A guide to case analysis

A Guide to
Case Analysis
I keep six honest serving men
(They taught me all I knew);
Their names are What and Why and When;
And How and Where and Who.
Rudyard Kipling

A Guide to Case Analysis2
n most courses in strategic management, students use cases about actual companies to practice strategic analysis
and to gain some experience in the tasks of crafting and implementing strategy. A case sets forth, in a factual
manner, the events and organizational circumstances surrounding a particular managerial situation. It puts
readers at the scene of the action and familiarizes them with all the relevant circumstances. A case on strategic
management can concern a whole industry, a single organization, or some part of an organization; the organization
involved can be either profit seeking or not-for-profit. The essence of the student’s role in case analysis is to
diagnose and size up the situation described in the case and then to recommend appropriate action steps.
WHY USE CASES TO PRACTICE STRATEGIC MANAGEMENT?
A student of business with tact
Absorbed many answers he lacked.
But acquiring a job,
He said with a sob,
“How does one fit answer to fact?”
The foregoing limerick was used some years ago by Professor
Charles Gragg to characterize the plight of business students who
had no exposure to cases.1
The facts are that the mere act of listening
to lectures and sound advice about managing does little for anyone’s
management skills and that the accumulated managerial wisdom
cannot effectively be passed on by lectures and assigned readings
alone. If anything had been learned about the practice of management,
it is that a storehouse of ready-made textbook answers does not exist. Each managerial situation has unique aspects,
requiring its own diagnosis, judgment, and tailor-made actions. Cases provide would-be managers with a valuable
way to practice wrestling with the actual problems of actual managers in actual companies.
The case approach to strategic analysis is, first and foremost, an exercise in learning by doing. Because cases
provide you with detailed information about conditions and problems of different industries and companies,
your task of analyzing company after company and situation after situation has the twin benefit of boosting your
analytical skills and exposing you to the ways companies and managers actually do things. Most college students
have limited managerial backgrounds and only fragmented knowledge about companies and real-life strategic
situations. Cases help substitute for on-the-job experience by (1) giving you broader exposure to a variety of
industries, organizations, and strategic problems; (2) forcing you to assume a managerial role (as opposed to that
of just an onlooker); (3) providing a test of how to apply the tools and techniques of strategic management; and
(4) asking you to come up with pragmatic managerial action plans to deal with the issues at hand.
OBJECTIVES OF CASE ANALYSIS
Using cases to learn about the practice of strategic management is a powerful way for you to accomplish five
things:2
1. Increase your understanding of what managers should and should not do in guiding a business to
success.
2. Build your skills in sizing up company resource strengths and weaknesses and in conducting strategic
analysis in a variety of industries and competitive situations.
3. Get valuable practice in identifying strategic issues that need to be addressed, evaluating strategic
alternatives, and formulating workable plans of action.
4. Enhance your sense of business judgment, as opposed to uncritically accepting the authoritative crutch
of the professor or “back-of-the-book” answers.
5. Gaining in-depth exposure to different industries and companies, thereby acquiring something close to
actual business experience.
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3Crafting & Executing Strategy 17th Edition
If you understand that these are the objectives of case analysis, you are less likely to be consumed with curiosity
about “the answer to the case.” Students who have grown comfortable with and accustomed to textbook statements
of fact and definitive lecture notes are often frustrated when discussions about a case do not produce concrete
answers. Usually, case discussions produce good arguments for more than one course of action. Differences of
opinion nearly always exist. Thus, should a class discussion conclude without a strong, unambiguous consensus
on what do to, don’t grumble too much when you are not told what the answer is or what the company actually
did. Just remember that in the business world answers don’t come in conclusive black-and-white terms. There
are nearly always several feasible courses of action and approaches, each of which may work out satisfactorily.
Moreover, in the business world, when one elects a particular course of action, there is no peeking at the back
of a book to see if you have chosen the best thing to do and no one to turn to for a provably correct answer. The
best test of whether management action is “right” or “wrong” is results. If the results of an action turn out to be
“good,” the decision to take it may be presumed “right.” If not, then the action chosen was “wrong” in the sense
that it didn’t work out.
Hence, the important thing for you to understand about analyzing cases is that the managerial exercise of
identifying, diagnosing, and recommending is aimed at building your skills of business judgment. Discovering
what the company actually did is no more than frosting on the cake—the actions that company managers actually
took may or may not be “right” or best (unless there is accompanying evidence that the results of their actions
were highly positive.
The point is this: The purpose of giving you a case assignment is not to cause you to run to the library or surf the
Internet to discover what the company actually did but, rather, to enhance your skills in sizing up situations and
developing your managerial judgment about what needs to be done and how to do it. The aim of case analysis
is for you to become actively engaged in diagnosing the business issues and managerial problems posed in the
case, to propose workable solutions, and to explain and defend your assessments—this is how cases provide you
with meaningful practice at being a manager.
PREPARING A CASE FOR CLASS DISCUSSION
If this is your first experience with the case method, you may have to reorient your study habits. Unlike lecture
courses where you can get by without preparing intensively for each class and where you have latitude to work
assigned readings and reviews of lecture notes into your schedule, a case assignment requires conscientious
preparation before class. You will not get much out of hearing the class discuss a case you haven’t read, and
you certainly won’t be able to contribute anything yourself to the discussion. What you have got to do to get
ready for class discussion of a case is to study the case, reflect carefully on the situation presented, and develop
some reasoned thoughts. Your goal in preparing the case should be to end up with what you think is a sound,
well-supported analysis of the situation and a sound, defensible set of recommendations about which managerial
actions need to be taken.
To prepare a case for class discussion, we suggest the following approach:
1. Skim the case rather quickly to get an overview of the situation it presents. This quick overview should
give you the general flavor of the situation and indicate the kinds of issues and problems that you will need
to wrestle with. If your instructor has provided you with study questions for the case, now is the time to read
them carefully.
2. Read the case thoroughly to digest the facts and circumstances. On this reading, try to gain full command
of the situation presented in the case. Begin to develop some tentative answers to the study questions your
instructor has provided or that are provided. If your instructor has elected not to give you assignment
questions, then start forming your own picture of the overall situation being described.

