Chapter 2

CASE METHOD ANALYSIS

At the end of the module, you are expected to:
1. Define case method analysis;
2. Identify the suggested outline in solving business cases; and
3. Apply the case method analysis

What is case method analysis?

Case Method Analysis is a very effective method in improving an individual’s

ability to analyze a situation, establish premises, arrive at valid conclusions, decide on
course of action, and visualize consequences and results.

Suggested Outline in Solving Business Cases

I. Time Context
Specify the time context (month and year) if the case fact is explicit about it. The
time context should tell us when the problem was observed, which requires the
necessity of an action.
II. Viewpoint
In solving business problems, the student must specify the viewpoint he is taking.
It is always based on the manager’s viewpoint.
III. Statement of the Problem
A problem is a deviation or an imbalance between what should be and what is
actually happening. This imbalance is caused by a change of one kind or another. A
problem could be answered by the question - what is wrong that needs correcting?
A business case may contain a variety of issues or problems, from the trivial to
the significant, from the irrelevant to the relevant. The student should focus his attention
on the key or central problem. The elimination of the central problem will eventually
result in the elimination of other peripheral problems. Specify what the problem is by
describing it very accurately in terms of four dimensions: identity, location, time, and
extent.
IV. Objectives
Objectives are specifications by which alternative courses of action are to be
developed. These are statements or functions to be performed or undertaken by the
courses of action.
 Must or Short-Range Objective. This objective sets the limits that cannot be
violated by any alternative course of action. These objectives will help the manager
recognize the screen out the impossible and poorer alternatives right at the outset.
These objectives are of absolute importance to the success of the decision and the
survival of the organization. These objectives should be attained within a year.
Want or Long-Range Objective. This objective does not have absolute limits
but expresses relative desirability. They are of relative importance to the success of the
decision but are less than absolute. These objectives should be attained beyond a one-
year period.

V. Areas of Considerations
When the student has determined what he considers to be the central problems
and has defined his objective, he must proceed to organize the facts around the
possible causes of the central problem.
This requires the separation of the significant areas from the unimportant ones,
and the relevant to the irrelevant. The analysis of each area must* come from the
personal opinion of the analyst and not from the case facts.
Organization of facts around the possible causes of the central problem.
VI. Alternative Courses of Action
There are possible solutions to the problem. Alternatives are collections of what
appear to be at the moment the best means of meeting the individual objectives. In
some cases, the alternatives are clear; in others, the student must formulate
alternatives appropriate to the problem at hand."
The student must not remain content with pre-determined alternatives. He must
strive for new and better solutions. Alternatives must be mutually exclusive.
Significantly, an alternative must be able to stand alone.
Take each alternative and measure it individually against each of the must and
want objectives. Discard the alternative that does not meet what a must objective
requires. Alternatives that satisfy all must objectives should then be evaluated further
against the want objectives.
Appraise the remaining alternatives and weigh their individual strengths and
weaknesses. Initially, the student must make a tentative choice of the alternative which
seems best to him.
Assess the possible adverse consequences of the alternative decision or
recommendation. Look for potential areas where trouble may occur if the
recommendation or decision is implemented. For each prospective critical area, the
student must evolve corresponding preventive and contingency actions. If prospective
serious areas could not be prevented, review other alternatives for final/ action.

VII. Recommendation
This is the final decision or recommended course of action. The student must be
decisive. He must not avoid making a final choice of the alternative which seems best to
him. Inaction or a status quo position means indecision. Among the given alternatives,
only one best alternative should be recommended.

VIII. Conclusion/Detailed Action Plan

Make a detailed action plan to ensure the success of the decision or
recommendation.
Suggested Outline
Summary
I. Time Context
II. Viewpoint
III. Statement of the Problem
IV. IV. Objectives
Must or Short-Range Objectives
1.
2.
Want or Long-Range Objectives
1.
2.

V. Areas of Considerations (paragraph form)

1.
2.
3.
VI. Alternative Courses of Action (paragraph form)(3)
1.
 Advantages
1.
2.
3.
Disadvantages
1.
2.
3.
2.
Advantages
1.
2.
3.
Disadvantages
1.
2.
3.
3.
Advantages
1.
2.
3.
Disadvantages
1.
2.
3.

