OB

1. Class 4:
Case Study Framework

2. AFM 280
Learning with Cases
This presentation has been adapted from the work of
Nancy Vanden Bosh for the course “Connections to
Business Context – AFM 211”

3. OB Case analysis Framework
Situation Size-up
(Frame the Decision)
Issue/Problem
Identification
Analysis to
determine causes
Identify & Assess
Alternatives
Recommendations
Action
Required

4. What is a business case?
 An unfinished short story - you get to finish it(1)
 A simulation requiring you to:
‒ DO organizational behaviour, accounting, finance, and
more,
‒ BE a decision-maker, advisor, or analyst, and
‒ SOLVE an unstructured decision problem(2)
 An opportunity to create something, not just accept
information and give the “right” answer(3)
Sources: (1) “Chapter 2, Multi-Subject Questions,” Integration and Analysis, Baker, Herauf, and Richardson, 2009.
(2) Adapted from “Introduction to Comprehensive Simulations” [for ACC 610] by Dr. Gordon D. Richardson
(3) “Case Preparation Guidelines” by Ann Velenchik
4

5. Why – strengthen Decision Making
capabilities
Basic Decision Process*
You encounter a choice.
You analyze your options.
You make a choice.
Then you live with it.
5
Case Analysis Process
Frame the decision.
Analyze issues +/or
options.
Make a choice.
Communicate [+ live with it].
* Source: Chip Heath and Dan Heath, Decisive, 2013, p. 18.

6. …and learn how to transfer K&S
Improve business,
accounting and finance
knowledge & skills [K&S],
while strengthening soft
[survival] skills, and
practicing in simulated
business situations
so you can do “it” in the real
world when it counts.*
6
* Adapted from definition of “competence” by Dr. Peter Jensen in Ignite the Third Factor.
Thomas Allen Publishers, 2008, p. 145.

7. Where do we use cases?
Textbook problem Business case
Question is structured [e.g.
bullet points]
is not obvious
[read carefully]
Analysis replicates samples
in the relevant
chapter
is rarely defined
[plan your own
analysis]
Information uses information
given in the
problem
uses relevant case
information [so it
depends on…]
Solution answer is usually
correct or incorrect
there is rarely a
“right” answer
In developing…
 capabilities for
diagnosis
 ability to
manage
yourself
 ability to deal
with
uncertainty
and ambiguity
7

8. How are responses evaluated?
8
We look for
evidence of
competence
Sufficient
Analysis
Appropriate
Analysis
• Major issues/options
analyzed
• Each issue/option
analyzed in depth
• Appropriate OB
theories applied
Reliable if you integrate:
• Use specific case facts
• Do thorough analysis
• Apply appropriate
theories
• Make reasonable
assumptions
Relevant to:
• Role and situation
• Required decision
• Issue being analyzed

9. Participating in case discussions…
 Recognize that informed participation will enable you
to learn  look for opportunities.
 For most, written prep is a must.
 Use your skills in critique and argument.
 Remember that numbers are the “language of
business”  quantify wherever possible.
 Have a point. Provide evidence. Do not blither on
and on…
 Listen…

10. Learn the case analysis process
Frame the
Decision
Step # 1 - How do I frame a decision [in a case]?
10
Analyze Issues
+/or Options
Make a
Choice
Communicate
[+ live with it]
Step # 2 - How do I do great analysis?
Step # 3 – Isn’t the answer obvious?
Step # 4 – Communicate. Really? Aren’t we done yet?

11. Case analysis Framework
Situation Size-up
(Frame the Decision)
Issue/Problem
Identification
Analysis to
determine causes
Identify & Assess
Alternatives
Recommendations
Action
Required
Frame the
Decision
Analyze Issues
+/or Options
Make a
Choice
Communicate
[+ live with it]

12. How do I frame a decision?
Frame the
Decision
 What’s your role [e.g. decision-maker or analyst]?
 What situation are you in [e.g. when, where, why]?
 Who’s involved and why [e.g. stakeholders/users]?
 What’s required [e.g. write memo, develop plan]?
12
Analyze Issues
+/or Options
Make a
Choice
Communicate
[+ live with it]
# 1 – Frame the Decision [in a case]
What’s your
plan [AKA
blueprint] to
address the
requirement?

