Case analysis steps

1. CASE ANALYSIS STEPS
1. Current Status & Performance of Company
2. Identify the Key “Decision Point” Issue of Case
(Boil it town to one catch phrase up front)
3. Cast of Characters & Their Vested Interests
(Stakeholder analysis grid; Triple Bottom Line Considerations)
4. Situational Assessment - Internal & External
(SWOT/TOWS; PEST; 5-Forces; Value Chain; Global markets strategy; etc.)
5. Marketing Strategy (4/7 Ps; BCG Matrix; Market
Segmentation; Ansoff Matrix; Integrated marketing communications)
6. Generate Alternatives
7. Decision Criteria (from mission, vision, goals, hints from case)
8. Assessment of Alternatives & Selection
(matrix evaluating alternatives in light of decision criteria)
9. Action Plan to Implement Selection (detailed
timelines; Gantt charts; benchmarking of results)

2. 2
STRATEGY
Is about developing
COMPETITIVE
ADVANTAGES

3. 3
SUSTAINABLE COMPETITIVE
ADVANTAGE
• VALUABLE
• RARE
• HARD TO COPY
Resources must be:

4. Price / Profit / Margins
Margin = Price - Cost Structure
* Labor
* Materials
* Operating Overhead
* Administrative Overhead
PRICE = VALUE to CUSTOMER - COMPETITION

5. 5
STRATEGIC THINKING: An Approach
MISSION
SITUATIONAL
ASSESSMENT
(SWOT)
STRATEGY
Critical Success Factors
1) 2)
3) 4)
IMPLEMENTATION
What to do:: Tactics for each CSF
How to do it: Change Management Issues
Stakeholder Analysis
Internal Assessment
* Financial Analysis
* Competences by Function
* Capabilities
* COMPETITIVE ADV
CUSTOMER Appeal:
1) 2)
3) 4)
External Analysis
* Trends (Eco, Gov’t, Demo,
Tech, Legal, Social)
* 5 Forces of Industry Structure
* Strategic Groups
* Competitor Analysis
COMPETITIVE Defense:
1) 2)
3) 4)

6. How to Compete
• Low Cost Producer - lower cost
structure * lower price, same
margin * same price, higher margins
• Differentiation - request
higher price - higher price
oversets higher costs
6

7. 7
TWO FACES OF STRATEGY
STRATEGY
CUSTOMERS COMPETITORS
QUALITY CUSTOMIZATION SUSTAINABLE DEFENSIBLE
VALUE
How do we ATTRACT Customers? How do we DEFEND vs. Competitors?

8. 8
THE VALUE of CUSTOMERS
• GOAL:
* ATTRACT * RETAIN
* GROW
• METHOD: * IDENTIFY “Most
Valuable Customers” * DETERMINE “Value
Proposition” * DEVELOP “A Relationship”
* BUILD IN “Switching Costs”

9. 9
CUSTOMERS ARE MORE PROFITABLE
OVER TIME
YEAR
SOURCE: Harvard Business Review,
P
R
O
F
I
T
S
1 2 3 4 5 6
PROFIT FROM:
PREMIUM PRICE
REFERRALS
REDUCED OPER.
& SERVICING $$
LARGER & MORE
FREQUENT
PURCHASES
BASE PROFIT

10. 10
Time
C
U
S
T
O
M
E
R
C
U
S
T
O
M
E
R
C
U
S
T
O
M
E
R
BUILDING a “WALL of BRICKS”
around YOUR CUSTOMERS

11. BUT HOW?
• Develop COMPETITIVE ADVANTAGES
• But How?
• Develop CORE COMPETENCES
• But How?
• DESIGN & INVEST IN THE “BRICKS”
(SKILLS/ACTIVITIES/PROCESSES/SYSTEMS)
• But How?
• STRATEGIC THINKING & PLANNING
11

12. 12
STRATEGIC THINKING: An Approach
MISSION
SITUATIONAL
ASSESSMENT
(SWOT)
STRATEGY
Critical Success Factors
1) 2)
3) 4)
IMPLEMENTATION
What to do:: Tactics for each CSF
How to do it: Change Management Issues
Stakeholder Analysis
Internal Assessment
* Financial Analysis
* Competences by Function
* Capabilities
* COMPETITIVE ADV
CUSTOMER Appeal:
1) 2)
3) 4)
External Analysis
* Trends (Eco, Gov’t, Demo,
Tech, Legal, Social)
* 5 Forces of Industry Structure
* Strategic Groups
* Competitor Analysis
COMPETITIVE Defense:
1) 2)
3) 4)

13. 13
The 3 COMPONENTS of SUCCESS
• VISION (Mission)
• CAPABILITIES
(Formulating Strategy)
• EXECUTION
(Implementing Strategy)

