HOW TO ANALYZE A CASE

THE ANALYSIS FRAMEWORK -

- It is useful not only in analyzing cases, but also in

considering real business situations – for life –
- A way to structure information and makes it more useable
- Provides a comprehensive coverage of the topics
involved
- Another benefit of a framework is ease of communication
- Similar meanings among classmates
- Consistency of analysis
- Eight easy steps
 THE FRAMEWORK
The Eight-Step Case Analysis Framework

Step 1: Situation analysis

Step 2: Assumption and missing information

Step 3: Statement of the problem(s)

Step 4: Development of alternatives

Step 5: Implementation

Step 6: Evaluation of alternatives and

recommendations

Step 7: Factors that change overtime

 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 1: Situation analysis:

• Mandatory PESTLE analysis – help us understand the macro-environment of the organization.
PESTEL stands for:
• P – Political
• E – Economic
• S – Social
• T – Technological
• E – Environmental
• L – Legal

• Mandatory do the SWOT analysis – help us to organize information that will be valuable in our
assessment of the situation – 3 elements of each
•
• 8 P´s
• BCG & PLC
 THE FRAMEWORK
The Eight Step Case Analysis Framework

• 8 P´s
 THE FRAMEWORK
The Eight Step Case Analysis Framework

• BCG & PLC

 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 2: Assumption and missing information:

• Read between the lines- :
• Filling the gaps by listing missing information and making
assumptions base in industry information.
• The quality of your analysis will depend on:
a. Your coverage of the framework
 b. The depth of your analysis
 c. Degree to which you can defend your recommendations
 Look into the
 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 3: Statement of the problem:

• This is the most critical part of the analysis framework
• Do not confuse symptoms with problems
• The “Why question” should always be asked after a
potential problem has been proposed.
• A problem well define is a problem half solve
 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 4: Development of alternatives:

• Set of strategic alternatives that have the potential to
solve the problem
• Do not confuse good ideas with strategic alternatives
• Status Quo could be an alternative
• Use creative thinking to come with truly strategic
alternatives
 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 5: Implementation:
• Actions to be taken
• Sequencing of marketing activities
• Consensus vs democracy
• Communicating the plan to the whole company
 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 6: Evaluation of alternatives & recommendations:

• How well does the alternative address the problem or issue as
stated in step 3 ?
• Consistency with , mission statement, vision and objectives.
• Organization strategy plan could be chanced
• Costs and revenue implications of each alternative
• Review from accounting and finance courses
• Feasibility and probable success of each alternative, confront
with SWOT analysis

•
 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 7: Factors that change over time:

• Reanalyze internal and external factors that will affect the
implementation strategy over a period of time; these
factors may include: technology, consumer behavior,
market trends, social-political-economic and cultural
factors.

• Think PESTLE again…

 THE FRAMEWORK
The Eight Step Case Analysis Framework

• Step 8: Evaluation and Control:

• Set up clear objectives for the new plan of actions
• Monitor the plan constantly to see if the results are coming as
expected – Think KPIs
• Planning can not assure success – good planning poor
implementation
• Inanimate competitors do not exist
• Think about contingency plans – What if´s…
 What Is a Marketing Strategy?

A marketing strategy consists of selecting a

segment of the market as the company’s target market
and designing the proper “mix” of the product/service,
price, promotion, and distribution system to meet the
wants and needs of the consumers within the target
market.
 8 P´s

• The original Four P’s of marketing detail the important

components of product marketing. Academics and
marketing practitioners point out that services differ from
products; they are intangible, heterogeneous, perishable
and inseparable from the service provider. Additional P’s
have evolved to help create a comprehensive framework
for marketing services.
 Traditional 4 Ps
Product
• The first P deals with the “thing” the business is selling, the competition and substitute products. A private college,
for example, is selling higher education. Its competitors are other private schools, and substitutes include public
universities. To market a service, consider the tangible and intangible benefits it provides and any tangential
products or services that can be co-marketed. Product considerations affect every other marketing decision.
Price
• Price not only determines the service’s profit margin, but it also has a bearing on many other marketing decisions.
Price sets a value standard for the service, one that the company’s people, physical evidence and performance
must meet to be successful. Services are perishable. If a hotel doesn’t rent Room 546 tonight, that revenue is lost
forever. Pricing includes strategies for managing inventory and staffing.
Promotion
• Promotion is how the company markets its services. Companies will strive to match the media to the message. Law
firms specializing in international acquisitions don’t advertise on city buses, for example. Promotion strategy
includes developing branding, slogans and logos that convey the intangible benefits the service provides. A criminal
defense attorney might choose images of open handcuffs to deliver her message.
Place
• Because services generally are purchased and used at the same time, the location where the service is delivered
plays a role in the promotion, price and product. Part of the reason plumbers and other home-repair professionals
charge so much is that they must deliver their service one customer at a time away from their office or shop. A
barber can service customers one after another, but he must consider his shop’s appearance and location in his
placement decisions.
 New 4 Ps
People
• Much of how customers rate the service experience hinges on the person delivering it. Professionalism and
courtesy go a long way in any service business. Other attributes become critical depending on what services are
being offered -- discretion in a psychiatric practice or tact in funeral services, for instance.