3. Carefully review all the information presented in the exhibits. Often, there is an important story in the
numbers contained in the exhibits. Expect the information in the case exhibits to be crucial enough to
materially affect your diagnosis of the situation.
4. Decide what the strategic issues are. Until you have identified the strategic issues and problems in the
case, you don’t know what to analyze, which tools and analytical techniques are called for, or otherwise
how to proceed. At times the strategic issues are clear—either being stated in the case or else obvious from
reading the case. At other times you will have to dig them out from all the information given; if so, the study
questions will guide you.
5. Start your analysis of the issues with some number crunching. A big majority of strategy cases call for
some kind of number crunching—calculating assorted financial ratios to check out the company’s financial
condition and recent performance, c+alculating growth rates of sales or profits or unit volume, checking
out profit margins and the makeup of the cost structure, and understanding whatever revenue-cost-profit
relationships are present. See Table 1 for a summary of key financial ratios, how they are calculated, and what
they show.
Table 1 Key Financial Ratios: How to Calculate Them and What They Mean
Ratio How Calculated What It Shows
Profitability ratios
1. Gross profit margin Sales – Cost of goods sold
Sales
Shows the percentage of revenues available to cover
operating expenses and yield a profit. Higher is better
and the trend should be upward.
2. Operating profit margin
(or return on sales)
Sales – Operating expenses
Sales
or
Operating income
Sales
Shows the profitability of current operations without
regard to interest charges and income taxes. Higher
is better and the trend should be upward.
3. Net profit margin (or
net return on sales)
Profits after taxes
Sales
Shows after tax profits per dollar of sales. Higher is
better and the trend should be upward.
4. Return on total assets Profits after taxes + Interest
Total assets
A measure of the return on total investment in the
enterprise. Interest is added to after tax profits to
form the numerator since total assets are financed by
creditors as well as by stockholders. Higher is better
and the trend should be upward.
5. Return on
stockholders’ equity
Profits after taxes
Total stockholders’ equity
Shows the return stockholders are earning on their
investment in the enterprise. A return in the 12-15%
range is “average,” and the trend should be upward.
6. Earnings per share Profits after taxes
Number of shares of common
stock outstanding
Shows the earnings for each share of common stock
outstanding. The trend should be upward, and the
bigger the annual percentage gains, the better.
Liquidity Ratios
1. Current ratio Current assets
Current liabilities
Shows a firm’s ability to pay current liabilities using
assets that can be converted to cash in the near term.
Ratio should definitely be higher than 1.0; ratios of 2
or higher are better still.
2. Quick ratio
(or acid-test ratio)
Current assets – Inventory
Current liabilities
Shows a firm’s ability to pay current liabilities without
relying on the sale of its inventories.
3. Working capital Current assets – Current liabilities Bigger amounts are better because the company
has more internal funds available to (1) pay its
current liabilities on a timely basis and (2) finance
inventory expansion, additional accounts receivable,
and a larger base of operations without resorting to
borrowing or raising more equity capital.
continued

