CASE ANALYSIS METHOD AND OUTLINE
1. Method
Strat-tutor is a useful device the text's authors prepared to aid in the learning process. The case
questions are to orient you to be alert for key issues, the sorts of analysis that may apply, and the
overall tone for the case. The case questions are not substitutes for detailed case analysis.
2. Outline
Use the following outline to analyze the assigned cases. Teams should begin their analysis using
the questions listed below. These questions and their order parallel the chapters in the text.
Although the questions are comprehensive, they cannot fully address every strategic situation. In
all instances, begin with the facts pertinent to the criterion under analysis. Then analyze the facts
using the question "What are the strategic implications for the facts for the criterion". For
diversified corporations, it may be necessary to analyze each industry or business in which the
corporation operates before doing the portfolio analysis. In those instances, use the performance
measures and appropriate strategies for diversified corporations. The CD ROM Multimedia
"forms" section also provides additional analytical tools.
A. Executive Summary
The summary matrix at the end of this outline provides the information necessary to complete
the executive summary. Begin your analysis starting with the next section, current performance.
The Executive Summary section is the last section you should complete.
Objectives
(short and
long term;
financial and
strategic)
External
Opportunities
and Threats
Internal
Strengths and
Weaknesses
Recommendations
(include the pros
and cons of each
recommendation)
Corporate
Business
Functional
Departmental
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition
B. Current Situation
I. Current Performance
What was the organization’s overall performance in recent year(s) in terms of EVA,
MVA, return on investment, market share, and profitability? What important investments
(e.g., acquisitions, divestitures) or capital changes occurred recently? What is the
organization’s relative competitive position in the industry(s) in which it competes?
II. Strategic Posture
What are the corporation’s or company’s current mission, vision, objectives, strategies
and policies? (You may insert the Chapter 2 worksheet in lieu of the strategic
posture section.)
1. Are they clearly stated or the merely implied from performance?
2. Mission: What business(es) is the company in? Why?
3. Objectives: What are the corporate, company, business and functional objectives? Are
they consistent with each other and with the external and internal environments?
4. Strategic: What strategy or mix of strategies is the corporation following? Are they
consistent with each other, with the mission, vision and objectives, and with the internal
and external environments?
5. Policies: What are they? Are they consistent with each other, with the mission, vision,
objectives, and strategies, and with the internal and external environments?
6. Do the current mission, objectives, strategies and policies reflect the corporation’s
international operations-whether global or multi-domestic?
III. Corporate Governance
1. Board of Directors




Who are they? Are they internal or external?
What do they contribute in terms of knowledge, skills, background, and connections? If
the corporation has international operations, do board members have international
experience?
How long have they served on the board?
What is their level of involvement in strategic management? Do they merely rubber
stamp top management’s proposals or do they actively participate and suggest future
directions?
2. Top Management


What person or group constitutes top management?
What are top management’s chief characteristics in terms of knowledge, skills,
background, and style? If the corporation has international operations, does top
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition






management have international experience? Are executives from acquired companies
considered part of top management?
Has top management been responsible for the corporation’s performance over the past
few years? How many managers have been in their current position for less than 3 years?
Were they internal promotions or external hires?
Has top management established a systematic approach to strategic management?
What is the level of involvement in the strategic management process?
How well does top management interact with lower level managers and with the board of
directors?
Are strategic decisions made ethically in a socially responsible manner?
Is top management sufficiently skilled to cope with likely future challenges?
C. External Factors: (The OPPORTUNITIES AND THREATS in SWOT)
(You may insert the Chapter 3 worksheet in lieu of Section C External Factors.)
I. Societal, Political, Regulatory, and Community Citizenship Factors

What general environmental forces are currently affecting both the corporation and the
industries in which it competes? Which present current or future threats? Opportunities?
1.
2.
3.
4.

