CASE - BASED LEARNING: A PRAGMATIC APPROACH
By
Dr. Parameshwar P. Iyer
Principal Research Scientist
Centre for Scientific and Industrial Consultancy
INDIAN INSTITUTE OF SCIENCE
BANGALORE 560012
Abstract
This paper on case analysis has been written with two objectives in mind – one, to
summarize the features and characteristics of business management cases; and secondly,
to help you apply the case method to enhance your ability to find solutions to real-life
business problems. After a preliminary introduction to the context of the case method, we
delve on some useful guidelines for analyzing cases. In specific, a pragmatic approach
that has worked for many of our students of business management is presented. The art
of reporting your recommendations, both in the written form, as well as through oral
presentations and discussions, is elucidated. We conclude by listing fifty tips for success
in case analysis. Just as the case method admits a multiplicity of solutions, similarly there
are innumerable approaches to case-oriented learning. We offer a menu based on our
experience and understanding of the “best practices”. Obviously, no assurance or claim is
made, either implicitly or explicitly, that you will get foolproof solutions to your
management problems. But you will certainly enjoy and learn from the problem-solving
process using the approach that we present herein.
1. Introduction
Management education attempts to achieve several simultaneous objectives. Firstly, it
seeks to develop a set of concepts to enable you to understand the framework in which
business decisions are made. Secondly, we aim to put these concepts to use with specific
tools of analysis. Both these exercises are fairly straight forward. However, the difficult
part is to develop a perspective on the evolving nature of management, and exercise
judgements in situations where the choices and their consequences are not obvious.
© 2001 Parameshwar P. Iyer
-2Today, there are several tangible components of management education, such as
concepts, models, tools, and techniques. There are also intangible components like ethics,
judgements, perspectives, and values. Gaining proficiency, over at least some of the
above components, will give you the confidence to cope with complex, real-world
business problems. Case-oriented learning is one such component of management
education. While learning the nuances of this method, keep two things in mind :
1. No advantage is accrued in debating the merits or demerits of one component or
method over another; and
2. No single component or method can, per se, transform an individual into a better
manager.
Incidentally, the idea of case-oriented learning was not even invented by the business
schools. The concept actually originated in the law schools, and even today case law is an
important component of legal education the world over. Similarly, medical schools in all
countries use case methods extensively. For instance, a doctor takes her students on her
rounds to see patients, to use complex sets of medical data to arrive at clinical
conclusions, and to prescribe a mode of treatment.
As you read this paper, take note of two important prescriptions :
1. Look at every case as an example, indeed as a basis for discussion, rather than to
illustrate either a correct or an incorrect handling of an administrative situation;
ask questions such as what are the principles that can be generalized; how do you
extract knowledge and theories from the set of data, events, and emotions embedded
in the case; and
2. Separate the puzzle-solving from the problem-solving. There are several puzzles
that make up the overall problem, and you will need a lot of creativity to understand
how the problem was formulated in the first place. Incidentally, there is no value
added in trying to guess the identity of a company whose case has been disguised.
2. What is a business case ?
A case, in general terms, is a description of an enterprise, usually in the written form, that
contains several details of the enterprise. The enterprise in question could be a business,
an industry sector, a service (not-for-profit) organization, or in fact, any organization,
live or synthetic, that can provide a good basis to illustrate the complexities of
management decision-making. A case usually contains information about numerous
facets of the enterprise, including but not restricted to, its history, environment, internal
operations, and key managers.
© 2001 Parameshwar P. Iyer
-3Case studies can be classified into two broad categories :
1. Live cases are normally based on the direct and personal observations of the events
unfolding in an enterprise at a particular point of time. If the events are historical,
the case would be based on the personal interviews of the dramatis personae. This
approach relies on data which is normally internal to the enterprise; and
2. Synthetic cases are assemblages of separate happenings in two or more enterprises
over discontinuous periods of time. Such cases record a set of situations whose
content and context are fabricated in the writer’s mind, so as to bring them within
the framework of a single enterprise.
