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A Guide to
I keep six honest serving men
(They taught me all I knew);
Their names are What and Why and When;
And How and Where and Who.
— Rudyard KiplingA Guide to Case Analysis
In most courses in strategic management, students use cases about actual companies to practice strategic
analysis and to gain some experience in the tasks of crafting and implementing strategy. A case sets forth, in
a factual manner, the events and organizational circumstances surrounding a particular managerial situation.
It puts readers at the scene of the action and familiarizes them with all the relevant circumstances. A case on
strategic management can concern a whole industry, a single organization, or some part of an organization;
the organization involved can be either proﬁ t seeking or not-for-proﬁ t. The essence of the student’s role
in case analysis is to diagnose and size up the situation described in the case and then to recommend
appropriate action steps.
Why Use Cases to Practice Strategic Management?
A student of business with tact
Absorbed many answers he lacked.
But acquiring a job,
He said with a sob,
“How does one ﬁ t answer to fact?”
The foregoing limerick was used some years ago by Professor Charles Gragg to characterize the plight
of business students who had no exposure to cases. The facts are that the mere act of listening to lectures
and sound advice about managing does little for anyone’s management skills and that the accumulated
managerial wisdom cannot effectively be passed on by lectures and assigned readings alone. If anything had
been learned about the practice of management, it is that a storehouse of ready-made textbook answers does
not exist. Each managerial situation has unique aspects, requiring its own diagnosis, judgment, and tailor-
made actions. Cases provide would-be managers with a valuable way to practice wrestling with the actual
problems of actual managers in actual companies.
The case approach to strategic analysis is, ﬁ rst and foremost, an exercise in learning by doing. Because cases
provide you with detailed information about conditions and problems of different industries and companies,
your task of analyzing company after company and situation after situation has the twin beneﬁ t of boosting
your analytical skills and exposing you to the ways companies and mana gers actually do things. Most college
students have limited managerial backgrounds and only frag mented knowledge about companies and real-life
strategic situations. Cases help substitute for on-the-job experience by (1) giving you broader exposure to a
variety of industries, organizations, and strategic problems; (2) forcing you to assume a managerial role (as
opposed to that of just an onlooker); (3) providing a test of how to apply the tools and techniques of strategic
management; and (4) asking you to come up with pragmatic managerial action plans to deal with the issues
Objectives of Case Analysis
Using cases to learn about the practice of strategic management is a powerful way for you to accom plish
ﬁ ve things:
1. Increase your understanding of what mana gers should and should not do in guiding a business to
2. Build your skills in sizing up company resource strengths and weaknesses and in conducting strategic
analysis in a variety of industries and competitive situations.A Guide to Case Analysis
3. Get valuable practice in identifying strategic issues that need to be addressed, evaluating strategic
alternatives, and formulating workable plans of action.
4. Enhance your sense of business judgment, as opposed to uncritically accepting the authoritative
crutch of the professor or “back-of-the-book” answers.
5. Gaining in-depth exposure to different industries and companies, thereby acquiring something close
to actual business experience.
If you understand that these are the objectives of case analysis, you are less likely to be consumed with
curiosity about “the answer to the case.” Students who have grown comfortable with and accustomed to
textbook statements of fact and deﬁ nitive lecture notes are often frustrated when discussions about a case do
not produce concrete answers. Usually, case discussions produce good arguments for more than one course
of action. Differences of opinion nearly always exist. Thus, should a class discussion conclude without
a strong, unambiguous consensus on what do to, don’t grumble too much when you are not told what
the answer is or what the company actually did. Just remember that in the business world answers don’t
come in conclusive black-and-white terms. There are nearly always several feasible courses of action and
approaches, each of which may work out satisfactorily. Moreover, in the business world, when one elects a
particular course of action, there is no peeking at the back of a book to see if you have chosen the best thing
to do and no one to turn to for a provably correct answer. The best test of whether management action is
“right” or “wrong” is results. If the results of an action turn out to be “good,” the decision to take it may be
presumed “right.” If not, then the action chosen was “wrong” in the sense that it didn’t work out.
Hence, the important thing for you to understand about analyzing cases is that the managerial exercise
of identifying, diagnosing, and recommending is aimed at building your skills of business judgment.
Discovering what the company actually did is no more than frosting on the cake—the actions that company
managers actually took may or may not be “right” or best (unless there is accompanying evidence that the
results of their actions were highly positive.
