Case Study Analysis

Case Study Analysis
C-1 What is Case Study Analysis

An account of what happened to a business or industry over a number of years
In our course the use of strategic management techniques are paramount

Case Study Prep slides
C-2 Analyzing a Case Study

This framework is a guide, not a hard and fast rulebook. Your chair may
recommend emphasizing or deemphasizing various parts of this framework.
1-Analyze the companys history, development, and growth
Limit this section of your paper to three paragraphs; the first on history, the
second on development, and the third on growth. You should also identify a
problem statement at this point. Be sure to keep the problem statement simple
and to the point. This will be Part A.
2-Identify the companys internal strengths and weaknesses.
Start to develop a SWOT table here. Identify 5 or 6 strengths and weaknesses,
and then discuss the two or three most important of them in narrative form. This
will form part of Part B.
3-Analyze the external environment (opportunities and threats).
Of particular importance at the industry level are Porters five forces model and
the life cycle model.
Use these two models to analyze the external environment
Finish the SWOT table here. From the models mentioned above identify 5 or 6
opportunities and threats and then discuss the two or three most important of them
in narrative form. This will form part of Part B.
4-Evaluate the SWOT analysis.
Your TOWS matrix comes together here. Be sure to take a good look at the
sample provided here and model yours after this one. Use strengths to generate
opportunities and avoid threats, overcome weaknesses to take advantage of
opportunities and minimize threats. This will form part of Part C.
5-Analyze corporate level strategy
Go to the organizations Web site or annual report and define the mission and
goals.
Most of the time you will find these, although there may be a chance that you will
have to infer them from the case or other available information
Using your SWOT analysis, TOWS matrix and the corporate mission, identify
three viable alternatives and debate the merits of each. Remember, do nothing
is always a viable strategy, although many times inappropriate. This will be part
of Part C.
6-Analyze business level strategy
Each business the organization is in will have its own business level strategy
Identify the organizations generic competitive strategy differentiation, low cost,
focus and its investment strategy
Identify functional strategies used to achieve competitive strategy through

superior efficiency, quality, innovation, and customer responsiveness in order to
achieve its business level strategy
This section will be used to see if the alternatives can be implemented using
current strategy or if new strategies will need to be developed.
7-Analyze structure and control systems
The organizational structure of the organization vertical or horizontal
differentiation, product or functional structure
Organizational conflict, power and politics
This section will be used to see if the alternatives can be implemented using
current organization and structure or if the organization will have to change its
structure or control systems.
8-Make recommendations
Make sure your recommendations are consistent and written in the form of an
action plan.
Choose one of your three alternatives and justify your choice. You should use a
decision criteria matrix to help with your decision. If major changes in strategy,
structure or control systems need to be implemented you must describe that at this
point. This is part of your Part D.
C-3 The Role of Financial Analysis in Case Study Analysis
Choose one ratio from each group and calculate those ratios for a 3-5 year time
period, and then analyze the ratios. Remember, there are people who will be
reading your paper who have absolutely no idea what a current ratio of 1.2 means!
It never hurts to be able to identify the industry average or the numbers for the
principal competitor(s) as well, if available (then obviously use a shorter time
frame than 3-5 years). Ratios become part of your Part B.
Financial Performance Ratios
o Profit Ratios
Return on Invested Capital
Profit earned on capital invested in the company.

Return on Total Assets
Profit earned on the employment of assets.

Return on Stockholders Equity
The percentage of profit earned on common stockholders

investment in the company.
o Liquidity Ratios
Current Ratio
The extent to which the claims of short term creditors are

covered by assets that can be quickly converted to cash
Quick Ratio
The ability to pay off the claims of short term creditors

without having to sell inventory.
o Activity Ratios
Inventory Turnover
Useful in determining if the company is carrying excess

inventory.
Days Sales Outstanding or Average Collection Period
The average time a company has to wait in order to receive

cash after a sale.
o Leverage Ratios
Debt to Assets Ratio
The extent to which borrowed funds have been used to

finance a companys investments.
Debt to Equity Ratio
The balance between debt and equity in a companys

capital structure
Times-Covered Ratio
The extent to which a companys profits covers its annual

interest payments.
o Shareholder Return Ratios
Total Shareholder Returns
Shareholder returns earned by time t+1 on an investment

made at time t.
Price Earnings Ratio
The amount investors are willing top ay per dollar of profit.

Market to Book Value
The companys expected future growth prospects.

Dividend Yield
The return shareholders received in the form of dividends.
Cash Flow
o Cash received less cash distributed
Positive cash flow means money for future expansion
Companies in mature industries frequently have very strong

cash flow positions.
High growth may lead to a poor cash flow position
Companies in strong growth industries are frequently in

poor cash flow positions
C-4 Writing a Case Study Analysis

When you have successfully completed your Outlines A through D you are ready
to start writing your case.
Follow this Final Paper Format in writing your paper.

o Do not repeat large pieces of factual information from the case
o Make sure the sections and subsections flow logically and smoothly.
o Avoid grammatical and spelling errors
o Reference List for Locating Information on Companies
C-5 Be systematic! Make sure you are consistent in your analysis.

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What are the steps involved in analyzing a case study?

What are the steps involved in analyzing a case study?

What financial ratios are discussed for analyzing a company?

What financial ratios are discussed for analyzing a company?

Case Study Analysis

C-1 What is Case Study Analysis

In our course the use of strategic management techniques are paramount

C-2 Analyzing a Case Study

Identify functional strategies used to achieve competitive strategy through

Profit earned on capital invested in the company.

Profit earned on the employment of assets.

The percentage of profit earned on common stockholders

The extent to which the claims of short term creditors are

The ability to pay off the claims of short term creditors

Useful in determining if the company is carrying excess

The average time a company has to wait in order to receive

The extent to which borrowed funds have been used to

The balance between debt and equity in a companys

The extent to which a companys profits covers its annual

Shareholder returns earned by time t+1 on an investment

The amount investors are willing top ay per dollar of profit.

The companys expected future growth prospects.

The return shareholders received in the form of dividends.

Companies in mature industries frequently have very strong

Companies in strong growth industries are frequently in

C-4 Writing a Case Study Analysis

Follow this Final Paper Format in writing your paper.

C-5 Be systematic! Make sure you are consistent in your analysis.

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