Running
head: Strategic Case Analysis
Strategic Case
Analysis
Using the AMA (American Management Association) 8 step case
analysis process
Compiled by: Deb Patten
1.
The Basic Problem Solving or Case Analysis
Process
2.
Applying the Process
The Basic Problem Solving or Case Analysis
Process
You have all engaged in the process numerous times in your
life in general as well as in your academic career. However, since you will be
utilizing this process extensively in this course it is appropriate to spend
some time reviewing and discussing the process. Whether this process is being
applied to a simple, routine decision or an immensely complex decision the
steps in the process are the same. It is what one does within each of those
steps that varies. To begin lets review the process.
Step 1 – Recap and
analyze the relevant facts
In this step you take a look at the information you have and
can gather that is relevant to the situation. The relevancy component is key.
Often cases that are presented in texts, and certainly the information that is
available through all of the sources out there today, contain stuff that is
related but not relevant. As a manager that is strategically analyzing a
situation (case) the first step is to figure out what you need to pay attention
to and what you dont. That is relevance. For example, you are presented with a
scenario that involves employees who are chronically late for work and the
information you have mentions that it is snowing. Is the fact that it is
snowing relevant or not? It may or may not be. It could just be extra stuff
that is included. On the other hand if this group of chronically late employees
all happen to travel the same road that is notorious for multi-car pile ups
when it snows…then the fact that they are late when it is snowing is
relevant. This also points out that in many situations trying to work from only
the facts presented is not enough. The manager must be astute enough to
recognize when additional information is required, and what type of
information, in order to assess the relevance of a particular piece of data. At
the same time he or she must know when to make the decision with the
information at hand. Often this step is concluded with a SWOT analysis, which
further extrapolates the most important issues out of the overall situation
analysis. This helps to zero in on the root problem.
Step 2 – Determining
the Root Problem & Step 3 – Identifying the Problem Components
This is a crucial step and one that is often short-changed
as we go about solving problems both personally and professionally. It is
imperative that once we have gathered, recapped, and analyzed all of the
relevant information we stop and articulate WHAT THE ROOT PROBLEM IS about
which we must now make a decision. This step is not a long drawn out
explanation. You should be able to state the problem in a sentence. It may then
be necessary, and in the comprehensive case or more complex situations a given,
to elaborate on any identifying component portions of the problem. Often it is
necessary to prioritize or identify which components need to be addressed
first, second, and so forth at this stage of the process.
Step 4 – Generating
Alternatives (THE WHAT/Setting Objectives)
This is the brainstorming step if you will. It is here that
a variety of alternative courses of action are identified and articulated. All
of these are of course related to solving the problem. This step is where you
list the strategies you might pursue. And this is an important point – if it
isnt here you cant choose it as your preferred course of action. While it
isnt possible to list every possible course of action there should be a
variety of things to do. This is where you put your creative powers to work. In
this part of the process, you should engage in brainstorming. Remember that in
brainstorming you simply generate ideas – save the evaluation of those ideas
for later. That isnt to say in critical strategic case analysis you want to
include every idea you came up with in the report. In real world strategic
planning I have seen reports that refer to the process and that it generated a
number of ideas that upon initial screening were determined as not plausible or
viable. What you are doing here is not a full analysis of everything. Rather
you are conducting an initial screening and narrowing the choices to those that
seem most likely to succeed at the outset.
Step 5 – Evaluating
Alternatives
When the case analysis report is written up it often appears
as if these two steps have taken place simultaneously. That is not, or should
not, be the case. Once you have narrowed the list you should take the
information you gathered and analyzed in the first step and apply it to these
alternatives. You should articulate what the most probable outcome will be
based on the information you have collected, your experience, education, and
expertise. When it is written up it is important to support your stated
probable outcome. As an example it is not enough to say, Do nothing – situation
will not improve. While it is likely that this is true in many situations it
lacks credibility because you have not explained why this is the case. One
other tidbit in regards to writing this section up – make sure the alternatives
are clearly differentiated from each other. I would strongly suggest the use of
headings in this type of writing – bold, underline, etc. Remember in business
writing you are trying to convey information and the reader needs to be able to
pick the pieces out quickly and easily when working back and forth through the
report!