The point is this: The purpose of giving you a case assignment is not to cause you to run to the library or
surf the Internet to discover what the company actually did but, rather, to enhance your skills in sizing up
situations and developing your managerial judgment about what needs to be done and how to do it. The
aim of case analysis is for you to become actively engaged in diagnosing the business issues and managerial
problems posed in the case, to propose workable solutions, and to explain and defend your assessments—
this is how cases provide you with meaningful practice at being a manager.
Preparing a Case for Class Discussion
If this is your ﬁ rst experience with the case method, you may have to reorient your study habits. Unlike
lecture courses where you can get by without preparing intensively for each class and where you have
latitude to work assigned readings and reviews of lecture notes into your schedule, a case assignment
requires conscientious preparation before class. You will not get much out of hearing the class discuss a case
you haven’t read, and you certainly won’t be able to contribute anything yourself to the discussion. What
you have got to do to get ready for class discussion of a case is to study the case, reﬂ ect carefully on the
situation presented, and develop some reasoned thoughts. Your goal in preparing the case should be to end
up with what you think is a sound, well-supported analysis of the situation and a sound, defensible set of
recommendations about which managerial actions need to be taken. The Case-TUTOR soft ware downloads
that accompany the text and that are available on this same Web site will assist you in preparing the cases—
the Case-TUTOR ﬁ les contain a set of study questions for each case and step-by-step tutorials to walk you
through the process of analyzing and developing reasonable recommendations.A Guide to Case Analysis
To prepare a case for class discussion, we suggest the following approach:
1. Skim the case rather quickly to get an overview of the situation it presents. This quick overview should
give you the general ﬂ avor of the situation and indicate the kinds of issues and problems that you will
need to wrestle with. If your instructor has provided you with study questions for the case, now is the
time to read them carefully.
2. Read the case thoroughly to digest the facts and circumstances. On this reading, try to gain full
command of the situation presented in the case. Begin to develop some tentative answers to the study
questions your instructor has provided or that are provided in the Case-TUTOR software package which
you can download at the Web site for the text. If your instructor has elected not to give you assignment
questions or has elected not to use Case-TUTOR, then start forming your own picture of the overall
situation being described.
3. Carefully review all the information presented in the exhibits. Often, there is an important story in the
numbers contained in the exhibits. Expect the information in the case exhibits to be crucial enough to
materially affect your diagnosis of the situation.
4. Decide what the strategic issues are. Until you have identiﬁ ed the strategic issues and problems in the
case, you don’t know what to analyze, which tools and analytical techniques are called for, or otherwise
how to proceed. At times the strategic issues are clear—either being stated in the case or else obvious from
reading the case. At other times you will have to dig them out from all the information given; if so, the
study questions and the case preparation exercises provided in the Case-TUTOR software will guide you.
5. Start your analysis of the issues with some number crunching. A big majority of strategy cases call
for some kind of number crunching—calculating assorted ﬁ nancial ratios to check out the company’s
ﬁ nancial condition and recent performance, calculating growth rates of sales or proﬁ ts or unit volume,
checking out proﬁ t margins and the makeup of the cost structure, and understanding whatever revenue-
cost-proﬁ t relationships are present. See Table 1 for a summary of key ﬁ nancial ratios, how they are
calculated, and what they show.
6. Apply the concepts and techniques of strategic analysis you have been studying. Strategic analysis is
not just a collection of opinions; rather, it entails applying the concepts and analytical tools described
in Chapters 1 through 13 to cut beneath the surface and produce sharp insight and understanding. Every
case assigned is strategy related and presents you with an opportunity to usefully apply what you have
learned. Your instructor is looking for you to demonstrate that you know how and when to use the
material presented in the text chapters. The case preparation guides on Case-TUTOR will point you
toward the proper analytical tools needed to analyze the case situation.
7. Check out conﬂ icting opinions and make some judgments about the validity of all the data and
information provided. Many times cases report views and contradictory opinions (after all, people don’t
always agree on things, and differ ent people see the same things in different ways). Forcing you to
evaluate the data and information presented in the case helps you develop your powers of inference
and judgment. Asking you to resolve conﬂ icting information “comes with the territory” because a great
many managerial situations entail opposing points of view, conﬂ icting trends, and sketchy information.