3. Some general characteristics of case-oriented learning
3.1 Are cases complete?
There is no such thing as a complete case study, and no case ever gives you all the
information you need to conduct analyses and make recommendations. The amount of
detail so required would make the case too long to read, and too detailed to analyze. One
reaction we have frequently heard is, “I don’t have enough information”. In the business
world, the manger never has enough information when needed: either it may be too
costly to acquire, or it may require too much time to acquire.
What does the manager do then? She makes the necessary decisions based on the
information at hand, coupled with reasonable assumptions about the unknowns. So too
should you work with the information you have, assume what is not known but needed,
state the assumptions so made, perform appropriate analyses, and make decisions. A
good case should contain enough information for the analyst to examine, and then
determine the crucial factors that confront the management at the point of time.
Moreover, you can always supplement the information provided in a case with library
research, which is an important component of case analyses. The pragmatic thing to do is
to proceed with the analyses and decision making, and show what impact your
recommendation(s) are likely to have on the enterprise.
3.2 Is all the case information important?
When you get your mail, some of it is important, some useless, and some of questionable
relevance. So too at work a manager is bombarded with information. She must realize
that it consists of a mix of the relevant, the partially relevant, and the useless. A business
case is no different. When a case writer gathers information, some will become crucial to
© 2001 Parameshwar P. Iyer
-4analysis, while other pieces of information are not especially useful. Since case-oriented
learning is being used to train you to become a manager, it is your responsibility to learn
to do what a manager has to do day in and day out - separate the wheat from the chaff.
You will also have to learn to sort through occasional conflicting evidence or opinions,
and also to otherwise deal with uncertainties.
3.3 What roles do students and instructors play in case-oriented learning?
To answer the second question first, the instructor typically serves a role different from
that of the lecturer. She encourages the student to discover the problem and the puzzles
that are embedded in it, to analyze the business situation, and then to recommend
solutions. She questions and criticizes, and encourages the students to do likewise. At the
end of the class, she can either summarize the case analyses, or simply walk away,
without answering your questions such as “What would you do?”, or “What did the
manager do?”. The important answer, and the one that really matters, is the one logically
proposed and defended by the analyst(s) in the class.
You, the student, can play several roles as a case analyst. Standard roles include those of
the board chairperson, the managing director, and the consultant. We prefer the
consultant’s role. You should analyze and recommend what should be done, given the
nature of the problem, the available information, and the dramatis personae in the case.
If you, either individually or as a class, feel that the solution you propose is unlikely to be
acceptable to the managing director of the firm, then you need to play-act your role of a
consultant by presenting particularly convincing argument(s), to overcome likely
objections, and to make your recommendations acceptable.
There are some management professionals who feel that students should not play the role
of consultants ( because “Consultants aren’t responsible the effectiveness of their
advice”). If you subscribe to that view, maybe, the role of an executive in the firm being
studied would be more appropriate for you. In either case, you as a student need to be
realistically involved in the process of case-oriented learning.
3.4 The need for justification
The most important part of analyzing cases is not what solutions you recommend, but
rather how you justify and support your decisions, and how you propose that they be
implemented. As we mentioned earlier, there is no single, best solution to a case, or one
right answer. So it is important to give ample justification for your recommendations. In
the real business world, a manager does not know if her decision is “right” until after
resources have been allocated and expended. By then it is often too late to reverse the
decision(s). This cold fact accentuates the need for careful integration of intuition and
analysis in preparing business case analyses.
© 2001 Parameshwar P. Iyer
-53.5 The need for realism
Avoid recommending a course of action beyond an organization’s means. Be realistic.
No organization could possibly pursue all the strategies that could potentially benefit it.
