Logical Structuring: Case Competition Training

Logical Structuring
Case Competition Training

Strategy and Operations
January 8, 2008
©2005 Deloitte Inc.

Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
2
Purpose
The purpose of this session is to help prepare you for this week’s case
competition.
Objectives
By the end of this session you should have a better understanding of:
 How to logically structure a case presentation:
• Logical Structuring & Storyboarding
 How to use quantitative and qualitative data to support your research
• Research Tips
• Example
 How to execute a successful presentation:
• Professionalism
 Examples of previous presentations:
• DOs & DON’Ts
3
Professionalism
Do’s and Don’ts
Appendix
4
Why does structure matter?
1. Makes the message precise

 Forces the writer to be “dead clear” about what they are
communicating to the reader, preventing messages that are unclear,
unintended, or intellectually empty
2. Reveals gaps in thinking
 Enables the writer to identify gaps by anticipating and responding to
the reader’s questions before the communication is delivered
3. Provides clarity to the reader
 Prevents the reader from “working” to understand the message,
thereby eliminating the possibility that your message is misunderstood
or ignored entirely
Memo A Memo B
John Collins telephoned to say he can’t make the Could we reschedule today’s 9:00 meeting
meeting at 9:00. Hal Johnson says he doesn’t mind to Thursday at 11:00? This would make it
making it later or even tomorrow, but not before more convenient for Collins and Johnson,
10:30 and Don Clifford won’t return from Frankfurt and would permit Clifford to be present. It
until tomorrow late. The conference room is is also the only other time this week that the
booked tomorrow, but free on Thursday. Thursday conference room is free.
at 11:00 looks to be a good time. Is that okay with
you?
5
The Pyramid Structure
Governing Thought: Explains how

States the answer to the question or why
raised in the readers mind
Key Line:
Major points which, taken
together prove the answer
Support:
Data and facts which
support the key line
6
An Unstructured Communication
ABC should go online

and the first priority should be to
defend its current market share
Primary benefits
Opportunities of the internet
and threats strategy
ABC’s current
ABC’s Without an
customers are Develop
competitors
competitors online channel ABC’s
ABC’s online
online
more
more likely
likely to
to are increasing deeper Support ABC’s
are increasing ABC risks sales in
in 2005
2005 Defend Grow
Grow
shop online
online relationships operating
operating
their online losing
losing some
some could
could reach
reach market
market share
share revenue
revenue
than the with
with strategy
strategy
product
product customers
customers toto $100mm
general customers
assortment
assortment competitors
population
7
A Structured Communication
Acme can reduce costs by

$10mm in the next 2 years
Governing Thought: through some operational
improvements
Re-engineer core Outsource non-core Differentiate service

Key Line: functions to save $5mm functions to save $3mm levels to save $2mm
Compare
Compare Evaluate
Evaluate Determine
Determine Shift
Shift lower
lower
Evaluate
Evaluate Choose
Choose
cost
cost of
of Adopt
Adopt best
best cost
cost and
and economic
economic value
value
internal
internal Select
Select one
one Segment
Segment
function
function toto practices
practices service
service level
level of
of segments
segments
Support: cost
cost of
of best-in-
best-in- based
based on
on
non-core
non-core level
level of
of
partner
partner for
for customers
customers service
service for
for to
to lower
lower
core
core functions
functions each
each by
by value
value
class
class benchmarks
benchmarks potential
potential each
each cost
cost
function
function function
function
benchmarks
benchmarks partners
partners segment
segment channels
channels
8
Three Key Rules to Apply When Building a Pyramid
1. Ideas at any level must be summaries of the ideas grouped below

– Derived from high-level ideas
– Point of a paragraph is a summary of the sentences it contains
2. Idea in each grouping must always be the same kind of ideas

– All ideas are from the same logical grouping
– Label idea with a plural noun
3. Ideas in each grouping must be in a logical order

– Deductively
– Chronologically
– Structurally
– Comparatively
Copyright © 2006 Deloitte Development LLC. All rights reserved. 9

