THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES Part I Guidance on Use of Case Method

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

CASE METHOD

INTRODUCTION Traditionally, the lecture method has been used as the basic pedagogy for teaching throughout the world. This method is based on the assumption that the teacher IS a fountain of knowledge and h is capable of disseminating this knowledge by telling students the historical facts regarding the discipline being taught. The concepts and principles which have been developed by scholars and researchers are communicated to the students and real life situations are sometimes quoted as examples for the validity of these concepts. The use of such examples is made more frequently by teachers of Medicine, Law and Business Administration. Since the start of the twentieth century, a gradual change in the traditional approach of teaching has been taking place. It has been observed that apart from knowing things it is necessary that the class room activity should also develop the quality of mind amongst the participants. The teachers have also started recognizing that such an enormous expansion has taken place in various disciplines, that complete knowledge regarding the subject cannot be provided in the classroom session, and due to increase in variables it is not possible for them to resolve the problems of their students fully. They have to include many "ifs" and "buts" in the principles and concepts, hence limiting the horizons of know edge. These methods, which have attained importance as a teaching device through its widespread use in teaching of law was introduced by Langdell in 1871 as an alternative to the lecture method of legal education. The essential feature of the method was the use of actual case i.e., opinions as the main content of the courses of study and an emphasis on discussion in the class. The case system was based on certain fundamental premises: one was that lawyers in practice work out what courts will do and how to argue them largely from judicial opinions and that the law students can learn this job by doing it. The second premise was that the study of concrete situations and of the decisions on the issues raised provided the basis for discussion in class, gave substance and content to the concerned rules provided opportunities for more interesting teaching. Whatever the validity of these premises, the advantages of the case method as a method of instruction are obvious. Instead of hearing or reading general rules from some unexamined source of authority, accepting them and then expecting the student to dig out his principles, case studies provide an excellent opportunity to develop confidence in problem analysis and problem solving.

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

When Harvard University set up its business school in 1908, few of what are now called management principles could be enunciated with confidence. At that time, there was wide spread belief that management as a subject was not capable of scientific analysis, despite the pioneering efforts of those involved in scientific management. Such principles as did exist, were merely over- simplified with generalizations. It was thought that by exposing management students to a variety of cases in the practice of management, they could build up reservoir of experience which would equip them to handle the real life problems eventually to be encountered. Moreover, the learning theories support the view that active participation which case method requires is much more stimulating than the passive listening role played by the students in the formal lecture situation. Where factual information has to be learned, the student would be inclined to study much more enthusiastically, if weakness in is knowledge is exposed through case discussion, thus emphasizing the need for work. However, in many countries, education does not rely on extensive use of the case method. They regard it secondary to the lecture method and in no sense a substitute for it. They do not advocate the use of case method because they believe (i) a student may sit through a discussion and take no part at all. In larger classes all those who may wish to speak may not find an opportunity. The value of the method in developing the ability to formulate, state and defend a reasoned opinion is thus, reduced. ii) the method, even when operated well, is time-consuming. A case may require several hours of private work and a full discussion to establish a principle, which the faculty could have put across by lecture and illustration, perhaps in thirty or forty minutes iii) it can breed in the students a dangerous belief that answers to case problems can be applied directly to the problems they meet in work situations and iv) many teachers agree that for various reasons a fair number of students fail to get any benefit from this method e.g., dogmatic people. On the other hand, the propounders of case method stress that it is expected that in the process of analyzing a case, a student would develop the ability to think, he would learn to handle himself in real life situations, he may even acquire a degree of skepticism concerning some rules which someone has formulated. It has been observed that through the use of this tool greater help can be provided to the students to understand the complexities of the situations involved. Management educationists were next to follow suit. Harvard Business School was the first to take the lead in this respect. Their initial step in this direction was to invite the business executives to address the students and inform them about the various real life situations which they had come across. Through this strategy, the students were involved deeply in the problems faced by the organizations, the alternatives present before them and the course of action selected by the management. The next step in this direction was that instead of inviting executives, the "real life situations" as a when available were presented before the class in a written form. and the

