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Case Study Analysis and Case Study Method

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Case Study Analysis and Case
Study Method

Dr Martin Davies
<wmdavies@unimelb.edu.au>
Outline
„ Kinds of Projects in Faculty
„ Advantages and Disadvantages of each

„ What is Case Study Method?

„ How to write a Case Study and how to Analyse one
„ Structure of Case Study Analysis
„ What to cover in your Analysis of a Case Study
„ Some Examples of Good and Bad Case Studies

10/02/2005 Dr Martin Davies 2

Kinds of Projects
„ Projects involving forms of conventional empirical or
experimental research (surveys, statistics,
questionnaires, fieldwork)
„ Theoretical projects looking mainly at a conceptual
issue
„ Case Method: analysis of a real world problem of which
he or she has experience or been able to observe.

10/02/2005 Dr Martin Davies 3

Empirical Projects
Advantages Disadvantages
„ “Real life” data that can be „ Enormous effort in terms of
measured. question design
„ Most empirical studies are „ carrying out of fieldwork.
“large-n” studies (involving „ May be inconclusive
many participants) „ Re-testing is sometimes
„ Can be shown to be required.
statistically significant.

10/02/2005 Dr Martin Davies 4

Conceptual Projects
Advantages Disadvantages
„ Easier to carry out „ Solitary and isolating
„ No need to plan and set up experience
empirical tests „ Often little real world
„ only articles and books are application.
needed, as well as time to
think.

10/02/2005 Dr Martin Davies 5

What is a Case Study?
„ ‘A case study presents an account of what happened to
a business or industry over a number of years. It
chronicles the events that managers had to deal with,
such as changes in the competitive environment, and
charts the managers’ response, which usually involved
changing the business- or corporate-level strategy’
(from Seperich, Woolverton, Beierlein and Hahn, 1996)

10/02/2005 Dr Martin Davies 6

What is Case Study Method?
Robert K. Yin defines the case study research method as:

„ ‘… an empirical inquiry that investigates a contemporary

phenomenon within its real-life context; when the
boundaries between phenomenon and context are not
clearly evident; and in which multiple sources of
evidence are used’ (Yin, 1984, p. 23).
„ Diagram

10/02/2005 Dr Martin Davies 7

Features of Case Study Method
„ Uses multiple sources of evidence
„ “Real life” context
„ Empirical
„ Progress of a company or industry
„ Focus on competitive environment and
strategic/operational changes

10/02/2005 Dr Martin Davies 8

Case Studies
Advantages
„ Use small data sets (such as
one or two companies)
„ Generalises about trends in
relevant industries
„ “Real life” in the sense that a
company or companies have
been chosen as the source
of the data
„ Only method possible in
some areas of inquiry
10/02/2005 Dr Martin Davies
Disadvantages
„ Does not ensure reliability or
generality of findings.
„ Intense exposure to study of the
case biases the findings.
„ Useful only as an exploratory (not
explanatory) tool.
„ “Small-n” data and therefore
conventional empirical techniques
cannot be used—or where they are
used they have limited application.
„ May lack methodological rigour
„ Contextual nature of evidence is
limiting
9
Further Advantages
„ It involves detailed, holistic investigation (for example,
all aspects of a particular company)
„ Data can be collected over a period of time
„ Data is contextual (relative to a certain industry)
„ A range of different measurement techniques can be
applied (the case study researcher is not limited to any
one methodological tool).
„ The histories and stories that can be told about the
company can be illuminating
10/02/2005 Dr Martin Davies 10
Writing and Analysing a Case Study
„ You may be asked to:
„ Write a case study (using case study method)
„ Analyse a case study

„ The former requires a report of some length with a

research question and company(ies) you have chosen
„ The latter requires a report analysing a problem that
occurs in a written case you have been asked to study
„ There is no “right way” to do either but there are
common things that should be included
10/02/2005 Dr Martin Davies 11
Writing a Case Study
Steps to Take:
„ Establish the broad ‘case’ to investigate
„ Establish and define the research questions
„ Select the precise case(s) to be used
„ Determine data gathering and analysis techniques
„ Prepare to collect the data
„ Collect data in the field
„ Evaluate and analyse the data
„ Prepare the report (see separate flyer)

10/02/2005 Dr Martin Davies 12

Case Study Analysis
If asked to analyse a case study:

„ Need to select case carefully (this may be given to you)

