Saint Leo University Graduate Business Studies MBA575 Global Business Management Case Study Method: How to Analyze the Cases “Real world” cases place the student in a simulated organizational climate as a manager, leader, or non- manager who must make decisions. A case is: ...a story of organizational issues which actually have been faced by people, together with facts, opinions, and prejudices upon which decisions must be made. A key feature of a case is that the decisions which require action must be made. With the case method, the process of arriving at an answer is more important than the answer itself. It is anticipated that by working through cases the student will develop an understanding of the process of reaching decisions and be able to convincingly support and communicate these decisions to others. Instead of sitting back and reacting to the comments made by an instructor, a student in analyzing cases is asked to make decisions typically with incomplete information and in a limited time period, which is usually the situation faced by most managers. There are no ideal solutions to any of the cases. Searching for the perfect answer will be futile. Instead, the student should learn to critically and thoroughly think through the issues, problems, facts, and other information presented in the cases. Critical thinking is required to make better decisions. Thorough thinking is needed so that decisions reached can be communicated and intelligently discussed in classroom discussions. Discussions about the cases should clearly illustrate the thinking processes used by a student. The preparation for discussion of the cases can follow a set pattern. One suggested pattern would be to: 1. Read the case rather quickly to get a feel for what is involved. 2. Reread the case and sort out the assumptions, hunches, and facts. Since all cases are rather incomplete, the student will need to make plausible assumptions about the situation. List them and be able to support the plausibility of the assumptions. These assumptions will enable the student to “fill in the blanks” that exist in the cases. Remember that, in organizations, decisions are generally made with incomplete information and some uncertainty. 3. Identify the major problems and sub-problems which must be considered in the case. 4. List the problems in order of importance or priority. That is, what problems have to be solved first. 5. Develop a list of alternative courses of action that would minimize or eliminate the problems. If possible, have at least two fully developed alternatives which are feasible solutions. 6. In developing the alternative courses of action, outline the constraints (e.g., resources, historical precedent, competition, skill limitations, attitudes) which will limit success. 7. Select the course of action that is best for the problems identified in step 3 above. Show how the course of a.

1. Saint Leo University
Graduate Business Studies
MBA575
Global Business Management
Case Study Method:
How to Analyze the Cases
“Real world” cases place the student in a simulated
organizational climate as a manager, leader, or non-
manager who must make decisions. A case is:
...a story of organizational issues which actually have been
faced by people, together with facts,
opinions, and prejudices upon which decisions must be made. A
key feature of a case is that the
decisions which require action must be made.
With the case method, the process of arriving at an answer is
more important than the answer itself. It is
anticipated that by working through cases the student will
develop an understanding of the process of
reaching decisions and be able to convincingly support and
communicate these decisions to others.

2. Instead of sitting back and reacting to the comments made by an
instructor, a student in analyzing cases
is asked to make decisions typically with incomplete
information and in a limited time period, which is
usually the situation faced by most managers.
There are no ideal solutions to any of the cases. Searching for
the perfect answer will be futile. Instead,
the student should learn to critically and thoroughly think
through the issues, problems, facts, and other
information presented in the cases. Critical thinking is required
to make better decisions. Thorough
thinking is needed so that decisions reached can be
communicated and intelligently discussed in
classroom discussions. Discussions about the cases should
clearly illustrate the thinking processes used
by a student.
The preparation for discussion of the cases can follow a set
pattern. One suggested pattern would be to:
1. Read the case rather quickly to get a feel for what is
involved.
2. Reread the case and sort out the assumptions, hunches, and
facts. Since all cases are rather
incomplete, the student will need to make plausible assumptions
about the situation. List them
and be able to support the plausibility of the assumptions.
These assumptions will enable the
student to “fill in the blanks” that exist in the cases. Remember
that, in organizations, decisions
are generally made with incomplete information and some
uncertainty.

