MKT 450 Strategic Management Mishari Alnahedh

Analyzing Case Studies

Remember Do not let the case study lead your thinking. Your starting point are the theories, tools and frameworks we cover in this class. USE CASE GUIDELINES

Read the case carefully. First Step Read the case carefully. Read the case study two or three times (more, for a long or complex case) in an undirected manner. - do not think about the questions asked or the method of analysis. Just familiarize yourself with the case. During the final reading, make notes regarding salient issues.

ALWAYS Address all case questions. They are your guide Now read and study the assigned question(s). Record information from the case that appears pertinent to its analysis. - Do not, however, attempt to answer the questions yet.

ALWAYS use the tools and frameworks from class notes and textbook Case Questions ALWAYS use the tools and frameworks from class notes and textbook Decide which principles, theories, or models, if any, can be applied to the observed data in order to generate answers to the questions. - The key is to match the theories, etc. to the case information and the assignment. The temptation that must be avoided is to generate solutions based mainly upon intuition, and then try to force-fit some handy theoretical rationale to the preconceived answers.

ALWAYS use the tools and frameworks from class notes and textbook Case Questions ALWAYS use the tools and frameworks from class notes and textbook Apply the selected general principles, theories, or models and determine what solutions are suggested by this application. Select the ones that appear to best deal with the assigned questions. - The major strength of any case report does not reside chiefly in the specific solutions offered, as these are always arguable. Rather, it is the reasons for the solutions that will either support or ultimately undermine the student’s efforts. The reason will reflect correct - - or incorrect -- applications of management science and refined judgment.

Starbucks’ Case: What is Starbucks’ Strategy ? Example Starbucks’ Case: What is Starbucks’ Strategy ? Do not make up your own. Go to Lecture 1 notes

Two Elements of Strategy INDUSTRY ATTRACTIVENESS RATE OF PROFIT ABOVE THE COMPETITIVE LEVEL Which businesses should we be in? CORPORATE STRATEGY How do we make money? COMPETITIVE ADVANTAGE How should we compete? BUSINESS STRATEGY © 2013 Robert M. Grant www.contemporarystrategyanalysis.com

Example Starbucks’ Case: Evaluate the internal coherence of Starbucks’ Strategy You should not struggle. Go TO LECTURE NOTES OR TEXTBOOK

A Good Strategy is “Coherent.” Strategic Coherence The First Rule of Strategy : A Good Strategy is “Coherent.” Functional pieces of strategy support the whole Oper. Strategy Finance Acctg. H.R. Mktg.

Southwest Airlines American Airlines Strategic Coherence The Logic of How The Business Fits Together: Southwest Airlines American Airlines Low Price Short Routes Premium Priced Short, Long, & Int’l Variety - No Frills - Point-to-Point - One Aircraft (Boeing 737) - High # of Aircraft per Route - No Meals - Flexible/ Lower Staffing - Hub & Spoke - Multiple Aircraft - Low # of Aircraft per Route - Meals & Services - Higher Staffing

Source: Michael E. Porter “What is Strategy Source: Michael E. Porter “What is Strategy?” Harvard Business Review, Nov-Dec. 1996

Avoid Superficial Recommendations These may arise due to an inadequate analysis and/or the use of too little case information; the failure to establish comprehensive, rather than vague criteria; or some other way in which the case report was not pushed far enough in important directions. Strive to be specific and to include as much detail as possible relevant to the major issues, analyses of those issues, and solutions.

Make Specific Recommendations Just as the organizational decision-maker must ultimately reach some conclusion, so the preparer of a case report must avoid “waffling” or sitting on the fence when a specific recommendation is requested.

Not understanding and accepting the facts of the case Common Errors Not understanding and accepting the facts of the case Not explaining exactly what the problems are and why they have occurred Making unwarranted assumptions to try to simplify the case Sticking to generalities, such as “they must try to improve communication” Not using theories and frameworks currently being studied in the course Seeking ways out of the situation (such as “fire them all”) rather than trying to solve the problems

Recommendations References http://www.yorku.ca/laps/writ/caseTips.pdf