8. Support your diagnosis and opinions with reasons and evidence. The most important things to prepare
for are your answers to the question “Why?” For instance, if after studying the case you are of the opinion
that the company’s managers are doing a poor job, then it is your answer to “Why?” that establishes just
how good your analysis of the situation is. If your instructor has provided you with speciﬁ c study questions
for the case or if you are attempting to complete any one of the case preparation exercises on Case-TUTOR,
by all means prepare answers that include all the reasons and number-crunching evidence you can muster A Guide to Case Analysis
to support your diagnosis. Work through the case preparation exercises on Case-TUTOR conscientiously or,
if you are using study questions provided by the instructor, generate at least two pages of notes
9. Develop an appropriate action plan and set of recommendations. Diagnosis divorced from corrective
action is sterile. The test of a manager is always to convert sound analysis into sound actions—actions
that will produce the desired results. Hence, the ﬁ nal and most telling step in preparing a case is to
develop an action agenda for management that lays out a set of speciﬁ c recommendations on what to do.
Bear in mind that proposing realistic, workable solutions is far preferable to casually tossing out off-the-
top-of-your-head suggestions. Be prepared to argue why your recommendations are more attractive than
other courses of action that are open. You’ll ﬁ nd the case preparation exercises on Case-TUTOR helpful
in performing this step, too.
Key Financial Ratios: How to Calculate Them and
What They Mean
Ratio How Calculated What It Shows
Proﬁ tability ratios
1. Gross proﬁ t margin Sales – Cost of goods sold Shows the percentage of revenues available to cover
Sales operating expenses and yield a proﬁ t. Higher is
better and the trend should be upward.
2. Operating proﬁ t margin Sales – Operating expenses Shows the proﬁ tability of current operations without
(or return on sales) Sales regard to interest charges and income taxes. Higher
or is better and the trend should be upward.
3. Net proﬁ t margin (or net Proﬁ ts after taxes Shows after tax proﬁ ts per dollar of sales. Higher is
return on sales) Sales better and the trend should be upward.
4. Return on total assets Proﬁ ts after taxes + Interest A measure of the return on total investment in the
Total assets enterprise. Interest is added to after tax proﬁ ts to
form the numerator since total assets are ﬁ nanced by
creditors as well as by stockholders. Higher is better
and the trend should be upward.
5. Return on stockholders’ Proﬁ ts after taxes Shows the return stockholders are earning on their
equity Total stockholders’ equity investment in the enterprise. A return in the 12-15%
range is “average”, and the trend should be upward.
6. Earnings per share Proﬁ ts after taxes Shows the earnings for each share of common stock
Number of shares of common stock outstanding. The trend should be upward, and the
outstanding bigger the annual percentage gains, the better.
1. Current ratio Current assets – Current liabilities Shows a ﬁ rm’s ability to pay current liabilities using
assets that can be converted to cash in the near term.
Ratio should deﬁ nitely be higher than 1.0; ratios of 2
or higher are better still.
2. Quick ratio (or acid-test Current assets – Inventory Shows a ﬁ rm’s ability to pay current liabilities
ratio) Current liabilities without relying on the sale of its inventories.A Guide to Case Analysis
Table 1 continued
3. Working capital Current assets – current liabilities Bigger amounts are better because the company
has more internal funds available to (1) pay its
current liabilities on a timely basis and (2) ﬁ nance
inventory expansion, additional accounts receivable,
and a larger base of operations without resorting to
borrowing or raising more equity capital.
1. Debt-to-assets ratio Total debt Measures the extent to which borrowed funds have
Total assets been used to ﬁ nance the ﬁ rm’s operations. Low
fractions or ratios are better—high fractions indicate
overuse of debt and greater risk of bankruptcy.
2. Debt-to-equity ratio Total debt Should usually be less than 1.0. High ratios
Total stockholders’ equity (especially above 1.0) signal excessive debt, lower
creditworthiness, and weaker balance sheet strength.
3. Long-term debt-to- Long-term debt Shows the balance between debt and equity in
equity ratio Total stockholders’ equity the ﬁ rm’s long-term capital structure. Low ratios
indicate greater capacity to borrow additional funds
4. Times-interest-earned (or Operating income Measures the ability to pay annual interest charges.
coverage) ratio Interest expenses Lenders usually insist on a minimum ratio of 2.0, but
ratios above 3.0 signal better creditworthiness.
1. Days of inventory Inventory Measures inventory management efﬁ ciency. Fewer
Cost of goods sold ÷ 365 days of inventory are usually better.
2. Inventory turnover Cost of goods sold Measures the number of inventory turns per year.
Inventory Higher is better.
3. Average collection Accounts receivable Indicates the average length of time the ﬁ rm must
period Total sales ÷ 365 wait after making a sale to receive cash payment. A
or shorter collection time is better.