Economic
Technological
Political-legal-regulatory
Socio-cultural
Are these forces different in other regions of the world? If so, how do they impact the
organization?
II. Industry and Competitive Analysis
1. Industry’s Dominant Economic Traits
Economic trait
Strategic implication of this trait (e.g., Is it an
opportunity or threat for the company?)
Market size
Market growth stage
Market growth rate
Capability surplus or
shortage
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition
Industry profitability
Entry and exit barriers
Product cost
Standard product
Rapid technological
change
Capital requirements
Vertical integration
Economies of scale
Rapid product innovation
2. What is the relative strength of forces that drive industry competition? Are these forces
the same globally or do they vary from country to country? What are the strategic
implication of the force strength for the industry (e.g., key success factors) and company
(e.g., opportunities or threat)?
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition
3. What factors are causing the industry’s competitive structure and business environment to
change?
Industry competitive
structure
Industry business
environment
Long term industry growth rate
Who buys the product and how do they use it
Product innovation
Technological change
Marketing innovation
Entry or exit of major firms
Diffusion of technical know how
Increasing globalization
Cost and efficiency
Regulatory and policy changes
Societal concerns, attitudes, and lifestyle
changes
Reductions in uncertainty and business risk
4. What companies are in the strongest and weakest positions?
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition
5. Rivals most likely strategic moves.
Competitors
Competitors
strategic
approaches,
mission,
vision,
objectives,
etc.
Environment
(e.g., high
velocity)
Environment’s
strategic
options
Industry
position
Position
options
Rivals
competitive
advantage
options
6. What are the industry’s key success factors and how do they affect each company in the
industry?
Industry Key Success
Factors
Company # 1
Company # 2
Company # 3
Impact (strategic
and
implementation)
Impact (strategic and
implementation)
Impact (strategic
and
implementation)
"
"
"
7. Is the industry attractive and what are the prospects for profitability?
III. Summary of External Factors
Which of these forces and factors are the most important to the corporation and to the industries
in which it competes at the present time? Which will be important in the future? Which represent
opportunities and which represent threats to the corporation? Summarize using the following
matrix. Consider the external forces and factors for the corporate, business, functional and
business levels of the organization.
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition
Offensive
strategies
D
s
External Forces and Factors
Opportunities
Strategic
Implications
for the
company
Threats
Strategic
Implications
for the
company
Societal
Political
Legal
Regulatory
Dominant economic traits
Five forces
Driving forces of change for
the industry and the
industry’s environment
Companies in the strongest
and weakest position
Rivals most likely moves
Key Success Factors
Industry Attractiveness and
prospects for profitability
C. Internal Factors (The STRENGTHS AND WEAKNESSES IN SWOT)
(You may insert the Chapter 4 worksheet in lieu of completing Section C. Internal Factors.)
Company’s Competitive Capabilities
I.
1. How well is the current strategy working?

3 tests of a winning strategy (competitive advantage, goodness of fit, performance)
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition









portfolio tests
strategic and financial objectives met or exceeded
strategic approach (focused or broad// cost or differentiation)
market share
industry position
financial strength
# of stages in the value chain participating in the production-distribution chain
size and diversity of geographic market
size and diversity of the customer base
2. Are the company’s prices and costs competitive or are synergies available being used? Are
there opportunities for improvement? Address the structural and executional cost drivers for cost
or differentiation strategic approaches.
Product research and development, technology, systems development
Human Resources management
General Administration
3. How well is each of the company’s functional areas performing?
NOTE: I copied the following questions from Wheelen and Hunger Strategic
Management 6th edition pp254-257.
A. Marketing


What are the corporation’s current marketing objectives, strategies, policies and
programs? Are they clearly stated, or merely implied from performance and budgets? Are
they consistent with the corporation’s mission, vision, objectives, strategies, policies, and
with the internal and external environments?
How well is the corporation performing in terms of analysis or market position and
marketing mix (i.e. Product, price, place and promotion) in both domestic and
international markets? What percentage of sales comes from foreign operations? What
trends emerge from this analysis? What impact have these trends had on past
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition




performance and how will they probably affect future performance? Does this analysis
support the corporation’s past and pending strategic decisions? Does marketing provide
the company with a competitive advantage?
How well does this corporation’s marketing performance compare with that of similar
corporations?
Are marketing managers using accepted marketing concepts and techniques to evaluate
and improve product performance (e.g., product life cycle, market segmentation, market
research, product portfolios)?
Does marketing adjust to the conditions in each country in which it operates?
What is the role of the marketing manager in the strategic management process?
B. Operations and Logistics






