CASE APPROACH OF STUDY IN MANAGEMENTCASE APPROACH OF STUDY IN MANAGEMENT

BYBYC P RIJAL, PHD IN LEADERSHIPC P RIJAL, PHD IN LEADERSHIP

ASSOCIATE PROFESSORASSOCIATE PROFESSORMID-WESTERN UNIVERSITYMID-WESTERN UNIVERSITY

SURKHET, NEPALSURKHET, NEPAL

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WHAT IS A CASE STUDY?WHAT IS A CASE STUDY? A case study presents real life real life accounts of

what happened to an individual, group, firm or any component of society over time.

Case-based approach of teaching learning in business studies is applied to understand various situations the managers are expected to deal with, or have already dealt.

For example, changes in competitive environment leads to the change in managers' response, which usually involves changing the corporate, business, product or service-level strategies. 2

CASE STUDY, WHAT IT IS CASE STUDY, WHAT IT IS

Most of the cases are written in such a way that the reader assumes for self in the place of the manager whose responsibility is to make rational decision to solve the problem explained in the case situation.

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CASE STUDY, WHAT IT IS CASE STUDY, WHAT IT IS The case method is a teaching learning

philosophy that combines knowledge acquisition with significant student involvement.

In the words of Alfred North Alfred North WhiteheadWhitehead, the case method rejects the doctrine that students first learn passively, and then apply the knowledge.

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CASE STUDY, WHAT IT DOES … CASE STUDY, WHAT IT DOES …

If it is developed and presented effectively with rich and interesting details, case method brings reality into the classroom.

Cases keep conceptual discussions grounded in the reality.

Experience shows that simple fictional accounts of situations and collections of actual organizational data and articles from public sources are not as effective for learning as are fully developed cases.

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CASE STUDY, WHAT IT DOES … CASE STUDY, WHAT IT DOES … A comprehensive case approach helps you

have a practical clinical study of a real-life situation faced by a manager.

A case presented in a narrative form provides motivations for the involvement with and analyses of specific situation.

By framing alternative strategic actions and by confronting the complexity and ambiguity of the practical world, case analyses provide extraordinary power for your involvement with a personal learning experience.

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CASE STUDY, WHAT IT REQUIRESCASE STUDY, WHAT IT REQUIRES1. It requires students to practice important

managerial skills--diagnosing, making decisions, observing, listening, and persuading--while preparing for a case discussion.

2. Cases require students to relate analyses and action to develop realistic and concrete actions despite the complexity and partial knowledge of the situation being studied.

3. Students face intractability of the reality--complete in absence of needed information, imbalance between needs and available resources, and conflict among competing objectives.

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HOW DO THE STUDENTS PERFORM …HOW DO THE STUDENTS PERFORM … Assigned cases are first prepared by students, and this

preparation forms the basis for class discussion under the direction of the instructor.

Students learn, often unconsciously, how to evaluate a problem, how to make decisions, and how to orally argue a view point.

Using this method, they also learn how to think in terms of problems faced by an administrator.

In course works, a significant part of student's evaluation may rest with classroom participation on case discussions, with another substantial portion resting on written case analyses.

Due to these reasons, using a case method tends to be very intensive for both students and instructor.

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CASE METHOD: WHERE IS IT USED…CASE METHOD: WHERE IS IT USED… Case studies are used extensively throughout most of

the programs at the university level, business administration classes with no exception.

You will be using case studies in many of the lectures in my classroom proceedings in Leadership, Organizational Psychology, Strategic Management, Business Management, Human Resource Management, Organizational Design and Change, Research and Innovation, and so on …

You must be ready for your life-term learning, for that I may have a bag full of collection of cases which may be directly applicable in your business dealing even.

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REASONS OF THE USE OF CASE METHODREASONS OF THE USE OF CASE METHOD

1. It provides you with the experience of organizational problems that you probably have not had the opportunity to experience before.

2. It illustrates what you have learnt. 3. It provides you with the opportunity to

participate in class and to gain experience in presenting your ideas to others.

4. If you are a working executive, it will help you reach back to nature. Do you know, what ‘back to nature’ is all about?

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SIGNIFICANCE OF CASE STUDY SIGNIFICANCE OF CASE STUDY APPROACHAPPROACH

A business case study is a powerful decision-making tool in business management studies due to a variety of reasons:

1.It forces the decision maker to follow a predetermined process or format to ensure all factors have been considered.

2.It insists the user to determine the risk factors and other major success factors.

3.It allows multiple parties to review the case and its assumptions. 11

PROCEDURAL ASPECTS OF A CASE STUDYPROCEDURAL ASPECTS OF A CASE STUDY

1. Develop the company profile2. Identify the company's internal strengths

and weaknesses 3. Assess the external environment

surrounding the company 4. Perform a SWOT analysis 5. Review the company strategies, level-wise6. Analyze the company’s structural-

functional systems7. Recommend with corrective measures

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WRITING A CASE STUDYWRITING A CASE STUDY1. Introductory partIntroductory part: Briefly outline what the

company does, how it developed historically, what problems it is experiencing, and how you are going to approach the issues in the case write-up.