Elements of the Introduction
• Situation: A statement about the

subject with which you know
the reader will agree
• Complication: The complicating event that

create the tension in the
Governing Thought: story
• Question: The implicit question that
results from the complication
Answer
Key Line:
Support:
10
Structuring a Response to How
S: Acme must increase its

focus on the coyote market
Governing Thought: Acme must develop a C: Acme is not currently
value proposition tailored focused on the coyote
to the coyote market. market
Q: How can Acme focus on
the coyote market?
How?
Key Line:
Understand the unique Adapt product line to meet Educate coyotes on Acme’s
needs of coyotes coyote needs ability to meet their needs
Step 1 Step 2 Step 3
11
Structuring a Response to Why
S: Approval for DrugsRUs

new lifestyle drug Antizak
is taking longer than
expected
DrugsRUs should spend C: DrugsRUs can spend $25
Governing Thought: $25 million to accelerate million to accelerate the
the approval process for approval process
Antizak Q: Should DrugsRUs spend
$25 million to accelerate
Why? the approval process?
Key Line: Earlier approval allows

Competitors are
The Antizak market is DrugRUs more time
developing a substitute
expected to top $1 billion before patent protection
that may capture the
per year expires, which is worth
market if launched first
$200 million in profit
Reason 1 Reason 2 Reason 3
12
Which Question is Raised - How or Why?
S: The plant is not meeting its widget production goals

C: The production line is frequently stopped because of insufficient parts
Q: What should the plant do differently?
A: The parts procurement process needs to be redesigned to reduce fulfillment time
S: Sow’s Ear Inc. developed a silk purse product line 2 years ago
C: Since then, the silk purse division has been unprofitable
Q: What should Sow’s Ear do?
A: Sow’s Ear Inc. should abandon its silk purse product line
S: ABC, a book retailer, is considering developing an online channel

C: The online retail book market is dominated by 2 strong players
Q: Should ABC develop an online channel?
A: Yes, ABC should go online
S: You have undertaken a number of initiatives to improve customer service

C: Customer service continues to result in decreased customer satisfaction
Q: How can we improve customers service?
A: We must redesign customer service
13
Clarifying Grouped Ideas
Identify the Type Summarize the

List the Points Order the Points
of Point Points
Activities: Synthesize Put the points Write a Put the points in

findings from into categories sentence that logical order,
interviews, by defining the states the such as order of
research and kind of problem “essence” of importance or
analysis being discussed, each category time order
Create a list attempting to
of key points use similar level
of abstraction
across
categories
14
The Importance of MECE
Example
Making Dinner:
• Select menu
Mutually Do any of the points • Buy ingredient
Exclusive overlap? • Prepare courses
MECE Mobile Phone Types:

• Analog
• Digital
• GSM
Collectively Have all possibilities Reasons to acquire competitor ABC:

• Complimentary customer base
Exhaustive been covered?
• Superior technology
• Digestible size
Points across horizontal levels of the pyramid should be MECE

(Mutually Exclusive, Collectively Exhaustive)
15
Storyboarding
Creating a storyboard provides an outline for the presentation and the path you will follow:
 Uses Pyramid Structure as a foundation
 Maps out the storyline of a presentation
 Establishes team and judging panel’s expectations about what is to be produced and delivered
 Helps organize work and define data needs
 Establishes evaluation frameworks and criteria used in the assessment
 Facilitates greater productivity and higher quality
 Keeps an engagement focused
16
Creating the Storyboard
Situation
Complication Page 1
(Question)
Cutting
Cutting Edge
Edge Corporation
Corporation
should close its razor
razor
manufacturing
manufacturing operation
operation
Governing Thought: in Wisconsin and
Page 2
manufacture razors in
Mexico
Mexico
Overall costs
costs in
in Mexico
Mexico are
are Mexico provides an Manufacturing technology is is
Key Line: 75% lower than in operating
operating environment
environment that
that more
more advanced
advanced in
in Mexico
Mexico Each
Wisconsin, is
is as
as stable
stable as
as Wisconsin,
Wisconsin, than in Wisconsin, enabling requires
resulting in recovery of ensuring continuity of Cutting Edge to leverage
leverage a set-up
moving costs in 6 months operations leading
leading edge
edge capabilities
capabilities page
Support:
One page for each idea
17
Professionalism
Do’s and Don’ts
Appendix
18
 It’s important to use both quantitative and qualitative observations to support