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

students used to discuss the problems and their solutions: The technique proved to be a success as it is provided the students an opportunity to apply their knowledge. The Harvard Business School maintained the lead throughout this period although many other business schools in North America continued to work in the same direction. The teachers of business schools started writing these "real life situations" faced by the business with permission of the business executives, especially for the purpose of using them in the class. The use of these "real life situations" now being known as "cases" has been found tremendously beneficial as a management teaching technique by the teachers of business. It is to the extent that many business schools (including Harvard) are almost using only this particular pedagogical tool for training the business executives. The teachers of these schools have written cases covering all the functional areas of management discipline and a variety of cases are now available on each topic for discussion in the classroom. A case is normally written from the point of view of the decision maker involved. The case writer reports the relevant facts of the situation when a decision was required to be made for resolving the then existing problem/so Although the modus operandi of teaching with cases varies from teacher to teacher, a common method is to give a case for reading along with every text book topic, and then let the students discuss the case in the classroom and give their arguments and independent opinion regarding the problems, alternatives present and possible solutions. The case method of teaching refers to the use of cases as educational vehicles to give students an opportunity to put themselves in the decision maker's or problem solver'" shoes. The emphasis during this whole process is provided on; (a) the students must be involved in the case to the maximum possible extent, (b) they should feel the responsibility of decision making, and, (c) the teacher should not assume the historical role of "the fountain of knowledge", rather he should be concerned only with facilitating the participative process. A case is a written description of an enterprise, an event, an incident and information about its many facets. It generally contains its history, internal and external environment. Cases are generally based on information gathered about real organizations but some cases are prefabricated. At times, organizations wish to stay anonymous and therefore, their names and locations are changed. An institutional effort is to ensure that cases are developed and used for developing the skills of students for problem solving . Moreover, considerable pools of cases exist and are used as classroom exercises by universities and management development institutions. However, in several developing countries cases on management have been developed for development programs. Generally speaking, a case is simply a factual description of the management situation, free from judgments and true to life. It constitutes a complete study in which one or more major problems are identified. Their origin, growth and final solutions are described in as much detail as possible. In other words, it is a narrative of events,

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

taken from real life situations involving people in which facts, opinions and judgments are in conflict and in which this conflict may lead to analysis, decision and action. The case study method is indeed an effective way of enabling one to understand the management maze. A case is the narration of events or episodes of an organization covering some or all aspects during a particular point or a period of time. This means that there is a special rule as to what a case should be composed of. All that it suggests is a certain situation which emerges, to consider various ways in which decisions are made or can be made. The cases give different types of information about the situation or circumstances. The information given may include facts about the industry, the competitive conditions, the nature of products and their markets, the physical facilities, the work climate and organizational culture, the skills, education and training of personnel, the attitudes of people, traits and personality of the managers, organizational structure, interpersonal relations and communications, financial and other economic data, conversations, sequence of events, etc. Cases are drawn from different sources, private or public, commercial or non-commercial organizations. The term 'case' has been variously used in different contexts as case method, case study, case research, management case and caselet. The case method is a technique of motivating persons to learn and become excellent analysts for decision making. A case study is an analysis of what has happened or what is happening. It is an illustration of certain practices. The case research is a research method involving collection or compilation of several case studies to bring out the generalizations and draw conclusions. A management case is a training pedagogy employed for imparting certain management concepts. It is not an illustration of right or wrong practice. It helps a student to have an idea of real life business situation that was present at some stage in a business unit. The effect is to enable an analyst to generate alternative courses of actions/solutions and promote discussion among the management students. It does not suggest a simple or single solution. A caselet is an enlarged problem which can lead the participants to a definite solution. Case study method is said to consist of several deficiencies. Inspite of that, it is widely used in management education and training. Many arguments are made for using the case study method for imparting management education. Some of these arguments are:

a)

Translating Knowledge into Action: The texts always provide the concepts and their logical sequence. The success or failure of the manager depends more on his action and dynamics rather than his conceptual knowledge. The case enables one to decide about the action in a given situation and then relate it to the textual knowledge. Like an architect is able to make several changes in the blue print of a building rather than breaking and reconstructing a building, a student is able to make several alternative

