Strategic Marketing MBA Program
WAC Written Case Analysis March 2009
Prepared By: Aly Raza Syed Resource Person: Marketing Strategy
Case Analysis Approaches to attack a case study and its components
Analyzing A Case Study. • Whenever you analyze a case, remember that you are not an outsider, but a part of the management around whom the case is being presented. • Remember to undergo a through analysis, so that you can convince the reader that your analysis is backed with sound arguments and supported by concrete solutions.
Remember there might not be just 1 right answer to the case but several options of feasible strategies available. • As there is no one single solution to the case, similarly there is no single way to prepare the case.
General Guideline • Step 1: Skim the case and breeze through it. Skim it for the 1st time • Ask yourself questions like • What sort of organization does the case concern, the nature of the industry in which it is operating, External Environment, management’s problems. • Step 2: Carefullyread the case the 2nd time and start making notes. • Seek to identify the key problem facts, such as what decision are to be made, who is going to make these decisions, objectives of the organization and each key player. • What are the resources & constraints in the case. Make sure to use the quantitative data as well
Reading The Case • There will be a lot of information overload in some cases, irrelevant information, too little information or ambiguous information or relevant information dispersed throughout the case. • Don’t get worried but try to make the best of it.
What to Do in a Case Study? • In the case study it is required by you to logically attack the case study. • Identify the alternative course of action that the management might take. • List the Pros and Cons of each alternative. • Always keep in mind the objectives of the organization. • Develop short term tactics for long term strategies and give a comprehensive implementation plan of the desired strategy.
What is Required? • In a case you students will be identifying and clarifying problems/ opportunities being faced by the management of a company. • Analyze the qualitative information and quantitative data.
Steps To Case Analysis. • All to gather the case study includes various steps. • In some cases you will not have information regarding some of the steps. • Your objective is to use whatever information is given, to the best of your abilities. • The following are the Steps that are commonly used in a case study.
STEPS TO SOLVE A CASE • Introduction • Situation Analysis • Identification of Problems • Main Problem • Sub Problem • Development of Alternatives • Evaluation of Alternatives • Selection of the Best Alternative • Implementation plan • Recommendations.
1 ] INTRODUCTION • In the introduction you will give a short synopsis of the case. • Inform the reader what industry does the company belongs, what the time of the case, who are the key players, what issue is at hand. • Remember not to reveal any hard facts in the introduction part as they have to be utilized in the upcoming steps. • Usually an introduction would include the following:
Introduction • Time of case • Industry of operations • Time of establishment of company • Key People • Important dates if any in the case • Size of company • Main Line of business of the company. • Geographic Area (e.g. Region, Country or City in which operations are being held) • Others • Remember: NO HARD FACTS.
Macro Environmental Analysis DEEP-LIST Analysis Industry Analysis Mission Goal Objectives Segment and Target Market Marketing Mix PLC/CLC/ILC Portfolio Analysis KSF’s USP’s Market Analysis Market Share Sales Growth Rates SWOT analysis Ansoff Matrix Competitive Analysis Financial Analysis Strategic Analysis Elements of Situational Analysis
The Macro Environment • DEEP-LIST analysis • Demographic • Ecological • Economic • Political • Legal • Informational • Social • Technological • Give the factors of the above that effect the case only
An Industry Analysis Porters 5 Forces Model.
Threat of New Entrants Industry Competitors Internal Rivalry Bargaining Power of Suppliers Bargaining Power of Buyer Threat of Substitutes
Solutions From Porter’s 5 Forces Model. • By analyzing this model you will have to identify either a industry is • Attractive • Unattractive • Moderate. • Remember these Five forces can have the following effects. • Either a force e.g • Bargaining power of suppliers can be HIGHER OR LOWER. • If it is Higher, then it is NEGATIVE FOR THE COMPANY. • If it is LOWER, then it is POSITEVE FOR THE COMPANY. • So a force that is is Negative • A Force that is is Positive for the company. • A Force can also have a Moderate (~) effect
Threat of New Entrants (-) (~) Industry Competitors Internal Rivalry Bargaining Power of Suppliers Bargaining Power of Buyer Threat of Substitutes (+)
Solutions From Porter’s 5 Forces Model. • Analysis Continued. • You will evaluate these five forces and see how many are positive, Negative or Moderate. • Then At the end, you will after looking at the positive and negative forces, give conclusion about the ATTRACTIVENESS OF THE INDUSTRY. • Remember that an unattractive industry does not means that profitability will also be Negative. • A company can make profits even in an unattractive industry and vise versa. • e.g. Nishat Mills is making a profit, although the Textile industry of Pakistan is UNATTRACTIVE.