your recommendation
•Qualitative data and analysis is required as hard justification for your
recommendation (e.g., dollar savings, head count reduction)
•Qualitative data can be used to support and explain the meaning of quantitative
research
•Combining methods leads to a balanced, persuasive argument
Definition Examples Sources
•Numerical and statistical •Firm stock value •financial

•Most suitable when the •Market share statements
Quantitative objective is to measure or •Net Present Value •statistical studies
quantify data •surveys
•Answers the “what” questions •censuses
•Interpretive and insightful •Pending lawsuits •press releases

•Most helpful when the goal is •Consumer trends •annual reports
to understand situations or •Market perception •industry white
Qualitative
provide context papers
•Answers the “how” and “why" •analyst reports
questions
19
Research Tips
 Structuring your research using a defined approach can help you research
effectively in a short period of time
• Several models can be applied to help you structure your research. One
example is Porter’s Five Forces
 Your approach to case research should mirror the logical structuring of your
presentation
• Governing Thought (Recommendation)  Key Lines  Support
 But how do you know what your recommendations are before conducting
your research?
 Answer: Guess.
• Based on your initial impressions of the case, generate some hypotheses on
what you think the company should do. Then, based on your hypotheses,
look for supporting evidence
• The advantage of this approach is that it can dramatically reduce the amount
of time spent on research. You will be focusing your efforts on facts that
support your hypotheses
 Begin by creating a research log
• This is a file that documents all of the research sources that have been
reviewed and includes a summary of key findings, facts and sourcing
information. A research log allows for easy dissemination of key findings
saving time. Assign a format and owner up front
20
Example
21
Professionalism
Do’s and Don’ts
Appendix
22
Professionalism – Execution of the presentation
There are two key avenues for case competitors to convey professionalism:
(1)The execution of the presentation
(2)The presentation materials
 Assign roles early – subject matter experts and presenters

• Who answers questions on which topics?
 Rehearse the presentation to clearly define:
• Sequence – what order will the team members will present in?
• Duration – how long should each section take?
• Hand-offs – how will each section of the presentation smoothly and
logically transition from one team member to the next?
• Contingency plan – which sections could be reduced or eliminated?
 Pay special attention to numbers, statistics, charts and analysis
• Inability to convincingly defend figures is a common pitfall
• Be able to recall sources and assumptions without having to use
reference material
23
Professionalism – Presentation Materials
 Alignment
• Check text and object alignment to ensure a consistent look across slides
• Ensure headings and text boxes are in the same place, as you flip through
your slides
 Colour Scheme
• A muted colour scheme is generally recommended
• Avoid dark backgrounds, very bright colours or too many colours
• Ensure that your colour scheme both prints well and projects well
 Font
• Sans-serif font styles tend to work best: Arial, Verdana, Tahoma
• Font size should be readable, but not too large (min ~12pt)
 Consistency
• Be consistent with font size, font style and colour scheme
• Be consistent with punctuation at the end of bullets - Either use it or do
not, but do not use it inconsistently
• Be consistent with overall structure—i.e. use of tag lines versus just
headers
• Use the slide master to create a template to ensure consistency
24
Professionalism
Do’s and Don’ts
Appendix
25
DOs & DON’Ts
DOs
 Brainstorm as a team to develop a strategy and agree to an execution plan
 Divide and conquer the work to efficiently execute on the plan
• Determine required tasks, dependencies and agree to roles for each team
member
• Have each person create their slides based on an agreed upon template
(designed in ‘Slide Master’)
 Avoid ‘version control’ issues by having one person own the ‘master’ and others
provide send over their slides for inclusion in the master
 Proof-read your presentation for spelling, grammar, content and logic
 Recognize each others’ strengths in determining roles for the presentation
• Group members should present material they are most comfortable with
• Confident speakers can present larger portions of the presentation
 Leave time to rest the night before the presentation
26
DOs & DON’Ts
DON’TS
 Don’t fall victim to ‘analysis paralysis’
• Instead, set a deadline for making a recommendation decision and stick to
it
• You will not come up with a recommendation that is irrefutable and 100%
supported by the facts, so at some point, your group must make a decision
and run with it – spend the rest of the time supporting your decision and
creating a compelling story
 Don’t let disagreements impact your team’s dynamics
• Agree upfront on a conflict resolution method (e.g. vote or unanimous
agreement)
• Disagreements can lead to productive discussions, so take a few minutes
to hear each point of view and then make a decision on next steps
 Don’t leave facts or figures unsourced – always include references in the
research log for easy footnoting in your final presentation
 Don’t leave formatting until the end
27
Last Year’s Case Competition Topic
Question
In early 2006, managers in technology and media companies around the world
observed Google with awe, envy, and fear. The company’s opportunities seemed
boundless. What would Google do next?
Two Options
 One option was to stay focused on the company’s distinctive competence:
developing superior search solutions and monetizing those solutions through
targeted advertising.
 Alternatively, Google could branch into new arenas:
• Build Google into a portal like Yahoo! Or MSN by aggregating content into
thematic channels
• Extend Google’s role in e-commerce beyond search into a more active
role as an intermediary facilitating transactions
• Challenge Microsoft’s hegemony over the PC desktop by developing
products to compete with Office and Windows
28
Evaluation Criteria
Analysis Presentation
• Identified key problems • Spoke clearly and concisely