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

decisions based on the case situations and consider the validity of the decisions based on precepts. The shuttling between precepts and practices will be possible while dealing with a case situation. (b) Opportunity to Analyse: In a case, a reader is getting a good opportunity to analyze and find out the ingredients. While the text gives standard principles, the application would vary based on the actual situations. For a medical practitioner, the theory of medicine is known in a standard way, but the administration of the dosage, potency, frequency etc. of a drug would depend on many factors which he has to decide based on the diagnosis of the case, evaluation of alternatives and selection of a particular course of treatment. Similarly, the one who reads the case also gets an opportunity to diagnose the problem, evaluate alternatives and finally select a mode of operation that may be right or wrong. Several such decisions will enable one to become an adept decision maker. (c) Opportunity for Self-Determination: In a case study situation, all decisions are taken by the one who reads the case rather than any imposition of answers or solutions by anybody else. Practice makes a man perfect. Cases provide ample opportunities for self determining the case solutions based on one's own analytical and decision making ability. After all, in practical situations, one has to retrieve conceptual knowledge, relate it to situational expedience and decide on time. (d) Exposure to Multiple Situations: Textual knowledge is standardized, but would need modification in different situations. Modern theory of management stresses on the contingency or situational management. In case study practices, cases are taken from varied situations, thus creating a broad - based ability in the keen student of management to understand the reality. (e) Scope of Creativity: Learning management from texts only provides broad principles. Case situations provide scope for creativity. Most managers try to look at problems from a very familiar way. But simple solutions can be obtained if we look at problems in an innovative and creative way. This is a specialized and individualized skill. Cases thus throw up opportunities for innovative solutions. (f) Inculcates the Habit of Careful Reading: Many a times, readers of texts browse through, without paying attention to details, which may be having certain important and hidden issues. In case reading, one realizes this fact and hence tries to look at important issues embedded in seemingly trivial details. (g) Learning becomes Interesting: Reading conceptual texts and remembering them, by itself is disinteresting and without scope for knowing where the principles are to be applied. When one tries to apply the principles in case solutions and read the narration of facts of case, it generates interest in the process of learning. (h) Learning becomes Challenging: In mere reading of concepts, there is no challenge involved. At the same time, when one has to seek solutions or apply principles or make decisions, the effort becomes more challenging and hence, one is motivated to put in one's best efforts.'

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

(i)

Develops Logical Reasoning and Effective Communication: The case analysis and

preparation of solution enables one to look at issues in a logical sequence and reason it out. Similarly, the preparation of the solutions either for oral or for written presentation necessitates one to make communication effective. Illogical and incoherent answers will not lead one to any goal. The case analyst's ego is also involved. Hence, the process becomes more effective than other methods of learning. DEVELOPMENT OF A STUDENT The case method triggers a high degree of mental stimulation. on the part of the student and is essentially a discussion method. Confronted with cases as a medium of learning, the student experiences a gradual growth in the maturity of his point of view, but the path is not smooth. His mental reactions run successively from great interest and natural curiosity to confusion and some degree of frustration and then to various degrees of skepticism. In the long run, progress seems to be rapid. The student grows in analytical ability and learns to discriminate among relationships of different kinds. As this development takes place, the cases which he is assigned for study should increase in length and complexity. A major problem that confronts the student in each case, is the extent to which he can derive generalizations of greater usefulness, than mere solution to the current problem. He comes into contact with views ranging from outright denial of the possibility of deriving any valid generalizations to a brief that the generalizations to be abstracted from cases are one of the most valuable features of the case system. Here the utilitarian point of view is of value. One of the student's important jobs in the case method is to distinguish between areas where generalization is feasible and areas where it is dangerous i.e., to determine when a generalization seems to have sufficient validity to be useful. The student needs to recognize that the dangers of broad generalization can be minimized by his being alert to factors which differentiate one situation from another and which thus, narrow the scope for truly useful generalization. The case method then, has unique values for business education. It develops analytical ability in a practical way by presenting the student with realistic business problems. It leads to maturity, a broad point of view and an understanding of the intrinsic nature of business by presenting a wide range of cases involving highly complex problems. By arousing the interest in the student, raising questions in his mind and requiring a great deal of mental activity on his part, the case method enables the student to make progress at a higher pace. While the positive value of this method outweighs the limitations, it is proper to recognize the latter also. Although the case method has realism, it is by no means identical with reality. The case writer has made a selection of the facts for the student, who gains little