Process
• Process is the standard operating procedure in delivering the service. Depending upon the situation and location,
luxury hotels may require employees to smile, nod, bow, shake hands or otherwise greet guests.

Positioning/Physical Evidence or Environment

• Where the company wants to fit in its industry will determine its marketing positioning strategy. This is determined in
large part by which generic business strategy the firm employs. It may determine low costs will be its path to
profitability. Or it may decide to pursue differentiation, embedding distinctive benefits into its service. Cost
leadership strategies are evident in the company’s promotional materials, physical environment and price.

Performance/Productivity & Quality

• Sometimes called productivity, performance examines how well a company’s services compete in the marketplace.
This may include how consistent the service is and how well its features translate into benefits as it is being
delivered. A carpet cleaning service may employ state-of-the-art equipment but have trouble attracting repeat
customers. Performance also considers how to measure the company’s financial goals and whether they are being
achieved.
 BCG Analysis
• BCG matrix (or growth-share matrix) is a corporate planning tool, which is
used to portray firm’s brand portfolio or SBUs on a quadrant along relative
market share axis (horizontal axis) and speed of market growth (vertical axis)
axis.
• Growth-share matrix is a business tool, which uses relative market share and
industry growth rate factors to evaluate the potential of business brand
portfolio and suggest further investment strategies.
• BCG matrix is a framework created by Boston Consulting Group to evaluate
the strategic position of the business brand portfolio and its potential. It
classifies business portfolio into four categories based on industry
attractiveness (growth rate of that industry) and competitive position (relative
market share). These two dimensions reveal likely profitability of the
business portfolio in terms of cash needed to support that unit and cash
generated by it. The general purpose of the analysis is to help understand,
which brands the firm should invest in and which ones should be divested.

• https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-
share.html
 BCG Analysis
Relative market share.
• One of the dimensions used to evaluate business portfolio is relative market
share. Higher corporate’s market share results in higher cash returns. This is
because a firm that produces more, benefits from higher economies of scale
and experience curve, which results in higher profits. Nonetheless, it is worth
to note that some firms may experience the same benefits with lower
production outputs and lower market share.

Market growth rate.

High market growth rate means higher earnings and sometimes profits but it
also consumes lots of cash, which is used as investment to stimulate further
growth. Therefore, business units that operate in rapid growth industries are
cash users and are worth investing in only when they are expected to grow or
maintain market share in the future.

https://www.strategicmanagementinsight.com/tools/bcg-matrix-growth-
share.html
 PLC Analysis

• If you’ve read some of my posts before then you will understand the
product life cycle. However, let me explain it again. So, before we get
too far into the discussion it’s important that you understand what the
product life cycle is. Products, like people, move through life
cycles. The product type or a variant of interest should correspond to
a defined market need. Life cycle analysis can also focus on a
market segment within a product market.
• Sales began when the product is introduced and increased over time.
Profits initially leg behind sales since heavy introductory expenses
often exceed sales during the initial stage. Industry sales and profits
decline after the product reaches maturity. Often profits fall off before
sales.
 PLC Analysis
• The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things
for business that are trying to manage the life cycle of their particular products.

• Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product.
The size of the market for the product is small, which means sales are low, although they will be increasing. On the
other hand, the cost of things like research and development, consumer testing, and the marketing needed to
launch the product can be very high, especially if it’s a competitive sector.

• Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the
company can start to benefit from economies of scale in production, the profit margins, as well as the overall
amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional
activity to maximize the potential of this growth stage.

• Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to
maintain the market share they have built up. This is probably the most competitive time for most products and
businesses need to invest wisely in any marketing they undertake. They also need to consider any product
modifications or improvements to the production process which might give them a competitive advantage.

• Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline
stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the
product have already purchased it), or because the consumers are switching to a different type of product. While
this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-
expensive production methods and cheaper markets.