Case Method Seminar

Rey Lugtu

Objectives

At the end of the session, each participant will:– Be familiar with the general steps in going

through the study method– Learn useful tools, techniques, watch outs,

and tips on each of these steps– Be able to practice these steps on a simple

case

What is Case?

A case is an narrative of an actual, or realistic, problem that typically portrays policy makers confronted with the need to make a decision

Teaching cases present information, but not analysis; your is to supply the latter, as well as to advocate a solution.

Cases are Ill Structured Problem

There is too littler information. The remedy: use your experience and

common sense. At some point, make up your mind.

There is to much information.– The remedy: Focus on what is important to the

problem at hand There is no right answer.

– The remedy: Make up your mind and be prepared to defend your opinion, but keep an open mind.

Why Use the Case Method?

The case method presents the greatest challenges confronting leading companies today-complete with constraints and incomplete information found in real business situation-and places the student in the role of the decision maker

Through the case method, students are exposed to real-life situations that are relevant, intellectually and emotionally engaging, and highly interactive.

This creates a challenging learning environment that encourages everyone to share opinions and perspectives and learn from each other.

Why the Case Method?

Best learning methodology used by the best business schools

Based on realistic business concerns Process used to solve cases is similar

to actual business processes on problem solving

Why the Case Method?

Develops analytical capabilities Develops data/facts handling skills Develops team effectiveness skills Develops communications and

presentation skills.

Disclaimer

Generally a case has no single “correct” answer; there are only choices, some better, some worse, and all open for discussion and interpretation.

Steps in Analyzing

Read the case Analyze the case

– Define issues in the case– Identify information relevant to the key issues– Analyze the issues using the relevant information– Distinguish the major alternative solutions– Select an alternative– Suggest procedures to implement the chosen plan

of action

Prepare Your Presentation (Written or oral)

Figure 1: Approach CasesProblem is Undefined Problem is Defined

Apply concepts from readings;Use personal knowledge & experience

Perform Analysis to Determine Problems/

Opportunities

Perform Analysis for Defined Problem

Define Key Issues & Evaluation Criteria

Develop/SelectAlternative Solutions

Specify Plans of Actions

Prepare Output

Step 1: Read the Case

Read the Case

Get a sense of the whole case Look at the case before you read it

– What do title and headings tell you?– Who are central character?– What is the story about?

Read the case quickly, look for the broad outlines

Case Reading Tips

Read each case at least twice. The reading is to browse the whole case, the second is to take down significant facts make sure you understand the case in its entirety

Create summary outline of significant facts

As you read the case…

Remember that all behavior is caused, motivated, and goal-directed; behavior may see strange, or “irrational” but you can assume it makes sense to the actor

Separate facts from opinion; distinguish between what people say vs. do

It might be possible to get more information about the case (e.g.,the industry) but for the most part you will be asked to do your best with the information available

Separate symptoms from underlying causes Avoid judgment; avoid premature solution

Step 2: Analyze the Case

Analyze the Case

State the issues Stick to the time frame of the case Ask yourself

– What is the case really about?– What is the situation-what do you actually know

about it from reading the case?– What problems are the people in it dealing with?

What issues are at stake?– Where do you see conflict between ideas,

perspective, and values?– What would you have done differently?

More Questions

What sort of organization does the case deal with?

What is the nature of the industry? What is going on in the external

environment? What problems does management

appear to be facing?

More Questions

What decisions need to be made? What are all the possible options? What are

the pros/cons of each option? What criteria should you use when choosing

an option? What does that mean about your assumptions?

What are the objectives of the organization? What are the resources required or

constraints influencing the decisions.

Steps 3: Present the Case

Prepare your presentation

Prepare to justify, present and explain your analysis.

Make something of your work. Ask yourself what you have learned from the case.

Prepare to present and defend your conclusions.

Written Case Reporting Format

Statement of the problem Objectives Assumptions/Areas of consideration Alternative Courses of Action Recommendation/Justification Action Plan

Formulating the Problem Statement

This is the most critical step in the Case Method. All your effort maybe wasted with misdirected or narrow Problem Statement

Usually use the CEO’s point of view Usually provides the scope and limitation of your

study Usually in a question format e.g., how do we

improve employee morale? What actions to take? Should not be answerable with “yes” or “no” Keep the statement concise and straight to the

point

Listings the Key Objectives

Have about three to five key objectives that you will be attaining once the problem identified is resolved

Test your alternative courses of action on how they meet the objectives

The best recommendation is one that meets your key objective– Improve productivity– Reduce turnover rate– Improve attendance rate

Identify Areas for Consideration

Select only information that are related to resolving problem at hand

List your major assumptions, including your basis for making these assumptions

Use different frameworks in summarizing your key facts such as SWOT Analysis or Porter’s Five Forces

SWOT Analysis

SWOT Analysis is an effective method of identifying your strengths and weaknesses, and to examine the Opportunities and Threats you face.

Strengths

List down key company strengths that help it achieve its objectives.

Consider this from your own point of view and from the point view of the people you deal with.

What are your advantages? What do you do well?

Weaknesses List down the key company weaknesses that

are obstructing it from meeting its objectives. Consider from internal and external basis. It

is best to realistic now, and face any unpleasant truths as soon as possible.– What could be improved?– What is done badly?– What should be avoided?– Do your competitors do better?