3. 3. Identify the major problems and sub-problems which must be
considered in the case.
4. List the problems in order of importance or priority. That is,
what problems have to be solved
first.
5. Develop a list of alternative courses of action that would
minimize or eliminate the problems. If
possible, have at least two fully developed alternatives which
are feasible solutions.
6. In developing the alternative courses of action, outline the
constraints (e.g., resources,
historical precedent, competition, skill limitations, attitudes)
which will limit success.
7. Select the course of action that is best for the problems
identified in step 3 above. Show how
the course of action would work and be able to discuss why it
would be the most successful
alternative to solve the problem(s).
The instructor’s role can vary from observer to active
participator depending on the instructor’s
preference. Whatever role the instructor uses, the steps outlined
above will permit the student to
integrate book material, personal experiences, and the case
information in reaching decisions. In
evaluating a student’s case analysis, instructors can evaluate
many different factors. It has been
suggested that a good case analysis will:

4. 1. Be complete.
2. Avoid rehashing what is in the case.
3. Make feasible and sound assumptions.
4. Accurately identify the main problems.
5. Create good alternative courses of action.
6. Pinpoint potential constraints which could limit the solution
selected.
7. Clearly communicate the decision.
8. Illustrate to others how the decision reached can solve the
problem(s) present in the case.
Good case analysis requires time and a systematic plan of
attack. The payoff is that the student will be
able to communicate the student’s thinking process. Another
benefit will be to apply the content
discussed in the book chapters to the case. This application and
active involvement are why cases can
be insightful, challenging, and interesting.
For more information about the Case Study Method see, Ellet,
W. The Case Study Handbook: How to
Read, Discuss, and Write Persuasively About Cases. Harvard
Business School Press, Boston, 2007.
(ISBN 13: 978-1-4221-0158-2)
278 Part 3 The Global Trade and Investment Environment
4. You are the international manager of a U.S.
business that has just developed a revolutionary
new personal computer that can perform the

5. same functions as existing PCs but costs only
half as much to manufacture. Several patents
protect the unique design of this computer. Your
CEO has asked you to formulate a recommenda-·
tion for how to expand into Western Europe.
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Your options ate (a) to export from the United
States, (b) to license a European firm to
facture and market the computer in Europe, or
(c) to set up a wholly owned subsidiary in
Europe. Evaluate the pros and cons of
alternative and. suggest a course of action to
your CEO.
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ask 0 global EDGE t giobasedge.!l1!Ulll.edu
Foreign Direct Investment
Use the globalEDGPM site to complete the following
exercises:
Exercise 1
The World Investment Report published annually by
UNCTAD provides quick electronic access to compre-
hensive statistics on the operations of the largest trans-
national corporations. Gather a list of the top 10
non-financial transnational corporations from develop-
ing countries. Provide a summary of the countries and
industries represented. Do you notice any common traits
from your analysis?
Exercise 2

6. An integral part of successful foreign direct investment
(FDI) is to understand the target market as well as the,
nature of the possible investment sector. As such, your
energy company is seeking FDI opportunities in Jordan.
The Multilaterial Investment Guarantee Agency has been.
identified as a resource to examine the energy industry
internationally. Based on the information available at .
this resource, prepare a report indicating recent and
important trends relevant to a possible FDr venture in
Jordan.
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~·'S· ., T If·pains e e ames
Established in the 1920s, Spain's Telefonica was a typical
state-owned national telecommunications monopoly un-
til the 1990s. Then the Spanish government privatized
the company and deregulated the Spanish telecommuni-
cations market. What followed was a sharp reduction in
the workforce, rapid adoption of new technology, and
focus on driving up profits and shareholder value,
In this new era, Telefonica was looking for growth. Its
search first took it to Latin America. There, too, a wave
of deregulation and privatization was sweeping across
the region. For Telefonica, Latin America seemed to b
the perfect fit. Much of the region shared a com mOD
language and had deep cultural and historical ties t;
Spain. Also, after decades of slow growth, Latin Amen.
can markets were growing rapidly, increasing the adop
tion rate and usage not just of traditional fixed lin
telecommunications services, but also of mobile phone
and Internet connections. .

7. Foreign Direct Investment
Having already learned to transform itself from a
state-owned enterprise into an efficient and effective
competitor, Telefonica believed it could do the same
for companies it acquired in Latin America, many of
• which were once part of state-owned telecommunica-
tions monopolies. In the late 1990s, Telefonica in-
vested some $11 billion in Latin America, acquiring
companies throughout the region. Its largest invest-
ments were reserved for Brazil, the biggest market in
the region, where it spent some $6 billion to purchase
several companies, including the largest fixed line op-
erator in Sao Paulo, the leading mobile phone operator
in Rio de Janeiro, and the principal carrier in the state
of Rio Grande do SuI. In Argentina, it acquired 51
percent of the southern region's monopoly provider, a
franchise that included the lucrative financial district
of Buenos Aires. In Chile, it became the leading share-
holder in the former state-owned monopoly, and so on.
Indeed, by the early 2000s Telefonica was the No. 1 or
2 player in almost every Latin American country, had
a continent-wide market share of about 40 percent,
and was generating 18 percent of its revenues from the
region.
Still, for all of its investment, Telefonica has not had it
all its own way in Latin America. Other companies could
also see the growth opportunities, and several foreign
telecommunications enterprises entered Latin America's
newly opened markets. In the fast-growing mobile seg-
,'. ment, America Movil, controlled by the Mexican billion-

