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PREPARING CASE ANALYSES FOR EXERCISES AND EXAM

There is no prescriptive procedure for doing a written case analysis; only some general guidelines this is
because company situations and management problems are so diverse that no one mechanical way to
approach a written case assignment always works. Please do not consider these notes to be a definitive
answer; they are for guidance purposes only.

1. Perform whatever analysis or evaluation is appropriate to identify the firms strategy, competitive
advantage, strategic position and key competitor issues.

2. Identify the key/strategic issues that management needs to address. A key strategic issue is anything that
can increase or reduce the firms competitive advantage or create new competitive advantage

3. Consider some strategic options that make sense to strengthen the firms future strategy in terms of
your analysis; choose one option, justify your choice in terms of your analysis and propose a set of
recommendations addressing the key strategic issues you have identified.

You are required to offer analysis and evidence to back up your conclusions. Do not rely on unsupported
opinions, overgeneralizations, and platitudes as a substitute for tight, logical argument backed up with
facts and figures.

Demonstrate that you have a command of the strategic concepts and analytical tools to which you have
been exposed. Use them in the assignments and the exam to answer the questions

In going through the exercise of identify, evaluate, and recommend, keep the following pointers in mind.

1. Analysis and Evaluation

(a) Analyse the external environment

Use PESTLE to consider what macro environmental trends may impact on the industry; identify the critical
trends.

Use the Porters Five Forces model to analyse the industry and identify the strength of the forces and what
their movement is likely to be, i.e. Consider how the industry is likely to evolve. (i.e. what are the major
trends identified from your PESTLE analysis that may change the industry in the next 5- 10 years). What
does this mean for the firms core competences and competitive advantage?

Use the strategic group concept for the Porters 5 Forces where appropriate

Probe the nature and strength of the competitive forces confronting the company. Decide whether and
why the firms competitive position is getting stronger or weaker. Use the tools and concepts you have
learned about to perform whatever analysis or evaluation is appropriate.

Consider the competition, its positioning, strengths and objectives, and how the firm is positioned to
protect itself, or not?

Prepared by Dr. Jo Rhodes. MGSM, for MGSM850 Strategic Frameworks unit

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Diagnose the analysis to identify the key external strategic issues

(b) Analyse the firms strategy

Use the following where appropriate

-Hambricks strategy diamond to show the components of the strategy. Is anything missing, or needs to be
changed?

Porters positioning model

The strategy canvass

Identify the firms core competencies/strategic capabilities and how they provide competitive advantage.

Consider the value chain and where advantages are built in there, what about and leadership and culture,
and McKinsey 7Ss. (the capability platform)

Discuss the strategys weaknesses and strengths in terms of the external and competitive environment.

Consider the competition and how the firm is positioned to protect itself from competition, or not.

Consider if the firm has a sustainable competitive advantage (VRIO)

Diagnose your analysis to identify the key internal strategic issues

2. Identification of strategic issues

From the preceding analysis provide a sharply focused summary diagnosis and diagnosis of the strategic
issues and key problems to demonstrate a good grasp of the companys present situation. SWOT is a useful
framework with which to summarise your analysis/diagnosis. You will need to say what it means
(interpretation and diagnosis).

3. What are the options (strategic choices, What might we do) for the company?
Consider the range of future strategic possibilities for the company in line with your analysis (the following
offers some suggestions but is not an exhaustive list). Reason backwards from multiple viable options.

-What are the objectives/ direction (e.g., stability, growth, diversification, internationalisation?)

-Can the distinct capabilities of the firm be leveraged?

-What vehicles are currently used in the strategy (ie internal development, mergers and acquisitions, and
strategic partnerships?)

-Positioning on the value chain: reconfiguring of the value chain, through forward and backward
integration or disintegration (ie divesting and out sourcing).

- business model innovation as in blue ocean thinking/multiple business models

Prepared by Dr. Jo Rhodes. MGSM, for MGSM850 Strategic Frameworks unit

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-Diversification- horizontal or vertical, backwards or forwards

-Enterprise strategy-consider creating new forms of competitive advantage through sustainability

initiatives tailored to the strategy, e.g. leveraging the social trend of health. Consider then non market
factors.

-Price wars

-New channels/ rationalisation of existing channels

-Blue Oceans v Red Oceans

-Incrementally strengthening and extending the existing businesses

-Nurturing and refreshing a maturing business

-Rationalising or exiting from the existing business

-Repositioning: Broadening the product/ market focus

-Internationalisation: go into new geographic territories

Ask yourself what would each option imply about target customers, product lines, capabilities, and about
the value chain, procurement, production, distribution, sales and marketing, HR, technology

In choosing an option, consider the strategic issues and key problems.

Consider how strengths can be leveraged against external opportunities or how threats and weaknesses
can be managed, and how competitive advantage can be used, sustained or created. Consider the future
opportunities and whether the company has the strategic capabilities to pursue the option. Does your
choice make sense in terms of internal consistency, does it reflect an integrated set of distinctive (ie will it
set you apart from your competitors) choices. How will your competitors react?

Which option would you recommend and why (what should we do)?

Ask yourself what would have to be true to prefer this option over the alternatives? what must be true
about customers, suppliers, and competitors?

Here you will choose an option that you see as strengthening the competitive advantage/position of the
firm. Choose an option and state your criteria for choosing it. For example, is it feasible in terms of existing
resources and capabilities, is it suitable in matching opportunities and strengths, is it a strategic intent
move where resources are out of proportion with the requirements needed, is it acceptable to all
stakeholders, does it fit with the leadership and culture?

Some points you may wish to consider where appropriate:

-Supports the mission?

-Is consistent with the firms strategic objectives?

Prepared by Dr. Jo Rhodes. MGSM, for MGSM850 Strategic Frameworks unit
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-Neutralizes threats?

-It considers your competitor reaction and how you can protect the company?

Your option should include recommendations that address the major problems/issues you previously
identified and analysed. If the recommendations come as a surprise or do not follow logically from the
analysis, the effect is to weaken greatly your suggestions of what to do.

Prepared by Dr. Jo Rhodes. MGSM, for MGSM850 Strategic Frameworks unit