Step 6 – Choose an
Alternative
This would seem rather self-evident. But you would be amazed
at how often it is skipped. Even in professional, real world reports. It is
like reading a mystery novel and having the last page missing or hearing a joke
when the teller forgets the punch line. The reader is sitting there going, okay
and so now what? What are you going to do? Again this is one of those sections
where you simply and clearly state what the choice of strategies is going to
be. After completing the alternative evaluation it is often pretty straight
forward, or at least appears to be. Keep in mind that your readers are not as
immersed in this as you have been. What seems patently obvious to you, but may
not be to them. Dont assume – articulate the reasoning behind your choice.
Step 6 is also the point where far too many people stop in
the process. Strategy most certainly involves the big picture approach. Up to
this point in the process you have been essentially focusing on the big
picture. You have taken detailed information to determine what that big picture
should look like, but still big picture. In order to do the complete job, you
have to work through two more steps.
Step 7 –
Implementation Plan (THE HOW)
The implementation plan portion of strategic case analysis
is where you explain just how you intend to make this wonderful idea youve
just decided upon happen. This is where you outline the tactical details. In the
real world this stage will often involve operational action plans that state
the name of the person and a precise date by which certain tasks will be
completed. In a course based setting it isnt possible to take it to that
depth. However, it is necessary to complete a basic tactical plan that outlines
the major tasks that must be undertaken and a logical timeframe within which
they are to be completed. For example, lets imagine for a moment that your
chosen strategy involves some type of expansion. Well, expansion takes money
and the financial reports do not show the organization to be particularly cash
heavy. So in order to carry out the expansion the firm must borrow money. Break
that down into the necessary steps – i.e.: determine amount needed within 2
weeks, determine if needed funds should be borrowed, a bond issued, stock
issued, etc. within 4 weeks, and so forth. This is a rudimentary example but it
should give you the idea. This portion of the business plan (strategic case) is
often presented in the form of a table with columns for the action, the area of
the firm responsible, and a time frame for completion. Without this section of
the case analysis the plan is not complete; and often neither will your work in
the course be complete!
Step 8 – Alternative
Choice
Finally, as with any plan, it is necessary to set up an
evaluation point. How and when are you going to stop to check on whether or not
this strategy has been successfully implemented? Is the firm getting the return
expected? Obviously in the scope of a course you will not actually carry out
either the implementation or the evaluation of results. But you do need to
state how and when this will take place. You also need to state what action is
suggested in the event the results are not as desired. Would you start the
process over? Would you choose some other alternative that youve already
identified and evaluated? That is part of the decisions you must make.
Applying the Process
Throughout the foregoing discussion there are some
underlying assumptions. Within the context of any course, this process is case
based. That means you are given a base scenario – usually from a text of some
sort – and asked to analyze. For the final comprehensive case in an upper level
course you will do this with exceptional depth because they will be
comprehensive in nature. You will take what the case contains and go out into
the world of information and research. For the cases in lower level courses it
will not be as intense because the cases will focus more on specific portions
of the strategic planning process. For example, the case may be aimed at a lack
of information when the strategy or alternative is to gain additional
information and how you would go about doing that.
It is also important to remember that throughout this
process, either in class or professionally, that the source of information is
documented. Failing to do this is not only wrong in so many ways, but it strips
away the credibility of what you are proposing right from the outset. Proper
documentation means indicating the source of information within the body of the
work in a consistent, recognized and approved manner AND including a complete
list of sources at the end of your work. If the work is not properly documented
it does not meet the assignment criteria and is subject to failure! Clear
enough? Ok, enough said.
It was mentioned earlier that business writing is intended
to provide the reader with information he or she can use and so you want to
make it easy to do just that. How do you do that? Here are some suggestions and
with all the writing youve done in your academic career you undoubtedly have
ideas of your own too!
