Analyzing Management Cases

Agenda
Case Presentation Steps to Case Preparation Presentation Requirements Report Requirements

Robin Hood

Robin Hood: Organizational Profile

Brief History
First year of Revolt: built a large body of men with grievances; made a disciplined fighting force; housed in Sherwood Forest Robin ruled supreme; had lieutenants to whom he delegated functions Fame spread; the band grew As the band grew, discipline slackened and food was scarce. Revenues were running short as the rich were avoiding the forest Barons want to overthrow Prince John, bring King Richard back, and want Robin Hood to help them in exchange for amnesty Something had to change, but what?

Robin Hood: Financial Indicators

The Changing Forest
First year, did well. Small organization, growth was steady, revenues consistent, stockholder support No competition
Company Revenue Expenses Coffers Year 1 13.4 10.0 3.4 Year 2 12.1 11.5 .6 Change -1.3 +1.5 -2.8

Robin Hood: The Problem(s)

Sheriff is getting stronger; more men and money Band is running out of money Food is scarce How do we decisively end the conflict before the Sheriff regains control?

Robin Hood: SWOT

Strengths Strong leadership Large band of well-trained fighting men Support from stockholders (the peasants and farmers that hate the Sheriff) Opportunities Expand into other forests, spreading the revenue base Weaknesses Unable to sustain growth (limited resources) Lack of familiarity with all org members

Threats The sheriff is getting stronger, increased competition Prince John is paranoid, could act irrationally Barons could undermine Robins efforts

Robin Hood: Five Forces

Threat of Threat of New Entrants New Entrants Low

Bargaining Power of Suppliers Not known

Rivalry Among Competing Firms in Industry Low

Bargaining Power of Buyers Low

Threat of Substitute Products Low

Robin Hood: Alternatives

TOWS Matrix
Opportunities SO Strategies: Kill the Sheriff Strengths Wipe him out, no more problems Has the men to do it When the sheriff is gone, disband Threats ST Strategies: Join the barons Has the fighting force Get access to capital markets Maybe ends the conflict quicker

WO Strategies: Limit size of band Weaknesses: Turn the fighting band into a group of elites Maintains discipline Solves food issues Basically, curtail growth

WT Strategies: Disband Give up the cause, return to normal life Robin flees to another country to escape punishment

Robin Hood: Recommendations

Recommendation:
Join the barons
take a chance on getting King Richard back and getting rid of John and the Sheriff in one fell swoop Get capital to grow the business and feed the troops

Robin Hood: Case Update

Robin joined the barons. King Richard was freed and reclaimed the throne Prince John was exiled and the Sheriff lost his job; he now cleans pigsties for a living. Robin was exonerated and lives in a large mansion on the edge of Sherwood Forest, enjoying life with his wife (Maid Marion), three kids, two horses, and a dog named Jack.

Robin Hood: The End

Questions?

Thank You!

How to Conduct a Case Analysis

Put yourself inside the case
Think like an actual participant
Strategic decision maker Board of directors Outside consultant

Five Steps: Step One

Become familiar with the material
Read quickly through the case one time Use initial read-through to assess possible links to strategic concepts Read the case again, making notes Evaluate application of strategic concepts After forming first recommendation, thumb through the case again to assess consequences of actions you propose

Five Steps: Step Two

Identify problems
Symptoms vs.. Problems: avoid getting hung up on symptoms Some cases have more than one problem Articulate the problem
Writing down a problem statement gives you a reference point when you proceed through the case analysis

Some problems are not apparent until after you do the analysis

Five Steps: Step Three

Conduct strategic analyses
Determine which strategic issues are involved Use strategic tools to conduct the analysis
Five-forces analysis PEST analysis SWOT analysis Value chain analysis Resource-Based View of the Firm (VRIO) Contingency frameworks Financial analysis

Test your own assumptions about the case

Five Steps: Step Four

Propose alternative solutions
Develop a list of options first without judging them
Do nothing is often a reasonable alternative Can the company afford it? Is the solution likely to evoke a competitive response? Will employees accept the change? How will it affect other stakeholders? How does it fit with the vision, mission, objectives? Will the culture or values of the company change?

Evaluate alternatives

Five Steps: Step Five

Make recommendations
Make a set of recommendations that your analysis supports Describe exactly what needs to be done Explain why this course of action will solve the problem Include suggestions for how best to implement the proposed solution The solution you propose must solve the problem you identified

Points to Remember
Always connect the problem(s), alternatives, and recommendations Often, the problem is stated in the case; you just have to look a little for it

Presentation Requirements
Introduction of Management Team Outline of presentation Company Overview Problem Identification Strategic Analysis Alternatives Recommendation Conclusion/Wrap Up of pertinent information 15-20 minutes in length

Report Requirements
1. Include:
a) Cover sheet with:
a) b) c) d) Class and section Group name List of group members Case name and number

b) c) d) e) f)

Historical Overview/Company Profile Identify problem(s) Strategic Analysis Alternatives Recommendation(s)

2. 3. 4.

Be thorough, but brief and concise. Use charts and graphs to consolidate information and keep it interesting. Pattern report on presentation

Report Requirements (cont.)

Format-Business style writing
3-5 pages in length Times New Roman font, 12 pt., 1 inch margins Single-space paragraphs Double-space between paragraphs and after headers Section headers in bold; sub-headers italicized; no punctuation after headers All type should be left justified (do not indent paragraphs) Charts and graphs should be in-line, not in appendix

Watch paragraph lengths, grammar, spelling Consistent formatting throughout Use charts, graphs, images and bullets; be creative but professional; graphs should not be to big

Submission Requirements
On day of presentation, submit the following:
Report Copy of slides
Print 6 to a page; needed for reference only