of
recommendaLlons wlll be speclflc Lo each case and so lL ls dlfflculL Lo dlscuss Lhese
recommendaLlons here Such recommendaLlons mlghL lnclude an lncrease ln spendlng on speclflc
research and developmenL pro[ecLs Lhe dlvesLlng of cerLaln buslnesses a change from a sLraLegy of
unrelaLed Lo relaLed dlverslflcaLlon an lncrease ln Lhe level of lnLegraLlon among dlvlslons by uslng
Lask forces and Leams or a move Lo a dlfferenL klnd of sLrucLure Lo lmplemenL a new buslnesslevel
sLraLegy Agaln make sure your recommendaLlons are muLually conslsLenL and are wrlLLen ln Lhe
form of an acLlon plan 1he plan mlghL conLaln a LlmeLable LhaL sequences Lhe acLlons for changlng
Lhe companys sLraLegy and a descrlpLlon of how changes aL Lhe corporaLe level wlll necesslLaLe
changes aL Lhe buslness level and subsequenLly aL Lhe funcLlonal level

AfLer followlng all Lhese sLages you wlll have performed a Lhorough analysls of Lhe case and wlll
be ln a poslLlon Lo [oln ln class dlscusslon or presenL your ldeas Lo Lhe class dependlng on Lhe formaL
used by your professor 8emember LhaL you musL Lallor your analysls Lo sulL Lhe speclflc lssue
dlscussed ln your case ln some cases you mlghL compleLely omlL one of Lhe sLeps ln Lhe analysls
because lL ls noL relevanL Lo Lhe slLuaLlon you are conslderlng ?ou musL be senslLlve Lo Lhe needs of
Lhe case and noL apply Lhe framework we have dlscussed ln Lhls secLlon bllndly 1he framework ls
meanL only as a gulde and noL as an ouLllne LhaL you musL use Lo do a successful analysls


Case SLudles 1able of ConLenLs

WhaL ls Case SLudy Analysls?
Analyzlng a Case SLudy
WrlLlng a Case SLudy Analysls
1he 8ole of llnanclal Analysls
Concluslon