January 6, 2020 324
January 6, 2020 324
Strategic management has long been one of the central teaching and research subjects in most universities and other tertiary institutions. Given the complexity of the modem company, much of the research in this area has consisted of case studies aimed at achieving a greater depth of understanding of the complexities of the role and functions of top management.
Strategic management can be said to present a two-pronged approach to the study of the development of companies, one based on case studies and the other on population studies. These two approaches are being explicitly related to each other as inquiry is being made both for further understanding of reality and the understanding of the implications of emerging research findings.
One of the most difficult tasks in preparing a case is the structuring of the thought process to address relevant factors or forces confronting the particular organization. Students stimulate the policy or strategic management behavior of organizational executives through case analysis.
According to some scholars, a case brings out, in a factual form, the relevant issues, and circumstances interrupting the managerial behavior of organizations. It situates the case readers at the scene of the organization enlightens them on the particular issues and circumstances surrounding the organization. A student’s role in case analysis is essential to diagnose and assess the situation presented in the case and recommends the most rational actions relevant to the case by assuming the position of the executive.
The case method complements and enhances textbook materials and class lectures by directing attention to what a company has done or should do in a real business situation. Application of the case analysis method in business policy or strategy courses provides an avenue to develop and refine analytical skills.
It also provides an exciting experience by allowing the case analyst to assume the role of a business executive. When assuming this managerial role the case analyst (for example, a student) needs to consider all aspects of the organic business functions of marketing, finance, personnel and production, and the relevant concepts and constructs.
Also, the substantial importance is the consideration of the business environment, including the relevant factors that impact policy and strategic decisions. Cases usually include quantitative and qualitative information and data to assist analysis.
Excellent case analysis draws from skills learned in other business disciplines such as marketing, personnel, production, mathematics, statistics, accounting, quantitative methods, the behavioral sciences, and other cognate disciplines.
Some useful hints that may assist in case analysis are discussed under the following sub-headings:
On the first encounter with a business policy or strategy case, attention should be concentrated on becoming acquainted with the situation prevailing in the organization. This should assist the case analyst to gain an insight into the organizational problem requiring, solutions, as well as obtain background information, data and other cognate variables or factors.
Suggestions for effective case analysis preparation include the following:
To formulating the case analysis, some scholars believed that the case analysis framework consists of the following:
Particular topics of interest include:
The relevant questions include:
It is important to develop an understanding of the company’s human and nonhuman resources, its strengths and weaknesses, and the reason for its success or failure. Of salient importance is a comprehension of what the organization wishes to do.
The fit between the organization and its internal and external environments is the main association considered in case analysis. This association is the aim of situation analysis because it is an interpretation of where the company presently stands. Relevant questions to be considered by the case analyst include:
The case analyst should be prepared to isolate possible lines of action based on the above situation analysis. In most cases, many alternative lines of action are possible and each alternative should be thoroughly and reasonably considered.
Each line of action also has costs and revenues associated with it. The costs and revenues should be carefully calculated based on rational and realistic estimates.
The relevant questions include:
The likely results of all lines of action should be scientifically and reasonably evaluated. Based on this rationale and scientific evaluation of the results, one line of action or strategy should be recommended for implementation.
The evaluation should give reasons for choosing the best line of action or strategy and why the other options were rejected.
Three methods for communicating case analyses include:
There is no correct method for organizing a case analysis. However, it is advisable to think about the case analysis report as consisting of three major parts:
The first part should contain a paragraph that defines the problems and specifies the constraints and alternatives available to the organization. The section should provide a carefully developed assessment of the industry, market and customer/client behavior, the company, and alternative lines of action. This part should be the major part of the ease analysis report. It should not contain a restatement of case information/data. Rather, it should contain an evaluation of the facts, quantitative detail information, and management perspectives.
The third or last part of the report should consist of a set of rational and feasible recommendations.
Although there are many formats for case analysis reports, the following general guidelines may be useful:
The following suggestions may be relevant when making an oral presentation of a case analysis report:
The case method in business policy or strategy offers the analyst the opportunity to develop his analytical skills and to understand the relations of the organic business functions. It also enables the analyst to develop valuable skills in time management, group problem solving, and creativity, organization of thoughts and ideas as well as human interaction. These skills are relevant in case analysis. The analyses of these cases show how to organize a written case, and the nature and scope of the analysis, which include both quantitative and qualitative types.
There is no one best way to analyze or present a case report. Each instructor has personal preferences for format and approach. Nevertheless, this approach is based on a strategic audit. The approach provides structure and is very helpful for the typical student who may be a relative novice in case analysis.
Regardless of the format chosen, be careful to include a complete analysis of key environmental variables especially of trends in the industry and of the competition. Also, look at international developments as well.
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