Ratio How Calculated What It Shows
Leverage Ratios
1. Debt-to-assets ratio Total debt
Total assets
Measures the extent to which borrowed funds have
been used to finance the firm’s operations. Low
fractions or ratios are better—high fractions indicate
overuse of debt and greater risk of bankruptcy.
2. Long-term debt-to-
capital ratio
Long-term debt
Long-term debt + total
stockholders’ equity
An important measure of creditworthiness and
balance sheet strength. Indicates the percentage
of capital investment which has been financed by
creditors and bondholders. Fractions or ratios below
.25 or 25% are usually quite satisfactory since monies
invested by stockholders account for 75% or more of
the company’s total capital. The lower the ratio, the
greater the capacity to borrow additional funds. Debt-
to capital ratios above 50% and certainly above 75%
indicate a heavy and perhaps excessive reliance on
debt, lower creditworthiness, and weak balance sheet
strength.
3. Debt-to-equity ratio Total debt
Should usually be less than 1.0. High ratios
(especially above 1.0) signal excessive debt, lower
creditworthiness, and weaker balance sheet strength.
4. Long-term debt-to-
equity ratio
Long-term debt
Shows the balance between debt and equity in the
firm’s long-term capital structure. Low ratios indicate
greater capacity to borrow additional funds if
needed.
5. Times-interest-earned
(or coverage) ratio
Operating income
Interest expenses
Measures the ability to pay annual interest charges.
Lenders usually insist on a minimum ratio of 2.0,
but ratios above 3.0 signal better creditworthiness.
Activity Ratios
1. Days of inventory Inventory
Cost of goods sold ÷ 365
Measures inventory management efficiency. Fewer
days of inventory are usually better.
2. Inventory turnover Cost of goods sold
Inventory
Measures the number of inventory turns per year.
Higher is better.
3. Average collection
period
Accounts receivable
Total sales ÷ 365
or
Accounts receivable
Average daily sales
Indicates the average length of time the firm must wait
after making a sale to receive cash payment.
A shorter collection time is better.
Other Important Measures of Financial Performance
1. Dividend yield on
common stock
Annual dividends per share
Current market price per share
A measure of the return that shareholders receive
in the form of dividends. A “typical” dividend yield is
2-3%. The dividend yield for fast-growth companies is
often below 1% (maybe even 0); the dividend yield for
slow-growth companies can run 4-5%.
2. Price-earnings ratio Current market price per share
Earnings per share
P-e ratios above 20 indicate strong investor
confidence in a firm’s outlook and earnings growth;
firms whose future earnings are at risk or likely to
grow slowly typically have ratios below 12.
3. Dividend payout ratio Annual dividends per share
Earnings per share
Indicates the percentage of after-tax profits paid out
as dividends.
4. Internal cash flow After tax profits + Depreciation A quick and rough estimate of the cash a company’s
business is generating after payment of operating
expenses, interest, and taxes. Such amounts can
be used for dividend payments or funding capital
expenditures or otherwise growing the business.
Table 1 continued