Average daily sales
Other Important Measures of Financial Performance
1. Dividend yield on Annual dividends per share A measure of the return that shareholders receive in
common stock Current market price per share the form of dividends. A “typical” dividend yield is
2-3%. The dividend yield for fast-growth companies
is often below 1% (maybe even 0); the dividend
yield for slow-growth companies can run 4-5%.
2. Price-earnings ratio Current market price per share P-e ratios above 20 indicate strong investor
Earnings per share conﬁ dence in a ﬁ rm’s outlook and earnings growth;
ﬁ rms whose future earnings are at risk or likely to
grow slowly typically have ratios below 12.
3. Dividend payout ratio Annual dividends per share Indicates the percentage of after-tax proﬁ ts paid out
Earnings per share as dividends.
4. Internal cash ﬂ ow After tax proﬁ ts + Depreciation A quick and rough estimate of the cash a company’s
business is generating after payment of operating
expenses, interest, and taxes. Such amounts can
be used for dividend payments or funding capital
expenditures. A Guide to Case Analysis
As long as you are conscientious in preparing your analysis and recommendations, and have ample reasons,
evidence, and arguments to support your views, you shouldn’t fret unduly about whether what you’ve
prepared is “the right answer” to the case. In case analysis there is rarely just one right approach or set of
recommendations. Managing companies and crafting and executing strategies are not such exact sciences
that there exists a single provably correct analysis and action plan for each strategic situation. Of course,
some analyses and action plans are better than others; but, in truth, there’s nearly always more than one good
way to analyze a situation and more than one good plan of action. So, if you have carefully prepared the case
by either completing one of the Case-TUTOR case preparation exercises or developing your own answers to
the assignment questions for the case, don’t lose conﬁ dence in the correctness of your work and judgment.
Participating in Class Discussion of a Case
Classroom discussions of cases are sharply different from attending a lecture class. In a case class students
do most of the talking. The instructor’s role is to solicit student participation, keep the discussion on track,
ask “Why?” often, offer alternative views, play the devil’s advocate (if no students jump in to offer opposing
views), and otherwise lead the discussion. The students in the class carry the burden for analyzing the
situation and for being prepared to present and defend their diagnoses and recommendations. Expect a
classroom environment, therefore, that calls for your size-up of the situation, your analysis, what actions
you would take, and why you would take them. Do not be dismayed if, as the class discussion unfolds, some
insightful things are said by your fellow classmates that you did not think of. It is normal for views and
analyses to differ and for the comments of others in the class to expand your own thinking about the case.
As the old adage goes, “Two heads are better than one.” So it is to be expected that the class as a whole will
do a more penetrating and searching job of case analysis than will any one person working alone. This is
the power of group effort, and its virtues are that it will help you see more analytical applications, let you
test your analyses and judgments against those of your peers, and force you to wrestle with differences of
opinion and approaches.
To orient you to the classroom environment on the days a case discussion is scheduled, we compiled the
following list of things to expect:
1. Expect the instructor to assume the role of extensive questioner and listener.
2. Expect students to do most of the talking. The case method enlists a maximum of individual participa–
tion in class discussion. It is not enough to be present as a silent observer; if every student took this
approach, there would be no discussion. (Thus, expect a portion of your grade to be based on your
participation in case discussions.)
3. Be prepared for the instructor to probe for reasons and supporting analysis.
4. Expect and tolerate challenges to the views expressed. All students have to be willing to submit their
conclusions for scrutiny and rebuttal. Each student needs to learn to state his or her views without
fear of disapproval and to overcome the hesitation of speaking out. Learning respect for the views
and approaches of others is an integral part of case analysis exercises. But there are times when it
is OK to swim against the tide of majority opinion. In the practice of management, there is always
room for originality and unorthodox approaches. So while discussion of a case is a group process,
there is no compulsion for you or anyone else to cave in and conform to group opinions and group
5. Don’t be surprised if you change your mind about some things as the discussion unfolds. Be alert to
how these changes affect your analysis and recommendations (in the event you get called on).A Guide to Case Analysis
6. Expect to learn a lot in class as the discussion of a case progresses; furthermore, you will ﬁ nd that
the cases build on one another—what you learn in one case helps prepare you for the next case
There are several things you can do on your own to be good and look good as a participant in class
Although you should do your own independent work and independent thinking, don’t hesitate before (and
after) class to discuss the case with other students. In real life, managers often discuss the company’s
problems and situation with other people to reﬁ ne their own thinking.