What are the corporation’s current manufacturing/service objectives, strategies, policies,
and programs? Are they clearly stated or merely implied from performance and budgets?
Are they consistent with the corporation’s mission, vision, objectives, strategies, policies
and with the internal and external environments?
What is the type and extent of operations capabilities of the corporation? How much is
done domestically versus internationally? Is the amount of outsourcing appropriate to be
competitive? Is purchasing handled appropriately? If product oriented, consider plant
facilities, type of manufacturing system, age and type of equipment, degree and role of
automation (e.g. robotics), plant capacities and utilization, productivity ratings,
availability and type of transportation. If service oriented, consider service facilities, type
of operations systems (e.g. continuous service over time to same clientele or intermittent
service over time to varied clientele), age and type of supporting equipment, degree and
role of automation and/or use of mass communication devices, facility capacities and
utilization rates, efficiency ratings of professional/service personnel, availability and type
of transportation to bring service staff and clientele together.
Are manufacturing or service facilities vulnerable to natural disasters, local or national
strikes, reduction or limitation of resources from suppliers, substantial cost increases for
materials, or nationalization by foreign governments?
Is there an appropriate mix of people and machines, in manufacturing firms, r of support
staff to professionals in service firms?
How well does the corporation perform relative to the competition? Is it balancing
inventory costs with logistical costs? Consider costs per unit of labor, materials, and
overhead; inventory control management and/or scheduling of support staff; production
ratings; facility utilization percentages; and number of clients successfully treated by
category or percentage of orders shipped on time. What trends emerge from this analysis?
What impact have these trends had on past performance and how will they probably
affect future performance? Does this analysis support the corporation’s past and pending
strategic decisions? Does operations provide the corporation with a competitive
advantage?
Are operations managers using appropriate concepts and techniques to evaluate and
improve current performance? Consider cost systems, quality control and reliability
systems, inventory control management, personnel scheduling, TQM, learning curves,
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition


safety programs, and engineering programs that can improve efficiency of manufacturing
or service.
Does operations adjust to the conditions in each country in which it has facilities?
What is the role of the operations manager in the strategic management process?
C. Research and Development








What are corporation’s current R&D objectives, strategies, policies, and programs? Are
they clearly stated or merely implied from performance and budgets? Are they consistent
with the corporation’s mission, vision, objectives, strategies, policies and with the
internal and external environments? What is the role of technology in corporate
performance? Is the mix of basic, applied, and engineering research appropriate given the
corporate mission and strategies?
Does R&D provide the corporation with a competitive advantage?
What return does the corporation receive from its R&D?
Is the corporation competent in technology transfer? Does it use concurrent engineering
and cross-functional work teams in product and process design?
What role does technological discontinuity play in the corporation’s products?
How well does the corporation’s investment R&D compare with the investments of
similar corporations?
Does R&D adjust to the conditions in each country in which it operates?
What is the role of the R&D manager in the strategic management process?
D. Human Resource Management






What are corporation’s current R&D objectives, strategies, policies, and programs? Are
they clearly stated or merely implied from performance and budgets? Are they consistent
with the corporation’s mission, vision, objectives, strategies, policies and with the
internal and external environments?
How well is the corporation’s HRM performing in terms of improving the fit between the
individual employee and the job? Consider turnover, grievances, strikes, layoffs,
employee training, and quality of work life. What trends emerge from this analysis? What
impact have these trends had on past performance and how will they probably affect
future performance? Does this analysis support the corporation’s past and pending
strategic decisions? Does HRM provide the corporation with a competitive advantage?
How does this corporation’s HRM performance compare with that of similar
corporations?
Are HRM managers using appropriate concepts and techniques to evaluate and improve
corporate performance? Consider the job analysis program, performance appraisal
system, up-to-date job descriptions, training and development programs, attitude surveys,
job design programs, quality of relationship with unions, and use of autonomous work
teams.
How well is the corporation managing the diversity of its workforce?
Does HRM adjust to the conditions in each country in which the corporation operates?
Does the corporation have a code of conduct for HRM in developing countries? Are
employees receiving international assignments to prepare them for managerial positions?
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition

What is the role of the HRM manager in the strategic management process?
E. Information Systems