6. Apply the concepts and techniques of strategic analysis you have been studying. Strategic analysis is not
just a collection of opinions; rather, it entails applying the concepts and analytical tools described in Chapters
1 through 13 to cut beneath the surface and produce sharp insight and understanding. Every case assigned
is strategy related and presents you with an opportunity to usefully apply what you have learned. Your
instructor is looking for you to demonstrate that you know how and when to use the material presented in the
text chapters.
7. Check out conflicting opinions and make some judgments about the validity of all the data and information
provided. Many times cases report views and contradictory opinions (after all, people don’t always agree on
things, and different people see the same things in different ways). Forcing you to evaluate the data and
information presented in the case helps you develop your powers of inference and judgment. Asking you to
resolve conflicting information “comes with the territory” because a great many managerial situations entail
opposing points of view, conflicting trends, and sketchy information.
8. Support your diagnosis and opinions with reasons and evidence. The most important things to prepare for
are your answers to the question “Why?” For instance, if after studying the case you are of the opinion that
the company’s managers are doing a poor job, then it is your answer to “Why?” that establishes just how
good your analysis of the situation is. If your instructor has provided you with specific study questions for
the case, by all means prepare answers that include all the reasons and number-crunching evidence you can
muster to support your diagnosis. If you are using study questions provided by the instructor, generate at
least two pages of notes!
9. Develop an appropriate action plan and set of recommendations. Diagnosis divorced from corrective
action is sterile. The test of a manager is always to convert sound analysis into sound actions—actions that
will produce the desired results. Hence, the final and most telling step in preparing a case is to develop an
action agenda for management that lays out a set of specific recommendations on what to do. Bear in mind
that proposing realistic, workable solutions is far preferable to casually tossing out off-the-top-of-your-head
suggestions. Be prepared to argue why your recommendations are more attractive than other courses of
action that are open.
As long as you are conscientious in preparing your analysis and recommendations, and have ample reasons,
evidence, and arguments to support your views, you shouldn’t fret unduly about whether what you’ve prepared is
“the right answer” to the case. In case analysis there is rarely just one right approach or set of recommendations.
Managing companies and crafting and executing strategies are not such exact sciences that there exists a single
provably correct analysis and action plan for each strategic situation. Of course, some analyses and action plans
are better than others; but, in truth, there’s nearly always more than one good way to analyze a situation and more
than one good plan of action. So, if you have carefully prepared the case by developing your own answers to the
assignment questions for the case, don’t lose confidence in the correctness of your work and judgment.

PARTICIPATING IN CLASS DISCUSSION OF A CASE
Classroom discussions of cases are sharply different from attending a lecture class. In a case class students do
most of the talking. The instructor’s role is to solicit student participation, keep the discussion on track, ask
“Why?” often, offer alternative views, play the devil’s advocate (if no students jump in to offer opposing views),
and otherwise lead the discussion. The students in the class carry the burden for analyzing the situation and for
being prepared to present and defend their diagnoses and recommendations. Expect a classroom environment,
therefore, that calls for your size-up of the situation, your analysis, what actions you would take, and why you
would take them. Do not be dismayed if, as the class discussion unfolds, some insightful things are said by your
fellow classmates that you did not think of. It is normal for views and analyses to differ and for the comments
of others in the class to expand your own thinking about the case. As the old adage goes, “Two heads are better
than one.” So it is to be expected that the class as a whole will do a more penetrating and searching job of case
analysis than will any one person working alone. This is the power of group effort, and its virtues are that it will
help you see more analytical applications, let you test your analyses and judgments against those of your peers,
and force you to wrestle with differences of opinion and approaches.
To orient you to the classroom environment on the days a case discussion is scheduled, we compiled the following
list of things to expect:
1. Expect the instructor to assume the role of extensive questioner and listener.
2. Expect students to do most of the talking. The case method enlists a maximum of individual participa–tion
in class discussion. It is not enough to be present as a silent observer; if every student took this approach,
there would be no discussion. (Thus, expect a portion of your grade to be based on your participation in
case discussions.)
3. Be prepared for the instructor to probe for reasons and supporting analysis.
4. Expect and tolerate challenges to the views expressed. All students have to be willing to submit their
conclusions for scrutiny and rebuttal. Each student needs to learn to state his or her views without fear of
disapproval and to overcome the hesitation of speaking out. Learning respect for the views and approaches
of others is an integral part of case analysis exercises. But there are times when it is OK to swim against
the tide of majority opinion. In the practice of management, there is always room for originality and
unorthodox approaches. So while discussion of a case is a group process, there is no compulsion for you
or anyone else to cave in and conform to group opinions and group consensus.
5. Don’t be surprised if you change your mind about some things as the discussion unfolds. Be alert to how
these changes affect your analysis and recommendations (in the event you get called on).
6. Expect to learn a lot in class as the discussion of a case progresses; furthermore, you will ﬁnd that the
cases build on one another—what you learn in one case helps prepare you for the next case discussion.
There are several things you can do on your own to be good and look good as a participant in class discussions:
Although you should do your own independent work and independent thinking, don’t hesitate before (and after)
class to discuss the case with other students. In real life, managers often discuss the company’s problems and
situation with other people to reﬁne their own thinking.
 In participating in the discussion, make a conscious effort to contribute, rather than just talk. There is a
big difference between saying something that builds the discussion and offering a long-winded, off-the-
cuff remark that leaves the class wondering what the point was.