Estimate the capital required to implement your recommendation. Determine whether
stock/ shares, debt/ loans, or a combination of the two could be used to obtain the capital,
for instance, if your recommendation has financial requirements. Make sure your
recommendations are feasible. Do not prepare a case analysis that omits all arguments
and information not supportive of your recommendations. Rather, present the advantages
and disadvantages of several feasible alternatives. Try not to exaggerate, stereotype,
prejudge, or over-dramatize. Strive to demonstrate that your interpretation of the
evidence is reasonable and objective.
3.6 The need for specificity
Do not make broad generalizations, such as “The company should pursue a market
penetration strategy” or that “The firm’s financial position is weak”. Rather, be
specific, as for instance, by telling what kind of market penetration strategy, why the
strategy, when to pursue, where and by whom ? Or in the instance of the internal
financial audit, state for example that “The firm’s current ratio fell from 2.2 in 1993 to
1.3 in 1994, and this is considered to be a major weakness”. Similarly, when using the
SPACE Matrix analysis, rather than stating that “The firm should be defensive”, it pays
to be more specific by saying that “The firm should consider closing three plants,
laying off 280 employees, and divesting itself of its chemical division, for a net savings
of Rs. 202 crores”. Use ratios, percentages, numbers, and cost estimates. Businessmen
dislike generalities and vagueness, and so should you .
3.7 The need for originality
Do not necessarily recommend the course of action that the enterprise plans to take, or
actually took, even if those actions resulted in improved revenues and earnings. The aim
of case-oriented learning is for you to consider all the facts and information relevant to
the organization at that point of time, generate alternative feasible solutions, choose
amongst those alternatives, and then defend your recommendations. Put yourself back in
time to the point where the business decisions were made by the manager(s), and ask
yourself “What would I have done?”. You can become a good manager by thinking
through situations, making management assessments, and proposing plans yourself. Be
original. Compare and contrast what you recommend versus what the enterprise’s
manager plans to do or actually did.
© 2001 Parameshwar P. Iyer
-63.8 The need to contribute
Decisions on formulation, implementation, and evaluation of solutions to business
problems are commonly made by a group of individuals, rather than by a single manager.
Therefore, your instructor may suggest that the class be divided into teams of 3 or 4
persons, to prepare written or oral case analysis. Members of a management team,
whether in the classroom or in the board room, differ in terms of their aversion to risk,
their concern for the short-term versus long-run benefits, their attitudes towards social
responsibility, and their views concerning liberalization, privatization, and globalization
( to name just a few parameters contributing to management decision-making). Just as
there are no perfect people, so also, there are no perfect solutions to business problems
(forget about perfect solutions, often we will be lucky if we get any solutions at all!). So,
to be a good analyst, learn to be open-minded to others’ views. Be a good listener, and a
good contributor.
4. Some guidelines for the case preparation process
There are many possible approaches to case preparation. The approach recommended
below has worked for some of our students. You are welcome to use them, with the clear
understanding that no claims or assurances are made for foolproof success!
4.1 Read the case. Underline and comment on the part(s) you think is(are) important.
Then you might try to determine what the (major) problem(s) is (are), and what the
(minor) puzzles are, jotting down how you might analyze them. Do some
preliminary analyses to see if your impressions are correct. Put the case aside for a
while.
4.2 IncorporateRead the case again. This time prepare analyses of goals, values, and
the internal and external factors. At this point, if you find it comfortable ( and if your
instructor allows it ), you might find it worthwhile to sit down and discuss the case
with several friends who have different interests and major areas of specialization.
We hope the instructor allows this, for in real-life business management problems,
mangers do consult each other to get different perspectives of a problem. You are
now probably ready for real analysis.
4.3 Real analysis. After having read the case twice, and perhaps having discussed it
with your friends, write down the major factors, decisions, data, and tools of
analysis in the case, as well as an overall impression of the situation confronting the
enterprise. Examine your statements and impressions for implicit assumptions. Fill
in areas where no “hard” data were presented, with reasonable assumptions, and
state the assumptions so made.