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

practice in seeking and recognizing pertinent facts and relationships in the continuum of daily detail that makes up the life of people in business. The medium of the printed page is restricted and incapable of conveying many subtle but important overtones of human personality and conduct. Finally, the student faces a given problem for a relatively short time and without operating responsibility. In the actual situation, of course, operating personnel must live with their problems. In these respects, the case method lacks some realism, but it seems to convey more of the essential nature of business administrative problems than any other method. There are many types of cases. Generally, the cases are classified on the basis of the nature of the main problem e.g., structural problem, human relations problem, low productivity or discipline problem but such a classification defies the main premise on which the case method is based, namely that we are dealing with a problem in its entirety and focusing at it from many angles. Another method of classifying cases is to look at the purpose or the intended use of the case. Is it for research? Is it for teaching? Is it for an evaluation? Is it for selection? Is it for warming up or discussion? Still another approach is to classify them according to the content and material given in the case. Some cases deal with a single aspect of management, others create a variety of interrelated managerial activities and problems. The pertinent question may be asked: What are the different ways of using a case material? Four main ways of using case material are:

1.

Case Illustration: Here the teacher or sometimes member of the group will present a factual case illustration from his own experience, based upon work in industry, by .describing a situation, showing how the particular problems involved were tackled and analyzed and assessing the effectiveness of the solutions applied. Such illustrations are mainly used to emphasize particular teaching points and may be introduced in a variety of different ways. In teaching, the application of the theory of management control for instance, a useful approach is to open the session by describing a situation which the teacher, acting as a consultant, has dealt within a particular situation~ Students may be required to evaluate and subject it to critical analysis, or they may discuss how they would have tackled the problems. Another approach may be that the students discuss the consequences of such a solution. The teacher may explain his solution after discussion illustrating how the analysis could be simplified and improved, emphasizing points which may have been missed by the students. Such cases are intended to develop the critical analytical approach like a postmortem.

2.

Case Problem: This gives students an opportunity of applying knowledge gained in a particular lecture or series of lectures to the solution of a set problem usually on one aspect of management. Such cases are brief, to the point and highlight a very small portion of the situation. In fact they may just consist of some incidents. At the end of the case, a teacher may raise one or two questions calling attention of the students on the

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

aspect of the courses he is expected to relate. In this, a teacher can encourage and evaluate the ability to apply the principles enunciated in the lecture to real situations. Such cases may be given as examination quizzes or assignments.

3.

Case Studies: Case studies are of two main types, based either upon a real problem taken from industry or upon an abstraction, such as, what is leadership. Preparation, group discussion and reporting back session require more time than either Case illustration or case problem techniques. Therefore, the time allocated to a particular case study within the framework of course must be carefully evaluated in terms of the anticipated benefits likely to accrue from its use. Where the study is based upon factual circumstances, cases tend to be interpreted in the sense that more than one aspect or technique of management is involved and a satisfactory solution requires consideration of all of these. Where the study is based upon an abstraction, a fair amount of preliminary reading on the particular subject must be undertaken by the student. In either circumstance, however, the results are evaluated critically by a teacher.

4.

Case Projects: In certain courses, students undertake directed work in industry for periods ranging from a few days to a few weeks. Here, the objective is to study a first hand, live industrial situation which represents a current problem to the firm visited. Students work in teams of two or three persons and are expected to make recommendations regarding solution of the problem and to present their reports at a summary session attended by senior representatives of the company together with the teacher. Naturally, even more time is required for operation of case projects; hence these tend to be confined to the longer courses i.e., courses of ten weeks duration or more. Project work is also undertaken in both senior and middle management development programs but these are mainly based upon abstractions, the objective being to have the trainees examine their own experience in a particular field in the light of the programs. Besides, there are several other ways of classifying the cases. Some of them being: Short or Long Cases: Such cases may be short or long depending upon the length which

they cover. Live Cases: Live cases can be real or fabricated ones. Historical Cases: Historical cases contain information In historical sequence. The problems faced in using such cases are that facts are too many, complex and sometimes varied. Illustrative Cases: Generally, the focus is to enable the readers to examine business situations in the light of basic concepts. The idea is to gather useful information and to correlate the same with the conceptual framework already taught.