 Avoid the use of “I think,” “I believe,” and “I feel”; instead, say, “My analysis shows —” and “The
company should do ______ because ______.” Always give supporting reasons and evidence for your
views; then your instructor won't have to ask you “Why?” every time you make a comment.
 In making your points, assume that everyone has read the case and knows what it says; avoid reciting and
rehashing information in the case—instead, use the data and information to explain your assessment of
the situation and to support your position.
 Bring the notes you’ve prepared (usually two or three pages’worth) to class and rely on them extensively when
you speak. There’s no way you can remember everything off the top of your head—especially the results of
your number crunching. To reel off the numbers or to present all five reasons why, instead of one, you will
need good notes. When you have prepared thoughtful answers to the study questions and use them as the basis
for your comments, everybody in the room will know you are well prepared, and your contribution to the case
discussion will stand out.
PREPARING A WRITTEN CASE ANALYSIS
Preparing a written case analysis is much like preparing a case for class discussion, except that your analysis
must be more complete and put in report form. Unfortunately, though, there is no ironclad procedure for doing
a written case analysis. All we can offer are some general guidelines and words of wisdom—this is because
company situations and management problems are so diverse that no one mechanical way to approach a written
case assignment always works.
Your instructor may assign you a specific topic around which to prepare your written report. Or, alternatively,
you may be asked to do a comprehensive written case analysis, where the expectation is that you will (1) identify
all the pertinent issues that management needs to address, (2) perform whatever analysis and evaluation is
appropriate, and (3) propose an action plan and set of recommendations addressing the issues you have identified.
In going through the exercise of identify, evaluate, and recommend, keep the following pointers in mind.3
Identification It is essential early on in your paper that you provide a sharply focused diagnosis of strategic
issues and key problems and that you demonstrate a good grasp of the company’s present situation. Make sure
you can identify the firm’s strategy (use the concepts and tools in Chapters 1–8 as diagnostic aids) and that you
can pinpoint whatever strategy implementation issues may exist (again, consult the material in Chapters 9–11
for diagnostic help). Consult the key points we have provided at the end of each chapter for further diagnostic
suggestions. Review the study questions for the case. Consider beginning your paper with an overview
of the company’s situation, its strategy, and the significant problems and issues that confront management.
State problems/issues as clearly and precisely as you can. Unless it is necessary to do so for emphasis, avoid
recounting facts and history about the company (assume your professor has read the case and is familiar with
the organization).
Analysis and Evaluation This is usually the hardest part of the report. Analysis is hard work! Check out
the firm’s financial ratios, its profit margins and rates of return, and its capital structure, and decide how strong
the firm is financially. Table 1 contains a summary of various financial ratios and how they are calculated. Use
it to assist in your financial diagnosis. Similarly, look at marketing, production, managerial competence, and
other factors underlying the organization’s strategic successes and failures. Decide whether the firm has valuable
resource strengths and competencies and, if so, whether it is capitalizing on them.
Check to see if the firm’s strategy is producing satisfactory results and determine the reasons why or why not.
Probe the nature and strength of the competitive forces confronting the company. Decide whether and why the
firm’s competitive position is getting stronger or weaker. Use the tools and concepts you have learned about to
perform whatever analysis and evaluation is appropriate.

