Scientific Analysis of

Business Cases
The case study approach has developed into a very effective method in
improving an individual’s ability to analyze a situation, establish premises, arrive
at valid conclusions, decide on courses of action, and visualize consequences
and results. They are exercises in the management process and in executive
action, providing opportunities for applying principles learned, to business
situations encountered in actuality.

A case usually narrates the development of a situation over an extend

period of time. The case analyst projects himself into the situation and visualizes
it as though he is personally involved. If the case involves two or more persons,
the case analyst assumes in sequence the role of each person. This is done not
only for better understanding of human relations aspect but also to learn whether
each person acts in the best manner while the situation was developing.

Accordingly, the case analyst will now deduce the likely impact any
decision one party would have on the others.

Source: Dr Conrado Ynigo

The following suggestions are offered to help in the study and preparation of case
analysis:

1. Read the assigned case thoroughly and completely. If possible,

put the case aside for a period of time. Then carefully re-read the
case once or twice or even thrice. 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 would wish to make notes or summaries of

pertinent information before proceeding with your analysis. Lawyers
call this “briefing” a case. The procedure may be necessary 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 data 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 problem-type statements lifted
from the case data. Try to state the problem in such a way 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. These are hypotheses which require
investigation.

5. Concerning these hypotheses, raise the question which

demand an answer. These are the 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 evidences so as to substantiate your case.

Be sure to state your conclusions clearly.
 Suggestions for Written Reports

The suggestions apply to either written or oral case analysis. Putting

your analysis into writing, however, requires the following ideas to be
considered.

1. Clarity and simplicity of written statements are essential.

2. Use short sentences. Be sparing in the use of descriptive adjectives.
Guidelines in Analyzing Business Cases

Objectives of the Case Method

1. To make the student become more efficient and accurate in finding the cause
and effect of business problems (fish-bone analysis).

2. To train the student become more imaginative (creative) in formulating efficient and
effective solutions.

3. To help the student apply his own special experience, and to handle new
situations if he has little or no experience.

4. To develop his skill in interacting, cooperating, and fostering closer working

relations with his group members.
 Basic Characteristics of a Good Case Analysis

1. It is based on particular situational facts.

2. There is good understanding and identification of the central problem.

3. The solution must be highly creative and have the makings of being practical
and workable under the given circumstances.

4. The student’s position must be supported and defensible.

NOTE: Students commit the serious error of organizing their case analysis
around concepts instead of using the concept as a tool in the analysis
of the case.
Suggested Outline in Solving Business Cases

I. Time Context

II. Viewpoint

III. Statement of the Problem

IV. Objectives
- Short-Range
- Long-Range

V. Areas of Consideration/ SWOT Analysis

VI. Alternative Courses of Action

VII. Recommendation

VIII. Conclusion/Detailed Action or Implementation Plan

 Outline Details

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. A
business problem requiring an action in pre-martial law days will have a
different action if it were to be tackled today. Likewise, a business
problem requiring an action in an inflationary situation, as in 1980, will
require an action that is different from the action to be taken in a period
of stable prices, as in 1987. In short, a business problem will have
different solutions under different political and economic environments.
Outline Details

II. Viewpoint. In solving a business problem, the student must specify the
viewpoint he is taking. It is always based on the manager’s viewpoint.
Given a business problem, the president of a company will most likely
have a different approach or solution from those of other company
officers.
Outline Details

III. Statement of the Problem. A problem is a deviation or an imbalance

between what should be and what actually is 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.
Outline Details

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.

