CHAPTER

Marketing Decision Making and Case Analysis

Skill in decision making is a prerequisite to being an effective marketing manager. Indeed, Nobel laureate Herbert Simon viewed managing and decision making as being one and the same.1 Another management theorist, Peter Drucker, has said that the burden of decision making can be lessened and better decisions can result if a manager recognizes that decision making is a rational and systematic process and that its organization is a denite sequence of steps, each of them in turn rational and systematic.2 One objective of this chapter is to introduce a systematic process for decision making;another is to introduce basic considerations in case analysis. Just as decision making and managing can be viewed as being identical in scope, so the decision-making process and case analysis go hand in hand. For this reason, many companies today use case studies when interviewing an applicant to assess his or her decision-making skills. They have found that the applicants approach to the case demonstrates strategic thinking, analytical ability and judgment, along with a variety of communication skills, including listening, questioning, and dealing with confrontation.3

DECISION-MAKING PROCESS
Although no simple formula exists that can assure a correct solution to all problems at all times, use of a systematic decision-making process can increase the likelihood of arriving at better solutions.4 The decision-making process described here is called DECIDE:5 Dene the problem. Enumerate the decision factors. Consider relevant information. Identify the best alternative. Develop a plan for implementing the chosen alternative. Evaluate the decision and the decision process. A denition and a discussion of the implications of each step follow.
2009931872

53
Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

54

CHAPTER 3 MARKETING DECISION MAKING AND CASE ANALYSIS

Dene the Problem

The philosopher John Dewey observed that a problem well dened is half solved. What this statement means in a marketing setting is that a well-dened problem outlines the framework within which a solution can be derived. This framework includes the objectives of the decision maker, a recognition of constraints, and a clearly articulated success measure, or goal, for assessing progress toward solving the problem. Consider the situation faced by El Nacho Foods, a marketer of Mexican foods. The company had positioned its line of Mexican foods as a high-quality brand and used advertising effectively to convey that message. Shortly after the companys introduction of frozen dinners, two of its competitors began cutting the price of their frozen dinner entrees. The rm lost market share and sales as a result of these price reductions; this loss led to reductions in the contribution dollars available for advertising and sales promotion. How might the problem be dened in this situation? One denition of the problem leads to the question: Should we reduce our price? A much better denition of the problem leads one to ask: How can we maintain our quality brand image (objective) and regain our lost market share (success measure), given limited funds for advertising and sales promotion (constraint)? The rst problem denition asks for a response to an immediate issue facing the company. It does not articulate the broader and more important considerations of competitive positioning. Hence, the problem statement fails to capture the signicance of the issue raised. The second denition provides a broader perspective on the immediate issue posed and allows the manager greater latitude in seeking solutions. In a case study, the analyst is frequently given alternative courses of action to consider. The narrow approach to case analysis is simply to compare these different options. Such an approach often leads to the selection of alternative A or alternative B without regard to the signicance of the choice in the broader context of the situation facing the company or the decision maker.

Enumerate the Decision Factors

Two sets of decision factors must be enumerated in the decision-making process: (1) alternative courses of action, and (2) uncertainties in the competitive environment. Alternative courses of action are controllable decision factors because the decision maker has complete command of them. Alternatives are typically productmarket strategies or changes in the various elements of the organizations marketing mix (described in Chapter 1). Uncertainties, on the other hand, are uncontrollable factors that the manager cannot inuence. In a marketing context, they often include actions of competitors, market size, and buyer response to marketing action. Assumptions often have to be made concerning these factors. These assumptions need to be spelled out, particularly if they will inuence the evaluation of alternative courses of action. The experience of Cluett Peabody and Company, the maker of Arrow shirts, illustrates how the combination of an action and uncertainties can spell disaster. Arrow departed from its normal practice of selling classic mens shirts to offer a new line featuring bolder colors, busier patterns, and higher prices (action). The rm soon realized that mens tastes had changed to more conservative styles (environmental uncertainties). The result? The company posted a $4.5 million loss. According to the company president, We tried to be exciting, and we really didnt look at the market.6 Case analysis provides an opportunity to relate alternatives to uncertainties, and these factors must be related if decision making is to be effective. No expected outcome, nancial or otherwise, of a chosen course of action can realistically be considered apart from the environment into which it is introduced.