13. You don’t read a case like a novel
 Read the case very quickly
 Carefully read the first and last few paragraphs of
the case, looking for your role, the situation, key
stakeholders, and what you are required to do
 If the role and required aren’t clear, then re-scan the
full case quickly for more context
 Closely re-read the first and last few paragraphs,
and make notes with short answers to the four
questions
13

14. Make notes or write on the case
Questions to frame the decision
1) What role are you playing?
 Are you an employee or outside advisor?
 Do you make a decision or provide advice?
2) What situation are you in?
 When is it taking place [year, date]?
 What’s the business model? What goals?
 Where is the business [e.g. lifecycle stage]?
 Why has the situation arisen?
3) Who’s involved and why?
 What stakeholders are explicitly mentioned?
 What needs or preferences are identified?
 Do they have any limitations or constraints?
4) What is required?
 Is there a key question to answer?
 Do you need to choose between options?
 Is a specific deliverable mentioned?
14
Role
Situation
Required
Stakeholders

15. CAUTION!
15
DO NOT BEGIN
WRITING YOUR
CASE RESPONSE
UNTIL YOU HAVE
A FEASIBLE
CASE ANALYSIS
PLAN.
• Review your notes on role,
situation, stakeholders, and
what’s required.
• In a sentence, summarize
the required decision.
Issues +/or
Options
Relevant
Information
Case Analysis
Plan

16. Read to find relevant information
With the required decision in mind:
 carefully read the case narrative, looking for more
subtle guidance about issues and options
 as you read, jot down notes on the case that highlight
and classify relevant information
 skim exhibits, tables, and attachments – what’s
there? why was that information included?
16

17. Identify issues +/or options
 How do you know an issue when you see one?
 look for hints: concern, problem, challenge
 think backwards from the required decision or options to
identify the cause
 How do you know what options exist?
 look for changes or possible future actions
 identify implicit options: e.g. an assessment [good or bad]
or a specific change [yes or no]
17

18. Interpret results
and evaluate
analysis
[sufficient]
How do I do great analysis?
Frame the
Decision
18
Analyze Issues
+/or Options
Make a
Choice
Communicate
[+ live with it]
# 2 - Analyze Issues +/or Options
Perform thorough
analysis:
[relevant/reliable]
Structure your
planned analysis:
qualitative and
quantitative
It depends,
but…

19. Problem Statement
 Identify issues (urgent? important?)
 Primary - specific issue, decision or problem faced by
decision-maker (generally it is time sensitive)
 Secondary - the other problems that you identify in the
case that need to be addressed
 What are the implications of the problems identified?
 Consequences if the problem is not resolved
 Identify the root cause(s)
 identify symptoms and root causes; what your analysis
tells you are the underlying causes of problems
 to be discussed and analyzed in next section
 Conclude with key decisions facing decision
maker(s)

20. Problem Statement - Symptoms and Root
Causes
 Symptoms are generally observable
 Examples?
 (absenteeism, low morale, high employee turnover,
decreases in productivity, delayed decision making, loss
of market share)
 Root Causes - not observable but are often the
“hidden” reasons behind the problems
 Examples?
 lack of communication across departments, too much
centralization, politics, imbalances in departmental power

21. Structure your analysis
Detailed analysis in exhibit:
 Relevant information/
assumptions by category
 Reasonable time horizon
 Level of precision required
 Key measures and
calculations clearly shown
Relevant facts grouped, e.g.:
 Situational facts [e.g. goals]
 Stakeholder considerations
 Customer/employee impact
 Policies and standards
 Opportunities and risks
Note: bulleted lists work, but
interpret case fact [so what?]
21
Quantitative Qualitative

22. Perform thorough analysis
 Quantitative and
qualitative analysis
 Balanced [e.g. strengths
and weaknesses]
 Explicit consideration of
scenarios or uncertainty
 Uses many relevant,
specific case facts
 States implication: why
fact or finding is important
 Uses scenario/sensitivity
analysis to draw insights
22
Breadth + Depth

23. Qualitative Analysis
 Consider relationship between events and
people – do a basic stakeholder analysis
 What is the time-line and causal sequence of
events that produced the current situation?
 Can you anchor your ideas with evidence?
 How can you use course theories to understand
what is happening and why?

24. Stakeholders…
 Employees
 Unions
 Management
 Customers
 Owners and stockholders
 Government
 Creditors
 Community
 Suppliers
What do they want?
What impact do they have in the case?

25. Application of Theories
 It is important to apply course concepts and theories
in your analysis.
 In many cases during the term we will be
concentrating on particular conceptual areas and
you should see how those concepts help your
analysis of the case
 In integrated cases you will need to apply concepts
from multiple chapters

26. Interpret results – make sense?
For EACH individual set of analysis, summarize findings
State:
 Result
 Interpretation
 Implications [if any]
Look across all individual sets of analysis performed
 Do I see obvious inconsistencies? Does it make sense?
 Do I have “sufficient” support to make required decision?
26

27. Isn’t the answer obvious?
Frame the
Decision
27
Analyze Issues
+/or Options
Make a
Choice
Communicate
[+ live with it]
# 3 – Make a Choice [clearly]. It’s rarely obvious!
 Assess your situation: 1 choice or multiple possibilities
 Establish and use decision criteria – make choice
 Document rationale that clearly links to your analysis

28. Is there really only one choice?
28
Considerations:
1) It’s possible but rare – e.g. if your options are yes or no.
But, you still need to document your choice.
2) If you have multiple options and one [or more] is clearly not
plausible, then drop it [explain why].
3) If you still have multiple plausible options, use decision-making
criteria to surface trade-offs.

