Case Analysis Worksheets for Strategic Management Cases
Jonathon Rakich, Ph.D
Professor of Management
School of Business
Indiana University Southeast
4201 Grant Line Road
New Albany, IN 47150
Phone 812, 246-4505
jrakich@ius.edu
Kathleen Voelker, MBA
Visiting Lecturer
School of Business
Indiana University Southeast
New Albany, Indiana 47150
kvoelker@ius.edu
Case Analysis Worksheets for Strategic Management Cases
Abstract
This paper, “Case Analysis Worksheets for Strategic Management Cases,” contains documents
provided by the authors for use by students in the senior Business Policy course at Indiana
University Southeast (IUS). It is a follow up to an accounting and financial audit teaching aid
and tutorial paper presented at the 2008 Academy of Business Disciplines. 1 The purpose of this
paper is to share with faculty, who teach using cases and who write cases, forms and processes
that we have found to be successful in advancing student learning in case-oriented courses.
THE WORKSHEETS
The worksheets and forms have been classroom tested for over 5 years in our team-coordinated
senior Business Policy course. They enable students to:
•
•
•
•
•
Organize case information into categories and to identify salient points for each assigned
case
Derive and assess risk, performance, and control issues inherent in the assigned case
Use specific terminology relative to categories of objectives and strategies, as well as
apply strategic management textbook concepts
Systematically analyze the current situation of a given organization and formulate and
evaluate potential courses of action to create a competitive advantage for the organization
Use a specified format to logically structure oral case presentations and written case
analysis reports.
Exhibit 1 presents a “Case Analysis Form” students use to systematically record and organize
information as they read a case.
The first page focuses on the categories of
industry/environment, as well as the traditional functional areas of business (i.e., management,
marketing, finance, and production/operations). The second page of the case analysis form
contains categories for identifying stated and implied objectives/strategies, mission, the SWOT
analysis, listing problems (or issues), and identifying potential future strategies for the
organization that is the focus of the case. Both pages of the form are blank with the exception of
the headers and italicized embedded items. There are numerous strategic management concepts
related to each and students are to apply them, as appropriate, in the written analysis. These
concepts are derived from the course required textbook by Hunger and Wheelen.2 The attached
form provides examples for a typical strategic management case.
Finally, each potential
strategy is to be evaluated according to a specified circuit analysis: Will the strategy accomplish
an objective, will it solve a problem or issue, and what impact the strategy would have on the
1
Bauder, S., K. Voelker, and J. Rakich, “Financial Audit Teaching Aid for Case Analysis,” Casewriters Workship
presentation, Proceedings of the Academy of Business Disciplines, 2008.
2
Hunger, J. David and Thomas L. Wheelen. Essentials of Strategic Management, 4th edition: Prentice Hall, 2007.
1
functional areas if implemented. That is, why and how critical organizational functions must be
changed in order to implement the proposed strategic alternative.
Exhibit 2 presents a worksheet that outlines three strategic management categories students’ use
in their case analysis. They are generic objectives (profit, growth, citizenship, and survival),
corporate strategies (forward integration, backward integration, horizontal integration,
diversification, and retrenchment), and business-level competitive strategies (cost leadership,
differentiation, and focus). These objectives and strategies are fully developed in the
Hunger/Wheelen textbook.
Exhibit 3 presents a “Financial Audit Worksheet.” The instructor provides students with
industry numbers for each ratio. Based on balance sheets and income statements contained in the
case, or provided by the instructor3, students calculate the company’s ratios using the definitions
in the left margin of the exhibit. Students are to interpret the calculated ratios relative to the
industry averages (a cross-sectional analysis) and the prior years’ ratios for the organization (a
time-series analysis) and then draw conclusions about risk, capital structure, performance, and
control. The conclusions yield information that may be appropriate in the development of the
SWOT analysis and the problem/issues section of the report. (See Bauder, Voelker, and Rakich
for a full explanation of ratio analysis, a sample completed financial audit worksheet with
industry ratios, and interpretation of results).4
Exhibit 4 presents a “Written Case Analysis Format” worksheet that specifies the components
required in the written case report. Information contained in exhibits 1-3 is used when students
write each section in this worksheet. Together, these exhibits provide students with a process for
synthesizing and integrating information contained in a case. Exhibit 4 provides students with a
structured format to use in writing (or orally presenting) a comprehensive case analysis report.
Our intent is to share these documents with faculty who teach using cases or write cases. We
believe they will find them useful.