„ Analyse the problem with the company or industry
„ Write a report based on findings.
„ Once again, no “right way” but some common things
need to be included

10/02/2005 Dr Martin Davies 13

Case Study Analysis
1. Title page
2. Letter/Memo of transmittal (optional)
3. Table of contents
4. Executive Summary
5. Problem Identification and Analysis
6. Statement of Major Problems
7. Generation and Evaluation of Alternate Solutions
8. Recommendation(s)
9. Implementation
10. Bibliography
11. Appendices
10/02/2005 Dr Martin Davies 14
Structure of Case Analysis (1)
Abstract
Title page
Letter/Memo of transmittal (optional)
Introduction Table of contents (can give different
headings)
Problem
Identification and
Analysis
Executive Summary/Abstract
Statement of
problem(s) „ Brief overview of the case, setting
Generation and the scene and noting any important
Evaluation of
Solutions assumptions made.
„ give a synopsis of your case report,
Recommendations noting very briefly the major
and Implementation problems identified and the
recommended solutions.
„ Approximately one page is
Conclusion
required.

10/02/2005 Dr Martin Davies 15

What to Include…
„ The history, development, and growth of the company over time
„ The identification of the company's internal strengths and
weaknesses
„ The nature of the external environment surrounding the company
„ A SWOT analysis (or another kind of analysis)
„ The kind of corporate-level strategy pursued by the company
„ The nature of the company's business-level strategy
„ The company's structure and control systems and how they
match its strategy
„ Recommendations and implementation plan

(from Business Resources for Students, 2003)

10/02/2005 Dr Martin Davies 16

Structure of Case Analysis (2)
Problem Identification and Analysis
„ In this section you should identify all the major problems in the
case in behavioural terms ( i.e. If you are studying a
management subject, in management/organisational behaviour
terms).
„ Try to get to underlying causes of problems, not just symptoms.
„ You should link each problem identified to relevant theory and
also to actual evidence from the case.
„ Remember you must integrate theory and reference all non-
original work.

10/02/2005 Dr Martin Davies 17

 Structure of Case Analysis (3)
Statement of Major Problems

„ In most case studies you will identify a number of problems—too

many students attempt to actually ‘solve’ the problems
„ It is crucial to make it very clear which are the major two or three
problems or key issues, that must be solved first.
„ This section should consist of a short concise statement of the
problems you are going to solve in the remainder of the case.
„ Approximately half a page is adequate.
„ Check back to ensure that you are actually attempting to solve
them, rather than focusing on other minor problems that you may
have identified.
„ This section is crucial to a good case report.
10/02/2005 Dr Martin Davies 18
Structure of Case Analysis (4)
Generation of Solutions

„ Identify and evaluate a number of the more appropriate solutions

(at least two to three for each major problem identified).
„ Each alternative solution should be briefly outlined and then
evaluated in terms of its advantages and disadvantages (strong
and weak points).
„ It is not necessary to make a statement in this section as to
which alternative is considered best— this is stated in the next
section.
„ Do not integrate or recommend theory in this section. Practical
solutions to the problems are required.
10/02/2005 Dr Martin Davies 19
Structure of Case Analysis (5)
Recommendations

„ State which of the alternative solutions (either singly or in

combination) identified in previous section are recommended
„ Justify your choice, explaining how it will solve the major
problems identified in section six. Integration of relevant theory
„ Recommend precise courses of action that the company needs
to take.

10/02/2005 Dr Martin Davies 20

A Warning
Note: Students often confuse the findings, conclusions
and recommendations.

„ Findings are factual and verifiable statements of

what happened or what was found.
„ Conclusions are your own ideas that you deduce
from your findings.
„ Recommendations are what you want done.

10/02/2005 Dr Martin Davies 21

Structure of Case Analysis (6)
Implementation
„ Write your recommendations in the form of an action plan. It is
good to include a timetable of what should be done when.
„ Explain how you will implement the recommended solutions.
„ What should be done,
„ by whom
„ When
„ in what sequence,
„ what will it cost (rough estimates) and other such issues.
„ Remember, if a recommended solution cannot be realistically
implemented, then it is no solution at all.
10/02/2005 Dr Martin Davies 22
What to do … (1)
„ Read the case thoroughly.
„ the first time to get an overview of the industry, the
company, the people, and the situation.
„ Read the case again more slowly, making notes as you
go.
„ Define the central issue. Many cases will involve
several issues or problems.
„ Identify the most important problems and separate
them from the more trivial issues.
„ After identifying what appears to be a major underlying
issue, examine related problems.
10/02/2005 Dr Martin Davies 23
What to do … (2)
„ Define the firm's goals (only if applicable).
„ Inconsistencies between a firm's goals and its performance may
further highlight the problems discovered in step 2.
„ Identifying the firm's goals will provide a guide for the remaining
analysis.
„ Identify the constraints to the problem (only if applicable).
„ The constraints may limit the solutions available to the firm.
„ Typical constraints include limited finances, lack of additional
production capacity, personnel limitations, strong competitors,
relationships with suppliers and customers, and so on.
„ Constraints have to be considered when suggesting a solution.