• Used supporting facts/data • Structured storyline well
• Slides were visually attractive
• Drew accurate conclusions
• Showed enthusiasm and professionalism
• Considered risk
• Offered original insights
Recommendation Question & Answer
• Followed logically from analysis • Answered question posed

• Dealt with all issues raised • Provided convincing explanations
• Used decision criteria
• Admitted weakness
• Showed sounds business judgment
• Answered as a team
• End result was practical/realistic
29
Last Year’s 2nd Place Case
30
Bright Colour Scheme
31
32
33
1. Communicate recommendation in the
beginning of the presentation
2. Set expectations
34
35
36
37
Evaluate each recommendation
against the 3 criteria
38
39
40
41
Data Sourcing
42
Pretty Pie Chart
43
44
45
46
47
48
49
Last Year’s Winning Case
50
Terry Huang
Aron Lau
Ke Zhang
Godmans Chow
What is the situation?
Question: What should Google do?
Complication: Company is facing boundless

opportunities.
Stay focused with Google’s distinctive competencies.
Branch into new arenas.
Recommendation: Google should stay with its core

competencies – providing superior search solutions
$6.5 billion by end of 2011 Agenda
Introduction New frontiers? Growth Strategy Growth Strategy Growth Strategy Implementation
Overview of the approach
Measurement Metrics: Use Pyramid

What should
Google do?
Structure to
•Market Potential Frame the
•Fit with Mission Storyboard
Extend
Google’s core
Branch into
Option 1 new areas
search & Option 2
targeting
competencies.
Develop
Extend
Products to
Build Google Google’s role International Mobile
Compete with Narrowcasting
into a portal into e- Search Advertising
Office &
commerce
Windows
Google should stay focus with its core competence
Driven by Company Philosophy

It is best to do one thing really, really well – developing superior search
solutions
Market Potential
Has opportunity to further monetize its search solutions through
targeted advertising
U.S. and International Paid Market Search U.S. and International Internet Users Forecast
Forecast ($ billions) (million users)
U.S.
U.S. Market International Market International
13.4
11.6 12.5
9.6 10.2
8 7.9
6.4 5.9
4.3 3.3
2.5 1.5
0.6
2003E 2004E 2005E 2006E 2007E 2008E 2009E 2003E 2004E 2005E 2006E 2007E 2008E 2009E
Time Time
Charts’ data sourced from provided Business Case Description
Google should not branch into new arenas. The three arenas proposed deviates from the company
mission, or have tremendous risks (market potential).
Google’s mission - To organize the world’s information and make it