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

Analytical Cases: Problem solving is the basic focus of analytical cases. The reader is expected to spell out favorable and unfavorable consequences of various decisions made. Emphasis is given on developing alternatives as solutions to the problems. Incident Cases: An incident is reported to the group. The analysis of the case is then carried out by asking questions concerning what, why, when, where, who and how? Issues are formulated. Each participant writes his own answer to the questions as to how he would handle the incident. The various suggested decisions are. discussed in the debate amongst the participants. Finally, the facilitator winds up the debate and the group learns from the case as a whole. Availability and Quality of Cases: This is the basic problem' which the teachers of a management development institution face when they decide to use the case method of teaching in any discipline. A large number of cases are available but these have been written by the scholars of North America and European countries, naturally in the background of their own political, business and economic environments. If a case is to be a "real life situation", it should be according to the environments existing in one's own country or region. Only then the benefits expected can be attained. There is a significant difference between the situations prevailing in developed and developing countries. If the cases are to be used for teaching, every country should encourage its scholars and teachers to write cases. A clearing house will be needed for the purpose of clearing these cases as to whether these are fit to be taught and a "case bank" will have to be formed for the purpose of having quality cases available for classroom use in various subjects. The writers of the cases and the clearing houses must keep the following points in mind: (a) A good case must tell a story. The case must be structured in a way that lays out events which unfold the story having an interesting plot. (b) A good case should be focused on an interest arousing issue. (c) The case should be based on indigenous environments. (d) A good case should present only such issues which are faced by the working executives. (e) A good case should provide solutions to management problems. An overall program of collection of cases must be embarked on, by the institution/country so that sufficient number of good cases are available for teaching. General Attitude Towards the Teaching Technique: The environment of the institution in which a faculty takes the decision to teach with cases also matters a lot. It may become a major constraint when all the other faculty members of the institute are using the traditional lecture method in the classroom. Opposition, sometimes formal and autocratic, sometimes informal and attitudinal may restrict or eliminate the opportunity of using a new method of teaching. Such opposition may come from central administration, head of the institute, from the senior faculty

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

within the institute or from other faculty members. This hindrance can be overcome to some extent if some respectable central agency e.g., University Grants Commission or All India Council of Technical Education approves and encourages the use of case method in classes. Absence of certain Pre-requisites: If the faculty members want to make the effectiveness of cases a reality, it is necessary that the physical facilities present in the organization must be conducive to the use of cases. For example, the present layout of the traditional classroom discourages participative discussion, whereas participation by the students is a major milestone for the success of case method. The present classroom situations do not provide an opportunity whereby the faculty can learn quickly the names of the participants and for the participants to become acquainted with one another, whereas this is also an important prerequisite for teaching with cases. Actually to speak the truth, there is no room for anonymity in the case method. Lastly, even if the cases are available, the institute where this method of teaching is being used must have the reproduction facility, a proper ordering procedure, the overhead projector, etc. Full material logistics are necessary for the accomplishment of objectives. Carelessness to these prerequisites or unwillingness to spend the time necessary to ensure that they are complete may well result in an unsatisfactory experience in teaching with cases. Although these prerequisites seem to be simple, yet they may well end up as serious stumbling blocks without adequate attention. Traditional Method o/Teaching and Evaluation: In most of the countries until undergraduate level, the lecture method is the only method of education in the classroom. Moreover, 95% of students are used to only one method of examination i.e., a three hour written examination for every subject at the end of one year and sometimes two years of education. The faculty who initiates the experience of teaching with cases is likely to face problems in both these dimensions. As the whole group of participants is used to a certain method of teaching, in which they are passive participants, accepting the faculty as a "fountain of knowledge", taking notes of whatever he is saying, it becomes quite difficult to change the whole atmosphere of the class, to encourage the students to participate in class discussion and to make them think and analyze the problems and find solutions thereof. Sometimes the faculty must even expect resistance from the group, as it happens with all efforts regarding bringing changes in the society as a whole. The faculty will have to accept the risk of becoming unpopular at least during the initial stages of his experiment. The other problem which can be visualized is the evaluation process. If the ultimate evaluation is going to be through the traditional three hour written examination at the end of the course, there will be very few students really preparing the case at home. There will be a still lesser number of participants actively participating in the classroom discussion as they don't have any incentive. The marks obtained are the basic criterion of the students' ability in the society and an active class participation can't ensure them any better marks in the above mentioned evaluation system,