Mission/Goals & Objectives • Find anyexplicit or implicit statement of the firms mission. • Goals and Objectives: • Look for the expressed or implied goals and objectives of the firm • The importance of this is that after your analysis you can have a good picture of either the company is really achieving/following its mission/goals and objectives or not.
Segmentation & Target Market • Segments Dealing in: • Demographics • Geographic • Psychographics • Media Graphics • Define the appropriate Target market that the firm seeks to pursue. • Customer Profiling
Marketing Mix • Here you have to give details of the Marketing Mix. • Use the 7 P’s Model. • The 4 Hard P’s • The 3 Soft P’s are: • People • Processes • Physical Evidence
PLC/CLC/ILC • ILC: Industry Life Cycle • CLC: Company Life Cycle • PLC: Product Life Cycle
Telecom Industry (ILC) Zong (PLC) CMCC(CLC)
Portfolio Analysis • The BCG Matrix • Though this is a portfolio analysis that is meant to analyze different businesses in the entire portfolio, but we will use this model for our product analysis. • Identify where the Product/ Products of the company fall in this matrix.
KSF • This part will identify the KSF’s of the business or in other words the KEY SUCCESS FACTORS • KSF’s are thing that are important while operating in an industry. Remember you have to list the factors for the industry and NOT the internal company factors. • These are the Key Factors for Success for any business operations in an INDUSTRY.
USP • The Unique Selling Preposition helps identify the main differentiation upon which the company is banking upon. • The USP’s have to be identified so that the Positioning strategy of the company can be analyzed.
Market Analysis • Market Share: • Look at Quantitative or Qualitative information that describes the past and current market Share position • Sales • Sales Growth rates or Sales figures will be plugged here. This will help you to analyze the next point. • Growth Rates • You will analyze the TRENDS in the patterns of Growth or Decline of the above two factors.
Competitive Analysis • Here you can analyze the Share Analysis of different competitors or the Product Attribute Analysis
Competitive Analysis Market Share, Mind Share, and Heart Share
SWOT ANALYSIS • Here look at the strengths/weaknesses/opportunities/threats • Remember • Opportunities and Threats are External • Strengths and Weaknesses are Internal.
Match Match Convert Convert THE SWOT MATRIX STRENGTHS OPPORTUNITIES WEAKNESSES THREATS Minimize/Avoid Minimize/Avoid
STRENGTHS OPPORTUNITIES M . I = R 3 3 = 9 3 2 = 6 2 2 = 4 2 2 = 4 • M . I = R • 3 = 9 • 3 3 = 9 • 2 2 = 4 A currently untapped market Growth & popularity of marketing discipline Field innovation Increased competition Size and Capacity Experience Individual Benefit WEAKNESSES THREATS M . I = R -3 3 = - 9 -3 3 = - 9 -3 2 = -6 -2 2 = -4 M . I = R -3 3 = - 9 -3 3 = -9 -3 2 = -6 Away from core value Adding value to customer Maintain long term focus Certification program Awareness and value Business colleges Business might not care about the program Other certification programs Quantitative Assessment of Elements within the SWOT Matrix
Financial Analysis. • Financial Analysis includes analysis like • Market Share • Sales Analysis and Trends. • Ratio Analysis • Break Even Analysis • Analysis of Financial Statements
Market Share • Previously you have computed the Market Share of the Firm and also in the competitive analysis the Shares of competitors • Now you have to give a comparative situation by merging the both the previously done analysis. • Use a Tabular form to do this.
Sales Analysis • Here you can use Tables or Graphs to present the sales analysis of the company and its competitors or substitutes. • Be Creative over here
Ratio Analysis • Financial Ratios determine the relationship between two variables, and with the help of company ratios and industry ratios we can undergo a comparative analysis for the operating of our firms.
Analysis of Financial Statements • Most commonly three statements are analyzed: • Balance Sheet • Income statement • Cash Flow Statement
Break Even Analysis • Break even point is that level of sales in either units or sales dollars at which a firm covers all the costs of investing in a project. • It is the level at which total sales revenue just equals the total costs necessary to achieve these sales.
Computing Break Even • Three values are required to calculate the BEP. • Selling price per unit • Level of Fixed Cost (TFC) • Variable cost per unit produced (VC)
Break Even Point. 3500 __ 3000 __ 2500 __ 2000 __ 1500 __ 1000 __ 500 PROFIT TOTAL REVENUES TOTAL COSTS SALES In Rs. BREAK EVEN POINT LOSS Fixed Cost 50 100 150 200 250 300 350 UNITS SOLD