3
Income statements and balance sheets for a selected set of given years can be printed from Compustat. Recent 3
or 5 year statements for publicly traded companies can be printed from www. finance.yahoo.com or www.
moneycentral.msn.com
4
Bauder, Susanna, Kathleen Voelker, and Jonathon Rakich. “Financial Audit Teaching Aid for Case Analysis,”
Casewriters Workshop presentation and Proceedings of the Academy of Business Disciplines, 2008.
2
EXHIBIT 1.
CASE ANALYSIS FORM
(page 1)
Industry/Environment
Management
Marketing
How many Companies?
Org. Structure
-Simple, functional,
matrix, divisional,
complex
-Bureaucratic costs
Durable or Nondurable?
Decision Making
-Proactive/reactive
(mode)
Target market(s)?
Phase of Srategic
Planning
Convenience, specialty,
shopping:
Board Continuum
- Phantom/Catalyst
Product
Consolidated or Fragmented?
Manufacturing or Service?
Societal Environment Forces
-Political
Consumer or Industrial
Goods?
Push or Pull Strategy?
BUSINESS POLICY
Finance
1. Liquidity
2. Capital
Structure
3. Performance
4. Activity
5. Limits
(Diagnosis/Li
mits)
Production
Other
Value Chain
Corporate Culture
Primary Activities
Inbound Logistics
Operations
Outbound Logistics
Marketing and
Sales
Service
Core Competencies
Competitive Advantage
Life Cycle Progression
-Technological
-Economic
-Demographic
Price
-Sociocultural
BOD Resp.
Place (distribution)
Porter’s Five Forces Analysis
Bargaining Power of
Buyers and Suppliers
Threat of New Entrants
Threat of Substitutes
Rivalry Among Existing Firms
Exec. Leadership
Promotion
4 Respon. of Bus.
Global products/global
markets?
Economic
Strategic Groups
Multidomestic or Global
Legal
Economies of Scale?
Economies of Scope
Ethical
Industry Life Cycle
Discretionary
Support Activities
General
Administration
HRM
Research, Tech, &
Systems
Development
Procurement
BCG Growth Share
Matrix
Timing Tactics
Triggering Event(s)
Product life cycle
Introduction, growth,
maturity, decline
3
EXHIBIT 1 (CON’T)
CASE ANALYSIS FORM (page 2)
Stated/Implied
Objectives/Strategies
SWOT
BUSINESS POLICY
Problems (Issues)
Future
Strategies (Generic)
Evaluation/Selection/
Implementation
Forward Integration
Objectives
INTERNAL
CIRCUIT ANALYSIS
EXTERNAL
Backward Integration
Profits
Weaknesses
1.
Threats
Horizontal Integration
Growth
Citizenship
Link to Value Chain/ Adverse
Firm Functional areas Porter’s 5-forces*
Societal Environ.
Diversification
(Concentric or
Conglomerate)
2.
3.
Accomplish
objectives
Solve problem(s)
Impact on
functional areas
(feasible?)
Retrenchment
Objective(s) Addressed
Competitive Strategy
(Cost Leadership,
Differentiation, or
Focus)
Issue(s) Addressed
Survival
EQIC
Mission
Strategies
Strategic Group?
-Efficiency
-Quality
-Innovation
-Customer
Responsiveness
*New Entrants
Bargain Power Supp
Bargain Power Buy
Rivalry
Substitutes
Impact on functions
-Management
-Marketing
-Production/operations
Strengths
Opportunities
-Finance
Competitive
Advantage
(Resources/
Capabilities)
Advantageous
Porter’s 5-forces*
Societal Environ.
-HRM
Strategic Type?
Current Strategies
Corporate-level
Business-Level
-R&D
-IT/MIS
EQIC
Link to Value
Chain
4
EXHIBIT 2
Business Policy Categories of Objectives and Strategies
Generic Objectives
1.
2.
3.
4.
Profit (returns or residuals)
Growth (sales level and/or market share)
Citizenship (corporate culture and/or commitment/responsibility to stakeholders) including
community/society)
Survival
A. CORPORATE STATEGIES (WHAT INDUSTRY)
Hunger & Wheelen
Growth
Concentration→
Horizontal Integration→
Diversification→
Vertical Integration (F)→
Vertical Integration (B)→
Horizontal Integration →
Diversification→
(related or unrelated)
5. Retrenchment
Retrenchment Turnaround→
Captive
Sellout/Divest
Bankruptcy
Liquidation
Stability
Pause
Proceed with caution
No change
Rakich
Generic Strategies
1. Forward Integration
2. Backward Integration
3. Horizontal Integration
4. Diversification
(concentric or conglomerate)
--------------------------
-------------------------------
B. BUSINESS/COMPETITIVE STRATEGY (HOW COMPETE)
Cost leadership→
Differentiation→
Broad →
Broad →
Narrow→→→
Cost focus,
Differentiation focus
Cost leadership
Differentiation
Focus
6. Competitive Strategy
– choose
1 of 3; cost leadership,
differentiation, or
focus (i.e., cost
focus or differentiation
focus)
CORPORATE STATEGIES (WHAT INDUSTRY)
Method
-Merger/acquisition; strategic alliances; internal development.
