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Case: BillCutterz.com Case, 083021, 2  The criteria for grading written case presentations include:  1. Identification of key problems/strategic issues.  2. Evidence that the use of appropriate analytical tools and techniques presented in the  chapters were used in identifying strategic issues.  3. Presenting realistic, workable, well-supported recommendations for action.  4. Use of good communication skills—failure to use good grammar, spelling, and other  written communication skills will result in a full one-letter grade reduction.  5. Evidence of adequate preparation, pride of workmanship, and display of professional  attitude and approach.    Accomplishing the Case Analysis. Note that these are general statements and may not apply in every case.  a. Investigate and Analyze the Company’s History and Growth. Investigate the company’s founding, critical incidents, structure, and growth. b. Identify Corporate Level Strategy. Identify and evaluate the company’s mission, goals, and corporate strategy. Identify and assess the company’s line(s) of business, its subsidiaries, and acquisitions. Debate the pros and cons of the company strategy. c. Identify Business Level Strategy. (If the company has a single business, the corporate and business level strategies are the same.) Identify and analyze competitive strategy, marketing strategy, costs, and general focus for each business. d. Perform financial and market analyses. How is the company performing in general and with respect to the market? (i.e. competition). e. Identify Strengths and Weaknesses within the Company. Make a list of the value creation functions of the company. Which ones are stronger; which ones are weaker. f. Gather information on the external environment. Identify opportunities and threats. Especially note the competition, bargaining power of the company, and the threat of substitute products. g. Analyze Implementations. Identify and analyze the structure and control systems that the company is using to implement its business strategies. Consider organizational change, levels of hierarchy, employee rewards, conflicts, and other issues important to the company. h. Analyze Findings. Based on the information gathered, construct an evaluation. Compare strengths and weaknesses with opportunities and threats. Is the company in a strong competitive position and can it continue on its current strategy successfully.  i. Construct the report and make recommendations. Pull together all the information gathered to address the questions of the case. Remember to be analytical and not descriptive. Allow yourself enough time to properly write the case analysis. Make good use of tables, charts, and numerical analysis. Eliminate unnecessary narrative. j. Remember that “I feel”, “I believe”, “I think” are not acceptable. Acceptable are “the analysis indicates”, “the data shows”, “the report concluded”, etc. Case Analysis Requirements for this Course – this addresses primarily the format and minimum content for case analysis submittals. a. Name and Title - Make sure you include a title page. Place your name and the course number, the date, and the title of the case on this page. b. Summary Statement of the Case – Include first a summary statement of the case. Identify the company, the principals, the situations. c. Address the case questions – First, write the question then write the response to that question. Repeat this process for each question to be addressed in the case. This is where many of the facts that have been determined will be presented. Performing Case Analysis J. Robert Collins August, 2017 Introduction Case Study and Analysis is generally more complicated and time consuming than the student realizes. A good case analysis seeks to determine as many facts as possible and draw reasoned conclusions from performing appropriate analyses. Often the analyses will require financial, market, and global trends analysis. Proper analysis will always focus on facts (which include, in many situations, numbers) and the conclusions that can be drawn from the facts. Often the facts will be determined only after “digging” into available information. Case information is always more than is stated in the written case and requires the student to perform independent research – often painstaking. Students should be aware that when reporting on a case analysis “I feels” and “I thinks” are not acceptable statements to make. Following are some additional points regarding case analysis and reporting: (1) Prepare for the case analysis and report a. Allow time to have a good understanding of the case. Read carefully, take notes as needed. It may take several readings to fully grasp the issues of the case. b. First do a quick reading. Look for -principles in the case -the situation or issues; what are the strategies -timelines for decisions if any -what decisions are required c. Look over exhibits and data d. Look at the case sub-titles (i.e. the categories of information provided) e. Review the case questions f. Fully understand the assignment requirements (2) Accomplishing the Case Analysis. Note that these are general statements and may not apply in every case. a. Investigate and Analyze the Company’s History and Growth. Investigate the company’s founding, critical incidents, structure, and growth. b. Identify Corporate Level Strategy. Identify and evaluate the company’s mission, goals, and corporate strategy. Identify and assess the company’s line(s) of business, its subsidiaries, and acquisitions. Debate the pros and cons of the company strategy. c. Identify Business Level Strategy. (If the company has a single business, the corporate and business level strategies are the same.) Identify and analyze competitive strategy, marketing strategy, costs, and general focus for each business. d. Perform financial and market analyses. How is the company performing in general and with respect to the market? (i.e. competition). e. Identify Strengths and Weaknesses within the Company. Make a list of the value creation functions of the company. Which ones are stronger; which ones are weaker. f. Gather information on the external environment. Identify opportunities and threats. Especially note the competition, bargaining power of the company, and the threat of substitute products. g. Analyze Implementations. Identify and analyze the structure and control systems that the company is using to implement its business strategies. Consider organizational change, levels of hierarchy, employee rewards, conflicts, and other issues important to the company. h. Analyze Findings. Based on the information gathered, construct an evaluation. Compare strengths and weaknesses with opportunities and threats. Is the company in a strong competitive position and can it continue on its current strategy successfully. i. Construct the report