CASE STUDY ANALYSIS. Rational Thinking Approach to Case Study Analysis Means making full use of a person’s thinking ability in analysing a problem and arriving at a rational decision statement. Premises of Rational Thinking. Four Basic Patterns of Thinking:
Rational Thinking Approach to Case StudyAnalysis
Means making full use of a person’s thinking ability in analysing a problem and arriving at a rational decision statement.
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
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.
2. Time Context
3. Problem Statement
4. Statement of the Objective
5. Areas of Consideration
7. Alternative Courses of Actions (ACAs)
8. Analysis of ACA
a. Decision Matrix
b. Selection of Best ACA
10. Plan of Action
11. Implementation and Control
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?
When developing problem statement:
1. Avoid including any “implied cause” in the
2. Avoid including any “implied solution” in the
Example of Problem Statement:
“The customer satisfaction index has declined from 89% to 81% in the last 12 months.”
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:
Example of Statement of the Objective:
- 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.
-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.
-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.
-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.
-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 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
3. Relative How much resistance
Resistance might there be to imple-
menting the ACA. 20%
Total Weights 100%
1. Ease of Imple-
mentation- 30% 15% 10% 5%
of Success- 50% 25% 15% 10%
Resistance- 20% 10% 5% 5%
Total 100% 50%** 30% 20%
The best ACA is ACA # 1
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
3. WHEN (time frame) will be the start and
completion of the activities?
4. HOW MUCH (cost/budget) is allotted to
implement the activities of the action plan.
Task/ Responsible Begin End
Activities Person/Unit Date Date Costs
Training Dept. 7/1/06 8/31/06 P50,000
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.
1. That the action plan is implemented as
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)
THANK YOU AND GOOD DAY
PROF. P. B. SAN JOSE, JR.
CPA, MBA, DBA (Cand.)