universally accessible and useful.
Inconsistent Font
Build Google into a Extend Google’s role in Develop products to

portal e-commerce compete with Office and
Windows
“We’re not in the portal Acting as an “There is strategic

business, we’re in the intermediary facilitating leverage in building an
business of making all transactions (Google ecosystem around
the world’s information Checkout) is consistent content and advertising
accessible and useful.” with the mission of the that is an extension of
company. our search mission.”
- Schemidt - Schemidt
Google should not extend in e-commerce or develop products to compete with Microsoft due to the
high risks (market potential) involved.
Extend Google’s role in e-commerce

1. Strong competition:
eBay has 39.2% of the e-commerce market. eBay facilitates eCommerce by
offering tools such as PayPal1.
PayPal has 24% market share of U.S. online payments market. It is eBay’s
major electronic payment method1.
2. No incentive for PayPal users to switch to using Google Checkout
3. Despite Google Checkout’s launch in June, 2006. PayPal posted revenues of
$417 million, a 37% growth rate compared with 2005’s fourth quarter2.
Inconsistent
Alignment
1 Wikipedia.org
2 CNN.com
Google should not extend in e-commerce or develop products to compete with Microsoft due to the
high risks (market potential) involved.
Develop products to compete with Office and Windows

1. Strong competition: Microsoft
2. Difficult for new entrant: OpenOffice currently only has 14% of the enterprise
software market as of 2004 – Hard to convince user to switch to new
desktop applications1
3. Relatively small potential revenue
The market for Office is only an annual revenue of $1 billion1
Too small of a market size comparing to Google's currently advertising business
(140 million vs. 6.1 billion)
1 Wikipedia.org
Google should continue to strengthen its expansion into the international online advertisement
market.
U.S. internet user is 30% of all users in the U.S. online ads spending slowed down
world. recently while online ads spending from the
By 2009, it will decrease and become international market are increasing at a
27.7%. faster speed.
U.S. vs International Internet Users (in millions) Online Ads Spending Growth Rate Chart
986 250
939 North America
854
769 200 Western
687 U.S. Europe
597
Growth Rate (%)

150 Asia
500 International
Latin America
100
235 251 266 274
183 203 219 Australia/
50 New Zealand
Total
0
2003E 2004E 2005E 2006E 2007E 2008E 2009E 1999 2000 2001 2002 2003 2004 2005 2006
Time Time
eMarket.com eMarket.com
The Winning Case Used

Extensive DATA to Back
Up its Statement
International Online Advertising Entry Analysis
How do their What are the

Who is the How does Google
products & potential What are the risks
competition? become a player?
services differ barriers to entry
Google's
competitors Partner with local
Perhaps
entered the companies, Late to the game.
Yahoo, MSN, government
market earlier, leverage our Lack of
Local search regulations
and tailored leading technology, understanding of the
engines (Baidu) (censorship
products to adapt and adapt to local local environment
issue in China)
to local environment.
customers.
We believe the emerging mobile advertising market is a fit for both Google’s technological expertise
and philosophies.
The potential of the mobile user base is Mobile advertising revenues is

promising, projected to rise to 1 billion expected to reach $2.9 billion
users of 3G data services by 2011. dollars by 2011.
More Data!!
1,000
users $2,900.00
(millions) (millions)
Mobile Ad Revenues
3G User Base
$1,400.00
(millions)
100 users
(millions)
2006 2011 2006 2011

Asia – Europe Business: 3G in the world : June 20th 2006 TVweek.com: Nov 15th 2006
Mobile advertising market analysis before entry.
We believe the emerging narrowcasting market is a fit for both Google’s technological expertise and
philosophies.
Narrowcasting revenue in the US is Targeted online gaming advertising worth

projected to reach $1.2 billion by is projected to be worth $0.5 billion by
2009 - >$700 million in 2010.
network/software operations.
Even More Data!!!
$750
(million)
$500
US Narrowcasting Revenue (million)
Online Gaming Ad Worth
$450
(million)
$100
(million)
2006 2009 2006 2010