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

because in such a system only memorizing concepts and principles of the subject help and the ability of their application to situations is not of any use. There is no typical method of teaching through cases. In most instances, the case leads to the need for a decision, a series of related decisions, and providing details for decisions which can be evaluated. Some practitioners maintain that the decisions reached at by a group handling a case is relatively unimportant and that the discussion and process leading to it provide the student with the most valuable analytical skills. There is some truth in the assertion. Indeed, some cases, especially in the area of human relations are capable of a number of different solutions. However, satisfactory conduct of a case from the participant's view point requires not only some form of positive conclusion but also a critical evaluation by the faculty. A feature common to most situations is that the student is issued with the case prior to its discussion and is expected to study it, make any conclusions if necessary, by way of analyzing the facts and undertake library work for supplementary information or to gain knowledge essential for handling of the case. At this stage, informal discussion between the participants may be encouraged but not to the extent of preparing a group answer. Methods of dealing with classroom discussion vary considerably. At one extreme, the students do all the talking while the faculty uses the case as a vehicle upon which he is to base a lecture. Observation . shows that in many instances faculty takes a fairly active part. Evaluation of the students' performance appears to follow a fairly general pattern with some variations and often includes: Relevance and competence of contribution to class discussion. Written work, two or three times during a class the student is required to submit a written analysis of a case. An end-of-class examination in which a case must be analyzed and reported upon in writing by the student, working within a time limit under examination conditions. Taking a Case Examination: There are generally two types of case examinations, Take Home Examination and Sit-down Case Examination. In the case of Take Home Examination, the cases are assigned for study at home. Generally, these consist of long cases which involve deep analysis. A lot of time is invested in reading, comprehending and analyzing the case. The analysis is thus handed over to the faculty who discusses with the students and grades the same. A student who has earlier analysed the case may be required to give presentation in the class. Questions are asked by students and the case analyst is required to answer these questions. Later the faculty wraps up the case and on the basis of quality of presentation and handling of questions, he/she grades the student. Sit-down Case Examination represents an analysis by a student under examination conditions. Generally, three to four hours are allocated for reading, comprehending and analyzing the case. Later the case analysis is collected by the faculty who grades. Generally, sit-down cases are given in final or comprehensive examinations.

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

Case method has several advantages. This can be used for research as it may uncover ~ome very meaningful insights and hypotheses for further testing. It can be most useful when experimented in actual situation as a means of gaining and sharing experiences. It can develop an individual objectively and imaginatively. It generally gives confidence to a student to deal with the real life situations. It prepares a student to handle a practical . situation in an energetic manner. It helps develop a student to face life more confidently. In short, it prepares a student to handle jobs and thus, accomplishes the objective of real education. It has now been universally recognized that in the management education and training, the use of case method has a number of advantages: It helps the students develop quality of mind. It can help an individual objectively and imaginatively. The manager trained through this method is ready to look at every situation as a new one and tries to find its solution on its own merits and demerits rather than looking at text books. It prepares the managers to handle practical problems effectively. It provides confidence to the managers to deal with real life situations confidently. It helps the future executives to overcome shyness which is so common amongst students when the traditional lecture method is used. It can provide various experiences in the art of management issues. It can help to train students in their ability to analyze problems. It requires the student to make a decision and he should be ready to face criticism. It stimulates the student to study, learn and apply his knowledge. It triggers the imagination of the students. Sharing of knowledge and experience is ensured. Learning activity continues. It encourages research in future.

The students through this method not only learn something cognitively but they experience what the manager has to deal with. They develop in the class room a whole set of skills related to speaking, debating and resolving issues, hence gaining a sense of confidence in themselves. They get an insight into the management world. It is a rehearsal for tackling real life situations. Due to all these benefits this method of teaching has received a tremendous approval in the management development institutions across the world. While nobody can question the importance of this pedagogical tool, it must be ascertained how extensively an educator and a trainer should rely on case method, whether cases should be regarded secondary to the lectures

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

or should be treated as a substitute for the lectures, and above all in our environments what are the hindrances which we are likely to face in our institutions.

In an actual situation, a person must live with the problem, but the same does not pertain to case method .. Case method has a realism, but it is by no way a live reality. Although a case writer tries his best to build realism in the case, yet it must be admitted that it is not a live

business situation. The information comes to the student in a neatly written form. Managers in business have to accumulate the facts through different sources.