2009931872

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

DECISION-MAKING PROCESS

55

Consider Relevant Information

The third step in the decision-making process is the consideration of relevant information. Relevant information, like the relevant costs discussed in Chapter 2, consists of information that relates to the alternatives identied by the manager as being likely to affect future events. More specically, relevant information might include characteristics of the industry, consumers, or competitive environment, characteristics of the organization (such as competitive strengths and position), and characteristics of the alternatives themselves. Identifying relevant information is difcult both for the practicing manager and for the case analyst. There is frequently an overabundance of facts, gures, and viewpoints available in any decision-making setting. In fact, it has been said that The truly successful managers and leaders of the [twenty-rst] century will . . . be characterized not by how they can access information, but how they can access the most relevant information and differentiate it from the exponentially multiplying masses of nonrelevant information.7 Determining what matters and what does not is a skill that is best gained through experience. Analyzing many and varied cases is one way to develop this skill. Two notes of caution are necessary. First, the case analyst must resist the temptation to consider everything in a case as fact. Many cases, including actual marketing situations, contain conicting data. Part of the task in any case analysis is to exercise judgment in assessing the validity of the data presented. Second, in many instances relevant information must be created. An example of creating relevant information is the blending together of several pieces of data, as in the calculation of a simple break-even point. It should be clear at this point that even though the consideration of relevant information is the third step in the decision-making process, relevant information will also affect the two previous steps. As the manager or case analyst becomes more deeply involved in considering and evaluating information, the problem denition may be modied or the decision factors may change. Upon the conclusion of the rst three steps, the manager or case analyst has completed a situation analysis. The situation analysis should produce an answer to the synoptic question,Where are we now?(Specic questions relating to situation analysis are found in Exhibit 3.4 on page 60.)

Identify the Best Alternative

Identifying the best alternative is the fourth step in the decision-making process. The selection of a course of action is not simply a matter of choosing Alternative A over other alternatives but, rather, of evaluating identied alternatives and the uncertainties apparent in the problem setting. A framework for identifying the best alternative is decision analysis, which was introduced in Chapter 1. In its simplest form, decision analysis matches each alternative identied by the manager with the uncertainties existing in the environment and assigns a quantitative value to the outcome associated with each match. Managers implicitly use a decision tree and a payoff table to describe the relationship among alternatives, uncertainties, and potential outcomes. The use of decision analysis and the application of decision trees and payoff tables can be illustrated by referring back to the situation faced by El Nacho Foods. Suppose that at the conclusion of Step 2 in the DECIDE process (that is, enumerating decision factors), El Nacho executives identied two alternatives: (1) reduce the price on frozen dinners, or (2) maintain the price. They also recognized two uncertainties: (1) Competitors could maintain the lower price, or (2) competitors could reduce the price further. Suppose further that at the conclusion of Step 3 in the DECIDE process (considering relevant information), El Nacho executives examined the changes in market share and sales volume that would be brought about by the pricing actions. They also calculated the contribution per unit of frozen dinners for each alternative for each competitor response. They performed a contribution analysis because

2009931872

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

56 EXHIBIT 3.1

CHAPTER 3 MARKETING DECISION MAKING AND CASE ANALYSIS

Decision Tree for El Nacho Foods

Company Action Competitive Response Maintain price Reduce price Reduce price further Maintain price Maintain price Reduce price further $90,000 $110,000 $175,000 Financial Outcome $150,000

