Case Analysis Methodology

PASCUAL B. SAN JOSE, JR.,

CPA, MBA, DBA (Cand.)
 CASE STUDY ANALYSIS
Rational Thinking Approach to Case
Study Analysis
Means making full use of a person’s thinking
ability in analyzing a problem and arriving
at a rational decision statement.
Premises of Rational Thinking
• Four Basic Patterns of Thinking:
• Are reflected in these four basic questions:
•
• 1. WHAT’S GOING ON?-Situation Appraisal
• 2. WHY DID THIS HAPPEN?-Problem Analysis
3. WHICH COURSE OF ACTION SHOULD WE
• TAKE? –Decision Analysis
• 4. WHAT LIES AHEAD? –Potential Problem
• Analysis
•
Basic Patterns of Thinking….
1. WHAT’S GOING ON?
Demands Assessing and Clarifying.

Separating a complex situation into its

component.

Assessing, clarifying, sorting out and

imposing order on a confusing situation.
 Why Did This Happen?
• Indicates the need for “cause and effect”
thinking.
• Enables observation of the effect of the
problem and understanding its cause so
that we can take appropriate action to
correct the problem or lessen its adverse
effects.
 Which Course of Action Should
We Take?
• Implies that some choice of decisions
must be made.

• Enables a person to decide on the course

of action most likely to solve the problem.
 What Lies Ahead?
• Looks into the future.

• Assessing the probable or potential

problem that might happen in the future
and the possible consequences.
 Case Study Analysis Outline
• 1. Viewpoint
• 2. Time Context
• 3. Problem Statement
• 4. Statement of the Objective
• 5. Areas of Consideration
• (SWOT Analysis)
• 6. Assumptions
• 7. Alternative Courses of Actions (ACAs)
• 8. Analysis of ACA
• 9. Conclusion
• a. Decision Matrix
• b. Selection of Best ACA
• 10. Plan of Action
• 11. Implementation and Control
 Case Analysis Outline…
• VIEWPOINT
• Refers to the person who is the decision
maker or who can effectively recommends
the solution to the case or problem under
study. It can also refer to a consultant
hired to recommend a solution to the
problem.
 Case Analysis Outline…
• TIME CONTEXT
• Delineates the take-off point of the
analysis.
 Problem Statement
• Refers to the concise statement of the
existing problem.
• Should be objective and written in clear
and simple terms.
• We define the problem by a “Deviation
Statement”.
 Structure of a Problem

Desired State Should

Should Change
Deviation

Present
(Actual)
 Structure of a Problem
• Deviation Statement
• The deviation statement is the precise
description of the “change” from the
“should” to “actual” situation.
• “ A problem well-defined is a problem half-
solved.”
• Develop a problem statement that actually
and clearly describes the current situation
you want to change.
 Problem Statement
• Consider the following questions:
• 1. Is the problem stated objectively?
• 2. Is the problem limited in scope?
• 3. Does everyone involved have a
common understanding of the problem?
 Problem Statement…
• When developing problem statement:
• 1. Avoid including any “implied cause” in
the problem statement.
• 2. Avoid including any “implied solution” in
the problem statement.
• Example of Problem Statement:
• “The customer satisfaction index has
declined from 89% to 81% in the last 12
months.”
 Statement of the Objective
• Refers to the “desired state” or where you want
to be or what you want to achieve after the
problem has been resolved.
• Should satisfy the criteria of SMART:
• S-pecific
• M-easurable
• A-ttainable
• R-ealistic
• T-Time-bound
 Statement of the Objective
• Example of Statement of the Objective:
• “The customer satisfaction Index should be
at least 89% by the end of 2006”

• It should be able to pass the “so what” test.