Some individuals may not see the relevance of the case being studied to their own situations or the group problems. A lot of time and thought is often required to develop a case study. An open environment in enterprises may not exist so that information is shared and cases could be developed. Trained faculty members are not always available to lead the cases and help the students to inculcate the skills of analyzing the cases. A case is designed to focus on a certain category of problems e.g., financial, behavioural or marketing, hence may overlook other issues present in the organization. Though the case may be fully presenting the actual situation of a business, it will still be lacking realism in one final aspect i.e., the implementation of the decision. While the students are expected to make decisions, they don't have the responsibility for implementing the same.

The case teaching method is not an efficient way of teaching, since it assumes that the students are familiar with the' principles and concepts of a subject, which may not be always true.

A case is always a snapshot taken at a point in time. In the actual business situation a manager can't segregate his problem, put it away and go on to the next. A case involves a decision or an issue to be solved. One must not forget that decision making is easier said than done. There are many qualitative factors that are considered before making a sound decision i.e., the gut feeling of the decision maker, considered opinion of others and the past experience. There is always a risk attached with each decision.

A case study method used to develop the students or participants into good decision makers lacks the risk associated with each decision. The student can never come close to the reality of the risk associated with his final decision.

The participants using the case study method as a pedagogical tool wish to know the right answer to the case. They are very curious to know how far they are from the perfect decision. Yet there is no perfect answer in the case study. The answer may vary from one individual to another individual. The company which allows its case to be used for

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

classroom discussion might not want to reveal the course of action they have actually taken. This information if passed on to the competitor can harm an organization. Many students do not read the case, but acquire. case notes from other students, hence, earning unfair and undue advantage. Many students while working in a group do not contribute at all, thus, highlighting group parasite syndrome resulting into undue burden on the active members of the group. Many a time, students without putting in any effort, copy from previous analysis of the case and take an unearned benefit. A professional code of ethics is required to ensure that students do not opt for unethical practices, but learn to reap the benefits of case analysis technique and enrich their skills. The faculty should be careful and must recognize the shortcomings of teaching with cases so that its benefits regarding developing variety of ideas, in-depth understanding of factors involved in administrative problems, reaching a sensible decision and the skill of planning to make the decisions effective could be achieved. Those interested in understanding the subtleties of management and the snags in different decisions should read the cases carefully and analyze them. One has to ask the question to oneself like "Had I been in that situation, what would I have done and why and with what possible results?" The resultant answers will enable one to deal with a series of management situations ultimately equipping one with the skill and capability required for management. Some of the requisites for evaluating a case are:

The case must have credibility, purpose, objectives and focus. The case must be complete. Flow of thought must be proper in the text of the case. Issues must be clearly brought out. The case must have relevance over time. Structure and length of the case must be adequate. The case should be authentic and should have documentation value.

Cases can be used to follow a sequential pattern related to strategy formulation. A case analysis often starts with identification of critical factors affecting the organisation, followed by determination of goals and objectives. Using fundamental premises by which the goals are established, environmental constraints are examined, resources and financial requirements are considered and alternatives are examined and evaluated. When this process is complete, an alternative is chosen which leads first to determination of an appropriate organizational structure and then to implementation and control. This suggests that the analysis involves the following issues:

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

1.

Critical Issues are to be Identified: The case analysis should be able to identify the options available to the company for better and more effective performance. The case analyst should look for such critical issues that would affect the performance and operations of the company.

2.

Evaluation of Assumptions: In a case context, many a time certain assumptions are made. But are those assumptions realistic and based on facts? This is an important question whose answer has to be sought. It is also essential to identify the critical stake holders. Efforts to meet the goals and objectives should be written along with the given strengths and weaknesses.

3.

Analysis of the Environmental and Industrial Factors: The case analysis should take into consideration various factors such as, the effect of market dynamics, competitive factors, foreign competition, government regulation, product portfolio etc., which influence the environment and the industry in question.

3.

Analysis of the Organization: It is necessary to pay attention to the organizational structure, functional integration, interpersonal relations and communication as important factors of success of the organization.

5.

Operations of the Organization: The organization should be able to achieve high quality and high performance strategic control. This capability of the organization has to be looked for analysis.

6.

The Resource Position of the Organization has to be Analyzed' What are its investments?

What is the capacity? What are the facilities? What is the cash flow? What is the return on investments? How is budgeting of strategic funds of interest in case analysis?

7. 8.