the problem was dened in terms of contribution to advertising and sales promotion in Step 1 of the DECIDE process (dening the problem). Given two alternatives, two competitive responses, and a calculated contribution per unit for each combination, they identied four unique nancial outcomes. These outcomes are displayed in the decision tree shown in Exhibit 3.1. It is apparent from the decision tree that the largest contribution will be generated if El Nacho maintains its price on frozen dinners and competitors maintain their lower price. If El Nacho maintains its price and competitors reduce their price further, however, the lowest contribution among the four outcomes identied will be generated. The choice of an alternative obviously depends on the likelihood of occurrence of uncertainties in the environment. A payoff table is a useful tool for displaying the alternatives, uncertainties, and outcomes facing a rm. In addition, a payoff table includes another dimension managements subjective determination of the probability of the occurrence of an uncertainty. Suppose, for example, that El Nacho management believes that competitors are also operating with slim contribution margins and, hence, are most likely to maintain the lower price regardless of El Nachos action. They believe that there is a 10 percent chance that competitors will reduce the price of frozen dinners even further.8 Since only two uncertainties have been identied, the subjective probability of competitors maintaining their price is 90 percent (note that the probabilities assigned to the uncertainties must total 1.0, or 100 percent). Given these probabilities, the payoff table for El Nacho Foods is shown in Exhibit 3.2. The payoff table allows the manager or case analyst to compute the expected monetary value for each alternative. The expected monetary value is calculated by multiplying the outcome for each uncertainty by its probability of occurrence and EXHIBIT 3.2 Payoff Table for El Nacho Foods
Uncertainties Competitors Maintain Price (Probability = 0.9) Reduce price Alternatives Maintain price $175,000 $90,000
2009931872

Competitors Reduce Price (Probability = 0.1) $110,000

$150,000

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

DECISION-MAKING PROCESS

57

then totaling across the uncertainties for each alternative. The expected monetary value of an alternative can be viewed as the value that would be obtained if the manager were to choose the same alternative many times under the same conditions. The expected monetary value of the price-reduction alternative equals the probability that competitors will maintain prices, multiplied by the nancial contribution if competitors maintain prices, plus the probability that competitors will further reduce prices, multiplied by the nancial contribution if competitors further reduce prices. The calculation is (0.9)($150,000) (0.1)($110,000) $135,000 $11,000 $146,000

The expected monetary value of maintaining the price is (0.9)($175,000) (0.1)($90,000) $157,500 $9,000 $166,500

The higher average contribution of $166,500 for maintaining the price indicates that El Nachos management should maintain the price. The contribution is higher because competitors are expected to maintain their prices nine times out of ten. Under the same conditions (same outcomes, same probability estimates), El Nacho would achieve an average contribution of $146,000 if the price-reduction alternative were chosen. A rational management would, therefore, select the price-maintenance alternative. Familiarity with decision analysis is important for four reasons. First, decision analysis is a fundamental tool for considering what if situations. By organizing alternatives, uncertainties, and outcomes in this manner, a manager or case analyst becomes sensitive to the dynamic processes present in a competitive environment. Second, decision analysis forces the case analyst to quantify outcomes associated with specic actions. Third, decision analysis is useful in a variety of settings. For example,Warner-Lambert Canada, Ltd. applied decision analysis when deciding to manufacture and distribute Listerine throat lozenges in Canada; Ford Motor Company used decision analysis in deciding whether to produce its own tires; and Pillsbury used it in determining whether to switch from a box to a bag for a certain grocery product.9 Fourth, an extension of decision analysis can be used in determining the value of perfectinformation. Exhibit 3.3 shows how the expected monetary value of perfect information (EMVPI) can be calculated using the El Nacho Foods example. Simply speaking, EXHIBIT 3.3 Decision Analysis and the Value of Information
Payoff Table Uncertainties Competitors Maintain Price (Probability = 0.9) A1: Reduce price Alternatives A2: Maintain price $175,000 $90,000 $150,000 Competitors Reduce Price (Probability = 0.1) $110,000

Calculation of Expected Monetary Value (EMV): EMVA1 = 0.9($150,000) EMVA2 = 0.9($175,000) 0.1($110,000) = $146,000 0.1($90,000) = $166,500 0.1($110,000) = $168,500

Calculation of Expected Monetary Value of Perfect Information (EMVPI): EMVcertainty = 0.9($175,000) EMVPI = EMVcertainty
2009931872

