Case Analysis Method
CASE ANALYSIS METHOD
A Dynamic Approach for Analyzing Cases &
Strategy Formulation
Professor Michael A. Mische
University of Southern California
©2000, Michael A. Mische
Case Analysis Method
Case Analysis Method... Introduction
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There is no single best method to approach case
problems! However, all cases can benefit from a structured
analytical technique and approach...
No matter how complex, how convoluted or difficult a
problem or an issue may be, a focused and structured
approach can help in the analysis of facts and situations.
If you understand how to “break down” a case, you can
attack virtually any business problem.
Caution
!
Structure does not replace creativity!
Structure cannot replace analytical thinking.
Structure does not guarantee correct
identification of critical issues/problems.
©2000, Michael A. Mische
Case Analysis Method
Case Analysis Method, continued…
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Organizations face complex, systemic problems and
issues  to succeed, they must employ a dynamic,
iterative process of:

Discovery

Issue Identification

Problem Definition

Critical Thinking and Analytical Assessment

Strategy Development

Strategy Implementation
Always look for connectivity
of purpose, facts, trends,
issues and circumstances.
©2000, Michael A. Mische
Case Analysis Method
Key CAM Activities… Summarized
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Use an iterative approach.
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Separate activities into discrete yet all interrelated steps; constantly test against
previous findings and conclusions and incorporate new facts, emerging
situations, etc.  validate or restate your conclusions.

Always place in context; maintain a current perspective.
Constantly Test Your Assumptions
Facts
Issues/Problem
s
Analysis
Strategies
Recommendation
s
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Identify what has changed or is changing.
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Identify the drivers of change and market dynamics and understand their influence.
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Evaluate internal situation in the organization.
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Assess the costs/benefits of strategies  determine the Value Proposition.
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Ensure action plans align with strategy, issues and organizational objectives.
©2000, Michael A. Mische
Case Analysis Method
Key Activities & Questions
Identify
the Facts
Describe
the Issues
What are they?
What are they?
How important are
they?
How important are
they?
Is there connectivity or
a common theme?
Where/what are the
relationships?
What is their level of
relevancy?
How do they impact
strategy and
operations?
Can they be clearly
defined?
What character do
they assume:
 Operational
 Customer
 Competency
 Technology
 Organizational
 Quality
How do they
influence the facts
and problems?
Are the issues context
sensitive?
How can the
relationships be
characterized?
 Operational
 Customer
 Quality
 Technology
©2000, Michael A. Mische
Perform
Analysis
What are the
pertinent facts?
How do the facts
support or relate to
the issues and
problems?
How relevant are
the facts to the
issues and
problems?
How do the facts
relate to one
another; are there
trends, clues of
multiple relations to
the environment?
Are facts supported
by:
 Financials
 Benchmarks
 Quotes
 Examples
Develop
Strategies
What strategies are
available for the
company?
How do the
strategies “map” to
the problems and
issues?
Are the strategies
implementable and
executable?
What implications
are created by
strategies?
What distinct/
sustainable
competitive
advantages are
created by the
strategy?
What Value
Proposition does the
strategy create for
customers/partners/i
nternal and external
stakeholders, etc.?
Develop
Recommendations
Do the
recommendations
provide a distinct
value proportion?
Are action plans
formed which can
support the
strategy?
What are the
financial implications
of the strategy?
What are the
strategic enablers
necessary to
implement the
strategies?
Is there an
alignment between
the recommended
strategy,
organizational
capabilities/assets/
resources and the
organizational
structure?
Case Analysis Method
Case Analysis & Strategy Development… A Dynamic Process
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Strategy development is a dynamic, iterative process
At each step, test and revise your conclusions and findings against those from previous stages
Always place facts, findings and recommendations in context and perspective
Continuously incorporate and adjust you hypothesis and analysis for new findings and
information
Discovery
Strategy
Implementation
Issue
Identification
Strategy
Development
Problem
Definition
Critical Thinking
& Analysis
©2000, Michael A. Mische
Case Analysis Method
The Iterative Process of Case Analysis…
DEPTH
Develop
Overview of and
Sensitivity for the
Situation and
Circumstances
Develop
Understanding of
the Critical Issues
Define the
Problem(s)
STAGE
Discovery
Issue Identification
Problem Definition
FOCUS
•
•
•
•
•
General observations
Facts
Stated problems
Basic performance measures and indicators
New/additional findings and information
• Separate facts and observations from real
issues
• Identify and separate symptoms from causes
• Identify linkages between symptoms and
causes
• Identify drivers behind performance indicators
• Link to and test against facts and observations
• Confirm issues or reject and restate issues
• Define resulting problem(s)
• Prioritize with respect to:
• Criticality/importance
• Size and impact (strategic, competitive, financial,
etc.)
• Timing/immediacy
• Test validity against facts and observations
©2000, Michael A. Mische
Case Analysis Method
The Iterative Process of Case Analysis… Tips
DEPTH
Perform
Thorough
Analysis; Place
Issues & Problems
in Context
STAGE
Critical
Thinking &
Analysis
FOCUS
• Develop understanding of the context
• Identify and evaluate :
•
•
•
External factors
• Economic, market and political changes
• Emerging trends
• Speed and degree of impact of changes
• Shifts in consumer demand and needs
Competitive factors
• Changes in business models
• Changes in operational models
• Changes in competitive dynamics and interactions
• Shift in competitor business focus
• Changes in competitors relations
• New and emerging sources of competing
Internal factors
• Current strategies, their effectiveness and validity
• Present competencies, competitive advantages and their
sources
• The value competencies in the context of the environment
and ongoing changes
• The currency/validity of existing business model
• Flaws or drawbacks in the existing business model and
operations
• Lacking competencies and resources
• Internal organizational changes (e.g. leadership, structures,
etc.)
• Identify critical success factors (CSFs) and competitive
imperatives
• Identify GAPS between CSFs and core competencies and
strategies
• Test conclusions against issues and problems
©2000, Michael A. Mische
Case Analysis Method
The Iterative Process of Case Analysis… Tips
DEPTH
Develop and
Propose A
Comprehensive
Solution
Implement
Solutions and
Strategies
©2000, Michael A. Mische
STAGE
Strategy
Development
Strategy
Implementation
FOCUS
STRATEGY DEVELOPMENT:
• Develop scenarios
• Identify strategic options
• Assess viability of strategies
• Assess sustainability of strategies
• Develop competency and resource requirements
• Assess risks and rewards associated with strategic options
• Test the value proposition of each strategic option to the:
• Consumer
• Shareholder
• Business partners
• Assess impacts, both short-term and long-term:
• Strategic/competitive
• Operational
• Organizational
• Financial
• Test strategies against identified issues
• Test strategies against problems
• Test strategies against organizational goals and business
objectives
STRATEGY IMPLEMENTATION
• Assess implementation feasibility
• Design plan for developing/acquiring required competencies
• Develop implementation plan:
• Resources (financial/budget, HR, etc.)
• Timing/schedule
• Action steps/tasks
• Priorities
Case Analysis Method
Key Points to Consider in Strategy Development…
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Relevancy