• In participating in the discussion, make a conscious effort to contribute, rather than just talk. There
is a big difference between saying something that builds the discussion and offering a long-winded,
off-the-cuff remark that leaves the class wondering what the point was.
• Avoid the use of “I think,” “I believe,” and “I feel”; instead, say, “My analysis shows —” and “The
company should do ______.because ______.” Always give supporting reasons and evidence for your
views; then your instructor won't have to ask you “Why?” every time you make a comment.
• In making your points, assume that everyone has read the case and knows what it says; avoid reciting
and rehashing information in the case—instead, use the data and information to explain your
assessment of the situation and to support your position.
• Bring the printouts of the work you’ve done on Case-TUTOR or the notes you’ve prepared (usually
two or three pages’ worth) to class and rely on them extensively when you speak. There’s no way
you can remember everything off the top of your head—especially the results of your number
crunching. To reel off the numbers or to present all ﬁ ve reasons why, instead of one, you will need
good notes. When you have prepared thoughtful answers to the study questions and use them as
the basis for your comments, everybody in the room will know you are well prepared, and your
contribution to the case discussion will stand out.
Preparing a Written Case Analysis
Preparing a written case analysis is much like preparing a case for class discussion, except that your analysis
must be more complete and put in report form. Unfortunately, though, there is no ironclad procedure for
doing a written case analysis. All we can offer are some general guidelines and words of wisdom—this
is because company situations and management problems are so diverse that no one mechanical way to
approach a written case assignment always works.
Your instructor may assign you a speciﬁ c topic around which to prepare your written report. Or, alternatively,
you may be asked to do a comprehensive written case analysis, where the expectation is that you will
(1) identify all the pertinent issues that management needs to address, (2) perform whatever analysis and
evaluation is appropriate, and (3) propose an action plan and set of recommendations addressing the issues
you have identiﬁ ed. In going through the exercise of identify, evaluate, and recommend, keep the following
pointers in mind.
Identiﬁ cation It is essential early on in your paper that you provide a sharply focused diagnosis of
strategic issues and key problems and that you demonstrate a good grasp of the company’s present situation.
Make sure you can identify the ﬁ rm’s strategy (use the concepts and tools in Chapters 1–8 as diagnostic aids)
and that you can pinpoint whatever strategy implementation issues may exist (again, consult the material in
Chapters 9–11 for diagnostic help). Consult the key points we have provided at the end of each chapter for A Guide to Case Analysis
further diagnostic suggestions. Review the study questions for the case on Case-TUTOR. Consider beginning
your paper with an overview of the company’s situation, its strategy, and the signiﬁ cant problems and issues
that confront management. State problems/issues as clearly and precisely as you can. Unless it is necessary
to do so for emphasis, avoid recounting facts and history about the company (assume your professor has
read the case and is familiar with the organization).
Analysis and Evaluation This is usually the hardest part of the report. Analysis is hard work Check out the
ﬁ rm’s ﬁ nancial ratios, its proﬁ t margins and rates of return, and its capital structure, and decide how strong
the ﬁ rm is ﬁ nancially. Table 1 contains a summary of various ﬁ nancial ratios and how they are calculated.
Use it to assist in your ﬁ nancial diagnosis. Similarly, look at marketing, production, managerial competence,
and other factors underlying the organization’s strategic successes and failures. Decide whether the ﬁ rm has
valuable resource strengths and competencies and, if so, whether it is capitalizing on them.
Check to see if the ﬁ rm’s strategy is producing satisfactory results and determine the reasons why or why
not. Probe the nature and strength of the competitive forces confronting the company. Decide whether and
why the ﬁ rm’s competitive position is getting stronger or weaker. Use the tools and concepts you have
learned about to perform whatever analysis and evaluation is appropriate. Work through the case preparation
exercise on Case-TUTOR if one is available for the case you’ve been assigned.
In writing your analysis and evaluation, bear in mind four things:
1. You are obliged to offer analysis and evidence to back up your conclusions. Do not rely on unsupported
opinions, over-generalizations, and platitudes as a substitute for tight, logical argument backed up
with facts and ﬁ gures.
2. If your analysis involves some important quantitative calculations, use tables and charts to present
the calculations clearly and efﬁ ciently. Don’t just tack the exhibits on at the end of your report and
let the reader ﬁ gure out what they mean and why they were included. Instead, in the body of your
report cite some of the key numbers, highlight the conclusions to be drawn from the exhibits, and
refer the reader to your charts and exhibits for more details.