EMVbest alternative $166,500 = $2,000

EMVPI = $168,500

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

58

CHAPTER 3 MARKETING DECISION MAKING AND CASE ANALYSIS

EMVPI is the difference between what El Nacho would achieve in contribution dollars if its management knew for certain what competitors would do and the average contribution dollars realized without such information. In other words, if El Nacho knew for certain that competitors would maintain their price, the maintain price alternative would be selected. If El Nacho management knew for certain that competitors would reduce their price, however, the reduce price alternative would be chosen. Assuming El Nacho management faced this decision 10 times and knew what competitor reaction would be each time, El Nacho management would make the appropriate decision each time. The result would be an expected monetary value of $168,500. The difference of $2,000 between $168,500 and $166,500 (the best alternative without such information) is viewed as the upper limit to pay for perfect information. EMVPI is a useful guide for determining how much money should be spent for marketing research information to identify the best alternative or course of action.

Develop a Plan for Implementing the Chosen Alternative

The selection of a course of action must be followed by development of a plan for its implementation. Simply deciding what to do will not make it happen. The execution phase is critical, and planning for it forces the case analyst to consider resource allocation and timing questions. For example, if a new product launch is recommended, it is important to consider how managerial, nancial, and manufacturing resources will be allocated to this course of action. If a price reduction is recommended, it will be important to monitor whether the reduced prices are reaching the nal consumer and not being absorbed by resellers in the marketing channel. Timing is crucial, since a marketing plan takes time to develop and implement. As a nal note, it is important to recognize that strategy formulation and implementation are not necessarily separate sequential processes. Rather, an interactive give-and-take occurs between formulation and implementation until the case analyst realizes that what might be done can be done, given organizational strengths and market requirements. Another reading of the discussion on the marketing mix in Chapter 1 will highlight these points.

Evaluate the Decision and the Decision Process

The last step in the decision-making process is evaluating the decision made and the decision process itself. With respect to the decision itself, two questions should be asked. First, Was a decision made? This seemingly odd question addresses a common shortcoming of case analyses, whereby a case analyst does not make a decision but, rather,talks aboutthe situation facing the organization. The second question is, Was the decision appropriate, given the situation identied in the case setting? This question speaks to the issue of insufcient information on the one hand and the failure to consider and interpret information on the other. In many marketing cases, and indeed in some actual business situations, some of the information needed to make a decision is simply not available. When information is incomplete, assumptions must be made. A case analyst is often expected to make assumptions to ll in gaps, but such assumptions should be logically developed and articulated. Merely making assumptions to make the solution t a preconceived notion of the correct answer is a death knell in case analysis and business practice. The case analyst should constantly monitor how he or she applies the decisionmaking process. The mere fact that ones decision was right is not a sufcient reason to think that the decision process was appropriate. For example, we have all found
2009931872

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

PREPARING AND PRESENTING A CASE ANALYSIS

59

ourselves lost while trying to locate a home or business from an address. Eventually we somehow nd it but are again at a loss when later asked to direct someone else to the same address. Analogously, the case analyst may arrive at the correctsolution but be unable to outline (map) the process involved. After completing a class discussion of a case, a written case assignment, or a group presentation, the case analyst should critically examine his or her performance by answering the following questions: 1. Did I dene the problem adequately? 2. Did I identify all pertinent alternatives and uncertainties? Were my assumptions realistic? 3. Did I consider all information relevant to the case? 4. Did I recommend the appropriate course of action? If so, was my logic consistent with the recommendation? If not, were my assumptions different from the assumptions made by others? Did I overlook an important piece of information? 5. Did I consider how my recommendation could be implemented? Honest answers to these questions will improve the chances of making better decisions in the future.

PREPARING AND PRESENTING A CASE ANALYSIS

How do I prepare and present a case? This question is voiced by virtually every student exposed to the case method for the rst time. One of the most difcult tasks in preparing a case for presentationor, more generally, resolving an actual marketing problemis structuring your thinking process to address relevant forces confronting the organization in question. The previous discussion of the decision-making process should be of help in this regard. The remainder of this chapter provides some useful hints to assist you in preparing and presenting a marketing case.