Use
a table of contents and page numbers
Use
headings for large sections as well as to identify where key ideas start within
the body of the report
Use
charts and graphs where they convey information more clearly – particularly
statistical comparisons as an example
Double
space! This makes reading easier in long pieces of work and leaves space for
the reader to make notes.
And
now you would add? Running
head: Strategic Case Analysis Using the AMA (American Management Association) 8 step case
analysis process Compiled by: Deb Patten
The Basic Problem Solving or Case Analysis
Process You have all engaged in the process numerous times in your
life in general as well as in your academic career. However, since you will be
utilizing this process extensively in this course it is appropriate to spend
some time reviewing and discussing the process. Whether this process is being
applied to a simple, routine decision or an immensely complex decision the
steps in the process are the same. It is what one does within each of those
steps that varies. To begin lets review the process. In this step you take a look at the information you have and
can gather that is relevant to the situation. The relevancy component is key.
Often cases that are presented in texts, and certainly the information that is
available through all of the sources out there today, contain stuff that is
related but not relevant. As a manager that is strategically analyzing a
situation (case) the first step is to figure out what you need to pay attention
to and what you dont. That is relevance. For example, you are presented with a
scenario that involves employees who are chronically late for work and the
information you have mentions that it is snowing. Is the fact that it is
snowing relevant or not? It may or may not be. It could just be extra stuff
that is included. On the other hand if this group of chronically late employees
all happen to travel the same road that is notorious for multi-car pile ups
when it snows…then the fact that they are late when it is snowing is
relevant. This also points out that in many situations trying to work from only
the facts presented is not enough. The manager must be astute enough to
recognize when additional information is required, and what type of
information, in order to assess the relevance of a particular piece of data. At
the same time he or she must know when to make the decision with the
information at hand. Often this step is concluded with a SWOT analysis, which
further extrapolates the most important issues out of the overall situation
analysis. This helps to zero in on the root problem. This is a crucial step and one that is often short-changed
as we go about solving problems both personally and professionally. It is
imperative that once we have gathered, recapped, and analyzed all of the
relevant information we stop and articulate WHAT THE ROOT PROBLEM IS about
which we must now make a decision. This step is not a long drawn out
explanation. You should be able to state the problem in a sentence. It may then
be necessary, and in the comprehensive case or more complex situations a given,
to elaborate on any identifying component portions of the problem. Often it is
necessary to prioritize or identify which components need to be addressed
first, second, and so forth at this stage of the process. This is the brainstorming step if you will. It is here that
a variety of alternative courses of action are identified and articulated. All
of these are of course related to solving the problem. This step is where you
list the strategies you might pursue. And this is an important point – if it
isnt here you cant choose it as your preferred course of action. While it
isnt possible to list every possible course of action there should be a
variety of things to do. This is where you put your creative powers to work. In
this part of the process, you should engage in brainstorming. Remember that in
brainstorming you simply generate ideas – save the evaluation of those ideas
for later. That isnt to say in critical strategic case analysis you want to
include every idea you came up with in the report. In real world strategic
planning I have seen reports that refer to the process and that it generated a
number of ideas that upon initial screening were determined as not plausible or
viable. What you are doing here is not a full analysis of everything. Rather
you are conducting an initial screening and narrowing the choices to those that
seem most likely to succeed at the outset. When the case analysis report is written up it often appears
as if these two steps have taken place simultaneously. That is not, or should
not, be the case. Once you have narrowed the list you should take the
information you gathered and analyzed in the first step and apply it to these
alternatives. You should articulate what the most probable outcome will be
based on the information you have collected, your experience, education, and
expertise. When it is written up it is important to support your stated
probable outcome. As an example it is not enough to say, Do nothing – situation
will not improve. While it is likely that this is true in many situations it
lacks credibility because you have not explained why this is the case. One
other tidbit in regards to writing this section up – make sure the alternatives
are clearly differentiated from each other. I would strongly suggest the use of
headings in this type of writing – bold, underline, etc. Remember in business
writing you are trying to convey information and the reader needs to be able to