IV.1 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 and 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.
Outline Details

IV.2 Long-Range Objective. This objective does not set absolute

limits but expresses relative desirability. They are of relative
performance to the success of the decision but less than absolute.
These objectives should be attained beyond a one-year period.
 Outline Details

V. Areas of Consideration. When the student has determined what he

considers to be the central problem and has defined his objectives, 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.
STRENGTHS AND WEAKNESSES
(Internal Environment)

• Operations
• Human Resources
• Marketing
• Financial
OPPORTUNITIES AND THREATS
(External Environment)
Opportunities are external positive situations which will
enhance the school’s position in the industry while
Threats are external negative situation which will dampen
its position to the industry.
In general, six big areas of the organization’s environment
are “scanned” to identify the environmental forces that may
represent opportunities or threats.
*Economics - related to the level of economic activity (flow of
money, goods and services)
*Politics - related to the use or allocation of political power among people,
including dealings with local, national and foreign government.
*Social trends and demographic - factors that affect and reflect the way
people live, including what they value.
*Technology - related to the development of new or existing technology.
*Competition - factors that involve actions taken or possibly taken by current
and potential competitors.
*Geography - related to location, climate, natural resources and so forth.
Some techniques to scan the environment (market research,
forecasting, benchmarking, etc.)
 Outline Details

VI. Alternative Courses of Action. These 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

short and long range objectives. Discard the alternative that does not
meet what a short-range objective requires. Alternatives that satisfy all
short-range objectives should then be evaluated further against the
long-range objectives.
Outline Details

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 tentative decision or

recommendation. Look for the 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.
 Outline Details

VII. Recommendation. This is the final decision or recommended course

of action. The student must be decisive; he must not evade making a
final choice of the alternative which seems best to him. Inaction or a
status quo position means indecision.
 Outline Details
VIII. Conclusion/Detailed Action Plan. Make a detailed action plan to
ensure the success of the decision or recommendation.

For each prospective serious trouble area, the student should set-up
corresponding preventive and contingency action. If prospective
serious trouble areas could not be prevented, review other alternatives
for final action.

The characteristics of a good action plan are:

 It is systematic.
Plans of action should be properly enumerated from the first plan to
the last plan.

 It is realistic.
The plan must be capable of being carried out. An unrealistic plan
causes frustration and is self-defeating.

 It is flexible.
A good plan should be flexible enough to be changed when change
is called for.
Elements of an Effective Case Presentation

1. Planning the Presentation

The reasons for planning presentations are:

- The occasion itself calls for it, and only planning assures
quality, and quality presentations are the only kind you and your
audience are interested in.

- Failure to plan may cause you to be ineffective during the

occasion and may result in your presentation being less than top
quality.

Planning a case presentation involves four basic steps:

a. Determining what you expect to accomplish.

This gives you a target at which to direct your presentation
time and efforts.

Set the accomplishment down and keep your mind to it at all

times.
Elements of an Effective Case Presentation

b. Considering means to secure audience interest.

Basically focus on the audience’s interests, not yours. Be sure

the entire presentation is audience-oriented.

c. Anticipating questions you may be asked after the presentation.

There will be many. If you are caught off-guard, your total

presentation will suffer and collapse. Have your answers ready.

d. Gathering facts to answer anticipated questions.

Research work is paramount. This step becomes simpler once

you set down anticipated questions. There are many resources for fact-
gathering.
Elements of an Effective Case Presentation

2. Making the Actual Presentation and the Defense thereafter. Seven basic
steps in making the presentation:

a. Always begin your presentation with the attitude that you are
presenting to a very important audience. Give your audience the
red carpet treatment.

b. Get your audience’s attention (and hold it throughout).

c. Watch your verbal language. Words are your main communication.

Use words that suggest action. Use forceful, simple and specific
words, not generalistic. Pay attention to euphony.

d. Watch your body language. Your posture, your physical attitude,

your gestures can often do more to help you convince persuasively
than words. Avoid scratching, yawning, or slumping. Seek eye
contact with your audience.
Elements of an Effective Case Presentation

e. Use visual aids. They dramatize the presentation, and

dramatization is a strong aid in convincing your audience.

f. Cover the subject business case completely.

g. Answer the audience’s questions satisfactorily. Questions must

always be laid to rest. Follow these rules when answering
questions:
 Ask the person to restate the question.
 Listen attentively.
 Ask for an explanation of the question. He will often re-state it
in a different way which is helpful.
 Listen intently and do not interrupt.
 Use facts to answer the question.