Professional Documents
Culture Documents
CASE STUDY Solving Techniques
CASE STUDY Solving Techniques
CASE STUDY Solving Techniques
Comparing ratios with the markets ratios to determine competitiveness and evaluate factors for change.
Asset Turnover
Sales/Assets: Sales generated from each dollar of assets. Profit margin and Asset turnover tend to vary inversely.
Current ratio:
Current Assets/Current Liabilities: Measure of a company’s liquidity.
Diminishing sales:
Competitors? Fragmented market? Our product vs their product? New improved products by others? Public opinion of
our product?
Solution- Modifying our product especially to expand our user base, Modifying the way it is sold, Assess our R&D team
potential to
Profitability:
Competitors? Our product vs their product? Cost structure (Materials, production, advertising &
transportation/distribution)? Consumers? Important factors that consumers consider- like brand name- how imp is it?
Operations? Other market leaders – Do they spend more on advertising?
Industry Analysis:
Industry structure, Current situation and process; Different segments/products, Consumers and growth trends;
Replacement/new technology; competitive analysis; Govt. Regulations, Profit analysis – cost, sales, revenue etc.