Approaching the Case

On your rst reading of a marketing case, you should concentrate on becoming acquainted with the situation in which the organization nds itself. This rst reading should provide some insights into the problem requiring resolution, as well as background information on the environment and organization. Then read the case again, paying particular attention to key facts and assumptions. At this point, you should determine the relevance and reliability of the qualitative and quantitative data provided in the context of what you see as the issues or problems facing the organization. Valuable insights often arise from analyzing two or more bits of qualitative and quantitative information concurrently. It is essential that extensive note taking occurs during the second reading. Working by writing is very important; simply highlighting statements or numbers in the case is not sufcient. Behavioral scientists estimate that the human mind can focus on only eight facts at a time and that our mental ability to link these facts in a meaningful way is limited without assistance.10 Experienced analysts and managers always work out ideas on paperwhether they are working alone or in a group. There are three pitfalls you should avoid during the second reading. First, do not rush to a conclusion. If you do so, information is likely to be overlooked or possibly distorted to t a preconceived notion of the answer. Second, do not work the numbers
2009931872 Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

60 EXHIBIT 3.4 Marketing Case Analysis Worksheet

CHAPTER 3 MARKETING DECISION MAKING AND CASE ANALYSIS

Specic Points of Inquiry Nature of the industry, market, and buyer behavior 1. What is the nature of industry structure, conduct, and performance? 2. Who are the competitors, and what are their strengths and weaknesses? 3. How do buyers buy in this industry or market? 4. Can the market be segmented? How? Can the segments be quantied? 5. What are the requirements for success in this industry? The organization 1. What are the organizations mission, objectives, and distinctive competency? 2. What is its offering to the market? How can its past and present performance be characterized? What is its potential? 3. What is the situation in which the manager or organization nds itself? 4. What factors have contributed to the present situation? A plan of action 1. What actions are available to the organization? 2. What are the costs and benets of action in both qualitative and quantitative terms? 3. Is there a disparity between what the organization wants to do, should do, can do, and must do? Potential outcomes 1. What will be the buyer, trade, and competitive response to each course of action? 2. How will each course of action satisfy buyer, trade, and organization requirements? 3. What is the potential protability of each course of action? 4. Will the action enhance or reduce the organizations ability to compete in the future?

until you understand their meaning and derivation. Third, do not confuse supposition with fact. Many statements are made in a case, such as Our rm subscribes to the marketing concept. Is this a fact, based on an appraisal of the rms actions and performance, or a supposition?

Formulating the Case Analysis

The previous remarks should provide some direction in approaching a marketing case. The marketing case analysis worksheet shown in Exhibit 3.4 provides a framework for organizing information. Four analytical categories are shown, with illustrative questions pertaining to each. You will nd it useful to consider each analytical category when preparing a case.

Nature of the Industry, Market, and Buyer Behavior The rst analytical category
focuses on the organizations environmentthe context in which the organization operates. Specic topics of interest include (1) an assessment of the structure, conduct, and performance of the industry and competition, and (2) an understanding of who the buyers are and why, where, when, how, what, and how much they buy.

The Organization It is important to develop an understanding of the organizations nancial, human, and material resources, its strengths and weaknesses, and the reasons for its success or failure. Of particular importance is an understanding of what the organization wishes to do. The t between the organization and its environment represents the rst major link drawn in case analysis. This link is the essence of the

2009931872

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

PREPARING AND PRESENTING A CASE ANALYSIS

61

situation analysis, since it is an interpretation of where the organization currently stands. A SWOT analysis like that described in Chapter 1 might be helpful in organizing your thoughts at this point.