14. STAKEHOLDER ANALYSIS
• Who are the stakeholders (be broad)?
• Which are the KEY stakeholders?
• What do they want?
• Are their interest in alignment with yours?
• If not, can they be mitigated?
• If not, better adjust
Elon University LEDP 14

15. 15
STRATEGIC THINKING: An Approach
MISSION
SITUATIONAL
ASSESSMENT
(SWOT)
STRATEGY
Critical Success Factors
1) 2)
3) 4)
IMPLEMENTATION
What to do:: Tactics for each CSF
How to do it: Change Management Issues
Stakeholder Analysis
Internal Assessment
* Financial Analysis
* Competences by Function
* Capabilities
* COMPETITIVE ADV
CUSTOMER Appeal:
1) 2)
3) 4)
External Analysis
* Trends (Eco, Gov’t, Demo,
Tech, Legal, Social)
* 5 Forces of Industry Structure
* Strategic Groups
* Competitor Analysis
COMPETITIVE Defense:
1) 2)
3) 4)

16. 16
EXTERNAL ENVIRONMENT
INDUSTRY
STRATEGY
Critical
Success
Factors
ACTIVITIES
“THE STRATEGY FUNNEL”

17. SWOT Analysis
Internal (competences, comp. adv.)
Strengths
Weaknesses
External (trends, industry, competitors)
Opportunity
Threats
17

18. 18
SOURCES OF PROFITABILITY
Profitability
Industry
Structure
Competitive
Advantage
Differentiatio
n
Advantages
Cost
Advantages
Barriers
to Entry
Process
Tech
Eco of
Scale
Low $$
Inputs
Service
Product
Tech
Brands
Dist.
Channel
Patents
Capital
Needs
Commodity
Buyer /
Supplier
Value Based

19. 19
5 FORCES
of INDUSTRY STRUCTURE
Threat of Entry
Buyer PowerRivalry
Substitutes
Supplier Power
Barriers To Entry
Profit = Price - Cost
Margin

20. 20
5 FORCES
of INDUSTRY STRUCTURE
Threat of Entry
Buyer PowerRivalry
Substitutes
Supplier Power
Barriers To Entry
Profit = Price - Cost
Margin
Cost Price Price
Ceiling on Price
Price

21. 21
COMPETITOR ANALYSIS
• GOALS / OBJECTIVES - what they want to do
• CURRENT STRATEGY - what they are doing
• CAPABILITIES - what they are able to do
• RETALIATION HISTORY - how do they respond
• ASSUMPTIONS - how do they see the world, the
future, the industry, themselves
• COMMITMENTS - what must they do

22. 22
STRATEGIC THINKING: An Approach
MISSION
SITUATIONAL
ASSESSMENT
(SWOT)
STRATEGY
Critical Success Factors
1) 2)
3) 4)
IMPLEMENTATION
What to do:: Tactics for each CSF
How to do it: Change Management Issues
Stakeholder Analysis
Internal Assessment
* Financial Analysis
* Competences by Function
* Capabilities
* COMPETITIVE ADV
CUSTOMER Appeal:
1) 2)
3) 4)
External Analysis
* Trends (Eco, Gov’t, Demo,
Tech, Legal, Social)
* 5 Forces of Industry Structure
* Strategic Groups
* Competitor Analysis
COMPETITIVE Defense:
1) 2)
3) 4)

23. 23
EXTERNAL ENVIRONMENT
INDUSTRY &
COMPETITORS
STRATEGY
Critical
Success
Factors
ACTIVITIES
“THE STRATEGY FUNNEL”

24. VALUE CHAIN
Procurement
Technological Development
Human Resource Management
General Administration
Inbound Operations Outbound Marketing Service
Logistics Logistics & Sales
S
U
P
P
O
R
T
I
N
G
PRIMARY ACTIVITIES

25. PURPOSE of VALUE CHAIN
These are the activities/’bricks’ that
lead to your core competences and,
hopefully, your competitive
advantages
25

26. 26
Strategy ⇨ Critical Success Factors ⇨ Tactics
TRENDS
INDUSTRY
STRUCTUR
E
COMPETITOR
S
Internal
Assessm
ent
STRAT
EGY
CS
F
1
CS
F
2
CS
F
3
Tactic
Tactic
Tactic
Tactic
Tactic
Tactic
Tactic
Tactic