© 2001 Parameshwar P. Iyer
-74.4 Prepare a list of the major opportunities and problems. Rank-order these factors in
terms of importance. Prepare a list of alternative solutions, and consider the
advantages and disadvantages of the viable alternatives for this enterprise, using
your previous analysis. Make recommendations after having carefully thought
through all the ramifications, such as : If I recommend they do X in marketing, how
will it affect finance; or Z Company; or the sales manager?
4.5 Analyze the alternative solutions in terms of the problems and opportunities, and
make a choice that seems to meet the mission/ vision/ overall objectives of the
enterprise. It is here that you must make use of the tangible tools such as
quantitative techniques, as well as the intangible components like judgements,
perspectives, ethics, and values.
4.6 Clarify how the organization can implement your suggested solution(s). Prepare a
plan that specifies the major implementation issues, such as resource needs,
functional policies, organization design, project management techniques, system
design methodologies, etc.
4.7 Reevaluate your proposal. Point out any possible problem areas, and how and when
key activities should be evaluated as your recommended plan is put into effect.
4.8 Prepare notes for an oral presentation and practice it, and also simultaneously
prepare a final written report. Sections 5 and 6 that follow discuss these topics at
greater length.
5. Stages of Analysis
Most students seem to go through several stages in handling cases. The amount of time
spent in each stage varies with the students, but the common stages seem to be as
follows:
5.1 Stage 1. Factual level. The first stage is characterized by the ability to choose the
pertinent facts from all the data in the case. In real life, managers are bombarded by
cues, facts, and information. On the factual level, you (the student) should learn to
separate the important from the unimportant, and to see the source(s) of the
problem(s).
5.2 Stage 2. Pre-analytical level. This stage is characterized by rudimentary use of the
“tools of the trade”. Thus, if from the first stage, you perceived a problem in the
financial area, you should now start looking at various ratios, financial tables, cash
budgets, and so on.
5.3 Stage 3. Analytical stage. Realizing that “facts do not speak for themselves”, you
would now enter a new stage in trying to interpret facts. Thus, you would not only
compute the ratios, but would also try to explain them meaningfully, as for example
by saying “ The current ratio is 1:1. This is less desirable than the normal 2:1 ratio
found in this industry”, etc.
© 2001 Parameshwar P. Iyer
-85.4 Stage 4. Problem-solving stage. You have now reached the stage of knowing what
the problem(s) is(are). You attempt to develop potential solution(s) to the problem(s),
attempt to show the implications for each alternative, and weigh them as better or
worse.
5.5 Stage 5. Decision-making stage. You must now choose a solution to the problem.
To do this, you need a weighing device. Normally, you would attempt to consider
maximum goal achievement with least effort. But there are many objectives for a
firm, and often, the objectives conflict with each other.
6. Preparing a Written Case Analysis
Preparing a written case analysis is similar to preparing a case for class discussion, except
that written reports are generally more structured and more detailed. There is no iron-clad
procedure for preparing a written case analysis, because case organizations differ in type,
size, complexity, and focus.
When writing a case analysis, avoid jargon, vague words, redundant words, acronyms,
and abbreviations. Use short sentences and paragraphs, and simple words and phrases.
Use sub-headings, and arrange issues and ideas from the most important to the least . Use
the active voice rather than the passive voice; for example, say “Our team recommends
that the company diversify,” rather tan, “It is recommended by our team to diversify”.
Use many examples to add specificity and clarity. Tables, figures, pie charts, time lines,
and other exhibits help communicate important points and ideas. Sometimes, a picture is
worth a thousand words.
6.1 General guidelines for written reports
1. Provide a cover letter/memo or executive summary. Consider the needs of the
individual for whom the report is intended ( e.g. board chairperson, president, etc.),
and convey how reading the report and following its recommendations will serve
your reader’s interests.
2. Provide a table of contents. A one- or two-page outline can be a useful introduction.
It permits a faster reading with clearer comprehension, since the reader can follow the
logical structure of the report. Such an outline can aid you in making sure you have a
logical sequence and flow of concepts in the report.