A Plan of Action You should be prepared to identify possible courses of action on the basis of the situation analysis. More often than not, several alternatives are possible, and each should be fully articulated. Each course of action typically has associated costs and revenues. These should be carefully calculated on the basis of realistic estimates of the magnitude of effort expected in their pursuit. Potential Outcomes Finally, the potential outcomes of all courses of action identied should be evaluated. On the basis of the appraisal of outcomes, one course of action or strategy should be recommended. The evaluation, however, must indicate not only why the recommendation was preferred, but also why other actions were dismissed. Though it is always useful to consider each of the analytical categories just described, the method in which they are arranged may vary. There is no one way to analyze a case, just as there is no single correct way to attack a marketing problem. Just be sure to cover the bases. Formulating the Case Analysis in Teams Just as organizations now rely on teams to
examine marketing issues, student teams are often assigned a case to analyze. A case analysis by a team will also consider the four analytical categories just discussed. However, a team-based case analysis introduces additional considerations that can affect the quality of a team experience and the analysis itself. If the instructor asks you to form your own team, care should be taken in choosing team members. Forming teams on the basis of friendships is common but not always wise. Rather, try to create a balanced team where various skills complement one another (nancial skills, oral presentation skills, writing skills, and so on). Seek out individuals who are committed and dependable. The behavior of a team can also affect the quality of marketing decision making and a case analysis.11 Care should be taken to avoid groupthinkthe tendency for groups that work together over a period of time to produce poorly reasoned decisions. Groupthink is evident when social pressures and conict avoidance overtake the desire to rigorously question analyses and alternatives in favor of seeking conformity and consensus. Common outcomes of groupthink are an incomplete survey of issues and alternatives, failure to consider the risks of the groups decision, failure to reappraise initially rejected alternatives, limited recognition and evaluation of case information, and failure to work out contingency plans due to overcondence in the likelihood of success of a chosen course of action and the correctness of a decision.12 Alfred Sloan, the legendary chairman of General Motors, was acutely aware of groupthink in his executive ranks. He was often heard to say,I take it we are all in complete agreement on the decision here. Then I propose we postpone further discussion of the matter until our next meeting to give ourselves time to develop disagreement and perhaps gain some understanding of what the decision is all about.13 Case study teams might do the same to avoid the pitfalls of groupthink.

Communicating the Case Analysis

Three means exist for communicating case analyses: (1) class discussion, (2) oral presentation, and (3) written report.

2009931872

Class Discussion Discussing case studies in the classroom setting can be an exciting experience, provided that each student actively prepares for and participates in the

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

62

CHAPTER 3 MARKETING DECISION MAKING AND CASE ANALYSIS

discussion. Preparation involves more than simply reading the case prior to the scheduled class periodthe case should be carefully analyzed, using the four analytical categories described earlier. Four to ve hours of preparation are usually required for each assigned case. The notes developed during the preparation should be brought to class. Similarly, participation involves more than talking. Other students should be carefully watched and listened to during a class discussion. Attentiveness to the views of others is necessary in order to build on previous comments and analyses. Most class discussions follow a similar format. Class analysis begins with a discussion of the organization and its environment. This discussion is followed rst by a discussion of the alternative courses of action and then by a consideration of possible implementation strategies. Knowing where the class is in the discussion is important both for organizing the multitude of ideas and analyses presented and for preparing remarks for the subsequent steps in the class discussion. Immediately after the class discussion, you should prepare a short summary of the analysis developed in class. This summary, which should include the specic facts, ideas, analyses, and generalizations developed, will be useful in comparing and contrasting case situations.

Oral Presentation An oral presentation of a case requires a slightly different set of skills. Usually, a group of three to ve students conducts a rigorous analysis of a case and presents it to classmates. Role-playing may be featured: Class members may serve as an executive committee witnessing the presentation of a task force or project team. A polished delivery is very important in oral presentations.14 Thus, the group should rehearse its presentation, with group members seriously critiquing one anothers performance. Oral presentations provide an opportunity to verbalize your analysis and recommendations and visually enhance your remarks with carefully crafted and informative transparencies, electronic slides, or other visual aids. At a minimum, slides or transparencies should cover each of the following areas:
1. An opening slide showing the title of the presentation and names of the presenters. 2. A slide that outlines the presentation (perhaps with presenters names by each topic). 3. One or more slides detailing the key problems and strategic issues that management needs to address. 4. A series of slides covering your analysis of the companys situation or problem. 5. A series of slides containing your recommendations and the supporting arguments and reasoning for each recommendationone slide for each recommendation and the associated reasoning has a lot of merit. Remember that slides and transparencies help to communicate your ideas to the audience. They are not meant to substitute for the oral presentation. Slides and transparencies may be referred to but should never be read to the audience. Also keep in mind that too many graphics, images, colors, and transitions may divert the attention of the audience and disrupt the ow of the presentation. Finally, keep in mind that dazzling slides and transparencies will not hide a supercial or awed case analysis from a perceptive audience.