Of facts, issues, purposes, external and internal data and information.

Disregard and eliminate “noise”!
Correct Issue/Problem Identification

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Economic Value Proposition
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Address the real causes/opportunities/drivers.
Developed strategy must present a distinct value proposition to the
customer, business partners as well as the company.
Alignment
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Between strategies, internal goals & external imperatives, and
supporting systems & infrastructures (e.g., company resources,
organizational structure, process design and activities, IT architecture,
necessary knowledge, competencies,etc.).
©2000, Michael A. Mische
Case Analysis Method
Critical Thought Processes (CTPs)…
Critical Thought Processes
Considerations
What are the operating, cultural, financial, competency or technical
constraints affecting strategy formulation and strategic choices?
Look to internal and external factors. Find
the limiting factors; search for enablers.
Given the changes in the company’s operating environment, are the
company’s strategy, directives and initiatives still valid? Why or why
not?
Consider the impact of globalization,
technology and innovation and internal
and external causes.
What new forms of business organizations or business combinations are
emerging as competitive threats or sources of competitive
advantage?
Consider organizations such as
Amazon.com and DaimlerChrysler.
What are the strategic choices available to the company and what
are the implications of these choices? Do they (1) represent
permanent, irreversible commitments, (2) create options, or (3) create
synergies of purpose?
Evaluate both the long- and short-term
implications of the strategy and its
variations. Are the strategies irrevocable,
modifiable, permanent? Think about
recourse and fail-safes.
What are the financial implications of the strategic choices/options?
Look at the numbers; run ratios and look
for relationships.
What are the implications or requirements for infrastructure
components such as technology, competencies and operations
related to strategic options?
Consider what the company needs and
its timing to realize its strategies.
What is the velocity of change and do those changes represent
discontinuous, incremental, evolutionary or one-time situations?
Understanding the speed of change is
important... Timing affects everything an
organization does. Think about agility.
What external factors such as legislation, cultural norms, physical
infrastructures and economic conditions will converge to influence the
strategic choices and implementation plans of the company?
Consider how sensitive the organization is
to external factors which can affect its
realization of strategies.
©2000, Michael A. Mische
Case Analysis Method
Critical Thought Processes…
CTPs
Considerations
What are the critical paths and priorities for the company,
and what factors make these important?
Identify and evaluate the prerequisites. What has to
happen, how does it have to happen and who must
make it happen.
What are the relevant facts of the case or situations and why
are they relevant?
Separate important facts from the superfluous.
Watch out for noise and distractions.
Where are the opportunities to create unique competitive
advantage and economic value, such as global mergers or
new technologies?
Relate the unique advantages to an economic
value proposition. Develop alternative scenarios.
What are the necessary pre-conditions for strategic change
such as competencies, technologies, infrastructure?
Consider timing and critical paths; understand the
pre-requisites.
What industry dynamics should be considered in making
strategic choices?
Consider changes and trends, emerging business
models, etc.
What are the company’s positions in its markers/segments
relative to competitors? How fluid or permanent are these
positions?
Does the company hold: 1) leadership position, 2)
follower position, or 3) laggard position?
What are the company’s products, technologies or
processes that could potentially 10 create new markets, or
2) change the dynamics of existing markets?
Think of ongoing product development, innovation
efforts and capabilities.
What are the sources of competitive advantage in the
company’s markets?
Consider: fist-mover advantage, technological
leadership, cost advantage, customer relationships,
price leadership, service quality, patents, contracts.
What are the factors driving changes in the respective
markets?
To what extent can these factors be: 1) anticipated,