VII. Recommendation
VIII. Conclusion/Detailed Action Plan

Sample Case: The Promotion Seeker

Names Involved:
M. T. Wong, Managing director of Wong Chow House; Henry Victory, the
promotion seeker; C. Buyas, deceased supervisor, flight kitchen; Ma Nok, assistant
supervisor, flight kitchen.
Wong Chow House started as a noodle restaurant on T. Alonso Street, its
specialty being “beef mami.” After studying restaurant management, the managing
director of Wong Chow House decided to expand the business into a chain of
restaurants which yielded very satisfactory results. Each outlet operated under the
profit-centre concept with professional management, but items such as “siopao” and
“siomay” were supplied from a central kitchen. Their “fresh lumpia” and “asado” were
considered the best in town, while their chefs could cook very good “ escabeche
lapulapu”, “frogs’ legs with cashew nuts”, beef tenderloin with quails’ egg,” “sugpo
stuffed with ham and chestnuts,” “braised duck with honey and asparagus,” “ oyster
omelette with buttered mashed potato and mushrooms,” and a variety of delicious
soups and desserts.
After attending a seminar on executive development at the Nartel Management
and Research Centre, M.T. Wong got the idea of establishing a flight kitchen. This
enterprise also succeeded and now serves practically all airlines which call at Manila
under long-term catering contracts.
The managing director had barely returned to his office after attending the funeral
of Mr. C. Buyas, when he heard a knock on his door. The late Mr. C. Buyas was the
supervisor of the fight kitchen until his unexpected death while doing physical fitness
exercises at the Luneta. Mr. Wong’s visitor turned out to be Henry Victory who had
worked for quite some time in the fight kitchen under Mr. C. Buyas.
Henry Victory’s work during the three years he was with the fight kitchen had
always been very satisfactory. Rarely was he absent and never was he late. The open-
face sandwiches which he prepared and his roast beef with candied sweet potato were
highly praised by airline passengers. Henry could do more work in less time than his
companions and always offered to help to others as soon as he had finished his own
assignment. However, although is performance evaluation reports were always
commendatory, Henry seemed not to have gotten along very well with the late Mr. C.
Buyas. The deceased seemed to find Henry’s personality “irksome” because Henry was
always criticising present methods and suggesting that this own ways were better.
Henry would often voice out his opinions to anyone who would listen, even to other
Wong Chow House workers who were not with the fight kitchen. Mr. C. Buyas also
claimed that henry was not well liked by his fellow employees because of his “I know
better” attitude but did not care to complain about Henry because of the latter’s very
good work performance.
“What can I do for you, Henry?” Mr. T. Wong inquired.
“Well, Mr. Wong, with poor Mr. C. Buyas no longer around, the fight kitchen will
be needing a new supervisor. Frankly, I would like to have the promotion to supervisor
as I do not know of anyone here with a track record better than mine,”
“I have an open mind on the matter, Henry as we have to consider a number of
things,” Mr. Wong said. “ How do you expect to get along with the boys you have been
working with once you’re a supervisor?,” he continued.
If I may say no, I think they expect that the promotion will be given to me,” Henry
replied. Although Mr. Ma Nok has been assistant supervisor over a year, he really has
not been doing supervisory work because he cannot plan ahead and does not like
paper work and cost calculations. You will re-member that he is a very good cook and
and you pirated him from Ma Mon Luk by giving him not only better pay but also a fancy
title.”
“I think you have to report right away for work because you will have to prepare
Japanese food for the charter flight of Yollie Airways. The executive committee will
eventually decide on who will be flight kitchen supervisor,” Mr. Wong said to terminate
the conversation.
After Henry Victory left the office, the managing director began thinking about
what had transpired. Henry was correct about many things, and he had indicated some
time ago that eventually he would aspire for the position of supervisor. When Ma Nok
was given of assistant supervisor, Henry griped to his fellow workers that Wong Chow
House should not have given the title to an outsider. As it turned out, Henry’s under
study was in turn pirated by Cathay Pacific Airways by stationing him in Hong Kong,
with the title of Senior Sandwich Chef.
No one had anticipated this problem to arise from the unexpected death of Mr. C.
Buyas. The sudden vacancy could not be kept unfilled beyond a few days, as quality
and cost control were very important. There was no question that Henry Victory was
technically qualified for the job, but it worried Mr.Wong that the late Mr. C. Buyas, a man
Mr. Wong Mr. Wong greatly admired and considered a close associate, had a strong
dislike for Henry. The managing director also had heard from Mr. C. Buyas that Henry’s
fellow workers resented Henry’s attitude. And who would prepare sandwiches and roast
beef if Henry were promoted to a full time supervisory job? The executive committee
was to meet in two days.
Guide Questions
Answer the following questions to check what you have learned from the discussions.
Check your answers from the answer key provided at the end of this module.
1. What is case method analysis?
2. Identify the suggested outline in solving business cases.