Opportunities

List down the possible opportunities that the company can capitalize on to help it achieve its objectives

Where are the good chances facing you? What are the interesting trends?

– Changes in technology and markets on both a broad and narrow scale

– Changes in government policy related to your field– Changes in social patterns, population profiles, lifestyle

changes, etc.– Local events

Threats

List down sources of potential problems, or barriers in meeting the objectives.

What obstacles do you face? What is your competition doing? Are the required specifications for your job,

products or services changing? Is changing technology threatening your

position? Do you have bad debt or cash-flow problem?

SWOT Analysis

Always relate these with the problem and objectives of the case.

In your case study recommendation, ensure that you show how the company can– capitalize on its strengths– down play or eliminate its weaknesses– take advantage of the opportunities– reduce or eliminate threats

Alternative Courses of Action (ACA)

Have at least two plausible ACAs. The more you provide the better

Each ACA must be defensible Presents pros and cons of each one Each ACA must address the problem

directly Must be based on the facts of the case

Generating ACAs

In thinking about the context for generating alternatives, think about:– What are the decision-maker’s sources of power in

the situation? (legitimate, reward, punishment, expert, referent)

– What are possible leverage point (changing technology such as machine, processes, product designs; changing organizational structure; changing reward systems, job descriptions education, changing personnel, changing culture)

– Can individual behavior be changed (education, training reward reward system, job description, etc.)

– What are the constraints on the solution? (time, money, organizational traditions, prior commitments, external realities, legal etc.)

– What are the available resources (time, money, people, existing relationships, power)

– Should others be involved (in problem definition, data collection, generating alternatives, implementing solutions, monitoring and assessing realities)

In this stage it is important to avoid reaching for a solution too quickly– Be creative and put yourself in the case– Try living with various alternatives that you

are thinking about – What would be impact on you and others – Be sure to think about the costs and

benefits each alternative

Criteria for Coming Up with Your Recommendation

Does the alternative address the critical aspects of the problem? What are your objective? Be specific.

What are the intended consequences; how will your decision improve the situation?

What is probability of success; what are the risk; what happen if plan fails?

What does the plan depend on? What are the costs? What power and control needed?

Who would be the “change agent” Does he/she have the power, skills, knowledge to be successful?

Is the “solution” consistent with organizational realities?

Give your Recommendations

Select one the ACAs that best addresses your problem statement and meets your key objectives

You can choose more than one ACAs Give your major reasons why this ACA was

chosen over others Provide detailed implementation plan to test

whether this recommendation is feasible Provide contingency plans in case there are

any potential problems

Reminders

In your case study recommendation, show how the company can– Capitalize on its strengths – Down play or eliminate its weaknesses– Take advantage of the opportunities– Reduce or eliminate threats

The Case Study Group

Designating Roles in Groups

Groups that are created for in-class can be easily organized around the following four-person model.

Each member of the group plays specific role that supports the teams collaborative effort.

Role in Groups

Leader: responsible keeping the group on task, maintaining the schedule, (meetings, deadlines), and maintaining contact information (phone numbers, emails).

Encourager: Encourages conversation and inclusion of all opinions and guides the discussion toward consensus.

Prober: Ensures the assumptions are correct and there there is sufficient evidence for the solution

Recorder: Writes down the group’s solution that will be submitted for the group grade

Group Meeting Tips

Come prepared to contribute to the group Start discussions early even if your group not

complete Build on each other ideas Respect each others view, esp if they are

diverse Make decisions based on consensus Assign clear tasks/responsibilities to all

Group Presentation Tips

Dress for the part Organize your presentation All group members must participate Do not read your report Try to capture audience interest and

attention

Keep your presentation short and to the point

Keep it interesting for everyone Use tables, figures, charts, and other

exhibits to help communicate important points and ideas

Make sure your visual aids are legible to individuals in the back of the room

Be prepared to answer questions from facilitator/instructor and the class

During the Q&A. be polite, confident and courteous. Do not be defensive

Case Reporting Format

Statement of the problem Objectives Assumptions/Areas of consideration Alternative Courses of Action Recommendation/Justification Action Plan

Sample Case Study

Bacolod Country Chicken

Written Report Development

Format Statement of the Problem Objectives Areas of Consideration Alternative Courses of Action Recommendation Action Plan

Statement of the Problem

How to increase the Profits of Bacolod Country Chicken?

Objectives (by 2005)

1) Increase total Revenue by 20% 2) Reduce Cost by 5% . 3) Increase Customer Service (rated

excellent in customer surveys) 4) Increase Food Quality (rated

excellent in customer surveys)

Areas for Consideration

1) Profitability of the Manila Branch.

2) Employee Skills

3) Location

4) Operational Costs

5) Immediate Competitor Profile

Alternative Courses of Action 1) Change Location 2) Improve Menu (same food everyday?) 3) Catering 4) Delivery 5) Replace employees 6) Customer Surveys 7) Competitor studies 8) Sublease part of property 9) Review food pricing 10) Employee training

Recommendation

1) Review food pricing 2) Go into catering 3) Do customer surveys 4) Employee training 5) Change menu

Action Plan

Assign tasks to managers and staff Prepare plan for catering business Prepare customer survey forms Conduct training needs analysis

Sample Case:The Case of the Sole Remaining Supplier