27. 27
STRATEGIC THINKING: An Approach
MISSION
SITUATIONAL
ASSESSMENT
(SWOT)
STRATEGY
Critical Success Factors
1) 2)
3) 4)
IMPLEMENTATION
What to do:: Tactics for each CSF
How to do it: Change Management Issues
Stakeholder Analysis
Internal Assessment
* Financial Analysis
* Competences by Function
* Capabilities
* COMPETITIVE ADV
CUSTOMER Appeal:
1) 2)
3) 4)
External Analysis
* Trends (Eco, Gov’t, Demo,
Tech, Legal, Social)
* 5 Forces of Industry Structure
* Strategic Groups
* Competitor Analysis
COMPETITIVE Defense:
1) 2)
3) 4)

28. Market Growth Matrix
Markets
Old New
Products
Old
New Product
Development
Diversification
(related, unrelated)
Mkt
Penetration
Mkt
Development

29. Business Model Logic
VALUE PROPOSITION
Critical Success Factors
CSF #1 CSF #2 CSF #3 CSF #4
Tactics/Bricks
for
CSF #1
Tactics/Bricks
for
CSF #2
Tactics/Bricks
for
CSF #3
Tactics/Bricks
for
CSF #4

30. Example: ZARA STRATEGIC GROUP MAP
Manufacturin
Store
s
Outsource
Own
Outsource Own
GAP
H&M
Benetton
ZAR
A

31. Logic of ZARA Analysis
Cutting Edge Fashion at
Reasonable Prices
Critical Success Factors
Cost
Containment
Supply
Chain
Network
Operations
Store
Management
Lots of designers
“Right”
designers
Lots of products
Teamed with
plant & stores
Local partners
Low advertising
Low transportation
Low SG&A
Low Working Cap’t
Mat’l Quality lower
Central
Distribution
Speed to Market
Small batches
Invests in IT
Own trucking
Supplier proximity
Prime location
Window changes
Scarcity
Low Inventory
Mgr can’t set $$
Teamed
Design-
Oriented

32. Zara Critical Success Factors
• Design-oriented
• Cost containment
• Supply Chain replenishment of
operational network of
geographically dispersed
stores
• Store Management

33. IMPLEMENTATION ISSUES
• Organizational Structure
• Timeline
• Sales Forecast
• Financial Pro formas
• Change Considerations (Force Field Diagram)
33

34. FORCE FIELD DIAGRAM
Status Quo
Forces Encouraging Change Forces Resisting Change
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.

35. FAILURE summed up:
"The history of the failure of war can almost be summed
up in two words: too late.
– Too late in comprehending the deadly purpose of a
potential enemy.
– Too late in realizing the mortal danger.
– Too late in preparedness.
– Too late in uniting all possible forces for
resistance.
– Too late in standing with one's friends."
- General Douglas Macarthur
35

36. 36
Wealth Creation
• “Wealth flows from innovation not from
optimization. Wealth is not created from
perfecting the known, but imperfectly
seizing the unknown.”
Kevin Kelly

37. CASE STUDY METHOD
• Assess Current Performance & Goals
• Identify Key “Decision Point” Issue From Case
• Cast of Characters (& Their Vested Interests)
• Situational Assessment (SWOT)
• Generate Alternatives
• Isolate Decision Criteria
• Assess and Select Best Alternative
• Explain how it fits decision criteria
• Support with facts and evidence from the case
• Implementation Plan for Selected Alternative

38. 38
EXTERNAL ENVIRONMENT
INDUSTRY
FIRM STRATEGY
CRITICAL SUCCESS
FACTORS (CSFs)
ACTIVITIES/
TACTICS
“THE STRATEGY FUNNEL”

39. 39
STRATEGIC THINKING MATRIX
MISSION
SITUATIONAL
ASSESSMENT
(SWOT)
STRATEGY
Critical Success Factors
1) 2)
3) 4)
IMPLEMENTATION
What to do:: Tactics for each CSF
How to do it: Change Management Issues
Stakeholder Analysis
Internal Assessment
* Financial Analysis
* Competences by Function
* Capabilities
* COMPETITIVE ADV
CUSTOMER Appeal:
1) 2)
3) 4)
External Analysis
* Trends (Eco, Gov’t, Demo,
Tech, Legal, Social)
* 5 Forces of Industry Structure
* Strategic Groups
* Competitor Analysis
COMPETITIVE Defense:
1) 2)
3) 4)

40. 40
Strategy ⇨ Critical Success Factors ⇨ Tactics
TRENDS
INDUSTRY
STRUCTUR
E
COMPETITOR
S
Internal
Assessm
ent
STRAT
EGY
CS
F
1
CS
F
2
CS
F
3
Tactic
Tactic
Tactic
Tactic
Tactic
Tactic
Tactic
Tactic

41. 41
SUCCESS HAS 3 KEY COMPONENTS
• VISION (Mission)
• CAPABILITIES
(Formulating Strategy)
• EXECUTION
(Implementing Strategy)