Analyzing Strategic Management Cases Chapter Thirteen McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After reading this chapter, you should have a good understanding of: LO13.1 How strategic case analysis is used to simulate real-world experiences. LO13.2 How analyzing strategic management cases can help develop the ability to differentiate, speculate, and integrate when evaluating complex business problems. LO13.3 The steps involved in conducting a strategic management case analysis. 13-2 Learning Objectives (cont.) LO13.4 How to get the most out of case analysis. LO13.5 How conflict-inducing discussion techniques can lead to better decisions. LO13.6 How to use the strategic insights and material from each of the 12 previous chapters in the text to analyze issues posed by strategic management cases. 13-3 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? 13-4 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. 13-5 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 13-6 How to Conduct a Case Analysis Step 1: Become familiar with the material Evaluate how strategic concepts might inform key decisions or suggest alternative solutions. After forming first recommendation, thumb through the case again to assess consequences of actions you propose 13-7 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 13-8 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 13-9 Tools to Conduct Analysis Five forces Contingency analysis Value-chain analysis frameworks Financial ratio analysis 13-10 Financial Ratio Analysis Financial ratio analysis Method of evaluating a company’s performance and financial wellbeing through ratios of accounting values, including short-term solvency, longterm solvency, asset utilization, profitability, and market value ratios. 13-11 How to Conduct a Case Analysis Step 4: Propose alternative solutions Develop a list of options first without judging them Evaluate alternatives 13-12 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 13-13 Preparing an Oral Case Presentation Organize your thoughts Emphasize strategic analysis Be logical and consistent Defend your position Share presentation responsibilities 13-14 Preparing a Written Case Analysis Exhibit 13.3 13-15