What are corporation’s current Information Systems (IS) objectives, strategies, policies,
and programs? Are they clearly stated or merely implied from performance and budgets?
Are they consistent with the corporation’s mission, vision, objectives, strategies, policies
and with the internal and external environments?
How well is the corporation’s IS performing in terms of providing a useful database,
automating routine clerical operations, assisting managers in making routine decisions,
and providing information necessary for strategic decisions? What trends emerge from
this analysis? What impact have these trends had on past performance and how will they
probably affect future performance? Does this analysis support the corporation’s past and
pending strategic decisions? Does IS provide the corporation with a competitive
advantage?
How does this corporation’s IS performance and stage of development compare with that
of similar corporations?
Are managers using appropriate concepts and techniques to evaluate and improve
corporate performance? Do they know how to build and manage a complex database,
conduct system analyses, and implement interactive decision-support systems?
Does the corporation have a global IS? Does it have difficulty with getting data across
national boundaries?
What is the role of the IS manager in the strategic management process?
4. How strong is the company’s strategic position?
Key Success
Factors
Weight
Company's
Position
Company
Weighted
Scores
5. Company financial analysis
What are the corporation’s current financial objectives, strategies, policies and programs?
Are they clearly stated or merely implied from performance and budgets? Are they
consistent with the corporation’s mission, vision, objectives, strategies, policies and with
the internal and external environments?
 Does financial performance match objectives?
 How well is the corporation performing in terms of financial analysis (e.g., ratios [refer to
pages 366 and 367 of the text], cash flow, and capitalization structure)? What trends
emerge from this analysis? Are there any significant differences when statements are
calculated in constant (e.g., inflation adjusted) versus reported dollars? What impact have
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition





these trends had on past performance and how will they probably affect future
performance? Does this analysis support the corporation’s past and pending strategic
decisions? Does finance provide the corporations with a competitive advantage?
How well does this corporation’s financial performance compare with that of similar
corporations?
Are financial managers using accepted financial concepts and techniques to evaluate and
improve current corporate and divisional performance? (Consider financial leverage,
capital budgeting, ratio analysis, and managing foreign currencies.)
Does finance adjust to the conditions in each country in which the company operates?
What is the role of the financial manager in the strategic management process?
II. Managements personal ambitions, philosophies, and ethical principles
III. Shared values and company culture
IV. Summary of the Internal Factors
Which of these factors are the most important to the corporation and to the industries in
which it competes at the present time? Which will be important in the future? Which
represent strengths and which represent weaknesses for the corporation? Summarize
using the following matrix.
Internal Factors
Strengths
Strategic
implications
for the
company
Weaknesses
Strategic
implications for
the company
Company’s
Competitive
Capabilities
I.




Company’s
competitive
capabilities
Value chain analysis
Functional area
performance
Strategic position
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition

Financial position
II. Management’s personal
ambitions, philosophies, and
ethical principles
III. Shared values and
company culture
D. Action Plan
Insert the Action Plan worksheet. Consider the following insights on implementation and
evaluation control as part of preparing the action plan worksheet.
Implementation
1. What kinds of programs and policies should the corporation develop to implement the
recommended strategies? Who should develop the programs? Who should be in charge of
the programs?
2. Are the programs feasible (e.g., financially)? What do you recommend for a budget and a
schedule for implementing each of the recommendations? How will you capitalize your
recommendations?
3. What new policies and standard operating procedures does the corporation have to
develop?
Evaluation and Control
1. Can the corporation’s current information system provide sufficient feedback to measure
the effectiveness and efficiency of the implementation activities and performance (e.g.,
mission and vision, strategic and financial objectives [MVA, EVA], three tests of a
winning strategy, industry key success factors)? Can you pinpoint performance results by
area, unit, project or function? Is the information timely?
2. Are adequate control measures in place to ensure conformance with the recommended
strategic plan? Are appropriate standards and measures used? Are accountability systems
capable of recognizing and rewarding good performance and taking corrective actions for
poor performance?
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition
3. What new performance measures and evaluation and control techniques do you
recommend for your preferred alternatives.
Now complete the Executive Summary.
Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings.
McGraw-Hill Irwin. NY. 12th Edition