Answers to the Guide Questions

Question 1: Case Method Analysis is a very effective method in improving an
individual’s ability to analyze a situation, establish premises, arrive at valid conclusions,
decide on course of action, and visualize consequences and results.
Question 2:
Suggested Outline in Solving Business Cases
I. Time Context
II. Viewpoint
III. Statement of the Problem
IV. Objectives
V. Areas of Considerations
VI. Alternative Courses of Action
VII. Recommendation
VIII. Conclusion/Detailed Action Plan

References and Supplementary

Books
1. Robbins, Stephen P. et.al. 2012. Management. 11 th Edition.New Jersey: Pearson
Education, Inc.
2. Inigo, Conrado E. 2012. Management for Filipinos. Revised Edition. Sampaloc,
Manila: Gemina Phils. Graphic Arts Corporation

Assessment 1
Name: Course, Year and Section:

Direction: Analyze the sample case (Promotion Seeker) using the Suggested Outline in
Solving Business Cases.
Case 2
MCDONALD’ S PLAN TO WIN 
After 50 years of operation, McDonald’s is revitalizing its products, and
pushing innovation through a variety of initiatives. This food service giant
with more than 30,000 restaurants in 100 countries provides food to nearly
50 million customers each day, but decades of expansion, sales growth, and
profits made the burger giant complacent. By focusing on getting bigger, not
better, the company stumbled in 2002, recording its first losing quarter. By
2003, U.S. sales had flattened, as many consumers were turning to healthier
options and restaurants with more upscale menu items, a segment
sometimes referred to as “fast - casual” . Morgan Spurlock’ s film Super-Size
Me, released in 2004, also seriously diminished the public image of the quick
- service chain, as moviegoers watched Spurlock become ill and gain 25
pounds after eating only McDonald’ s food for one month.  
With pressure to get back on track, it was time for McDonald’ s to
rethink the business. The chain devised a recovery strategy that included
new menu items, redesigned restaurants, and a focus on the consumer
experience. Through a program titled “Plan to Win, ” McDonald ’ s focused
on making a deeper connection with customers through the five business
drivers of people, products, place, price, and promotion. Using its own five P’
s, the company is developing and refining new strategies to deliver value,
offering product variety, developing updated and contemporary stores,
balancing the delivery of value pricing with more expensive items, and
marketing through bold and innovative promotions. 
Execution of this strategy has included mystery shoppers and
customer surveys, along with grading restaurants to help the company
deliver on its people goals. New menu items like the Fruit &Walnut Salad in
the United States and deli sandwiches in Australia are part of the
commitment to serve high - quality products to satisfy customer demand for
choice and variety. Restaurants are staying open longer, accepting credit
and debit cards, enabling wireless Internet access, and even providing
delivery service in parts of Asia. As part of the program, franchisees and
suppliers are asked to provide their opinions and ideas on facility design,
while the company benchmarks retail leaders, such as Crate & Barrel, to
help produce cleaner and smarter restaurants. The company is testing small
handheld devices to use on what it calls “travel paths,” a process for
checking operational failures such as the temperature inside the
refrigerators. Experiments with a new grilling concept from Sweden, which
grills burgers vertically instead of horizontally, offers space - saving
possibilities for the chain. Product offerings like the McCafé, a concept
developed in the Australian market that provides gourmet coffee inside 500
existing restaurants, are proving to be successful. The trouble experienced in
the early part of the millennium has abated, and executives at McDonald’ s
have declared success after several years of progress under the Plan to
Win. 
Company revenues are up, and the firm plans to remain focused on its
core business. One indication of its commitment to fast food was the
divestiture of its seven - year ownership stake in Chipotle Mexican Grill, a
highly successful fast - casual burrito chain. With the sale of around 5 million
shares of Chipotle stock, the burger maker is now refocusing on Brand
McDonald’ s.  
Attracting more customers to McDonald’s remains its goal for growth.
In the U.S. market, the strategy is to leverage menu innovation; in Europe,
upgrading the customer experience and enhancing local relevance have
driven management efforts; and the Asia/Pacific, Middle East, and Africa
markets have focused on building sales through extended hours. The
question remains whether focusing on the core business will yield maximum
return. At McDonald’s, the executives are betting on the core brand and
hoping that this strategy will pay off. 
Case 3
ORGANIZING THE POWER COMPANY