3. Demonstrate that you have command of the strategic concepts and analytical tools to which you have
been exposed. Use them in your report.
4. Your interpretation of the evidence should be reasonable and objective. Be wary of preparing a
one-sided argument that omits all aspects not favorable to your conclusions. Likewise, try not to
exaggerate or overdramatize. Endeavor to inject balance into your analysis and to avoid emotional
rhetoric. Strike phrases such as “I think,” “I feel,” and “I believe” when you edit your ﬁ rst draft and
write in “My analysis shows,” instead.
Recommendations The ﬁ nal section of the written case analysis should consist of a set of deﬁ nite
recommendations and a plan of action. Your set of recommendations should address all of the problems/
issues you identiﬁ ed and analyzed. If the recommendations come as a surprise or do not follow logically
from the analysis, the effect is to weaken greatly your suggestions of what to do. Obviously, your
recommendations for actions should offer a reasonable prospect of success. High-risk, bet-the-company
recommendations should be made with caution. State how your recommendations will solve the problems
you identiﬁ ed. Be sure the company is ﬁ nancially able to carry out what you recommend; also check to see
if your recommendations are workable in terms of acceptance by the persons involved, the organization’s
competence to implement them, and prevailing market and environmental constraints. Try not to hedge or
weasel on the actions you believe should be taken.A Guide to Case Analysis
By all means state your recommendations in sufﬁ cient detail to be meaningful—get down to some deﬁ nite
nitty-gritty speciﬁ cs. Avoid such unhelpful statements as “the organization should do more planning” or
“the company should be more aggressive in marketing its product.” For instance, if you determine that
“the ﬁ rm should improve its market position,” then you need to set forth exactly how you think this should
be done. Offer a deﬁ nite agenda for action, stipulating a timetable and sequence for initiating actions,
indicating priorities, and suggesting who should be responsible for doing what.
In proposing an action plan, remember there is a great deal of difference between, on the one hand, being
responsible for a decision that may be costly if it proves in error and, on the other hand, casually suggesting
courses of action that might be taken when you do not have to bear the responsibility for any of the
consequences. A good rule to follow in making your recommendations is: Avoid recommending anything you
would not yourself be willing to do if you were in management’s shoes. The importance of learning to develop
good managerial judgment is indicated by the fact that, even though the same information and operating data
may be available to every manager or executive in an organization, the quality of the judgments about what
the information means and which actions need to be taken does vary from person to person.
It goes without saying that your report should be well organized and well written. Great ideas amount to
little unless others can be convinced of their merit—this takes tight logic, the presentation of convincing
evidence, and persuasively written arguments.
Preparing an Oral Presentation
During the course of your business career it is very likely that you will be called upon to prepare and give a
number of oral presentations. For this reason, it is common in courses of this nature to assign cases for oral
presentation to the whole class. Such assignments give you an opportunity to hone your presentation skills.
The preparation of an oral presentation has much in common with that of a written case analysis. Both
require identiﬁ cation of the strategic issues and problems confronting the company, analysis of industry
conditions and the company’s situation, and the development of a thorough, well-thought out action plan.
The substance of your analysis and quality of your recommendations in an oral presentation should be no
different than in a written report. As with a written assignment, you’ll need to demonstrate command of the
relevant strategic concepts and tools of analysis and your recommendations should contain sufﬁ cient detail
to provide clear direction for management. The main difference between an oral presentation and a written
case is in the delivery format. Oral presentations rely principally on verbalizing your diagnosis, analysis,
and recommendations and visually enhancing and supporting your oral discussion with colorful, snappy
slides (usually created on Microsoft’s PowerPoint software).
Typically, oral presentations involve group assignments. Your instructor will provide the details of the
assignment—how work should be delegated among the group members and how the presentation should
be conducted. Some instructors prefer that presentations begin with issue identiﬁ cation, followed by
analysis of the industry and company situation analysis, and conclude with a recommended action plan to
improve company performance. Other instructors prefer that the presenters assume that the class has a good
understanding of the external industry environment and the company’s competitive position and expect
the presentation to be strongly focused on the group’s recommended action plan and supporting analysis
and arguments. The latter approach requires cutting straight to the heart of the case and supporting each
recommendation with detailed analysis and persuasive reasoning. Still other instructors may give you the
latitude to structure your presentation however you and your group members see ﬁ t.A Guide to Case Analysis
Regardless of the style preferred by your instructor, you should take great care in preparing for the
presentation. A good set of slides with good content and good visual appeal is essential to a ﬁ rst-rate
presentation. Take some care to choose a nice slide design, font size and style, and color scheme. We
suggest including slides covering each of the following areas:
• An opening slide covering the “title” of the presentation and names of the presenters.