and make recommendations. Pull together all the information gathered to address the questions of the case. Remember to be analytical and not descriptive. Allow yourself enough time to properly write the case analysis. Make good use of tables, charts, and numerical analysis. Eliminate unnecessary narrative. j. Remember that “I feel”, “I believe”, “I think” are not acceptable. Acceptable are “the analysis indicates”, “the data shows”, “the report concluded”, etc. (3) Case Analysis Requirements for this Course – this addresses primarily the format and minimum content for case analysis submittals. a. Name and Title - Make sure you include a title page. Place your name and the course number, the date, and the title of the case on this page. b. Summary Statement of the Case – Include first a summary statement of the case. Identify the company, the principals, the situations. c. Address the case questions – First, write the question then write the response to that question. Repeat this process for each question to be addressed in the case. This is where many of the facts that have been determined will be presented. (4) Summary of Tips and Best Practices a. Prepare properly for the case analysis – see section (1) b. Detailed reading of the case; identify the key issues, etc. c. Allow enough time to properly research and peerform the case analysis d. Apply the case analysis steps – see (2) e. Write the case and put the analysis into the format required – see (3) Note: Please refer to the “Guide to Case Analysis”, p. CA1, Thompson, Peteraf, Gamble and Strickland, “Crafting and Executing Strategy, The Quest for Competitive Advantage”, 20e, McGraw-Hill. Especially note Table 1. Key Financial Ratios: How to Calculate Them and What they Mean, pp CA4-5 and Table 2. The Ten Commandments of Case Analysis, p. CA11. Page 3 of 3 Confirming Pages 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 tho29503_case analysis_CA1-CA12.indd CA1tho29503_case analysis_CA1-CA12.indd CA1 29/11/12 11:00 AM29/11/12 11:00 AM Confirming Pages CA2 STRATEGY: Core Concepts and Analytical Approaches exposure to a variety of industries, organizations, and strategic problems; (2) forcing you to assume a mana- gerial role (as opposed to that of just an onlooker); (3) providing a test of how to apply the tools and tech- niques 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 stra- tegic analysis in a variety of industries and com- petitive situations. 3. Get valuable practice in identifying strategic issues that need to be addressed, evaluating strategic alter- natives, and formulating workable plans of action. 4. Enhance your sense of business judgment, as opposed to uncritically accepting the authorita- tive 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. 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 text- book statements of fact and definitive lecture notes are often frustrated when discussions about a case do not produce concrete answers. Usually, case dis- cussions produce good arguments for more than one course of action. Differences of opinion nearly always exist. Thus, should a class discussion conclude with- out a strong, unambiguous consensus on what to do, 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 satis- factorily. Moreover, in the business world, when one elects a particular course of action, there is no peek- ing 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 I n most courses in strategic management, students use cases about actual companies to practice stra-tegic 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 orga- nizational circumstances surrounding a particular managerial situation. It puts readers at the scene of the action and familiarizes them with all the relevant cir- cumstances. A case on strategic management can con- cern 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 manage- rial 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 con- ditions and problems of different industries and com- panies, 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 tho29503_case analysis_CA1-CA12.indd CA2tho29503_case analysis_CA1-CA12.indd CA2 29/11/12 11:00 AM29/11/12 11:00 AM Confirming Pages A Guide to Case Analysis CA3 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. If your instructor has elected not to give you assign- ment questions, then start forming your own pic- ture 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 informa- tion given; if so, the study questions will guide you. 5. Start your analysis of the issues with some num- ber 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, calcu- lating 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. 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 sur- face 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 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 cho- sen 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 analy- sis 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 pro- vide 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 lec- ture 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 consci- entious 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 prepar- ing 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 tho29503_case analysis_CA1-CA12.indd CA3tho29503_case analysis_CA1-CA12.indd CA3 29/11/12 11:00 AM29/11/12 11:00 AM Confirming Pages CA4 STRATEGY: Core Concepts and Analytical Approaches Ratio How Calculated What It Shows Profi tability Ratios 1. Gross profi t margin Sales – Cost of goods sold Sales Shows the percentage of revenues available to cover operating expenses and yield a profi t. Higher is better and the trend should be upward. 2. Operating profi t margin (or return on sales) Sales – Operating expenses Sales or Operating income Sales Shows the profi tability of current operations without regard to interest charges and income taxes. Higher is better and the trend should be upward. 3. Net profi t margin (or net return on sales) Profi ts after taxes Sales Shows after-tax profi ts per dollar of sales. Higher is better and the trend should be upward. 4. Total return on assets Profi ts after taxes + Interest Total assets A measure of the return on total monetary investment in the enterprise. Interest is added to after-tax profi ts to form the numerator since total assets are fi nanced by creditors as well as by stockholders. Higher is better and the trend should be upward. 5. Net return on total assets (ROA) Profi ts after taxes Total assets A measure of the return earned by stockholders on the fi rm’s total assets. Higher is better, and the trend should be upward. 6. Return on stockholder’s equity (ROE) Profi ts after taxes Total stockholders’ equity Shows the return stockholders are earning on their capital investment in the enterprise. A return in the 12–15% range is “average,” and the trend should be upward. 