Case Study Analysis GEB 4890 Business Strategy Fall

Case Study Analysis GEB 4890 Business Strategy Fall 2000

Why use Case Study Analysis? • Provides you with experience not ordinarily available • Cases illustrate theory and content of strategic management • Provides you with the opportunity to participate in class and present your ideas to others

Detailed Case Analysis • Eight Areas: – History, development, & growth of company – Identification of internal strengths and weaknesses – Analysis of the external environment – SWOT analysis – Type of corporate-level strategy pursued by the company – Nature of the company’s business level strategy – Company’s structure and control systems and how they match its strategy – Recommendations

Writing a Good Case Study. Additional Points • Do not repeat large pieces of factual information • Make your discussion flow logically and soundly • Avoid grammatical and spelling errors • Do a library and/or Internet search for information • Can use questions handed out by instructor

Position Papers • Use Case Study Guidelines and Rubric from Syllabus • Collect information on the company

Financial Analysis in Case Analysis • Profit Ratios – Gross Profit Margin – Net Profit Margin – Return on Total Assets – Return on Stockholder’s Equity • Liquidity Ratios – Current Ratio – Quick Ratio

Financial Analysis in Case Analysis • Activity Ratios – Inventory turnover – Days Sales Outstanding • Leverage Ratios – Debt-to-assets Ratio – Debt-to-Equity Ratio – Times Covered Ratio

Financial Analysis in Case Analysis • Shareholder Return Ratios – Total Shareholder Returns – Price-Earnings Ratio – Market to Book Value – Dividend Yield • Cash Flow

Ten Commandments of Case Analysis To be observed in written reports and oral presentations, and while participating in class discussions From Thompson, A. A. , Jr. & Strickland, A. J. , III. (1995). Strategic Management: Concepts and Cases, Eighth Edition. Chicago: Irwin

Number One • Read the case twice, once for an overview and once to gain full command of the facts; then take care to explore every one of the exhibits

Number Two • Make a list of problems and issues that have to be confronted.

Number Three • Do enough number crunching to discover the story told by the data presented in the case.

Number Four • Look for opportunities to use the concepts and analytical tools you have learned earlier.

Number Five • Be thorough in your diagnosis of the situation and make an outline of your assessment.

Number Six • Support any and all opinions with wellreasoned arguments and numerical evidence. Don’t stop until you can purge “I think” and “I feel” from your assessment and, instead, can rely completely on “My analysis shows”.

Number Seven • Develop charts, tables, and graphs to expose more clearly the main points of your analysis.

Number Eight • Prioritize your recommendations and make sure they can be carried out in an acceptable time frame with the available skills and financial resources. 1. 2. 3.

Number Nine • Review your recommended action plan to see if it addresses all of the problems and issues you identified.

Number Ten • 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.