Recommendation: While recommendations are offered, it should be seen if they are justifiable and achievable. Provision of a Plan: The analysis should be able to provide specific details, time

frame, resources, people, structure and measurable results. An effective and thorough analysis of a case should be able to provide a clear solution out of complex situation with reasonable, consistent and creative action plans. It provides scope for the application of quantitative tools, determination of missing data and decides the significance of the information. It also helps to apply personal value of the individual decision maker to the organizational situations and moulds the organizational culture. The following check list is given to enable a reader to develop a quick approach for case analysis: 1. 2. 3. 4. Glance quickly through the material. Try to gauge the general ideas by reading the case as a whole. Comprehend the case perspective. Make mental notes or marginal notes of important facts and ideas. Arrive at some preliminary formulation of the problem.

5.

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

6. them

Grasp the relevant facts and link them logically for an orderly relationship between

It should be remembered that one is not aspiring for perfection, but case method develops an analytical capability for problem solving. 1. For analysis of facts the following suggestions are offered: (a) List of facts should be prepared in a logical manner. If any assumption has been made, it should be stated clearly. Quantitative analysis should be done with 'the help of statements, charts and graphs. '

2.

Main questions to be answered should be identified and questions which need to be answered to, tackle the main question should be sized.

3. 4.

Criteria for the decision should be determined, keeping in view the objectives. Suggest alternative solutions, stating advantages and disadvantages of each alternative. Implementation plans should also be determined by examining the following aspects: (a) Program orientation: - What is to be, done? (b) Responsibility identification - Who is to do it? (c) Schedule of events - When exactly a job is to be done?

5.

Budget prospective -, how much will it cost? 6. Contingency plan - Contingency plan may be kept ready in case needed. Before starting a detailed analysis of the case,' it is necessary that the macro aspects of the case should be carefully grasped. The following aspects should be quickly comprehended: Legal Religious Financial Psychological Sociological Apart from the foregoing checklist, the following prints will be helpful for a systematic approach to case analysis: 1. 2. 3. 4. 5. Define main problems and issues in the case. Identify relevant facts and data, appraise how they bear upon the issue. Identify any facts or data not known and which should be taken into account. Summarize key assumptions about the situation. Identify causes of the problem.

6. Identify: alternative courses of action and appropriate ways of analyzing the facts and data relevant to making a decision. 7. Determine the consequences of each, alternative course of action. Weigh and decide among alternative courses of action giving full' consideration to conclusions suggested; by facts and analysis and to your own judgment regarding the "Best" choice.

8.

9.

Develop a plan of implementation.

www.iibms.org

THE INDIAN INSTITUTE OF BUSINESS MANAGEMENT AND STUDIES

It is difficult to specify tailor-made techniques of case analysis. Some of the guiding principles covering specific types of analysis are summarized below:

Overall Analysis: In overall analysis, an in-depth treatment of key issues of a case is given. Principal recommendations for the case are identified with qualitative and quantitative analysis. This approach helps to develop analytical ability for case analysis.

Hit and Run Analysis: In the hit and run analysis approach, generalized treatment of an assigned question and explicit issue is provided with an idea to develop survival strategy to keep one out of trouble.

Several tools are needed for case analysis. Their selection depends upon the type and relevant field. However, in cases where financial analysis is required, the following tools are useful. Practical Financial Analysis Tools Cost Revenue Analysis Decision Trees Table on Weights and Measures Present Value Tables SWORT Analysis: The cases can be from any functional or sectoral area. The cases have varied influencing issues. A scientific analysis of the case and preparation of the presentation should focus on the tools of case analysis and the mode of presentation. Many tools exist for the analysis of cases, but the most widely method of analysis used for analyzing the situation in a case is SWORT analysis. The case is briefly described and the strengths (S), weaknesses(W), opportunities (0), risks(R) and threats (T) constituting the situation are specified. The strengths and weaknesses are the positive and the negative attributes of the situation in terms of personal, organizational and eventual characteristics. The opportunities represent alternative solutions to the problem or problems identified in the case. The opportunities can also be seen as extensions of strengths in futuristic terms. The risks and threats associated with each opportunity are spelled out to facilitate in suggesting the most appropriate solution to the problem or problems. In other words, an opportunity with minimum risks and threats is recommended as a decision. However, there being a thin line of differentiation between risks and threats, analysts generally prefer to drop the risk(R) component of SWORT - hence they choose to use SWOT for easy comprehension.

www.iibms.org