Strategic Management

Lecture 02:

Analysing Strategic Management Cases

(extended online-only version) Richard Jump

Learning Objectives
After this lecture, you should understand: How strategic case analysis is used to simulate real-world experiences. How analyzing strategic management cases can help develop the ability to differentiate, speculate, and integrate when evaluating complex business problems. The steps involved in conducting a strategic management case analysis.

How to get the most out of case analysis.

How conflict-inducing discussion techniques can lead to better decisions. How to use strategic insights and material
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Questions Raised
Why do some firms succeed and others fail?

Why are some companies higher performers than others?

What information is needed in the strategic planning process? How do competing values and beliefs affect strategic decision making? What skills and capabilities are needed to implement a strategy effectively?
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Why Analyze Strategic Management Cases? Case analysis A method of learning complex strategic
management concepts places students in the middle of an actual situation and challenges them to figure out what to do.

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Skills Developed from Case Analyses

Differentiate Evaluate many different elements of a situation at
once Differentiating between the factors that are influencing the situation Understanding that problems are often complex and multilayered

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Skills Developed from Case Analyses

Speculate Envision explanation that might not readily be
apparent Imagine different scenarios Contemplate the outcome of a decision Deal with uncertainty and incomplete knowledge

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Skills Developed from Case Analyses

Integrate Have an organization-wide perspective Integrate the impact of various decisions and
environmental influences on all parts of the organization

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How to Conduct a Case Analysis

Prepare for a case discussion Investigate Analyze Research potential solutions Gather the advice of others Become immersed in facts, options, and
implications

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How to Conduct a Case Analysis

Put yourself inside the case Think like an actual
participant Try different perspectives

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How to Conduct a Case Analysis

Step 1: 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

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How to Conduct a Case Analysis

Step 2: Identify problems Some cases have more than one problem Avoid getting hung up on symptoms Articulate the problem Some problems are not apparent until after you do
the analysis

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How to Conduct a Case Analysis

Step 3: Conduct strategic analyses Determine which strategic issues are involved Use strategic tools to conduct the analysis Test your own assumptions about the case

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Tools to Conduct Analysis

Five forces analysis Value analysis Contingency frameworks Financial ratio analysis

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Financial Ratio Analysis

Financial ratio analysis Method of evaluating a companys performance
and financial wellbeing through ratios of accounting values, including short-term solvency, long-term solvency, asset utilization, profitability, and market value ratios.

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How to Conduct a Case Analysis

Step 4: Propose alternative solutions Develop a list of
options first without judging them Evaluate alternatives

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How to Conduct a Case Analysis

Step 5: 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

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Preparing an Oral Case Presentation

Organize your thoughts

Emphasize strategic analysis

Be logical and consistent

Defend your position

Share presentation responsibilities

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Example
Here are five tips to wow your audience like Steve Jobs, co-founder of Apple: Sell the benefit Practice, Practice, and Practice Some More Keep It Visual Exude Passion, Energy, and Enthusiasm At the end of your presentation add more
suspense by stating and one more thing..."

Source: Gallo, Carmine. How to Wow 'Em Like Steve Jobs, Business Week. April 6, 2006

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How to Get the Most from Case Analysis

Keep an open mind

Take a stand for what you believe

Draw on your own personal experience

Participate and persuade

Be concise and to the point

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How to Get the Most from Case Analysis

Think out of the box

Learn from the insights of others

Apply insights from other case analyses

Critically analyze your own performance

Conduct outside research

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Preparing a Written Case Analysis

Be thorough

Coordinate team efforts

Avoid restating the obvious

Present information graphically

Exercise quality control

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Using Conflict to Improve Decision Making

Devils advocacy a method of introducing conflict into a decisionmaking process by having specific individuals or groups act a s critic to an analysis or planned solution.

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Using Conflict to Improve Decision Making

Dialectical inquiry a method of introducing conflict into a decisionmaking process by devising different proposals that are feasible, politically viable, and credible, but rely on different assumptions; and debating the merits of each.

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QUESTION
What are the symptoms of groupthink? Have you experienced any of these in a group situation? Explain.

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Analysis-Decision-Action Cycle in Case Analysis Analyzing organizational goals and objectives

Has the company developed short-term

objectives that are inconsistent with its long-term mission? Has the company considered all of its stakeholders equally in making critical decisions?

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Analysis-Decision-Action Cycle in Case Analysis Analyzing the external environment Does the company follow trends and events in
external environment? Is the company effectively scanning and monitoring the competitive environment? Has the company analyzed the impact of competitive forces in its industry on profitability?

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Analysis-Decision-Action Cycle in Case Analysis Analyzing the internal environment Does the company know how the various
components of its value chain are adding value to the firm? Is the companys financial performance as good as or better than that of its close competitors?

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Analysis-Decision-Action Cycle in Case Analysis Assessing a firms intellectual assets Does the company have underutilized human
capital? Has the company developed knowledgemanagement systems that capture what it learns?

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Analysis-Decision-Action Cycle in Case Analysis Formulating business-level strategies Has the company chosen the correct competitive
strategy, given its industry environment and competitive situation? Does the company use combination strategies effectively?

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Analysis-Decision-Action Cycle in Case Analysis Formulating corporate-level strategies Is the company competing in the right businesses,
given the opportunities and threats that are present in the environment? Is the corporation managing its portfolio of businesses in a way that creates synergies among the businesses?

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Question
Corporate strategies address methods for achieving ______ among businesses within a large firms portfolio. A. Synergies B. Competitiveness C. Devils advocacy D. Teamwork
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Analysis-Decision-Action Cycle in Case Analysis Formulating international-level strategies Is the companys entry into an international
marketplace threatened by the actions of local competitors? Has the company made the appropriate choices between cost reduction and local adaptation to foreign markets?

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Analysis-Decision-Action Cycle in Case Analysis Formulating Internet strategies Is the company engaged in an ongoing process of
opportunity recognition? If not, how can it enhance its ability to recognize opportunities?

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Analysis-Decision-Action Cycle in Case Analysis Achieving effective strategic control Is the company employing the appropriate
informational control systems? Does the company have a strong and effective culture? Has the company implemented control systems that match its strategies?

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Analysis-Decision-Action Cycle in Case Analysis Creating effective organizational designs Has the company implemented organizational
structures that are suited to the type of business it is in? Is the company employing boundaryless organizational designs where appropriate?

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Analysis-Decision-Action Cycle in Case Analysis Creating a learning organization and an ethical organization Do company leaders promote excellence as part
of the overall culture? Is the company committed to being a learning organization? Have company leaders exhibited an ethical attitude in their own behavior?

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Analysis-Decision-Action Cycle in Case Analysis Fostering corporate entrepreneurship Has the company developed autonomous work
units that have the freedom to bring forth new product ideas? Does the company have an entrepreneurial orientation?

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