An Approach to Case Analysis
An Approach to Case Analysis
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1. Situation Audit
2. Problem Statement
3. Identify Alternatives
4. Develop Critical Issues
5. Analysis
6. Recommendations
Step 1: Situation Audit
A synopsis and evaluation of the organizations’
current situation, opportunities and problems.
A. Summarize the organizational mission and
objectives expressed or implied in the case.
B. Assess any relevant environmental information
available. Political, legal, societal, consumer,
economic, or technological forces that present
significant opportunities or threats
Step 1: Situation Audit
C. Assess the organization’s position in each
product-market in which it competes
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break down into logical target markets
estimate demand
determine end-user characteristics
identify industry practices and trends
geographic concentration.
Step 1: Situation Audit
D. Analyze competition
– identify competitors that satisfy same customer
needs
– their relative size and market share
– likely profitability
– their marketing strategy
– marketing and non-marketing strengths and
limitations.
Step 1: Situation Audit
E. Critically assess the organization’s
strengths and weaknesses
– are goals and objectives clearly stated and
realistic
– financial position and strength
– calculate appropriate financial rations to assess
liquidity, growth, stability, etc.
– compare with industry or competitors
– determine break-even points
Step 1: Situation Audit
F. State any assumptions you may have made
and defend them.
Step 2: Identify Problem
Statement
 Identify what appears to be the main problem,
opportunity or issue in the case
 Be careful not to confuse possible symptoms
with the problem
 Try to write a one-sentence question that is
specific enough to communicate the main
concern. For example:
 Should product A be added to or deleted from the
product line?
 What is the best market program positioning
strategy for product Z?
Step 3: Identify Alternatives
Prepare your list in two stages:
1. Prepare an initial list of alternatives which
includes all the actions you feel could be
appropriate.
2. Refine the initial list and combine similar
actions. Focus on those alternatives that are
feasible given the existing financial,
productive, managerial, marketing,
technological and other constraints.
Step 4: Develop Critical Issues
Identify the factors that should be considered
in making a decision regarding this
particular problem area.
What are the main criteria you will use to
evaluate your strategic alternatives?
Step 4: Develop Critical issues
The single most important critical issue in most
decisions is the “expected profitability”
Others may include such factors as:
• Required level on initial investment
• Impact on market share
• Tax considerations
• The impact on employees, the local economy,
the environment, consumer attitudes toward
the company, etc.
Step 5: Analysis
Evaluate the pros and cons of each strategic
alternative identified.
Assess the advantages and disadvantages of each
alternative in terms of the critical issues you
have developed.
Can be done in point or numerical form to help
you organize your thoughts and clearly
illustrates the logic of your thinking to others.
Step 6: Recommendations
The action recommendations you propose
should flow directly from your analysis.
The first part of your recommendations should
spell out the specific actions to be taken and
why.
– These recommendations should be specific and
operational
Step 6: Recommendations
The second part of your recommendations
should discuss implementation.
– State clearly who should do what, when and
where.
– This should indicate your recommendations are
both possible and practical.
Step 6: Recommendations
The third part of your recommendations
should include a tentative budget.
– Illustrates that your proposed solution will be
worth the cost and is within the financial
capabilities of the firm.
– Make your best estimate if accurate figures are
not available. Shows that you have at least
considered the cost implications of your
recommendations