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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:

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case study analysis

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.

premises of rational thinking
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


TAKE? –Decision Analysis

4. WHAT LIES AHEAD? –Potential Problem


basic patterns of thinking
Basic Patterns of Thinking….


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
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
Which Course of Action Should WeTake?
  • 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
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
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
Case Analysis Outline…
  • 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 outline1
Case Analysis Outline…
  • Delineates the take-off point of the analysis.
problem statement
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
Structure of a Problem
  • Deviation Statement
  • The deviation statement is the precise description of the “change” from the “should” to “actual” situation.
  • “ A probem well-defined is a problem half-solved.”
  • Develop a problem statement that actually and clearly describes the current situation you want to change.
problem statement1
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 statement2
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
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 objective1
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
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:



  • External Factors:



  • 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
  • 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
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 matrix1
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


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.

action plan1
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


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
Implementation & Control
  • Refers to the actual implementation and monitoring of the action plan to ensure:

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)




CPA, MBA, DBA (Cand.)