In writing your analysis and evaluation, bear in mind four things:
1. You are obliged to offer analysis and evidence to back up your conclusions. Do not rely on unsupported
opinions, over-generalizations, and platitudes as a substitute for tight, logical argument backed up with
facts and figures.
2. If your analysis involves some important quantitative calculations, use tables and charts to present the
calculations clearly and efficiently. Don’t just tack the exhibits on at the end of your report and let the
reader figure out what they mean and why they were included. Instead, in the body of your report cite
some of the key numbers, highlight the conclusions to be drawn from the exhibits, and refer the reader to
your charts and exhibits for more details.
3. Demonstrate that you have command of the strategic concepts and analytical tools to which you have
been exposed. Use them in your report.
4. Your interpretation of the evidence should be reasonable and objective. Be wary of preparing a one-
sided argument that omits all aspects not favorable to your conclusions. Likewise, try not to exaggerate
or overdramatize. Endeavor to inject balance into your analysis and to avoid emotional rhetoric. Strike
phrases such as “I think,” “I feel,” and “I believe” when you edit your first draft and write in “My
analysis shows,” instead.
Recommendations The final section of the written case analysis should consist of a set of definite
recommendations and a plan of action. Your set of recommendations should address all of the problems/issues
you identified and analyzed. If the recommendations come as a surprise or do not follow logically from the
analysis, the effect is to weaken greatly your suggestions of what to do. Obviously, your recommendations for
actions should offer a reasonable prospect of success. High-risk, bet-the-company recommendations should
be made with caution. State how your recommendations will solve the problems you identified. Be sure the
company is financially able to carry out what you recommend; also check to see if your recommendations are
workable in terms of acceptance by the persons involved, the organization’s competence to implement them, and
prevailing market and environmental constraints. Try not to hedge or weasel on the actions you believe should
be taken.
By all means state your recommendations in sufficient detail to be meaningful—get down to some definite
nitty-gritty specifics. Avoid such unhelpful statements as “the organization should do more planning” or “the
company should be more aggressive in marketing its product.” For instance, if you determine that “the firm
should improve its market position,” then you need to set forth exactly how you think this should be done. Offer
a definite agenda for action, stipulating a timetable and sequence for initiating actions, indicating priorities, and
suggesting who should be responsible for doing what.
In proposing an action plan, remember there is a great deal of difference between, on the one hand, being responsible
for a decision that may be costly if it proves in error and, on the other hand, casually suggesting courses of action
that might be taken when you do not have to bear the responsibility for any of the consequences. A good rule
to follow in making your recommendations is: Avoid recommending anything you would not yourself be willing
to do if you were in management’s shoes. The importance of learning to develop good managerial judgment is
indicated by the fact that, even though the same information and operating data may be available to every manager
or executive in an organization, the quality of the judgments about what the information means and which actions
need to be taken does vary from person to person.4
It goes without saying that your report should be well organized and well written. Great ideas amount to little
unless others can be convinced of their merit—this takes tight logic, the presentation of convincing evidence,
and persuasively written arguments.

PREPARING AN ORAL PRESENTATION
During the course of your business career it is very likely that you will be called upon to prepare and give a number
of oral presentations. For this reason, it is common in courses of this nature to assign cases for oral presentation
to the whole class. Such assignments give you an opportunity to hone your presentation skills.
The preparation of an oral presentation has much in common with that of a written case analysis. Both require
identification of the strategic issues and problems confronting the company, analysis of industry conditions and
the company’s situation, and the development of a thorough, well-thought out action plan. The substance of your
analysis and quality of your recommendations in an oral presentation should be no different than in a written
report. As with a written assignment, you’ll need to demonstrate command of the relevant strategic concepts
and tools of analysis and your recommendations should contain sufficient detail to provide clear direction for
management. The main difference between an oral presentation and a written case is in the delivery format.
Oral presentations rely principally on verbalizing your diagnosis, analysis, and recommendations and visually
enhancing and supporting your oral discussion with colorful, snappy slides (usually created on Microsoft’s
PowerPoint software).
Typically, oral presentations involve group assignments. Your instructor will provide the details of the
assignment—how work should be delegated among the group members and how the presentation should be
conducted. Some instructors prefer that presentations begin with issue identification, followed by analysis of the
industry and company situation analysis, and conclude with a recommended action plan to improve company
performance. Other instructors prefer that the presenters assume that the class has a good understanding of
the external industry environment and the company’s competitive position and expect the presentation to be
strongly focused on the group’s recommended action plan and supporting analysis and arguments. The latter
approach requires cutting straight to the heart of the case and supporting each recommendation with detailed
analysis and persuasive reasoning. Still other instructors may give you the latitude to structure your presentation
however you and your group members see fit.
Regardless of the style preferred by your instructor, you should take great care in preparing for the presentation.
A good set of slides with good content and good visual appeal is essential to a first-rate presentation. Take some
care to choose a nice slide design, font size and style, and color scheme. We suggest including slides covering
each of the following areas:
 An opening slide covering the “title” of the presentation and names of the presenters.
 A slide showing an outline of the presentation (perhaps with presenters’ names by each topic).
 One or more slides showing the key problems and strategic issues that management needs to address.
 A series of slides covering your analysis of the company’s situation.
 A series of slides containing your recommendations and the supporting arguments and reasoning for
each recommendation—one slide for each recommendation and the associated reasoning has a lot of
merit.
You and your team members should carefully plan and rehearse your slide show to maximize impact and
minimize distractions. The slide show should include all of the pizzazz necessary to garner the attention of
the audience, but not so much that it distracts from the content of what group members are saying to the class.
You should remember that the role of slides is to help you communicate your points to the audience. Too many
graphics, images, colors, and transitions may divert the audience’s attention from what is being said or disrupt
the flow of the presentation. Keep in mind that visually dazzling slides rarely hide a shallow or superficial or
otherwise flawed case analysis from a perceptive audience. Most instructors will tell you that first-rate slides
will definitely enhance a well-delivered presentation but that impressive visual aids, if accompanied by weak
analysis and poor oral delivery, still adds up to a substandard presentation.