10/02/2005 Dr Martin Davies 24

What to do … (3)
„ Identify all the relevant alternatives.
„ The list should include all the relevant alternatives that could solve
the problem(s) that were identified.
„ Use your creativity in coming up with alternative solutions.
„ Even when solutions are suggested in the case, you may be able to
suggest better solutions.
„ Select the best alternative.
„ Evaluate each alternative in light of the available information.
„ Resist the temptation to jump to this step early in the case analysis
„ You will also need to explain the logic you used to choose one
alternative and reject the others.

10/02/2005 Dr Martin Davies 25

What to do … (4)
„ Develop an implementation plan.
„ Plan for effective implementation of your decision. Lack
of an implementation plan even for a very good decision
can lead to disaster for a firm and for you.
„ Don't overlook this step. It is important as a future
manager to be able to explain how to implement the
decision.
(Seperich, G.J, M.J. Woolverton, J. G. Beierlein and D. E.
Hahn, 2003).

10/02/2005 Dr Martin Davies 26

 Use of theory
to evaluate Analysis of Case
and recommend actions

Identification of
“problem(s)”

10/02/2005 Dr Martin Davies 27

Things you can cover (1)
„ Human resources/people management issues
„ E.g., New manager finds people unresponsive to his/her
new changes. Why? Background to problem? How can
they overcome resistance?
„ Cultural or ethical problems
„ E.g., company that cannot make headway in Asia (why
not? What can it do to overcome problem?)
„ Leadership issue
„ Change scenario

10/02/2005 Dr Martin Davies 28

Example 1
Does Aloha have a clear business strategy? What are the
SWOT?
„ Yes, no or in part
„ Why? Basis for strategy?
„ Is it context dependent?
„ Identify the SWOTs and explain why you consider them
good/bad or otherwise

10/02/2005 Dr Martin Davies 29

Example 2
What strategy do you think is viable – low cost or product
differentiation. Explain

„ Which strategy and WHY? Provide evidence and

explain your reasoning.
„ What is the theoretical and practical justification for your
answer?

10/02/2005 Dr Martin Davies 30

Example 3
Identify key success factors and performance measures that would
be relevant and effective under either low cost or differentiation
strategies.

„ Which factors? What PMs?

„ Why? How can you explain your answer?
„ What evidence do you have?
„ How can you use the theory to explain your reasoning?

Why are these key success factory linked to that

particular strategy? Demonstrate your understanding of
theory.
10/02/2005 Dr Martin Davies 31
Example 4
What other mechanisms of management control might
be useful other than formal PMCSs.

„ Use the case study

„ What other mechanisms might be used?
„ Why?
„ Explain your reasoning
„ Draw on lecture materials for theory (other control mechanisms
may not be mentioned in the case)

10/02/2005 Dr Martin Davies 32

Things you can cover … (2)
Analyse the company's history, development, and growth.

„ What circumstances led to the company being established?

„ What products did it make initially and what does it make now?
„ How does the company make new product decisions?
„ How has the company evolved over time?
„ How has it chosen its marketing strategies, etc?
„ How did the company take steps to enter new markets?
„ How and why did the company choose to merge or takeover
another company?
„ What were the main changes to the company during its history?
(e.g., types of employees, strategic direction, etc.)

10/02/2005 Dr Martin Davies 33

Things you can cover … (3)
Identify internal strengths and weaknesses
„ The strengths and weakness, opportunities and threats
to the company should then be analysed. You will need
to:
„ Look at the value creation functions of the company
„ Outline the functions in which the company is currently
strong and currently weak. (Some companies might be
weak in some areas and strong in others.)
„ Make lists of these strengths and weaknesses.