Written Report What you need to do to generate a written analysis of a case

assignment is similar to what you should do to prepare for class discussion. The only difference is in the submission of the analysis; a written report should be carefully organized, legible (preferably typed), and grammatically correct.
2009931872

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

NOTES

63 There is no one correct approach to organizing a written case analysis. However, it is usually wise to think about the report as having three major sections: (1) identication of the strategic issues and problems, (2) analysis and evaluation, and (3) recommendations. The rst section should contain a focused paragraph that denes the problem and species the constraints and options available to the organization. Material in the second section should provide a carefully developed assessment of the industry, market and buyer behavior, the organization, and the alternative courses of action. Analysis and evaluation should represent the bulk of the written report. This section should not contain a restatement of case information;it should contain an assessment and interpretation of the facts, qualitative and quantitative data, and management views. The last section should consist of a set of recommendations. These recommendations should be documented with references to the previous section and should be operational given the case situation. By all means, commit to a decision! A case and a written student analysis of it are presented in the appendix at the end of the book. It is recommended that you carefully analyze the case before reading the student analysis. NOTES 1. Leigh Buchanon and Andrew OConnell,A Brief History of Decision Making,Harvard Business Review (January 2006): 3241. 2. What Executives Should Remember: Classic Advice from Peter Drucker, Harvard Business Review (February 2006): 144152. 3. Melissa Raffoni, Use Case Interviewing to Improve Your Hiring, Harvard Management Update (July 1999): 10. 4. Loren Gary,Want Better Results? Boost Your Problem-Solving Power, Harvard Management Update (October 2004): 14. 5. DECIDE acronym copyright by William Rudelius. Used with permission. 6. Cluett Peabody & Co. Loses Shirt Trying to Jazz Up the Arrow Man, Wall Street Journal (July 28, 1988): 24. 7. Mark David Nevins and Stephen A. Stumpf, 21st-Century Leadership: Redening Management Education,Strategy & Business (Third Quarter, 1999): 4151. 8. An issue that frequently arises in developing these subjective probabilities is how to select them. One source is past experience, in the form of statistics such as A. T. Kearneys probabilities of success for alternative strategies, presented in Chapter 1. Alternatively, case information can be used to develop probability estimates. At the very least, when two possible uncertainties exist, a subjective probability of .5 can be assigned to each. This means that the two uncertainties have an equal chance of occurring. These probabilities can then be revised up or down, depending on case information. 9. These examples and a further reading on decision analysis can be found in Peter C. Bell, Management Science/Operations Research: A Strategic Perspective (Cincinnati, OH: South-Western Publishing, 1999): Chapter 3. 10. Amitai Etzioni, Humble Decision Making, Harvard Business Review (JulyAugust 1989): 122126. 11. Jared Sandberg, Some Ideas Are So Bad That Only Team Efforts Can Account for Them,Wall Street Journal (September 29, 2004): B1. 12. Max Bazerman, Judgment in Managerial Decision Making, 6th ed. (New York: John Wiley & Sons, 2006). 13. This quote appears in David A. Garvin and Michael A. Roberto, What You Dont Know About Making Decisions,Harvard Business Review (September 2001): 108116. 14. This discussion is based on material in Arthur A. Thompson Jr. and A. J. Strickland, Strategic Management: Concepts and Cases, 13th ed. (Burr Ridge, IL: McGraw-Hill/Irwin, 2004): C12C13.

2009931872 Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.

2009931872

Strategic Marketing Problems: Cases and Comments, Eleventh Edition, by Roger A. Kerin and Robert A. Peterson. Published by Prentice Hall. Copyright 2007 by Pearson Education, Inc.