3. Structure the report logically. The reader should sense a natural flow of ideas from
one topic to the next, in a logical sequence that leads to support for the final
recommendation. Headings, sub-headings, and supportive detail assist immensely.
4. Provide definite recommendations. Take a position and support it. The reader should
clearly understand your proposal and the reasons for it. When possible, refrain from
conditional conclusions. However, you may want to indicate under what
© 2001 Parameshwar P. Iyer
-9circumstances another recommendation might be put into action ( e.g. recommend
contingency strategies if certain assumptions about the future take place).
5. Provide a conclusion. Don’t leave the end of the report hanging. Summarize your
key recommendations and reasons for your proposal, and explain how its acceptance
and implementation will contribute to the interests of the reader for whom the report
is written.
6. Prepare precise, concise reports. With regard to style, we prefer concise cases
written in specifics. For example, do not say that the firm’s past performance has
been bad; indicate what specific objectives ( rate of sales growth, profits as per cent
of sales, or whatever ) have not been reached, or have been missed by a certain
amount.
7. Write several drafts. Good writers do not turn in their first draft. Ask someone else to
read it, or read it aloud yourself. When you hear what you say and how you say it,
you are likely to find rough areas to clean up, or you may find out you have not said
what you mean, or you failed to say something you needed to.
6.2 Special steps in preparing a strategic management case analysis
Step 1. Identify the firm’s existing mission, objectives, and strategies.
Step 2. Develop a mission statement for the organization.
Step 3. Identify the organization’s external opportunities and threats.
Step 4. Construct a Competitive Profile Matrix.
Step 5. Construct an EFE Matrix.
Step 6. Identify the organization’s internal strengths and weaknesses.
Step 7. Construct an IFE Matrix.
Step 8. Prepare a BCG Matrix, SPACE Matrix, IE Matrix, SWOT Matrix, Grand Strategy
Matrix, and QSPM, as appropriate. Give advantages and disadvantages of alternative
strategies.
Step 9. Recommend specific strategies and long-term objectives. Show how much your
recommendations will cost. Itemize these costs clearly for each projected year. Compare
your recommendations to actual strategies planned by the company.
© 2001 Parameshwar P. Iyer
-10Step 10. Specify how your recommendations can be implemented, and what results you
can expect. Prepare forecasted ratios and pro forma financial statements. Present a
timetable or agenda for action.
Step 11. Recommend specific annual objectives and policies.
Step 12. Recommend procedures for strategy review and evaluation.
7. General guidelines for making oral presentations
Often, your professor may ask you to make an oral presentation of your case analysis to
your class. Oral presentations are usually graded on two counts : content and delivery.
Content refers to the quality, quantity, correctness, and appropriateness of the analysis
presented. Delivery includes such dimensions as audience attentiveness, clarity of visual
aids, appropriate dress, persuasiveness of arguments, tone of voice, eye contact, and
posture. Great ideas are of no use unless others can be convinced of their merit through
clear communication.
Obviously, oral reports are different from written. You should not just read your report.
You will have to be even more precise, more specific, and more convincing in your oral
presentation, than in the written one. In written form, if clearly presented, many of the
facts “speak for themselves”. In an oral presentation, that cannot happen; there is’nt
enough time for listeners to digest exhibits that a reader of a written report might have.
You should still use exhibits ( handouts and overheads ), but they will have to be less
detailed, and more to the point of summarizing the key aspects of your presentation. As
with written reports, you need to organize well in advance, and prepare notes of the
highlights for your oral presentation.
Some suggestions for making an effective oral presentation are indicated below :
7.1 Define your audience. You need to gain audience attention and interest; consider the
level of sophistication and preparation of your audience as you prepare your report.
For example, if your audience can follow a detailed technical explanation of a
financial analysis, you would proceed differently than if you assume that the
audience could not understand such an analysis.