Competitive Advantage
-Resources and capabilities (value chain)
Horizontal Integration = Expanding firm’s products/services into other geographic locations and/or increasing the
range of products/services offered to current markets. Or, merger/acquisition (same point in the value chain).
Related Diversification = Using the firm’s distinctive competence in a different industry or different product area
where product knowledge, manufacturing capabilities, marketing skills can be applied; points of commonality may
be technology, customers, distribution, etc.
Unrelated Diversification = No Connection to any value chain activities.
5
EXHIBIT 3 Financial Audit Worksheet
Financial Audit for
Dollars in millions
Industry
Assets $
Sales $
Net profit $
Total Debt
Stockholder Equity
LIQUIDITY (draw risk conclusion)
Current Ratio (CA/CL)
Net Working Capital (CA-CL)
Quick Ratio [(CA-Inv) / CL]
CAPITAL STRUCTURE (draw risk and cost of capital conclusions)
Tot. Liab./Eq. [(TCL+LTD)/SE]
Tot. Liab./A [(TCL+LTD)/TA]
Curr.Debt/Tot.Debt (CD/TD)
PERFORMANCE (look at all ingredients)
Gross Profit Margin %
CGS % Sales (CGS/Sales)
NP % Sales (NP/Sales)
RR Assets % (NP/TA)
RR Net Worth % (NP/SE)
SAE % Sales (Ad Ex./Sales)
ACTIVITY (Draw control conclusion)
Inv. Turn. (CGS/Inv.)
Inv. Days O/S (365/Inv. Turn.)
A/R Turn. (Sales/AR)
AR Coll. (Days) (365/AR Turn.)
FA Turnover (Sales/NFA)
TA Turnover (Sales/TA)
LIMITS
Stock
Debt
Improved Operations
6
OTHER
7
EXHIBIT 4
Business Policy Written Case Analysis and Oral Presentation Format
Structure of Case Analysis Report
1. Very brief background and overview. Include a statement of the firm’s stated or implied mission (1-2 sentences)
(double space)
2. Stated and implied objectives (list) (single space) [generic with example] (see Exhibit 2 for list of generic
objectives)
3. Stated and implied strategies—those doing now (list) (single space) [generic with example] (see Exhibit 2 for list
of generic strategies)
4. Diagnostic financial audit including analysis of (a) liquidity (including risk), (b) capital structure (including risk
and cost of capital), (c) performance, (d) activity (including control), and (e) limits (including resource availability
from external sources and improved operations). [Narrative (double space); Financial Audit worksheet to be
attached]
5. SWOT ANALYSIS; internal and external environment assessment listing weaknesses, opportunities, threats, and
strengths (list with descriptor format is acceptable) (single space)
6. Issue (problem) section [narrative; double space]
7. Alternatives (6 strategies) [generic with example] section (list) (rejects listed first, accepted strategies follow)
(single space), five corporate-level and one business-level
8. Evaluation and recommendations – determine feasibility of each alternative (i.e., strategy) listed in #7 (double
space). Circuit Analysis: Application of three tests with examples for all strategies: (a) will it accomplish
objectives; (b) will it address/solve issue (s); and (c) what is the impact of implementation on all functional areas
(i.e., Management, Marketing, Production, and Finance). That is, what must be done to implement each strategy.
[Note: production (operations) equals the value creation activity.]
-
Collect, use, and integrate appropriate information from library/internet sources.
* Attachments, appendices, and table of financial ratios are not counted as part of the written analysis pages. Table of
financial ratios is not required to be typed (may be hand written). First written group case analysis = 5 pages + flop;
second written analysis = 6 pages + flop; third/fourth written analysis = 7 pages + flop.
NOTE:
A. All papers are to be typed double spaced (except where noted above) (10 or 12 cpi) with one-inch margins.
Papers will be downgraded for improper grammar, spelling, punctuation, and lack of proofreading.
B. An in-depth diagnostic financial audit is required. Turn in 8.5 x 14 worksheet with paper and financial audit
worksheet.
C. Use of concepts introduced in previous cases, lectures, and the text material is expected.
8