7. Return on invested capital (ROIC)— sometimes referred to as return on capital employed (ROCE) Profi ts after taxes Long-term debt 1 Total stockholders’ equity A measure of the return shareholders are earning on the long-term monetary capital invested in the enterprise. A higher return refl ects greater bottom-line effectiveness in the use of long-term capital, and the trend should be upward. 8. Earnings per share (EPS) Profi ts 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 fi rm’s ability to pay current liabilities using assets that can be converted to cash in the near term. Ratio should defi nitely be higher than 1.0; ratios of 2 or higher are better still. 2. Working capital Current assets 2 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) fi nance inventory expansion, additional accounts receivable, and a larger base of operations without resorting to borrowing or raising more equity capital. Leverage Ratios 1. Total debt-to-assets ratio Total debt Total assets Measures the extent to which borrowed funds have been used to fi nance the fi rm’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 1 Total stockholders’ equity An important measure of creditworthiness and balance sheet strength. Indicates the percentage of capital investment which has been fi nanced by creditors and bondholders. Fractions or ratios below .25 or 25% are usually quite satisfactory since monies invested TABLE 1 Key Financial Ratios: How to Calculate Them and What They Mean (Continued) tho29503_case analysis_CA1-CA12.indd CA4tho29503_case analysis_CA1-CA12.indd CA4 29/11/12 11:00 AM29/11/12 11:00 AM Confirming Pages A Guide to Case Analysis CA5 Leverage Ratios (Continued) 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 Total stockholders’ equity 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 Total stockholders’ equity Shows the balance between debt and equity in the fi rm’s long-term capital structure. Low ratios indicate greater capacity to borrow additional funds if needed. 4. 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 4 365 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 revenues ÷ 365 or Accounts receivable Average daily sales Indicates the average length of time the fi rm 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 confi dence in a fi rm’s outlook and earnings growth; fi rms 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 profi ts paid cut as dividends. 4. Internal cash fl ow After tax profi ts 1 Depreciation A quick and rough estimate of the c business is generating after payment of operating expenses, interest, and taxes. Such amounts can be used for dividend payments or funding capital expenditures. 5. Free cash fl ow After tax profi ts 1 Depreciation 2  Capital expenditures 2 Dividends A quick and rough estimate of the cash a company’s business is generating after payment of operating expenses, interest, taxes, dividends, and desirable reinvestments in the business. The larger a company’s free cash fl ow, the greater is its ability to internally fund new strategic initiatives, repay debt, make new acquisitions, repurchase shares of stock, or increase dividend payments. TABLE 1 (Continued) tho29503_case analysis_CA1-CA12.indd CA5tho29503_case analysis_CA1-CA12.indd CA5 29/11/12 11:00 AM29/11/12 11:00 AM Confirming Pages CA6 STRATEGY: Core Concepts and Analytical Approaches than one good way to analyze a situation and more than one good plan of action. 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 situa- tion 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 dis- mayed if, as the class discussion unfolds, some insight- ful 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 pen- etrating 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 exten- sive 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 pres- ent 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 sub- mit their conclusions for scrutiny and rebuttal. Each student needs to learn to state his or her views 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 infer- ence and judgment. Asking you to resolve conflict- ing information “comes with the territory” because a great many managerial situations entail oppos- ing points of view, conflicting trends, and sketchy information. 8. Support your diagnosis and opinions with reasons and evidence. The most important things to pre- pare 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 situ- ation 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 correc- tive 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, work- able 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 tho29503_case analysis_CA1-CA12.indd CA6tho29503_case analysis_CA1-CA12.indd CA6 29/11/12 11:00 AM29/11/12 11:00 AM Confirming Pages A Guide to Case Analysis CA7 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 rea- sons 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 pre- paring 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 assign- ment 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 manage- ment needs to address, (2) perform whatever analy- sis and evaluation is appropriate, and (3) propose an action plan and set of recommendations addressing the issues you have identified. In going through the exer- cise 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 dem- onstrate a good grasp of the company’s present situ- ation. Make sure you can identify the firm’s strategy (use the concepts and tools in Chapters 1–8 as diag- nostic aids) and that you can pinpoint whatever strat- egy 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. Consider beginning your paper with an overview of the company’s situation, its strategy, and the signifi- cant 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 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 opin- ion. 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 recom- mendations (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 indepen- dent 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 com- pany’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 com- pany 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 printouts of the work you’ve done on Case-T utor or the notes you’ve prepared (usually two or three pages’ worth) to class and rely on them tho29503_case analysis_CA1-CA12.indd CA7tho29503_case analysis_CA1-CA12.indd CA7 29/11/12 11:00 AM29/11/12 11:00 AM Confirming Pages CA8 STRATEGY: Core Concepts and Analytical Approaches 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 recommenda- tions come as a surprise or do not follow logically from the analysis, the effect is to weaken greatly your sug- gestions of what to do. Obviously, your recommenda- tions for actions should offer a reasonable prospect of success. High-risk, bet-the-company recommendations should be made with caution. State how your recom- mendations will solve the problems you identified. Be sure the …