"I do not believe in organization charts or position descriptions

of any kind in this company," declared Johnny Ramos, president and
founder of the Power Company, manufacturer of men's ready-to-wear
(RTW) suits and jackets. "We are a successful and fast-rising company
where I want all managers and labor to work as a team. Organization
charts and job descriptions make people believe they own a position on
a chart and want to keep it. We grew from a small company with
P100,000 annual sales to a P5 million enterprise because we pooled our
resources, coming up with competitive products at low costs. We are
not San Miguel Corporation with its complex organization charts."
Mr. Silang, the company comptroller, strongly defended the
president, emphasizing that teamwork, not organization charts, is the
key to success.
Linda Ignacio, head of manufacturing, believed otherwise and
declared the president's view "absurd and unprogressive." Ms. Ignacio
said, "I could not run my department without organization charts and
position descriptions. As a matter of fact, I have them hidden in my
desk where Johnny Ramos never sees them!"
Objectives

Identify what is the problem of the case

To know who are the person involved in the promotion
To know what are the facts to be considered
To recognize who will fit for the vacant position

Facts of the Case

1. Mr. Henry Victory

* 3 years working at flight kitchen with a very satisfactory performance
* He was rarely absent and never been late
* He was praised by airline passengers because of his good cooking skills
* He is efficient he could do more work in less time and offered to help the others as soon as he had
finished his own assignments
* His other co-employee resented him because of his attitude “I know better”

2. Mr. Ma Nok
* He is working at flight kitchen for over a year only
* He’s not been doing supervisory work because he cannot plan ahead and does not like paper work and
cost calculation
* He is a very good cook from Ma Mon Luk
* He is an outsider
* When he enters the flight kitchen, Mr. Wong appoint him as assistant supervisor

Problem of the case

Due to the sudden death of Mr. C. Buyas (former supervisor of the flight kitchen) that results for
his position to be empty and a replacement must take in place before the executive committee meeting in
two days. And for that the company doesn’t know whom to put up for the vacant position. And if ever Mr.
Henry will be promoted who will prepare the dish in flight kitchen.

Areas of consideration
* Henry Victory is aspiring for the position
* Henry is working at the company for 3 years while Ma Nok is over a year only
* Ma Nok is not doing supervisory work
* Mr. C. Buyas claimed that Henry was not well like by his fellow employee because of his attitude
* Henry is more efficient than Ma Nok

Recommendation
If I were Mr. Wong I will give Henry a chance to become the supervisor of the flight kitchen because of his
commendatory performance and skills that gives the customers satisfaction and also I will promote him
because of...

Summary

I. Time Context -
II. Viewpoint
III. Statement of the Problem
IV. IV. Objectives
Must or Short-Range Objectives
1.
2.
Want or Long-Range Objectives
1.
2.

V. Areas of Considerations (paragraph form)

1.
2.
3.
VI. Alternative Courses of Action (paragraph form)(3)
1.
Advantages
1.
2.
3.
Disadvantages
1.
2.
3.
2.
Advantages
1.
2.
3.
Disadvantages
1.
2.
3.
3.
Advantages
1.
2.
3.
Disadvantages
1.
2.
3.

VII. Recommendation
VIII. Conclusion/Detailed Action Plan