8. aire Carlos Slim, emerged as a strong challenger. By 2008,
the Mexican company had 182 million wireless sub-
scribers across Latin America, compared to Telefonica's
123 million, and intense price competition between the
two companies was emerging.
1. D. R. John, ''Wal-Marr in Japan: Survival and Future of its
Japanese Business,"Icfai University Journal of International
Business 3 (2008), pp. 45-67; United Nations, World
Investment Report, 2009 (New York and Geneva: United
Nations, 2009); "Challenges Persist in Japan," MMR, De-
cember 14, 2009, p. 45; and J. Matusitz and M. Foster,
"Successful Globalization Practices: The Case of Seiyu
in Japan," Journal of Transnational Management, 2009,
pp.155-76.
2. United Nations, World Investment Report, 2009.
3. United Nations, World Investment Report, 20ID (New
York and Geneva: United Nations, 2010); and "Global
FFDl Flows Continue to Slide in 2009," UN Conference
on Trade and Development, press release, September 17,
2009.
ChapterS 279
With the die already cast in Latin America by the
mid-20c0s, Telefonica turned its attention to neighbor-
ing countries in Europe. For years, there had been a tacit
agreement between national telecommunications com-
panies that they would not invade each other's markets.
In 2005 this started to break down when France Tele-
com entered Spain, purchasing Amena, the country's
second-largest mobile carrier behind Telefonica. Tele-
fonica moved quickly to make its own European acquisi-
tion, acquiring Britain's major mobile phone operator,

9. 02, for $31.4 billion. 02 already had significant opera-
tions in Germany as well as the United Kingdom. The
acquisition transformed Telefonica into the second-largest
mobile phone operator in the world, measured by cus-
tomers, behind China Mobile.55
1. What changes in the political and economic en-
vironment allowed Telefonica to start expanding
globally?
2. Why did Telefonica initially focus on Latin
America? Why was it slower to expand in Europe,
even though Spain is a member of the European
Union?
3. Telefonica has used acquisitions, rather than
greenfield ventures, as its entry strategy. Why do
you think this has been the case? What are the
potential risks associated with this entry strategy?
4. What is the value that Telefonica brings to the
companies it acquires?
5. In your judgment, does inward investment by
Telefonica benefit a host nation? Explain your
reasoning?
4. World Trade Organization, Irttemational Trade Statistics,
2008 (Geneva: WTO, 2008); and United Nations, World
Investment Report, 2008 (New York and Geneva: United
Nations, 2008).
5. United Nations, World Investment Report, 2010.
6. Ibid.
7. Ibid.
8. Ibid.

10. 9. United Nations, World Investment Report, 2009.
10. Interviews by [he author while in China; United
Nations, World Investment Report, 2009; Linda Ng and
C. Tuan, "Building a Favorable Investment Environment:
Evidence for the Facilitation of FDI in China," The
World Economy, 2002, pp. 1095-114; and S. Chan and
Keith Griffin
Highlight
Post to the discussion board your response to question 5 of the
Spain's Telefonica case on pages 278-279.
Include in your post personal observations as well as concrete
examples from the readings to support your views. Initial posts
should be several paragraphs, include direct references to the
readings, and word choice and sentence structure should be
suitable for graduate level work. Responses to your classmates
should be constructive in nature.
Corporate Profiles for Case Studies
When analyzing a case it is important to include a company
profile. The profile should describe the
following key items about the company:

11. tion of manufacturing operations - how and where the
products/services are produced
products/services
TV, magazine
advertising, etc.)
located and how many people the
company employs.
by whom?)
ry and when did they
occur (major events pertain to key
developments in the company's growth, major
acquisitions/mergers, important crises, significant
company changes)