Case Study

Date- 6, Feb., 2012

What is a case?
A case is a descriptive portrayal of some episode in an organizational activity. A typical case consists of a number pages of prose description. It often includes some quantitative material, either interpersed with the qualitative prose or presented as charts, gaps or tables. Other exhibits such as maps, organization charts, pictures may be included.

Definition
Typically a record of a business which actually has been faced by business executives, together with surrounding facts, opinions and prejudices upon which the executives had to depend. These real and particularized cases are presented to students for considered analysis, open discussion, and final decisions as to the type of action which should be taken.

Rationale of Case Method

Lecture knowledge is static Real knowledge cannot be conferred. Real knowledge has to be acquired by painstaking effort. Wisdom cannot be told.

Characteristics of a Case
A case presents to the student, a real-life situation that requires understanding, critiquing and decision making. Descriptive-It presents an episode as it has evolved over a time period. Lengthy- No standardized length or form. Form- Qualitative, quantitative or mix

Not a Law Case

Law case: presents a decision that has already been made; a history. It is based on precedents and sets another precedent for lawyer to quote in the future.
Business case: a manager can disregard a precedent unless that precedent has been blessed as an organization policy. Business situations are dynamic. It can be said that business cases are more like medical casesdiagnostic and prescriptive.

Benefits
Helps to sharpen the students skills in working through a problem. Trains as a manager Promote analytical skills- from problem identification to solution implementation. Improve communication skills Develops team work Expands knowledge horizons by integrating theory and practice.

Benefits (contd.)
Fosters creativity Prepares for a career Helps deal with uncertainties Improve of social relationships

Types of Cases
Case history- Improves comprehension a) Briefly describe the marketing model of HLL. b) What lessons do you draw from the successful experiments of Colgate? Appraisal Cases-Improves evaluation a) Identify the major issues in the situation. b) Analyze the situation and define the problem. c) Do you agree with the views and actions of Cavin Kare?

Problem and Decision Case-Improves decision making a) Is Philips right in its decision to penetrate into rural areas? b) What action would you take if you were the marketing manager of BPL?

Case Analysis Procedure

Situation Analysis

Identify Problem

State Objectives

Set up Alternatives

Evaluate alternatives

Make Decision

1. Analyze the situation

1) 2) 3) 4) 5) List all events to set up in past and current events and look the relationship and order. Look the facts: e.g. when the company was set up Make realistic assumptions to fill the gaps of information. Process quantitative data using appropriate techniques to gain meaningful information. Draw inferences where necessary. Facts do not have meaning without interpretation. For ex current ratio is 1:1, What does it mean? A poor liquidity position when the required current ratio is 2:1 Put the situation in perspective

6)

SITUATION= FACTS + INFERENCES + ASSUMPTIONS +PREDICTIONS

2. Identify the Central Problem

A well identified problem is half solved. Identify the root cause of the problem. For example: Sale are down --- Why? (Salespersons failure) Salespersons failure ---- Why? ( Poor Training) Poor Training----Why? (Low budget)

3. Objectives and Constraints

Objectives must be clear and measureable. They must specify the level of achievement and while stating the time frame For ex. To achieve large volume of sales (Vague)
To achieve 10 % rise over the previous sales in the next fiscal year (Clear) To maximize profit( vague) To recoup investment within three years (Clear) To cut costs( vague) To reduce costs by 15 % level with in two years (Clear)

4. Formulate Alternatives
It is a construct-destruct exercise. Develop alternatives explicit and implicit in the case and generate more by applying some of the creative thinking methods.

5. Evaluate Alternatives
The criteria may relate the following a) Profitability level of profits desired b) Sales growth-Level of sales revenues, percentage of market share c) Risk-Degree of risk d) Time-Time frame of action e) Resources-Level of expenditure desirable.
For ex- a comp. may want to achieve a 10% rise in sales in the next year with a budget constraint of Rs 3 crore, and no changes in existing distribution system. So, alternatives involving financial burden of more than Rs 3 crore and change in distribution system is ruled out.

6. Make Decision
Select the action alternative that provide the best answer to the problem under the given constraints Prepare gross operational plans for its implementation a) What must be done to carry out your decision? b) What personnel must be assigned to do it? c) When the acts should be carried out? d) How much will it cost?

THANK YOU