7.2 Prepare a complete outline. Members of an audience may not understand the
sequence or relationship of topics being discussed. The outline should help give an
overview of the presentation so that the audience does not get lost. A good oral
presentation starts by “telling the audience what you are going to tell them”, the
telling them the contents of your message, and finally conclude by “telling them
what you told them”.
© 2001 Parameshwar P. Iyer
-117.3 Provide supportive detail. To provide justification for a position, the audience must
sense that you know what you are talking about. Exhibits of supportive analysis help,
but you cannot provide orally the details contained in a written presentation. Thus,
describe supportive detail selectively. The two or three most important analytical
conclusions should be presented with a brief description of the data, and the
approach used to make the calculations.
7.4 Prepare clear visual aids. Blackboard diagrams, with charts, scale models,
overheads, and slides should be prepared well in advance. Wording should be brief,
letters and figures should be legible and projected, and all graphics and charts should
be clear. The discussion about an exhibit should discuss the concepts, do not just
read the statements, but rather explain the significance.
7.5 Introduce your topic. Explain the purpose of the presentation, present the agenda, or
outline, briefly describe the methodology, and the major recommendations.
7.6 Present material clearly and confidently. Stand for the presentation, maintain eye
contact with the audience, start without delay, maintain a steady pace, and rehearse
your presentation with note cards.
7.7 Come to a natural conclusion. Don’t just end your presentation with, “well, that is
it”. Restate the outline of the report, briefly. And, restate the recommendations of
the report, and the major rationale for your position.
7.8 Respond to questions positively. Expect aggressive or hostile attacks, and be prepared
for them. Don’t hurry your response, but carefully consider the intent of the question.
Don’t ramble your response; address the question directly without reverting to side
issues.
8. Conclusions
Case oriented learning is an important component of management education. Along with
the other components, namely, concepts, models, rules, and techniques, this approach
enables one to learn the nuances of exercising judgments in situations where the choices
and the consequences are not obvious. Every case must be viewed as an example, indeed
as a basis for discussion, rather than to illustrate the correct or incorrect handling of an
administrative situation. A business case usually contains information about numerous
facets of an enterprise, including but not restricted to, its history, environment, internal
operations, and key managers.
There is no such thing as a complete case study, and no case gives all the information one
needs to conduct analysis and make recommendations. Also, one has to learn to sort
through occasional conflicting evidence or opinions, and also to otherwise deal with
uncertainties. There is no single, best solution to a case, or one right answer. Hence, the
need for careful integration of intuition and analysis in preparing business case analysis.
In this paper, we have highlighted the need for justification, realism, specificity, and
originality in performing case analysis. We have also dealt on some other useful
© 2001 Parameshwar P Iyer
guidelines for optimizing case-oriented learning. The art of reporting recommendations,
both oral and written, is elucidated. We have concluded this paper by giving some tips for
success in case analysis. While every effort has been made to offer the best practices, we
do not offer any assurance or claim for foolproof solutions to management problems;
rather, one can learn from the problem solving process using the case oriented learning
method that we have presented.
9. Acknowledgements
The author is deeply indebted to all his students, in both the MBA program as well as
PROFICIENCE program, at the Indian Institute of Science Bangalore. The students have
been such good learners and have also volunteered to serve as guinea pigs to test out the
ideas and concepts presented in this paper. The courses on Strategic Management and on
Project Management had primarily used many of the methods and practices that we have
recommended here. The author also wishes to acknowledge the cooperation of the
Chairman of the Department of Management Studies, and the Centre for Ccontinuing
Education, both in the Indian Institute of Science Bangalore.
10. Bibliography
1. Anonymous. The case of the case study. Business Today, 7 February 1999.
2. Iyer, Parameshwar P. Engineering Project Management with Case Studies.
Wheeler publishing, New Delhi. 1996.
3. Jauch L.R. and J. B. Townsend. Cases in Strategic Management and Business
Policy. McGraw Hill Publishing Company, New York. 1990.
4. Sharplin, A. Strategic Management. McGraw-Hill Publishing Company, New
York 1985.
© 2001 Parameshwar P Iyer