Case Study Analysis and Case

Study Method

The University of Melbourne >

Dr Martin Davies
<wmdavies@unimelb.edu.au>
 Outline

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• Kinds of Projects in Faculty
– Advantages and Disadvantages of each
• What is Case Study Method?
• How to write a Case Study and how to Analyse one
• Structure of Case Study Analysis
• What to cover in your Analysis of a Case Study
• Some Examples of Good and Bad Case Studies

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 Kinds of Projects

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• Projects involving forms of conventional empirical or
experimental research (surveys, statistics, questionnaires,
fieldwork)
• Theoretical projects looking mainly at a conceptual issue
• Case Method: analysis of a real world problem of which he or
she has experience or been able to observe.

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 Empirical Projects

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Advantages
• “Real life” data that can be
measured.
• Most empirical studies are
“large-n” studies (involving
many participants)
• Can be shown to be
statistically significant.
Disadvantages
• Enormous effort in terms of
question design
• carrying out of fieldwork.
• May be inconclusive
• Re-testing is sometimes
required.

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 Conceptual Projects

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Advantages Disadvantages
• Easier to carry out • Solitary and isolating
• No need to plan and set up experience
empirical tests • Often little real world
• only articles and books are application.
needed, as well as time to
think.

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 What is a Case Study?

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• ‘A case study presents an account of what happened to a
business or industry over a number of years. It chronicles the
events that managers had to deal with, such as changes in the
competitive environment, and charts the managers’ response,
which usually involved changing the business- or corporate-level
strategy’ (from Seperich, Woolverton, Beierlein and Hahn,
1996)

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 What is Case Study Method?

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Robert K. Yin defines the case study research method as:

• ‘… an empirical inquiry that investigates a contemporary

phenomenon within its real-life context; when the boundaries
between phenomenon and context are not clearly evident; and in
which multiple sources of evidence are used’ (Yin, 1984, p. 23).
• Diagram

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 Features of Case Study Method

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• Uses multiple sources of evidence
• “Real life” context
• Empirical
• Progress of a company or industry
• Focus on competitive environment and strategic/operational
changes

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 Case Studies

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Advantages
• Use small data sets (such as
one or two companies)
• Generalises about trends in
relevant industries
• “Real life” in the sense that a
company or companies have
been chosen as the source
of the data
• Only method possible in
some areas of inquiry
25/08/2006
Dr Martin Davies
Disadvantages
• Does not ensure reliability or generality
of findings.
• Intense exposure to study of the case
biases the findings.
• Useful only as an exploratory (not
explanatory) tool.
• “Small-n” data and therefore
conventional empirical techniques
cannot be used—or where they are
used they have limited application.
• May lack methodological rigour
• Contextual nature of evidence is
limiting
9
 Further Advantages

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• It involves detailed, holistic investigation (for example, all aspects
of a particular company)
• Data can be collected over a period of time
• Data is contextual (relative to a certain industry)
• A range of different measurement techniques can be applied (the
case study researcher is not limited to any one methodological
tool).
• The histories and stories that can be told about the company can
be illuminating
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 Writing and Analysing a Case Study

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• You may be asked to:
– Write a case study (using case study method)
– Analyse a case study
• The former requires a report of some length with a research
question and company(ies) you have chosen
• The latter requires a report analysing a problem that occurs in a
written case you have been asked to study
• There is no “right way” to do either but there are common things
that should be included
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 Writing a Case Study

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Steps to Take:
• Establish the broad ‘case’ to investigate
• Establish and define the research questions
• Select the precise case(s) to be used
• Determine data gathering and analysis techniques
• Prepare to collect the data
• Collect data in the field
• Evaluate and analyse the data
• Prepare the report (see separate flyer)
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 Case Study Analysis

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If asked to analyse a case study:
• Need to select case carefully (this may be given to you)
• Analyse the problem with the company or industry
• Write a report based on findings.
• Once again, no “right way” but some common things need to be
included

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 Kinds of
Case Study-Style Reports
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Abstract Abstract

Introduction Introduction

Company History Problem

and Strategy Identification and
Analysis
Company Structure Statement of
problem(s)
Corporate Plans and Generation and
Directions Evaluation of
Solutions

Discussion Recommendations
and Implementation

s
Recommendation
Conclusions and Conclusion

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 Case Study Analysis:
The “Metz Method”
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Abstract
1. Title page
Introduction 2. Letter/Memo of transmittal (optional)
3. Table of contents
Problem
Identification and 4. Executive Summary
Analysis 5. Problem Identification and Analysis
Statement of
problem(s) 6. Statement of Major Problems
Generation and 7. Generation and Evaluation of Alternate
Evaluation of
Solutions Solutions
8. Recommendation(s)
Recommendations
and Implementation
9. Implementation
10. Bibliography
11. Appendices
Conclusion

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 Structure of Case Analysis (1)
Abstract

Introduction
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Problem Title page
Identification and Letter/Memo of transmittal (optional)
Analysis
Statement of
Table of contents (can give different
problem(s) headings)
Generation and Executive Summary/Abstract
Evaluation of
Solutions • Brief overview of the case, setting the
scene and noting any important
Recommendations
assumptions made.
and Implementation • give a synopsis of your case report,
noting very briefly the major problems
identified and the recommended
solutions.
Conclusion • Approximately one page is required.

