Orientation to Case Method 1

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ORIENTATION TO THE CASE METHOD I am Confused ! No I am Not Confused !

Transcript of Orientation to Case Method 1

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Only the curious will learn and

Only the resolute overcome

the obstacles to learning.

The QUEST QUOTIENT has always

been more important than

INTELLIGENCE QUOTIENT

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What is a Case study?

A description of a management situation

A teaching vehicle which has a good story, material for analysis and should pose decision question /action

Example :Whether to launch a new product?

Market AnalysisCompetitor AnalysisCustomer AnalysisBreak-even and Financial Analysis

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What are the goals of a case?

GOALSNo one can provide skills they can only help acquire and improve skills

The classroom may not be the best place to get the view of abusiness activity

CONSTRAINTS

Provides students the skills to be effective managers

Provides a view of variety of chosen corporate setting and enables one to appreciate and grapple with management problems and for business thinking.

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This fundamental shift causes many new case method students to be confused and uncertain about how they should go about learning.

Receiving Knowledge Versus Making It

In the lecture method, learners

receive knowledge from an expert.

In the case method, learners

make the knowledge with the assistance of an expert

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How does the case study compare with other teaching pedagogues?

Case Problem Set

Role Play

Lecture

Knowledge

Technique

Skills

Philosophy

Approaches

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PROBLEMS ENCOUNTERED IN CASES

Information that includes “noise”—irrelevancies, dead ends, and false, biased, or limited testimony by characters in the case.

Unstated information that must be inferred from the information that is stated.

A nonlinear structure in which related evidence is scattered throughout the text and is often disguised or left to inference

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Need For Theory in Case Analysis

Get into the car and it does not start?

Engine? Fuel? Electrical System?

Similarly Case Study requires strong theoretical base for Meaningful analysis

Is Engine Turning Over?

What is Fuel Gauge Showing?

Are Headlights On?

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You can know the name of a bird in all the languages of the world, butwhen you're finished, you'll know Absolutely nothing whatsoever about the bird...

So let's look at the bird and see what it's doing -- that's what counts.

I learned very early the difference between knowing the name of something and knowing something.

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PROBLEM SCENARIO

It is a situation in which there is a significant outcome or performance, and there is no explicit explanation of the outcome or

performance

For example

An accounting manager of a manufacturer notices that two good retail customers suddenly have accounts payable that are large and overdue enough to be worrisome.

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What’s The Real Problem?

Symptoms – POOR MARKS

Symptomatic Cure –TUTORIALS

Real Problem - DSYLEXIA

Immediate Treatment - SPECIAL LEARNING TECHNIQUES

Long Term Treatment - DEVELOP ALTERNATE LEARNING MODEL

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DECISION CASE

An executive must decide whether to:

Launch a product

Move a plant

Pursue a merger

Provide financing for a

planned expansion

Sign a controversial labour agreement

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Solving A Decision Case

•Decisions Options

•Decision Criteria

•Relevant Evidence

The goal is to determine the decision that creates the best fit between the available evidence and the criteria

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How to prepare for a case

Read quickly – who is the protagonist, what is his/her situation.

Re-read -Highlight and Distinguish important information.

Decide on the action issues. Decide what analysis questions will help solve action

issues. Use data, make assumptions and answer the analysis

questions. Arrive at alternative solutions. Choose a solution that best solves the action issues

DISCUSS THE MANAGEMENT LEARNING

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4 P’s of the case method

•Preparation

•Promptness

•Presence

•Participation

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Good Case Analysis

•Be complete•Avoid rehashing case facts•Make reasonable assumptions•Don’t confuse symptoms with problems

Sales down – symptom not problem•Don’t confuse opportunity with taking action

Large market but no resources•Make good use of evidence developed in the situation analysis•Recognize Alternatives•Reach a clear decision

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Overview of Case Framework

Situation Analysis

Generation and Evaluation of Alternatives

Decision

Financial Analysis of

Alternatives

Problems andOpportunities

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Overview of Analysis Structure

SITUATIONAL ANALYSIS‡ Nature of Demand ‡ Nature of Competition‡ Environmental Climate‡ Industry Cost Structure‡ Skills of the firm‡ Distribution structure ‡ Firm’s Financial resources

PROBLEMS AND OPPORTUNITIES‡ Key Problem Areas‡ Key Opportunities‡ On Balance situation is

GENERATION OF ALTERNATIVES‡ Define objectives/ criteria

‡ Evaluate Alternatives

DECISION

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Aim for success, not perfection. Never give up your right to be wrong

Because then you will lose the ability to learn new things

and move forward with your life.

Dr.David Burns

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ROSE - SITUATIONAL ANALYSIS

Nature of Demand Product has irregular demand. It is expensive for companies to maintain “top of mind” awareness for

unpredictable product purchases. NO VISIBLE BENEFITS OF CREATING A BRAND IN PARTY-WARE CATEGORY.

