HOW TO ANALYZE MANAGEMENT

CASES
A “case” is the presentation of information pertaining to a business situation
about which a decision must be made as to the best course of action. The
purpose of a case study may be one or a combination of the following:

1. To add to your business knowledge.

The factual material in a case is valuable because it will give you insight as to the
situations, problems, and decisions facing managers in various industries. Since
the past decisions and actions of the concern in question may or may not have
been relevant and proper, cases offer a realistic flavor to the training situation.

2. To strengthen your ability to discover business problems

A phase of the management function that often is neglected. A decreasing cost
curve does not necessarily mean that the business is operating in the most
efficient and effective manner, nor does it indicate the long-run possibilities of that
concern. Thus, it is one of the major functions of top management to locate and
define accurately the problems facing that business.

3. To enhance your skills in determining which questions must be asked so

that you may discern intelligent and comprehensive alternatives and substantiate
the most logical hypothesis or various pertinent and influencing forces may well
be over-looked. In many cases that major executives must deal with are
insufficient facts, matters of compromise, and the human element. Thus, it is of
major importance that the student or executive ask himself how a particular
decision will affect other units and executives in the enterprise, and to what
extent managerial ability and willingness to pursue that given course of action is
present.

4. To offer realistic training in problem-solving techniques.

This function is both analytic and creative. The solution may be of two types:
a.) a decision that additional evidence or more pertinent facts are needed and
that additional evidence or more pertinent facts are needed and that
machinery must be created to provide this information.
b.) A culling, evaluation, and integration of the evidence so that a definite and
intelligent policy or course of action is resolved. The information reported
in case form can conceivably lead to a number of different conclusion,
depending on the way in which the given data are interpreted. The
existence of several outcomes, however, does not mean that all possible
courses of action have equal merit. The value of any particular result
depends upon how adequate it is in the light of sound management theory
and practice and the logic of the reasoning behind it.
There is no one way to study and prepare a case, nor is there any one way to
present the solution. The manner and quantity of the presentation depends upon
the nature of the case, the demands for detail and supporting evidence, and the
major purpose of the particular case. Without prior instruction, the governing
principle is brevity. A one-page report very often will suffice, but it should not be
said, categorically, that more is superfluous. However, the difficulties of inducing
the recipient to read the entire report multiply at a greater rate that the increase in
the quantity of the report. The following suggestions are offered to help you study
and prepare your case analyses:

1. Read the assigned case thoroughly and completely.

If possible, put the case aside for a period of time. Then carefully reread the
case once or twice. Try to get an accurate picture in your mind as to what is
really going on in that particular situation.

2. If the case is lengthy, you may wish to make notes or

summaries of pertinent information before proceeding with your analysis.
Lawyers call this “briefing” a case. This procedure may be unnecessary in
preparing management cases if the information has been thoroughly assimilated.
A principal difficulty at this stage is to sort out the important information from the
“red-herrings” and date of little significance.

3. Formulate in writing a precise statement of the problem.

This is an analytical step, not a descriptive one. It does not help much to write
down a rehashed version of the problem – typed statements lifted from the case
data. Try to state the problem in such a way as to show that individual or
individuals must take some sort of Action, and why some kind of action must be
taken at this particular time.

4. Select the several alternative decisions or courses of action

which can be taken.
This hypotheses which require investigation.

5. Concerning these hypotheses, raise the question which

demand an answer.
These crucial questions which are the heart of your analysis.

6. Tentatively weigh the evidence and select the hypothesis

which can best be supported.
 7. Organize the evidence so as to substantiate your case.
Be sure to state your conclusions clearly.
SUGGESTIONS FOR WRITTEN
REPORTS
The above suggestions apply whether you make a written or an oral case
analysis. Putting your analysis into writing, however, requires that the following
ideas be considered.

1. Clarity and simplicity of written statements are essential.

Use short sentences. Be sparing in the use of descriptive adjectives.
Avoid using passive voice. Note the following examples:

Wrong: “Brown was given a discharge notice.”

Right : “Smith discharged Brown.”

2. Be sure to tell who is doing what; pin down those responsibility it is

to take action; who made mistakes; who failed; who is weak, etc.

3. Organize your writing so that the reader can identify a well-stated

problem, an organized solution, and a set of conclusions or a su,,ary
of actions recommended.

4. Suggested Format:

a.) Summary of Facts / Situation

b.) Statement of problem(s)
c.) Analysis and Observation
d.) Conclusion and Recommendation

5. Avoid statements of opinion on controversial matters unless you are

sure that they cannot be contested in the contexts in which you have
used them.
Your analysis must be supported primarily by facts and situations supplied you in
the case itself, not by generalizations you have picked up in various places. For
example, a statement that “an incentive wage system should be installed
because incentives increase worker productivity” is meaningless until you show
how, in that particular case, incentives would have the result.
 6. An almost universal weakness in case analyses is that the writer
fails to analyze the outcomes or possible effects of suggestions
made.
If for example, you suggest that new equipment be purchases, you should show
also that you have thought about
1.) finding the working capital to invest
2.) the space needed
3.) manpower to operate the new equipment
4.) quantity required
5.) union or worker attitude
6.) availability of supervision and maintenance
7.) location and layout problems; and other problems that your suggestions
would raise.

7. Spelling, punctuation, and sentence structure are vital in every piece

of writing you do.
Your employer will judge you heavily on this score so that the sooner you master
this skill, the better. Treat your case assignment as you would a problem
assigned by your employer.
IDEA
Financial Management & Control I
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