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 Structure of Case Analysis (2):
The “Company Method”
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Abstract
Title page
Confidentiality clause (optional)
Introduction
Table of contents (can give different
Company History headings)
and Strategy
Executive Summary/Abstract
Company Structure • Brief overview of the case, setting the
Corporate Plans and scene and noting any important
Directions assumptions made.
• give a synopsis of your case report,
Discussion noting very briefly the major problems
identified and the recommended
solutions.
s • Approximately one page is required.
Recommendation
Conclusions and

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 What to Include…

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• The history, development, and growth of the company over time
• The identification of the company's internal strengths and weaknesses
• The nature of the external environment surrounding the company
• A SWOT analysis (or another kind of analysis)
• The kind of corporate-level strategy pursued by the company
• The nature of the company's business-level strategy
• The company's structure and control systems and how they match its strategy
• Recommendations and implementation plan

(from Business Resources for Students, 2003)

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 Structure of Case Analysis (2)

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Problem Identification and Analysis
• In this section you should identify all the major problems in the case in
behavioural terms ( i.e. If you are studying a management subject, in
management/organisational behaviour terms).
• Try to get to underlying causes of problems, not just symptoms.
• You should link each problem identified to relevant theory and also to actual
evidence from the case.
• Remember you must integrate theory and reference all non-original work.

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 Structure of Case Analysis (3)

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Statement of Major Problems
• In most case studies you will identify a number of problems—too many
students attempt to actually ‘solve’ the problems
• It is crucial to make it very clear which are the major two or three problems or
key issues, that must be solved first.
• This section should consist of a short concise statement of the problems you
are going to solve in the remainder of the case.
• Approximately half a page is adequate.
• Check back to ensure that you are actually attempting to solve them, rather
than focusing on other minor problems that you may have identified.
• This section is crucial to a good case report.

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 Structure of Case Analysis (4)

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Generation of Solutions
• Identify and evaluate a number of the more appropriate solutions (at least two to
three for each major problem identified).
• Each alternative solution should be briefly outlined and then evaluated in terms
of its advantages and disadvantages (strong and weak points).
• It is not necessary to make a statement in this section as to which alternative is
considered best— this is stated in the next section.
• Do not integrate or recommend theory in this section. Practical solutions to the
problems are required.

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 Structure of Case Analysis (5)

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Recommendations
• State which of the alternative solutions (either singly or in combination)
identified in previous section are recommended
• Justify your choice, explaining how it will solve the major problems identified in
section six. Integration of relevant theory
• Recommend precise courses of action that the company needs to take.

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 A Warning

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Note: Students often confuse the findings, conclusions and
recommendations.
– Findings are factual and verifiable statements of what
happened or what was found.
– Conclusions are your own ideas that you deduce from your
findings.
– Recommendations are what you want done.

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 Structure of Case Analysis (6)

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Implementation
• Write your recommendations in the form of an action plan. It is good to include a
timetable of what should be done when.
• Explain how you will implement the recommended solutions.
– What should be done,
– by whom
– When
– in what sequence,
– what will it cost (rough estimates) and other such issues.
• Remember, if a recommended solution cannot be realistically implemented, then it is
no solution at all.
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 What to do … (1)

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Read the case thoroughly.
• the first time to get an overview of the industry, the company, the
people, and the situation.
• Read the case again more slowly, making notes as you go.
Define the central issue. Many cases will involve several issues or
problems.
• Identify the most important problems and separate them from the
more trivial issues.
• After identifying what appears to be a major underlying issue,
examine related problems.
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 What to do … (2)

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• Define the firm's goals (only if applicable).
– Inconsistencies between a firm's goals and its performance may further
highlight the problems discovered in step 2.
– Identifying the firm's goals will provide a guide for the remaining analysis.
• Identify the constraints to the problem (only if applicable).
– The constraints may limit the solutions available to the firm.
– Typical constraints include limited finances, lack of additional production
capacity, personnel limitations, strong competitors, relationships with
suppliers and customers, and so on.
– Constraints have to be considered when suggesting a solution.
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 What to do … (3)

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• Identify all the relevant alternatives.
– The list should include all the relevant alternatives that could solve the
problem(s) that were identified.
– Use your creativity in coming up with alternative solutions.
– Even when solutions are suggested in the case, you may be able to
suggest better solutions.
• Select the best alternative.
– Evaluate each alternative in light of the available information.
– Resist the temptation to jump to this step early in the case analysis
– You will also need to explain the logic you used to choose one alternative
and reject the others.
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 What to do … (4)

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Develop an implementation plan.
• Plan for effective implementation of your decision. Lack of an
implementation plan even for a very good decision can lead to
disaster for a firm and for you.
• Don't overlook this step. It is important as a future manager to be
able to explain how to implement the decision. (Seperich, G.J,
M.J. Woolverton, J. G. Beierlein and D. E. Hahn, 2003).

