Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
How to analyze a case
1.
2. Knowing how to analyze a case
will help you attack virtually any
business problem.
3. Goal of Analysis
Conclusion about the main issue
Evidence showing why your
conclusion is
Reasonable
You have thought about other
possible conclusions
Why yours is preferable to
them.
4. Study analysis can be broken down into the
following steps:
Identify the most important facts surrounding
the case.
Identify the key issue or issues.
Specify alternative courses of action.
Evaluate each course of action.
Recommend the best course of action.
5. Point of View
Adopt the point of view of the
protagonist –
the main character.
6. Hypothesis
A hypothesis is a tentative
explanation that accounts for
a set of facts and can be tested
by further investigation
8. 1. Situation
The most difficult part of a
case analysis seems to be the
beginning. You have to bridge
the gap between no
knowledge about the case
and knowledge sufficient to
form a hypothesis.
9. 2. Questions
Knowing the situation
allows you to ask
questions pertinent to a
problem, a decision, or an
evaluation. The most
important of these
questions is: What do I
need to know about the
situation
10. 3. Hypothesis
Armed with a list of
things you want to know
about the situation map of
the content,
11. 4. Proof and Action
A hypothesis drives a
different approach to the
case. You want to prove
something, not look for
something to prove. Ask
these questions: What
evidence do I have that
supports the hypothesis?
What additional evidence do
I need?
12. 5. Alternatives
It may seem paradoxical, but
the last phase of analysis
should be to question your
own hypothesis: What is the
greatest weakness of the
hypothesis? What is the
strongest alternative to it?
20. Describe what changes you
would make in the business to
arrive at the measures you
proposed, including changes
to organization, strategy,
and management.
21. Conclude your analysis by
reviewing your findings
and emphasizing what you
would do differently in the
case.