Nature of Competition Private Label brands like Party! have muscle power INTENSE CATEGORY COMPETITION

Environmental Climate Price sensitivity high if the order value is very high. Social gatherings on the rise. Outsourcing of parties and weddings to event management companies/

contractors. GROWING DEMAND

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ROSE - SITUATIONAL ANALYSIS

Skills of the firm Weakness

No core competence in building brands and creating promotions. No market power to charge a premium Rose might be able to create a brand, what about equity?

Strengths Ability to design, print, and manufacture high-quality paper

goods. Rose could probably get away with a modest price premium New line’s superior quality and the company’s emphasis on selling

its products through independent stores, where less price-sensitive consumers usually shop.

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ROSE - SITUATIONAL ANALYSIS

Distribution structure Rose distributes through several distributors and individual

retailers. Largely sold through the push of retailers. Largely dependent on retailers to have products at the right place

at the right time. BUYING POWER OF BUYER HIGH

Firm’s Financial resources Limited resources to build a brand. FINANCIAL MUSCLE POWER?

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OPTION 1Produce for Party! a line of premium private-label products

UPSIDE B2B marketing. Regular Demand. Stable growth. Good returns. Rose will gain clout with Party! due to the procurement

efficiencies that Party! will generate by dealing with just one vendor.

Tom can use that clout to convince the chain to continue carrying the commodity party-ware products of Rose.

Retailers build their own brand equity by selling top-quality merchandise. Party! will therefore need high-quality specs and creative designs.

If Party! Myopically insists on cheap, low-quality products, Tom should pass on Party!’s offer and take the idea to some of the other large retailers.

Can launch its own brand after few years of market experience.

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DOWNSIDE Cannot launch Rose as a national brand for some years. Market opportunity does not wait for any player. As Party’s brand gains strength, Rose will be pressured to reduce

its margins. Will need to expend on technological innovations for the

company’s survival. Consolidation in the retailing industry is inevitable as the

shakeouts in grocery show. Independents will be affected by Tom’s decision to produce

Party!’s line. Independent retailers will need sustained marketing activity. Better packaging and point-of-sale displays by Rose will offer

added value to the independents.

OPTION 1Produce for Party! a line of premium private-label products

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OPTION 2Create a brand and invest in its developmentUPSIDE

In every product category branding is important. Branding of commodities a trend to stay. Brands offer the comfort of familiarity in an increasingly hostile

world. (Toilet Paper) Branding allows to charge a premium for the products. Parties are happy occasions, where consumers will happily spend

that extra 7% to do things right. Advertising isn’t the only way to build awareness. The most important branding vehicle is the product itself. The intelligent development of the brand name and innovative

uses of the logo can work. A logo will serve as a brand ambassador at every party. Develop unique product packaging and point-of-sale display

materials. A supplier can build a strong business by maintaining a direct

relationship with consumers, over retailers’ heads.

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OPTION 2 Create a brand and invest in its development

DOWNSIDE Limited Market Size, so Intra category competition will be fierce. If Party! and Rose simultaneously launch branded lines, they will

end up competing for the same consumer, and they will compromise the success of both brands.

Rose has limited resources so ability to compete low. Branding effort unlikely to reach the intended TA as Rose has

several distribution channels. Branding is not important when it comes to party ware because

most people don’t buy such products on a regular basis. Building brand awareness will cost the company a great deal of

money Rose’s rivals will outprice it in the short run. Large retailers would not allow a supplier to build supplier’s brand

and use premium pricing.

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OPTION 3Become the Category Manager for Party!

Propose that Party! appoint Rose as the party-ware Category Manager.

Can create a party zone of dedicated retail shelf space in every store. Focused display will enhance sales. This cost-savings opportunity since the party zone would allow Party!

to reduce the number of lines and assortments carried by Party! Rose could manage the chain’s party-ware inventory and promotions. Rose’s commodity products that sell only on price are ideal

candidates for retailer branding.

WHAT DOES PARTY! GET Rose will add value to their operations. Rose will develop new products, better packaging, and merchandising Rose will manage entire supply chain to store-level inventory. Rose will develop a deep understanding of the consumer.

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OPTION 4DO NOTHING

Will leave the door open for rivals to exploit both opportunities.

Rival may launch a pioneering brand in the industry category

Rival may attempt a private-label development in a commodity market

Will exert pressure on Rose sales in the lone run.

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OPTION 5

Do both projects

Capital To Be Injected – Source? Segregation of resources difficult. Enhanced Capacity Enhanced Marketing Effort Confusion in Distribution

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Bob’s Meltdown - Problem Definition

Bob Dunn’s behavior - The big problem at Concord?

No - Jay Nguyen’s at fault. Jay has clearly been struggling for some time with fundamental issues about the company and its future.

He needs to do some deep—and fast— thinking about where he’s taking Concord Machines and what he wants from each member of his executive team.

CEOs can’t have secret agendas.

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Bob’s Meltdown – KEY ISSUES

Legal Issue Review the potential risks the company faces should

Annette bring legal action for assault or harassment.