2) managed, 3) used to create new markets and
opportunities, 4) used to obsolete existing products
and practices?
©2000, Michael A. Mische
Case Analysis Method
Tips & Hints…
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Issue Identification and Problem Formulation – consider:
The typical Causes of Strategic Decline
 Traditional vs. new sources of competing
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Critical Thinking and Analysis – consider and assess:
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The three key drivers of change:
• Information technology
• Globalization
• Diversity and multiculturalism
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The five strategic pillars for competing and their management and use by
the organization as compared to the competitors:
•
•
•
•
•
Innovation
Knowledge
Operational excellence and organizational agility
Leadership
Information technology
©2000, Michael A. Mische
Case Analysis Method
Tips & Hints…
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Strategy Development – consider:
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The six strategic choices for competing:
•
•
•
•
•
•
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Innovate
Substitute
Imitate
Collaborate
Complement
Withhold
The high-performance characteristics and competencies
Strategy Implementation – consider:
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Keys to successful process integration and business transformation
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The five segments of architecting for high-performance:
•
•
•
•
•
Baselining and Assessment
Visioning and Strategy Setting
Organizational Integration
Operational Integration
Sustainability and Regeneration
©2000, Michael A. Mische
Case Analysis Method
Case Analysis Approach
&
Presentation Format of An Analysis
©2000, Michael A. Mische
Case Analysis Method
Structuring the Plan: Build in Blocks, Integrate It, Fine-tune It
I.
Introduction and Background
This session should introduce the facts, situation and context of the
case. It should provide background and pertinent information at a
level which allows the reader to gain an understanding of the situation.
The key point is to develop a perspective.
II.
Summary of Pertinent Facts
This section of the case analysis should present a summary of the facts
and circumstances of the case. It should emphasize what has
changed, differences in the environment, and trends and drivers.
Concentrate on describing the pertinent facts and why they are
important.
III. Summary of Issues
This section should present the issues and highlight how the issues
converge to affect the performance of the organization.
©2000, Michael A. Mische
Case Analysis Method
Structuring the Plan: Build in Blocks, Integrate It, Fine-tune It,
cont’d.
IV. Analysis and Assessment
This section provides a comprehensive description of the analysis and
conclusions. This section should provide a comprehensive analysis of
the facts, issues and problems of the company. This assessment
should also include an initial “gap” assessment of the findings and
conclusions. Key strategic enablers should be identified and
discussed.
V.
Recommendations
This section should provide a description of the strategies and action
steps. In this section, a gap assessment is also included to illustrate the
relationship between the recommended strategies and the strategic
enablers.
©2000, Michael A. Mische
Case Analysis Method
Helpful Tips & Hints
 Crunch the numbers such as:
 ROI
 EVA
 Cost Margins
 EBIT/EBITDA
 Average Selling Price
 Average Sales Per Employee
 Product Profitability
 Customer Profitability
 Look for trends and relationships:
 Major Economic
 Cost Performance
 Price and Demand
 Cyclicality
 Shocks
 Impact of Innovation
 Cycle Times
 Activity Costs
 Average Selling Expenses
 Inventory Holding Costs
 Opportunity Costs
 Variable Manufacturing Costs
 Variable Distribution Costs
 Costs for Quality and Customer
Service
 Correlations
 Predictability
 Cause and Effect
 Discontinuities
 Always find out what has changed or is changing:
 Internal Changes
 External Changes
 Technology Changes
 Customer Preferences
 Changes in Global Supply and
demand
 Competitive Changes
 Regulatory Changes
 Management Trends
 Competency Changes
 Changes in Relationships
Constantly hunt for the impact on stakeholder value… Find the value proposition!!
©2000, Michael A. Mische
Case Analysis Method
Be Creative and Daring!
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©2000, Michael A. Mische
THINK
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THE BOX
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