• A slide showing an outline of the presentation (perhaps with presenters’ names by each topic).
• One or more slides showing the key problems and strategic issues that management needs to
• A series of slides covering your analysis of the company’s situation.
• A series of slides containing your recommendations and the supporting arguments and reasoning
for each recommendation—one slide for each recommendation and the associated reasoning
has a lot of merit.
You and your team members should carefully plan and rehearse your slide show to maximize impact and
minimize distractions. The slide show should include all of the pizzazz necessary to garner the attention of
the audience, but not so much that it distracts from the content of what group members are saying to the
class. You should remember that the role of slides is to help you communicate your points to the audience.
Too many graphics, images, colors, and transitions may divert the audience’s attention from what is being
said or disrupt the ﬂ ow of the presentation. Keep in mind that visually dazzling slides rarely hide a shallow
or superﬁ cial or otherwise ﬂ awed case analysis from a perceptive audience. Most instructors will tell you
that ﬁ rst-rate slides will deﬁ nitely enhance a well-delivered presentation but that impressive visual aids, if
accompanied by weak analysis and poor oral delivery, still adds up to a substandard presentation.
Researching Companies and Industries via the Internet
and Online Data Services
Very likely, there will be occasions when you need to get additional information about some of the assigned
cases, perhaps because your instructor has asked you to do further research on the industry or company or
because you are simply curious about what has happened to the company since the case was written. These
days it is relatively easy to run down recent industry developments and to ﬁ nd out whether a company’s
strategic and ﬁ nancial situation has improved, deteriorated, or changed little since the conclusion of the
case. The amount of information about companies and industries available on the Internet and through
online data services is formidable and expanding rapidly.
It is a fairly simple matter to go to company Web sites, click on the investor information offerings and
press release ﬁ les, and get quickly to useful information. Most company Web sites allow you to view or
print the company’s quarterly and annual reports, its 10K and 10Q ﬁ lings with the Securities and Exchange
Commission, and various company press releases of interest. Frequently, a company’s Web site will also
provide information about its mission and vision statements, values statements, codes of ethics, and
strategy information, as well as charts of the company’s stock price. The company’s recent press releases
typically contain reliable information about what of interest has been going on—new product introductions,
recent alliances and partnership agreements, recent acquisitions, summaries of the latest ﬁ nancial results,
tidbits about the company’s strategy, guidance about future revenues and earnings, and other late-breaking
company developments. Some company Web pages also include links to the home pages of industry trade
associations where you can ﬁ nd information about industry size, growth, recent industry news, statistical
trends, and future outlook. Thus, an early step in researching a company on the Internet is always to go to
its Web site and see what’s available.A Guide to Case Analysis
Online Data Services
Lexis-Nexis, Bloomberg Financial News Services, and other on-line subscription services available in many
university libraries provide access to a wide array of business reference material. For example, the web-
based Lexis-Nexis Academic Universe contains business news articles from general news sources, business
publications, and industry trade publications. Broadcast transcripts from ﬁ nancial news programs are also
available through Lexis-Nexis, as are full-text 10-Ks, 10-Qs, annual reports, and company proﬁ les for more
than 11,000 U.S. and international companies. Your business librarian should be able to direct you to the
resources available through your library that will aid you in your research.
Public and Subscription Websites with Good Information
Plainly, you can use a search engine such as Google or Yahoo or MSN to ﬁ nd the latest news on a company
or articles written by reporters that have appeared in the business media. These can be very valuable in
running down information about recent company developments. However, keep in mind that the information
retrieved by a search engine is “unﬁ ltered” and may include sources that are not reliable or that contain
inaccurate or misleading information. Be wary of information provided by authors who are unafﬁ liated with
reputable organizations or publications and articles that were published in off-beat sources or on Web sites
with an agenda. Be especially careful in relying on the accuracy of information you ﬁ nd posted on various
bulletin boards. Articles covering a company or issue should be copyrighted or published by a reputable
source. If you are turning in a paper containing information gathered from the Internet, you should cite your
sources (providing the Internet address and date visited); it is also wise to print Web pages for your research
ﬁ le (some Web pages are updated frequently).