People Management Issue Has loaded too much responsibility for profit generation

to Bob. Did not give a thorough orientation to Annette of the

business, neither oriented top managers to knowledge management.

The company grapevine - People are buzzing about this incident

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Contingency plans need to be put in place immediately for legal issue.

Explain to Annette needs to understand that she made big errors.

Jay should have Annette formulate a detailed strategy for engaging and involving her peers in KM.

He needs to explain to Bob the risks the company faces as a result of his actions and seek apology.

He needs Bob to delegate day-to-day decisions and firefights to his lieutenants; Bob cannot, and should not, continue to do everything himself.

Issue resolution needs to be communicated through the ranks.

Draw-up detailed business plan for Concorde

Bob’s Meltdown- SOLUTION

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Trap Ease Group has hired Martha House to market a patented, innovative mousetrap  Target Group is housewives whom it believes will be attracted to the safety and cleanliness that its trap offers. (The trap traps the mouse alive with no baiting and no mess) The trap is marketed directly to large retail store chains such as Safeway and Kmart.  The traps are sold in packages of two and are priced at $2.49—about five to ten times the price of the traditional, spring-loaded trap. Promotion is through trade shows and personal selling.  Trap Ease Symptoms - Sales are disappointingly slow

 

TRAP EASE - SYNOPSIS

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CUSTOMER ANALYSIS

Target Group -housewives as they are reluctant to set and bait traditional spring-loaded traps.

Also concerned about the safety of children and pets that may be around the home because once the spring-loaded trap has caught a mouse, one often has a mess resulting from its action.

Besides being unpleasant, the mess presents health concerns due to the diseases, which may be carried by mice.

Identified need gap for the TG – Safety and Cleanliness

TRAP EASE - SITUATIONAL ANALYSIS

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COMPETITOR ANALYSIS

 

Trap Ease faces competition from both price ends: Conventional Mouse Traps target Low Income Consumers while Exterminators target High Income Consumers.

Trap – Ease Benefit/Sacrifice ratio not superior to competitors.

TRAP EASE - SITUATIONAL ANALYSIS

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COMPANY ANALYSIS

Product: Trap-Ease is a patented mousetrap that is designed to allow consumers to avoid the safety and cleanliness problems associated with traditional mousetraps.

Problem Area: Problem of a live mice in the trap for hours together.

Price: $1.25 per trap, when sold in packages of two is five to ten times more expensive than traditional traps.

Problem Area: More mice more traps – Higher cost of eradication. 

TRAP EASE - SITUATIONAL ANALYSIS

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COMPANY ANALYSIS

Place: Products are distributed directly to national chains.

Problem Area: Company lacks truck and distribution facilities.

 

Promotion: Appearances at trade shows and point-of-purchase display. Middlemen advertise

Problem Area: No advertising targeted to the end-consumer.

TRAP EASE - SITUATIONAL ANALYSIS

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TRAP EASE- PROBLEMS AND OPPORTUNITIES

‡ KEY PROBLEM AREAS

No Target Group Insights – 7 O model

Market Size for traps / mice termination not known

Marketing Mix Strategy needs correction

‡ KEY OPPORTUNITIES

• Patented Innovative product

• Demand for traps exists

‡ ON BALANCE SITUATION

Is viable with corrections in marketing program

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TRAP EASE-SUGGESTED ALTERNATIVE 1

TG = HousewivesNeed Gap = Safety and CleanlinessDemand = Seasonal Buying Behavior = Emergency Product

• Current marketing mix unattractive• Prices need to be lowered as value

delivered low.• Huge resources required for advertising

and reaching to end-consumer• Huge resources required for setting up

national distribution system• May therefore not be financially viable

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Need Gap = Disease Control where food is handled and poisons / rat control measures may be inappropriate and rat disposal may not be a problem.

 

Demand = Synchronized all year

Buying Behavior = Industrial Supplies, not much price negotiation, access to supplier important.

TRAP EASE-SUGGESTED ALTERNATIVE 2

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POTENTIAL TARGETS

Restaurants because of the presence of food also because they cannot use chemicals near food.

Food wholesalers or warehouses where large quantities of food may be stored in the channel of distribution.

Food manufacturers also need rodent protection.

Research laboratories because when rats run loose a researcher would be interested in the ability to capture a mouse without harming it.

Exterminators because they must work in areas where chemicals would not be allowed and traditional traps would have the same messiness problem

TRAP EASE-SUGGESTED ALTERNATIVE 2

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MARKETING MIXProduct: Redesign develop larger sizes of the trap Price: Industrial buyers may negotiate price. Work on costs.Lower distribution /selling expenses by dealing directly Place: Customers small in number and not very dispersed. However no field force. Appoint Sole Selling Agents  Promotion: Trade promotion strategy. Appearing

at trade shows – avoids pursuing expensive media options.Advertising in trade magazines. Sell to exterminators and they become the sales force

TRAP EASE-SUGGESTED ALTERNATIVE 2