Case Analysis &
Recommendation 101
Fulltime MBA Class of 2013
August 16, 2011
Glenn Voss
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Case Analysis &
Recommendation 101
In case analysis, you apply frameworks
and models to generate insights into a
real or simulated business problem. You
also calculate metrics to evaluate the
likely outcomes associated with various
alternatives. Your recommendation is
formulated as a strategy.
Case Analysis &
Recommendation 101
Models
Frameworks
Metrics
Concepts & Terminology
What is Terminology?
 A system of words used to name
concepts in a particular discipline.
 Examples:
– Objectives, Resources & Capabilities
– Segmentation, Targeting & Positioning
– Product, Price, PromotionCommunication, Place-Channel
– Customer Relationship Management
– Customer Acquisition & Retention
– Customer Satisfaction & Value
Terminology
 An objective is defined as:
– The criterion by which the success or failure of
the strategy is measured.
 Characteristics of well-written objectives:
– Lists a quantified standard of performance.
– Designates a clear time frame.
– States goal in measurable terms.
– Should be challenging but realistic.
 Objectives frequently require trade-offs;
e.g., increasing market share versus
increasing profits; acquiring new customers
versus retaining current customers.
Terminology (continued)
 Resource: tangible (e.g., equipment,
machinery, mail list), intangible (e.g., brand
name, customer knowledge), or human
assets that the firms currently possesses.
 Capability: the ability to deploy individual
resources (e.g., patents, know-how, brand
names, equipment) to perform a task or
activity to produces a desired end result.
What the firm can do (i.e., skills) as a result
of teams of resources working together.
We are interested in resources & capabilities that are
rare & valuable.
Common Job Interview Mistakes
What is a Metric?
 A measure for quantitatively assessing
a complex process or outcome, along
with procedures for carrying out and
interpreting the measures.
 Examples:
– Revenues & Profits (Break-even, ROI)
– Contribution Margin
– Customer Lifetime Value
– Conversion/Purchase Rates
– Awareness/Recognition
What is an Analytic
Framework?
 A structured approach to defining,
analyzing or communicating the
characteristics of a complex system or
process.
 Examples:
– Comprehensive Metabolic Panel
– Google’s PageRank Algorithm
– SWOT Analysis
– Case Analysis
– Strategy Formulation
Case Analysis
 Define the problem or objective.
 Enumerate the decision factors. Analysis
 Consider relevant information.
 Identify the best alternative.
 Develop a plan for implementing the
Recommendation
chosen alternative.
 Evaluate the decision (alternatives)
and the decision process.
What is a Model?
 A hypothetical or simple description
of a complex system or process.
 Effective strategies rely on insightful
or valid models.
 Examples:
– Aristotle’s Geocentric Model
accounted for all observations of the movement of the sun and
– •Newton’s
Model of Classical Mechanics
the moon, and the planets, and the stars;
– •Product
LifeofCycle
Model of celestial bodies (i.e.,
good predictor
future positions
verifiable)
– Price Response Models
• simplicity (Principle of Parsimony) - as few assumptions or rules
– Advertising
Models
as possible & noResponse
contradictions.
Modeling the Marketing Process
SWOT Analysis
Company Customers Competitors Collaborators Context
Market
Segmentation
Create
Value
Communicate,
Share &
Capture Value
Selection &
Targeting
Product/Service
Offering
Product/Service
Offering Positioning
Place/
Pricing
Channel
Promotion/
Communication
Customer
Acquisition
Customer
Retention
Revenue & Profits
Customer
Relationship
Management
Sustain
Value
Mountain Man
This case addresses whether a beer company should introduce a brand
extension in response to changing competitor strategies & customer tastes.
Read the case, define the problem, & identify alternative solutions & key
issues. Use the following questions to help guide the evaluation.
 What has made Mountain Man Lager successful (Is it successful?)?
What is its competitive advantage? Define the key competitors. What
has caused Mountain Man Lager’s decline in spite of its strong brand?
 What are/should be the objectives for Mountain Man Lager over the
next 2-5 years?
 How would introduction of MM Light affect these MM Lager objectives?
Specifically, what level of cannibalization do you predict and why?
 What are/should be the marketing and financial (e.g., breakeven)
objectives? Can MM Light achieve those objectives?
 Who would be the target customers & competitors for MM Light?
 What marketing capabilities are necessary to make a MM Light
introduction successful? Does Mountain Man currently possess these
capabilities?
Mountain Man SWOT
Strengths
Weaknesses
Capabilities (e.g., Product, Channels,
Communications, Price, CRM):
1.
2.
Resources
1.
2.
Capabilities (e.g., Product, Channels,
Communications, Price, CRM):
1.
2.
Resources
1.
2.
Opportunities
Threats
External focus on:
1. Customers:
2. Collaborators:
3. Competition:
4. Socioeconomic, technological, legal,
product life cycle… Context
External focus on:
1. Customers:
2. Collaborators:
3. Competition:
4. Socioeconomic, technological, legal,
product life cycle … Context
MM Marketing Strategy
Mountain Man Lager
Mountain Man Light
Objectives
Quantified, measurable with a
specified time frame
Challenging & realistic
Target Customers
Likely to be loyal?
MM Competitive Advantage …is based on
Key capabilities 
Positioning Statement
For
MM Lager is a
that, unlike
offers
, For
MM Light is a
, that, unlike
offers
,
Optional Mountain Man Exercise
 Conduct analyses that quantify the expected outcome associated with
each alternative using the Mountain Man Excel spreadsheet. If you
need more background on breakeven analysis, review the Breakeven
Tool. If you need more background on calculating net present value,
review the Discounting Future Income and Present Value Tool.
 To complete the spreadsheet, start with the worksheet titled
MMLagerDecline. Fill in the key assumptions that are highlighted in
yellow. The spreadsheet should fill in as you enter these numbers. Note
that constructing spreadsheets in this manner is important because it
allows you to conduct “What-if” analyses by simply changing your
assumptions.
 Continue to fill in each worksheet in a similar manner, leaving the
Summary sheet for last. The MMLagerGrowth sheet allows for the
possibility of allocating resources and effort to reversing the recent
decline in MM Lager sales. If you (and I) have completed everything
appropriately, the Summary sheet should summarize each of the options.
You now need to assign likely probabilities to each outcome associated
with the Light go/no-go decision.