10/02/2005 Dr Martin Davies 34

Things you can cover … (4)
Analyse the external environment
„ The environmental factors relevant to the industry
„ The environmental factors that effect companies (and
the company you are analysing in particular)
„ The particular stage of the lifecycle that the company is
in
„ Other factors (for instance, demographic factors, global
financial changes, etc).

10/02/2005 Dr Martin Davies 35

Things you can cover … (5)
Evaluate the SWOT analysis
„ Is the competitive position of the company strong or not?
„ Can the strategic direction of the company continue?
„ How can the company consolidate its strengths, enhance its
opportunities, overcome its threats and minimise its
weaknesses?
„ Can it change its corporate strategies to achieve the above or is
something else needed?
„ NB: It is crucial to analyse the strengths, weaknesses,
opportunities and threats—not simply give a “shopping list” of the
key factors. You must elaborate and discuss each factor in detail
and provide evidence for your claims.
10/02/2005 Dr Martin Davies 36
Things you can cover … (6)
Analyse corporate-level strategy
„ Using information available, try to assess the strategic corporate
directions of the company. The following are very important:
„ line(s) of business of the company
„ its subsidiaries and acquisitions
„ the relationship among the company's core and non-core
businesses
„ Questions such as the following will need to be answered:
„ Are resources exchanged freely between different parts of the
company?
„ Is synergy between the subsidiaries warranted or needed?
„ What is role of the company’s portfolio of investments?

10/02/2005 Dr Martin Davies 37

Things you can cover … (6 continued)
„ How diversified is the company?
„ Does the company operate as a core business
„ Is the company functioning as it should given the current
environment?
„ Could changes in strategic direction and corporate culture make
a difference to its operations?
„ Could weaknesses become strengths given certain
changes/environmental factors?
„ Should the company consider merging or diversifying?
„ Has the strategy changed during its development as a company?
„ Were these changes good or bad overall? Why?
„ What improvements can be made to the company’s product
lines? etc.
10/02/2005 Dr Martin Davies 38
Things you can cover … (7)
Analyse business-level strategy

„ The aim of the company’s global competitive strategy—i.e., is it

differentiation, low cost, or targeted markets?, etc.
„ The value of the investment goals of the company given its
strategic focus and the stage in the lifecycle of the company
„ The product range of the company, its differentiation, and
competitiveness.
„ How is the company using strategies to build competitive
advantage? (quality, efficiency, innovation, responsiveness to
customer needs, etc)

10/02/2005 Dr Martin Davies 39

Things you can cover … (7 continued)
„ What is the marketing strategy of each of the business levels in
the company?
„ What production techniques are being used and how can they be
improved?
„ Is the company doing research and development? Is it effective
and adequately tied to corporate aims?
„ Does the corporate strategy accurately reflect the aims of the
company in terms of producing low-cost or differentiated
products? (The strategy will be very different).
„ Has the company developed the right competencies in terms of
staffing, production techniques, marketing, etc?
„ Can the company simultaneously pursue both a low-cost and a
differentiation strategy?

10/02/2005 Dr Martin Davies 40

Things you can cover … (8)
Analyse structure and control systems
„ Different corporate strategies require different structures. These
need assessment. Issues you might like to consider:
„ Is the hierarchy or decentralized control of the company
adequate given the levels in the company?
„ Should horizontal differentiation be adopted (does it use a
functional structure when it should be using a product structure)?
„ Are the appropriate control systems being used?
„ Are appropriate rewards being given to managers?
„ Is cooperation among divisions being encouraged by a suitable
reward system?

10/02/2005 Dr Martin Davies 41

Things you can cover … (9)
Make Recommendations
„ You will need to recommend precise courses of action that the
company needs to take.
„ e.g., The company should adopt a horizontal control structure
and reduce its product lines to include only the following
products: …
„ Recommendations might include:
„ an increase in spending on specific research and
development projects
„ the divesting of certain businesses, a change from a strategy
of unrelated to related diversification
„ an increase in the level of integration among divisions by
using task forces and teams
(from Business Resources for Students, 2003)
10/02/2005 Dr Martin Davies 42
In Summary

„ Case Study Method and Analysis of Case Studies

„ Follow structure and logical format (NB: There is no “right way”)
„ If analysing a case be sure the problem is clearly stated and the
solutions and recommendations clearly drawn from data
presented

10/02/2005 Dr Martin Davies 43

View publication stats

Exercise
„ Compare sample case studies

10/02/2005 Dr Martin Davies 44