RESEARCHING COMPANIES AND INDUSTRIES
VIA THE INTERNET AND ONLINE DATA SERVICES
Very likely, there will be occasions when you need to get additional information about some of the assigned
cases, perhaps because your instructor has asked you to do further research on the industry or company or
because you are simply curious about what has happened to the company since the case was written. In some
instances, instructors will specifically ask class members to use the Internet to do further research on a company
profiled in an assigned case to learn about recent industry or company developments, check for any strategy
changes, or examine a company’s latest financial performance.
These days it is relatively easy to run down recent industry developments and to find out whether a company’s
strategic and financial situation has improved, deteriorated, or changed little since the conclusion of the case. The
amount of information about companies and industries available on the Internet and through online data services
is formidable and expanding rapidly. However, some instructors do not want or expect you to do further research
on an industry or company, preferring instead that you assess the industry or company situation solely on the basis
of the information presented in the case. Hence, before including any additional information on the industry or
company situations since the case was written in a written case assignment or oral case presentation, make sure
that your instructor approves of your use of information that is outside of what is contained in the case.
It is a fairly simple matter to go to company Web sites, click on the investor information offerings and press
release files, and get quickly to useful information. Most company Web sites allow you to view or print the
company’s annual reports, its 10K and 10Q filings with the Securities and Exchange Commission, and various
company press releases of interest. Frequently, a company’s Web site will also provide information about its
mission and vision statements, values statements, codes of ethics, and strategy information, as well as charts
of the company’s stock price. The company’s recent press releases typically contain reliable information about
what of interest has been going on—new product introductions, recent alliances and partnership agreements,
recent acquisitions, summaries of the latest financial results, tidbits about the company’s strategy, guidance about
future revenues and earnings, and other late-breaking company developments. Some company Web pages also
include links to the home pages of industry trade associations where you can find information about industry
size, growth, recent industry news, statistical trends, and future outlook. Thus, an early step in researching a
company on the Internet is always to go to its Web site and see what’s available.
Online Data Services
Lexis-Nexis, Bloomberg Financial News Services, and other on-line subscription services available in many
university libraries provide access to a wide array of business reference material. For example, the web-based
Lexis-NexisAcademicUniversecontainsbusinessnewsarticlesfromgeneralnewssources,businesspublications,
and industry trade publications. Broadcast transcripts from financial news programs are also available through
Lexis-Nexis, as are full-text 10-Ks, 10-Qs, annual reports, and company profiles for more than 11,000 U.S. and
international companies. Your business librarian should be able to direct you to the resources available through
your library that will aid you in your research.
Public and Subscription Websites with Good Information
Plainly, you can use a search engine such as Google or Yahoo! or Firefox or Safari to find the latest news
on a company or articles written by reporters that have appeared in the business media. These can be very
valuable in running down information about recent company developments. However, keep in mind that the
information retrieved by a search engine is “unfiltered” and may include sources that are not reliable or that
contain inaccurate or misleading information. Be wary of information provided by authors who are unaffiliated
with reputable organizations or publications and articles that were published in off-beat sources or on Web