Meaning is the problem worth solving and why?
• “The problem is important to solve because the
decline in the customer index will eventually lead
to a loss in sales and market share”.
 Areas of Consideration
(SWOT ANALYSIS)
• Refer to internal and external factors or environment
mentioned in the case study and that can positively or
negatively affect the resolution of the problem or case
under study.
• Factors for consideration is the SWOT criteria:
• Internal Factors:
• -Strength
• -Weaknesses
• External Factors:
• -Opportunities
• -Threats
• From the SWOT analysis, you can identify factors that
are the most likely root causes of the problem.
 SWOT-STRENGTHS
• Potential resource strengths and competitive opportunities (present
& future):
• - A powerful strategy supported by good skill and expertise in key
areas.
• - Ability to keep talent.
• -Proven skills in key areas.
• -A strong financial condition; ample financial resources.
• -Strong brand name/image/company reputation.
• -Efficient operations/economies of scale.
• -Proprietary technology/superior technological skills/ important
patent cost advantage.
• -Strong advertising and promotions.
• -Product innovation skills and high product quality.
 SWOT-WEAKNESSES
• Potential resource weaknesses and competitive deficiencies
(present & future):
• -No clear strategies.
• -Inability to keep talent.
• -Missing some skills or competencies/lack of management depth.
• -A weak balance sheet: burden with heavy debts.
• -Weak brand image/reputation.
• -Plagued with internal operating problems.
• -Falling behind in R & D.
• -Higher overall unit cost relative to key competitors.
• -Sub-par marketing skills relative to rivals.
• -Behind in product innovation and quality.
 SWOT-OPPORTUNITIES
• Potential Present and Future Opportunities:
• -New customer groups or expanding into new
geographic markets or product segments.
• -Expanding product line to meet broader range of
customers’ needs.
• -Falling trade barriers in attractive foreign markets.
• -Openings to take market share from rival firms.
• -Alliances or joint ventures to expand market coverage
and competitive capability.
• -Acquisition of rival firms, customers, or suppliers.
• -Openings to explore emerging new technologies.
 SWOT-THREATS
• Potential external threats (Present & Future):
• -Likely entry of potent competitors through existing or new channels
of distribution.
• -A shift in buyers’ needs and tastes away from the industry’s
products.
• -Adverse demographic changes narrowing demands for products.
• -Loss of sales to substitute products or new channels of distribution.
• -Adverse shifts in foreign exchange rates and trade policies of
foreign governments.
• -Slowdowns in market growth.
• -Growing bargaining power of customers or suppliers.
• -Takeover by another firm.
• -Unanticipated changes in the value of core technology.
• -Vulnerability to recession and business cycle.
 ASSUMPTIONS (Optional)
• Refers to factors that are not specifically
mentioned in the case study but need to
be stated to either limit or enhance the
scope of the analysis.
 ALTERNATIVE COURSES OF
ACTIONS (ACAs)
• Refer to possible solutions to the defined
problem.
• Each ACA must be able to solve the
problem and attain the objective.
• Must be able to come up with at least two
or three ACAs from which to choose the
best solution/ACA.
 ANALYSIS OF THE ACAs
• Refers to the analysis of each ACA
considering the factors stated in the areas
of consideration (SWOT) and
assumptions.

• State the PROs and CONs of each ACA.

 CONCLUSION/SELECTION OF
THE BEST ACA
• DECISION MATRIX
• Preparing a decision matrix will ensure that you
reach the best solution/ACA for the problem.
• -Determine decision criteria that are
appropriate for selecting the best ACA.
• -Define clearly the decision criteria.
• -Assign weights to the criteria to show how
important they are relative to each other. (This
can be done by assigning a number or
percentage to each criterion so that all the
criteria shall total to 100%).
 Decision Matrix
• Example of Decision Matrix:
• Decision Criteria Defined As Weight
• 1. Ease of Imple- How easy would
• mentation. It be to implement
• the solution/ACA 30%
• 2 Probability of How likely is it that
• Success. the ACA could be
• successfully imple-
• mented. 50%
• 3. Relative How much resistance
• Resistance might there be to imple-
• menting the ACA. 20%
• Total Weights 100%
 Decision Matrix
• Decision Criteria ACA 1 ACA 2 ACA 3

• 1. Ease of Imple-
• mentation- 30% 15% 10% 5%
• 2. Probability
• of Success- 50% 25% 15% 10%
• 3. Relative
• Resistance- 20% 10% 5% 5%
• Total 100% 50%** 30% 20%
• The best ACA is ACA # 1
 ACTION PLAN
Refers to the detailed plans to efficiently and
effectively implement the selected ACA. The
action plan shall indicate the:
1. WHAT activities to undertake?
2. WHO (persons/groups) will perform the
specific activities?
3. WHEN (time frame) will be the start and
completion of the activities?
4. HOW MUCH (cost/budget) is alloted to
implement the activities of the action plan.
 Action Plan
Task/ Responsible Begin End
Activities Person/Unit Date Date Costs
1.Design HRD
Training Dept. 7/1/06 8/31/06 P50,000
Program
Note: Tied with your action plan is the contingency plan,
just in case some of your action plan activities get
stalled, sidetracked, or had to be changed midstream,
because of something that came up along the way.
Even the best of plans could go wrong, so you should be
ready what to do.
 Implementation & Control
• Refers to the actual implementation and
monitoring of the action plan to ensure:
• 1. That the action plan is implemented as
• planned.
• 2. That the best ACA is achieved.
• 3. That the stated problem is solved.
• 4. That the defined objective is attained.
• 5. That the corrective measures are
• made (if necessary)
•
• THE END

• THANK YOU AND GOOD DAY

• PROF. P. B. SAN JOSE, JR.

• CPA, MBA, DBA (Cand.)