The Wall Street Journal, Business Week, Forbes, Barron’s, and Fortune are all good sources of articles on
companies. The Wall Street Journal Interactive Edition contains the same information that is available daily
in its print version of the paper, but also maintains a searchable database of all Wall Street Journal articles
published during the past few years. Fortune and Business Week also make the content of the most current
issue available online to subscribers as well as provide archives sections that allow you to search for articles
related to a particular keyword that were published during the past few years.
The following Websites are particularly good locations for company and industry information:
Securities and Exchange Commission EDGAR
database (contains company 10-Ks, 10-Qs, etc.) http://www.sec.gov/cgi-bin/srch-edgar
CNN Money http://money.cnn.com
Hoover’s Online http://hoovers.com
The Wall Street Journal Interactive Edition http://www.wsj.com
Business Week http://www.businessweek.com
MSN Money Central http://moneycentral.msn.com
Yahoo Finance http://ﬁ nance.yahoo.com/
Some of these Internet sources require subscriptions in order to access their entire databases.
Learning Comes Quickly With a modest investment of time, you will learn how to use Internet sources
and search engines to run down information on companies and industries quickly and efﬁ ciently. And it
is a skill that will serve you well into the future. Once you become familiar with the data available at the
different Web sites mentioned above and with using a search engine, you will know where to go to look for
the particular information that you want. Search engines nearly always turn up too many information sources
that match your request rather than two few; the trick is to learn to zero in on those most relevant to what you A Guide to Case Analysis
are looking for. Like most things, once you get a little experience under your belt on how to do company and
industry research on the Internet, you will ﬁ nd that you can readily ﬁ nd the information you need.
Th e Ten Commandments of Case Analysis
As a way of summarizing our suggestions about how to approach the task of case analysis, we have compiled
what we like to call “The Ten Commandments of Case Analysis.” They are shown in Table 2. If you observe
all or even most of these commandments faithfully as you prepare a case either for class discussion or for a
written report, your chances of doing a good job on the assigned cases will be much improved. Hang in there,
give it your best shot, and have some fun exploring what the real world of strategic management is all about.
The Ten Commandments of Case Analysis
To be observed in written reports and oral presentations, and while participating in class discussions.
1. Go through the case twice, once for a quick overview and once to gain full command of the facts;
then take care to explore the information in every one of the case exhibits.
2. Make a complete list of the problems and issues that the company’s management needs to
3. Be thorough in your analysis of the company’s situation (either work through the case preparation
exercises on Case-TUTOR or make a minimum of 1 to 2 pages of notes detailing your diagnosis).
4. Look for opportunities to apply the concepts and analytical tools in the text chapters—all of the
cases in the book have very deﬁ nite ties to the material in one or more of the text chapters
5. Do enough number crunching to discover the story told by the data presented in the case. (To help
you comply with this commandment, consult Table 1 in this section to guide your probing of a
company’s ﬁ nancial condition and ﬁ nancial performance.)
6. Support any and all off-the-cuff opinions with well-reasoned arguments and numerical evidence;
don’t stop until you can purge “I think” and “I feel” from your assessment and, instead, are able
to rely completely on “My analysis shows.”
7. Prioritize your recommendations and make sure they can be carried out in an acceptable time
frame with the available resources.
8. Support each recommendation with persuasive argument and reasons as to why it makes sense
and should result in improved company performance.
9. Review your recommended action plan to see if it addresses all of the problems and issues you
identiﬁ ed—any set of recommendations that does not address all of the issues and problems you
identiﬁ ed is incomplete and insufﬁ cient.
10. Avoid recommending any course of action that could have disastrous consequences if it doesn’t
work out as planned; therefore, be as alert to the downside risks of your recommendations as you
are to their upside potential and appeal. A Guide to Case Analysis
Charles I. Gragg, “Because Wisdom Can’t Be Told,” in The Case Method at the Harvard Business School,
ed. M. P. McNair (New York: McGraw-Hill, 1954), p. 11.
Ibid., pp. 12–14; and D. R. Schoen and Philip A. Sprague, “What Is the Case Method?” in The Case
Method at the Harvard Business School, ed. M. P. McNair, pp. 78–79.
For some additional ideas and viewpoints, you may wish to consult Thomas J. Raymond, “Written
Analysis of Cases,” in The Case Method at the Harvard Business School, ed. M. P. McNair, pp. 139–63.
Raymond’s article includes an actual case, a sample analysis of the case, and a sample of a student’s
written report on the case.
Gragg, “Because Wisdom Can’t Be Told,” p. 10.