pick the pieces out quickly and easily when working back and forth through the
report! This would seem rather self-evident. But you would be amazed
at how often it is skipped. Even in professional, real world reports. It is
like reading a mystery novel and having the last page missing or hearing a joke
when the teller forgets the punch line. The reader is sitting there going, okay
and so now what? What are you going to do? Again this is one of those sections
where you simply and clearly state what the choice of strategies is going to
be. After completing the alternative evaluation it is often pretty straight
forward, or at least appears to be. Keep in mind that your readers are not as
immersed in this as you have been. What seems patently obvious to you, but may
not be to them. Dont assume – articulate the reasoning behind your choice. Step 6 is also the point where far too many people stop in
the process. Strategy most certainly involves the big picture approach. Up to
this point in the process you have been essentially focusing on the big
picture. You have taken detailed information to determine what that big picture
should look like, but still big picture. In order to do the complete job, you
have to work through two more steps. The implementation plan portion of strategic case analysis
is where you explain just how you intend to make this wonderful idea youve
just decided upon happen. This is where you outline the tactical details. In the
real world this stage will often involve operational action plans that state
the name of the person and a precise date by which certain tasks will be
completed. In a course based setting it isnt possible to take it to that
depth. However, it is necessary to complete a basic tactical plan that outlines
the major tasks that must be undertaken and a logical timeframe within which
they are to be completed. For example, lets imagine for a moment that your
chosen strategy involves some type of expansion. Well, expansion takes money
and the financial reports do not show the organization to be particularly cash
heavy. So in order to carry out the expansion the firm must borrow money. Break
that down into the necessary steps – i.e.: determine amount needed within 2
weeks, determine if needed funds should be borrowed, a bond issued, stock
issued, etc. within 4 weeks, and so forth. This is a rudimentary example but it
should give you the idea. This portion of the business plan (strategic case) is
often presented in the form of a table with columns for the action, the area of
the firm responsible, and a time frame for completion. Without this section of
the case analysis the plan is not complete; and often neither will your work in
the course be complete! Finally, as with any plan, it is necessary to set up an
evaluation point. How and when are you going to stop to check on whether or not
this strategy has been successfully implemented? Is the firm getting the return
expected? Obviously in the scope of a course you will not actually carry out
either the implementation or the evaluation of results. But you do need to
state how and when this will take place. You also need to state what action is
suggested in the event the results are not as desired. Would you start the
process over? Would you choose some other alternative that youve already
identified and evaluated? That is part of the decisions you must make. Applying the Process Throughout the foregoing discussion there are some
underlying assumptions. Within the context of any course, this process is case
based. That means you are given a base scenario – usually from a text of some
sort – and asked to analyze. For the final comprehensive case in an upper level
course you will do this with exceptional depth because they will be
comprehensive in nature. You will take what the case contains and go out into
the world of information and research. For the cases in lower level courses it
will not be as intense because the cases will focus more on specific portions
of the strategic planning process. For example, the case may be aimed at a lack
of information when the strategy or alternative is to gain additional
information and how you would go about doing that. It is also important to remember that throughout this
process, either in class or professionally, that the source of information is
documented. Failing to do this is not only wrong in so many ways, but it strips
away the credibility of what you are proposing right from the outset. Proper
documentation means indicating the source of information within the body of the
work in a consistent, recognized and approved manner AND including a complete
list of sources at the end of your work. If the work is not properly documented
it does not meet the assignment criteria and is subject to failure! Clear
enough? Ok, enough said. It was mentioned earlier that business writing is intended
to provide the reader with information he or she can use and so you want to
make it easy to do just that. How do you do that? Here are some suggestions and
with all the writing youve done in your academic career you undoubtedly have
ideas of your own too! Use
a table of contents and page numbers Use
headings for large sections as well as to identify where key ideas start within
the body of the report Use
charts and graphs where they convey information more clearly – particularly
statistical comparisons as an example Double
space! This makes reading easier in long pieces of work and leaves space for
the reader to make notes. And
now you would add?