sites with an agenda. Be especially careful in relying on the accuracy of information you find posted on various
bulletin boards. Articles covering a company or issue should be copyrighted or published by a reputable source.
If you are turning in a paper containing information gathered from the Internet, you should cite your sources
(providing the Internet address and date visited); it is also wise to print Web pages for your research file (some
Web pages are updated frequently).
The Wall Street Journal, Business Week, Forbes, Barron’s, and Fortune are all good sources of articles on
companies. The Wall Street Journal Interactive Edition contains the same information that is available daily
in its print version of the paper, but also maintains a searchable database of all Wall Street Journal articles
published during the past few years. Fortune and Business Week also make the content of the most current issue
available online to subscribers as well as provide archives sections that allow you to search for articles related to
a particular keyword that were published during the past few years.
The following Websites are particularly good locations for company and industry information:
Securities and Exchange Commission EDGAR http://www.sec.gov/edgar/
database (contains company 10-Ks, 10-Qs, etc.) searchedgar/companysearch
Google Finance http://finance.google.com
CNN Money http://money.cnn.com
Hoover’s Online http://hoovers.com
The Wall Street Journal Interactive Edition http://www.wsj.com
Business Week http://www.businessweek.com
Fortune http://www.fortune.com
MSN Money Central http://moneycentral.msn.com
Yahoo! Finance http://finance.yahoo.com/
Some of these Internet sources require subscriptions in order to access their entire databases.
Learning Comes Quickly With a modest investment of time, you will learn how to use Internet sources and
search engines to run down information on companies and industries quickly and efficiently. And it is a skill that
will serve you well into the future. Once you become familiar with the data available at the different Web sites
mentioned above and with using a search engine, you will know where to go to look for the particular information
that you want. Search engines nearly always turn up too many information sources that match your request rather
than two few; the trick is to learn to zero in on those most relevant to what you are looking for. Like most things,
once you get a little experience under your belt on how to do company and industry research on the Internet, you
will find that you can readily find the information you need.

THE TEN COMMANDMENTS OF CASE ANALYSIS
As a way of summarizing our suggestions about how to approach the task of case analysis, we have compiled what
we like to call “The Ten Commandments of Case Analysis.” They are shown in Table 2. If you observe all or even
most of these commandments faithfully as you prepare a case either for class discussion or for a written report, your
chances of doing a good job on the assigned cases will be much improved. Hang in there, give it your best shot, and
have some fun exploring what the real world of strategic management is all about.
Table 2 The Ten Commandments of Case Analysis
To be observed in written reports and oral presentations, and while participating in class discussions.
1. Go through the case twice, once for a quick overview and once to gain full command of the facts; then
take care to explore the information in every one of the case exhibits.
2. Make a complete list of the problems and issues that the company’s management needs to address.
3. Be thorough in your analysis of the company’s situation (make a minimum of 1 to 2 pages of notes
detailing your diagnosis).
4. Look for opportunities to apply the concepts and analytical tools in the text chapters—all of the cases in
the book have very definite ties to the material in one or more of the text chapters!!!!
5. Do enough number crunching to discover the story told by the data presented in the case. (To help you
comply with this commandment, consult Table 1 in this section to guide your probing of a company’s
financial condition and financial performance.)
6. Support any and all off-the-cuff opinions with well-reasoned arguments and numerical evidence; don’t
stop until you can purge “I think” and “I feel” from your assessment and, instead, are able to rely
completely on “My analysis shows.”
7. Prioritize your recommendations and make sure they can be carried out in an acceptable time frame with
the available resources.
8. Support each recommendation with persuasive argument and reasons as to why it makes sense and
should result in improved company performance.
9. Review your recommended action plan to see if it addresses all of the problems and issues you
identified—any set of recommendations that does not address all of the issues and problems you identified
is incomplete and insufficient.
10. Avoid recommending any course of action that could have disastrous consequences if it doesn’t work
out as planned; therefore, be as alert to the downside risks of your recommendations as you are to their
upside potential and appeal.

Endnotes
1
Charles I. Gragg, “Because Wisdom Can’t Be Told,” in The Case Method at the Harvard Business School, ed.
M. P. McNair (New York: McGraw-Hill, 1954), p. 11.
2
Ibid., pp. 12–14; and D. R. Schoen and Philip A. Sprague, “What Is the Case Method?” in The Case Method at
the Harvard Business School, ed. M. P. McNair, pp. 78–79.
3
For some additional ideas and viewpoints, you may wish to consult Thomas J. Raymond, “Written Analysis
of Cases,” in The Case Method at the Harvard Business School, ed. M. P. McNair, pp. 139–63. Raymond’s
article includes an actual case, a sample analysis of the case, and a sample of a student’s written report on
the case.
4
Gragg, “Because Wisdom Can’t Be Told,” p. 10.

A guide to case analysis

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