CapV InfoStats March 2005
Businessweek Jan 2007
Narrowcasting market analysis before entry
Who is the How do their

What are the potential What are
competition products & services How do we become a player?
barriers to entry the risks?
? differ
Inaccurate
forecast of
market.
Current infrastructure Privacy concerns, Partner with existing players,

EK3, Scala, of fixed targeted government billboard leverage Google’s user targeted
ipSigns content that is not regulations, aesthetic algorithms for more targeted
user targeted trends ads. Changing
government
regulations
on public
ads.
Google can approach to enter the international online searching and advertising market with relative
ease.
To continue strength its expansion in the international online advertisement market

Identify potential international market to expand its service
Conduct market research to understand customer behavior
Develop localized applications and adapt to taste of local customers
Cooperate with local business (partnership, M&A)
Google can approach to enter the narrowcasting and mobile advertising market with relative ease
Inconsistent
Font
Tie into the current and emerging markets with

Google’s current technology and infrastructure.
Google Google Google
Froogle Blogger
Maps Mobile News
Google
Server
Retail Targeted User System

Corporate Group/Individual Integrator
Hospitality San Fran Wifi
Services ____
Public Spaces Game developers
____ Advertiser/Contents ____
Gamers Mobile service providers
____ Anyone
Mobile device users
Google’s projected growth in the next 5 years
International
Search
$4.98B ($2.4B
market with 20%
annual growth)
Recommendation Clear Visual
Again Backed Up Representation
by DATA!
Combined
revenue growth
of an additional
$6.5B by the
Mobile end of 2011.
Narrowcasting:
Advertising :
$0.5B
$1.0B(assuming
(assuming 1/3
1/3 market
market share)
share)

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Purpose and Objectives

Logical Structuring & Storyboarding

Quantitative and Qualitative Observations

Do’s and Don’ts

Purpose and Objectives

Logical Structuring & Storyboarding

Quantitative and Qualitative Observations

Do’s and Don’ts

1. Makes the message precise

Governing Thought: Explains how

ABC should go online

Acme can reduce costs by

Re-engineer core Outsource non-core Differentiate service

1. Ideas at any level must be summaries of the ideas grouped below

2. Idea in each grouping must always be the same kind of ideas

3. Ideas in each grouping must be in a logical order

Copyright © 2006 Deloitte Development LLC. All rights reserved. 9

• Situation: A statement about the

• Complication: The complicating event that

S: Acme must increase its

Step 1 Step 2 Step 3

S: Approval for DrugsRUs

Key Line: Earlier approval allows

Reason 1 Reason 2 Reason 3

S: The plant is not meeting its widget production goals

S: ABC, a book retailer, is considering developing an online channel

S: You have undertaken a number of initiatives to improve customer service

Identify the Type Summarize the

Activities: Synthesize Put the points Write a Put the points in

MECE Mobile Phone Types:

Collectively Have all possibilities Reasons to acquire competitor ABC:

Points across horizontal levels of the pyramid should be MECE

 Uses Pyramid Structure as a foundation

 Maps out the storyline of a presentation

 Helps organize work and define data needs

 Establishes evaluation frameworks and criteria used in the assessment

 Facilitates greater productivity and higher quality

 Keeps an engagement focused

One page for each idea

Purpose and Objectives

Logical Structuring & Storyboarding

Quantitative and Qualitative Observations

Do’s and Don’ts

 It’s important to use both quantitative and qualitative observations to support

Definition Examples Sources

•Numerical and statistical •Firm stock value •financial

•Interpretive and insightful •Pending lawsuits •press releases

Purpose and Objectives

Logical Structuring & Storyboarding

Quantitative and Qualitative Observations

Do’s and Don’ts

 Assign roles early – subject matter experts and presenters

Purpose and Objectives

Logical Structuring & Storyboarding

Quantitative and Qualitative Observations

Do’s and Don’ts

• Identified key problems • Spoke clearly and concisely

Recommendation Question & Answer

• Followed logically from analysis • Answered question posed

Question: What should Google do?