29. Decision criteria
 Try this formulation: “In order to achieve our goals,
any decision we make at this point MUST…” (reduce
costs by x, improve time to market by y, etc).
 If criteria are too broad, they’re meaningless (“Be
more successful…” “Lower costs and increase sales…”
“Be timely…”).

30. Decision Criteria
 Use objectives or strategy of organization and what is
important to decision maker
Quantitative Qualitative
Profit
Cost
R.O.I.
Market share
Capacity
Delivery time
Risk
Cash flow
Time to complete
Competitive advantage
Customer satisfaction
Employee morale
Corporate image
Ease of implementation
Ethics
Safety
Motivation
Synergy
Examples:

31. Decision criteria – Cont’d
Criteria/typical trade-offs
 Cost versus benefit
 Risk versus return
 Growth versus profitability
 Between two stakeholders
 Urgency versus impact
 Control versus flexibility
31
Illustration
Select most important criteria
Impact on
ROA
Expand
existing plant
Build a new
facility
Buy a
competitor for
facility
Return
Risk
Time to
Implement
Capacity
Increase
Illustration
Use criteria to show trade-off
Impact on
ROA
Expand + 10%
+ 15-20% 1 year Low
existing plant
Build a new + 20%
+ 40-50% 2 years Mod
facility
Buy a + 20%
+25-50% 2 years High
competitor
for facility
Return
Risk
Time to
Implement
Capacity
Increase
Illustration

32. Choose and document choice
 When you write “therefore it’s clear we should choose
option 2”, it’s usually not clear at all.
 If there’s one obvious choice – you don’t need the table.
 But the structure illustrated below usually works well to
communicate choice and rationale.
Choose the best option Use criteria to show trade-off
I recommend we build new facility
because it has:
• the highest return on assets
• significant capacity increase
• an acceptable risk on return
32
Illustration
Impact on
ROA
Expand + 10%
+ 15-20% 1 year Low
existing plant
Build a new + 20%
+ 40-50% 2 years Mod
facility
Buy a + 20%
+25-50% 2 years High
competitor
for facility
Return
Risk
Time to
Implement
Capacity
Increase
Illustration

33. Assessing Alternatives
 Put yourself in the decision maker’s shoes
 Assess both quantitative and qualitative factors
 Evaluate all alternatives against identified decision
criteria
 Refer to your knowledge and applicable theories
 Predict outcomes -- short-term versus long-term
 Consider constraints and opportunities
 Consider the implications of your recommendation
 is it realistic?
 can it be done?

34. Recommended Solution
 APPLY theories from the course
 COMMIT to a plan of action
 JUSTIFY your selected alternative
 should relate to decision criteria, constraints and
opportunities, immediate and basic problems
 why is this solution better than the other alternatives?
 PREDICT outcome you expect

35. Aren’t we done yet?
Frame the
Decision
35
Analyze Issues
+/or Options
Make a
Choice
Communicate
[+ live with it]
# 4 – Communicate analysis and conclusion
 Communicate analysis, findings, and implications
as you perform analysis
 Communicate choice, rationale, AND implications
 Communicate deliverable tailored for the audience

36. Communicate as you analyze
 Demonstrate use of specific, relevant case facts
 Document assumptions in a way that indicates you
considered reasonableness
 Present detailed calculations in exhibit, interpret the
results, and integrate results into analysis
 Do not leave it to the reader to infer the meaning or
implications of facts or findings. Interpret!
36

37. Choice, rationale, and implications
Don’t leave a reader asking “why” or “so what.”
Clearly communicate choice and rationale, for example:
I recommend _________________ because:
‒ reason # 1,
‒ reason # 2, and
‒ reason # 3.
Identify and communicate implications of choice. Consider:
‒ briefly addressing any “next steps” that are required
‒ highlighting major uncertainties that usually create risk
37

38. Action and Implementation Plan
 “What, who, when, how, cost/impact” for each
action step
 Identify immediate, short-term, long-term action
steps
 Focus on action needed to produce the desired
advantages (or minimize the disadvantages) you
described earlier in the case analysis
 Discuss downside risk & contingency plan to
deal with this risk explicitly and realistically.

39. Communicate to an audience
 If case assignment requires a written submission or
presentation, apply communication basics.
 Identify your audience [needs/limitations]
 Recognize purpose [inform, advise, persuade]
 Use appropriate format and adapt as needed
 Write/speak succinctly and professionally – to do so,
you must think and plan before you start
39

40. Now we’re done.
Frame the
Decision
40
Analyze Issues
+/or Options
Make a
Choice
Communicate
[+ live with it]
Repeat or revisit when and as
needed.

41. Next Class
 Stress
 Read Chapter 5 – there will be an in-class quiz