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 Use of theory
to evaluate Analysis of Case
and recommend actions

Identification of
“problem(s)”
 Things you can cover (1)

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Human resources/people management issues
• E.g., New manager finds people unresponsive to his/her new changes.
Why? Background to problem? How can they overcome resistance?
Cultural or ethical problems
• E.g., company that cannot make headway in Asia (why not? What can
it do to overcome problem?)
Leadership issue
Change scenario

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 Things you can cover … (2)

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Analyse the company's history, development, and growth.
• What circumstances led to the company being established?
• What products did it make initially and what does it make now?
• How does the company make new product decisions?
• How has the company evolved over time?
• How has it chosen its marketing strategies, etc?
• How did the company take steps to enter new markets?
• How and why did the company choose to merge or takeover another
company?
• What were the main changes to the company during its history? (e.g., types of
employees, strategic direction, etc.)

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 Things you can cover … (3)

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Identify internal strengths and weaknesses
• The strengths and weakness, opportunities and threats to the company should
then be analysed. You will need to:
– Look at the value creation functions of the company
– Outline the functions in which the company is currently strong and
currently weak. (Some companies might be weak in some areas and
strong in others.)
– Make lists of these strengths and weaknesses.

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 Things you can cover … (4)

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Analyse the external environment
• The environmental factors relevant to the industry
• The environmental factors that effect companies (and the company you are
analysing in particular)
• The particular stage of the lifecycle that the company is in
• Other factors (for instance, demographic factors, global financial changes,
etc).

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 Things you can cover … (5)

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Evaluate the SWOT analysis
• Is the competitive position of the company strong or not?
• Can the strategic direction of the company continue?
• How can the company consolidate its strengths, enhance its opportunities,
overcome its threats and minimise its weaknesses?
• Can it change its corporate strategies to achieve the above or is something
else needed?
• NB: It is crucial to analyse the strengths, weaknesses, opportunities and
threats—not simply give a “shopping list” of the key factors. You must
elaborate and discuss each factor in detail and provide evidence for your
claims.

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 Things you can cover … (6)

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Analyse corporate-level strategy
• Using information available, try to assess the strategic corporate directions of
the company. The following are very important:
• line(s) of business of the company
• its subsidiaries and acquisitions
• the relationship among the company's core and non-core businesses
• Questions such as the following will need to be answered:
• Are resources exchanged freely between different parts of the company?
• Is synergy between the subsidiaries warranted or needed?
• What is role of the company’s portfolio of investments?

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 Things you can cover … (6
continued)
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• How diversified is the company?
• Does the company operate as a core business
• Is the company functioning as it should given the current environment?
• Could changes in strategic direction and corporate culture make a difference
to its operations?
• Could weaknesses become strengths given certain changes/environmental
factors?
• Should the company consider merging or diversifying?
• Has the strategy changed during its development as a company?
• Were these changes good or bad overall? Why?
• What improvements can be made to the company’s product lines? etc.

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 Things you can cover … (7)

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Analyse business-level strategy
• The aim of the company’s global competitive strategy—i.e., is it
differentiation, low cost, or targeted markets?, etc.
• The value of the investment goals of the company given its
strategic focus and the stage in the lifecycle of the company
• The product range of the company, its differentiation, and
competitiveness.
• How is the company using strategies to build competitive
advantage? (quality, efficiency, innovation, responsiveness to
customer needs, etc)

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 Things you can cover … (7
continued)
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• What is the marketing strategy of each of the business levels in the company?
• What production techniques are being used and how can they be improved?
• Is the company doing research and development? Is it effective and
adequately tied to corporate aims?
• Does the corporate strategy accurately reflect the aims of the company in
terms of producing low-cost or differentiated products? (The strategy will be
very different).
• Has the company developed the right competencies in terms of staffing,
production techniques, marketing, etc?
• Can the company simultaneously pursue both a low-cost and a differentiation
strategy?

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 Things you can cover … (8)

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Analyse structure and control systems
• Different corporate strategies require different structures. These need
assessment. Issues you might like to consider:
• Is the hierarchy or decentralized control of the company adequate given the
levels in the company?
• Should horizontal differentiation be adopted (does it use a functional structure
when it should be using a product structure)?
• Are the appropriate control systems being used?
• Are appropriate rewards being given to managers?
• Is cooperation among divisions being encouraged by a suitable reward
system?
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 Things you can cover … (9)

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Make Recommendations
• You will need to recommend precise courses of action that the company
needs to take.
– e.g., The company should adopt a horizontal control structure and reduce
its product lines to include only the following products: …
• Recommendations might include:
– an increase in spending on specific research and development projects
– the divesting of certain businesses, a change from a strategy of unrelated
to related diversification
– an increase in the level of integration among divisions by using task forces
and teams
(from Business Resources for Students, 2003)

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 In Summary

The University of Melbourne >

• Case Study Method and Analysis of Case Studies
• Follow structure and logical format (NB: There is no “right way”)
• If analysing a case be sure the problem is clearly stated and the
solutions and recommendations clearly drawn from data
presented

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