2. Develop strategic-analysesDevelop strategic-analyses: Use all possible tools and techniques of internal and external analysis; requires the analyses of at least 6 components. Assess the company strengths and weaknesses by using possible financial analyses.

3. Solutions and recommendationsSolutions and recommendations: Be comprehensive, make sure they are in line with the previous analyses so that the recommendations fit with the context.

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MAJOR FINANCIAL ANALYSES TO BE MAJOR FINANCIAL ANALYSES TO BE USEDUSED

11. Profit ratiosProfit ratios: Gross profit margin, net profit margin, return on total assets, net income, and return on stakeholders’ equity.

2. 2. Liquidity ratiosLiquidity ratios: Current ratio, and quick ratio.

3. 3. Activity ratios: Activity ratios: inventory turnover, cost of goods sold, day’s sales outstanding, accounts receivable.

4. Leverage ratios: 4. Leverage ratios: Debt-to-assets ratio, debt-to-equity ratio, and times-covered ratio.

5. Shareholder return ratios: 5. Shareholder return ratios: Total shareholder returns, price-earnings ratio, market-to-book value, dividends yield, and market price per share.

6. 6. Analysis of cash flows cash flows is the most instrumental.14

POINTS TO LEARN…POINTS TO LEARN…Before the class discussion:

1. Read the reading assignments (if any) 2. Use the Short Cycle Process to

familiarize yourself with the case. 3. Use the Long Cycle Process to analyze

the case 4. Usually there will be group meetings to

discuss your ideas. 5. Write up the case (if required)

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POINTS TO LEARN…POINTS TO LEARN…During the class discussion:

6. Someone will start the discussion, usually at the prompting of the Instructor.

7. Listen carefully and take notes. Pay close attention to assumptions. Insist that they are clearly stated.

8. Take part in the discussion. Your contribution is important, and is likely a part of your evaluation for the course. 16

POINTS TO LEARN…POINTS TO LEARN…After the class discussion:

9. Review as soon as possible after the class. Note what the key concept was and how the case fits into the course.

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SHORT CYCLE PROCESS IS ALWAYS SHORT CYCLE PROCESS IS ALWAYS PREFERREDPREFERRED

1. Quickly read the case. 2. Answer the following questions: Who is the decision maker in this case, and what is their

position and responsibilities? What appears to be the issue (of concern, problem,

challenge, or opportunity) and its significance for the organization?

Why has the issue arisen and why is the decision maker involved now?

When does the decision maker have to decide, resolve, act or dispose of the issue? What is the urgency to the situation?

3. Take a look at the Exhibits to see the numbers. 4. Review the case subtitles to see what areas are covered

in more depth. 5. Review the case questions if they have been provided. 18

MAKING IT A MORE FUNCTIONAL MAKING IT A MORE FUNCTIONAL JOURNEYJOURNEYStep 1 – Be familiarStep 1 – Be familiara. In general--determine who, what, how, where

and when (the critical facts in a case). b. In detail--identify the places, persons, activities,

and contexts of the situation.

Step 2 – Recognize the symptomsStep 2 – Recognize the symptomsa.List all indicators (including stated "problems")

that something is not as expected or as desiredb.Ensure that symptoms are not assumed to be

the problem (symptoms should lead to identification of the problem). 19

MAKING IT A MORE FUNCTIONAL MAKING IT A MORE FUNCTIONAL JOURNEYJOURNEYStep 3 – Identify the goalsStep 3 – Identify the goalsa.Identify critical statements by major parties

(people, groups, the work unit, etc.).b.List all goals of the major parties that exist

or can be reasonably inferred.

Step 4 – Conduct the analysisStep 4 – Conduct the analysisa.Decide which ideas, models, and theories

seem useful.b.Apply these conceptual tools to the

situation.c.As new information is revealed, cycle back

to sub-steps ‘a’ and ‘b’.

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MAKING IT A MORE FUNCTIONAL MAKING IT A MORE FUNCTIONAL JOURNEYJOURNEYStep 5 – Make diagnosisStep 5 – Make diagnosisa. Identify predicaments (goal inconsistencies).b. Identify problems (discrepancies between goals and

performance).c. Prioritize predicaments/problems regarding timing,

importance, etc.

Step 6 – Do the action planningStep 6 – Do the action planninga. Specify and prioritize the criteria used to choose action

alternatives.b. Discover or invent feasible action alternativesc. Examine the probable consequences of action

alternatives.d. Select a course of action.e. Design the implementation plan of action.f. Create a plan for assessing the action results.

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ANY QUESTIONS ?ANY QUESTIONS ?

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THANK YOU !THANK YOU !

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