The Manager has to study every aspect of the case, familiarise himself with the situation faced by him, find out what the heart of the problem, and find ways and means to solve it. Having found the ways and the means to carry out his remedial action, he takes a decision, or if the decision is to be taken by higher authorities, he makes a list of recommendations, by means of a report.
Based on such a study of the alternative solutions, recommendations are made making use of those areas where the firm is strong and avoiding those where it is weak. The suggestion also should take into account the capacity of the firm’s finances.
Recommendations are also made for taking such actions which can prevent a similar situation from recurring.
Normally if it is within the powers of the Manager, he takes immediate remedial steps.
But if the problem involves major decisions, the matter is referred to the Board of Directors or other higher authority, by means of the detailed case study report, containing all that the manager has done in trying to solve the problem.