Analyzing Strategic Management Cases

Agenda

Case Presentation Steps to Case Preparation Presentation Requirements Report Requirements

Robin Hood

Robin Hood: Organizational Profile

Brief History

First year of Revolt: built a large body of men with grievances; made a disciplined fighting force; housed in Sherwood Forest

Robin ruled supreme; had lieutenants to whom he delegated functions

Fame spread; the band grew As the band grew, discipline slackened and food was scarce. Revenues were running short as the rich were avoiding the forest Barons want to overthrow Prince John, bring King Richard back,

and want Robin Hood to help them in exchange for amnesty Something had to change, but what?

Robin Hood: Financial Indicators

The Changing Forest

First year, did well. Small organization, growth was steady, revenues consistent, stockholder support

No competition

Company Year 1 Year 2 ChangeRevenue 13.4 12.1 -1.3Expenses 10.0 11.5 +1.5Coffers 3.4 .6 -2.8

Robin Hood: The Problem(s)

Sheriff is getting stronger; more men and moneyBand is running out of moneyFood is scarceHow do we decisively end the conflict before the Sheriff regains control?

Robin Hood: SWOT

StrengthsStrong leadershipLarge band of well-trained fighting menSupport from stockholders (the peasants and farmers that hate the Sheriff)

WeaknessesUnable to sustain growth (limited resources)Lack of familiarity with all org members

OpportunitiesExpand into other forests, spreading the revenue base

ThreatsThe sheriff is getting stronger, increased competitionPrince John is paranoid, could act irrationallyBarons could undermine Robin’s efforts

Threat of Substitute Products

Low

Threat of Substitute Products

Low

Threat of New

Entrants

Threat of New Entrants

Low

Threat of New Entrants

Low

Rivalry Among Competing Firms in Industry

Low

Rivalry Among Competing Firms in Industry

Low

Bargaining Power of Buyers

Low

Bargaining Power of Buyers

Low

Bargaining Power of Suppliers

Not known

Bargaining Power of Suppliers

Not known

Robin Hood: Five Forces

Wea

knes

ses:

Str

eng

ths

WO Strategies: Limit size of band

• Turn the fighting band into a group of elites• Maintains discipline• Solves food issues• Basically, curtail growth

SO Strategies: Kill the Sheriff

• Wipe him out, no more problems• Has the men to do it• When the sheriff is gone, disband

WT Strategies: Disband

• Give up the cause, return to normal life• Robin flees to another country to escape punishment

ST Strategies: Join the barons

• Has the fighting force• Get access to capital markets• Maybe ends the conflict quicker

Opportunities Threats

Robin Hood: AlternativesTOWS Matrix

Robin Hood: Recommendations

Recommendation: Join the barons

take a chance on getting King Richard back and getting rid of John and the Sheriff in one fell swoop

Get capital to grow the business and feed the troops

Robin Hood: Case Update

Robin joined the barons. King Richard was freed and reclaimed the throne Prince John was exiled and the Sheriff lost his job; he

now cleans pigsties for a living. Robin was exonerated and lives in a large mansion on

the edge of Sherwood Forest, enjoying life with his wife (Maid Marion), three kids, two horses, and a dog named Jack.

Robin Hood: The End

Questions?

Thank You!

How to Conduct a Case Analysis

Put yourself “inside” the case Think like an actual participant

Strategic decision maker Board of directors Outside consultant

Five Steps: Step One

Become familiar with the material Read quickly through the case

one time Use initial read-through to assess possible links

to strategic concepts Read the case again, making notes Evaluate application of strategic concepts After forming first recommendation, thumb

through the case again to assess consequences of actions you propose

Five Steps: Step Two

Identify problems Symptoms vs.. Problems: avoid getting hung up on

symptoms Some cases have more than one problem Articulate the problem

Writing down a problem statement gives you a reference point when you proceed through the case analysis

Some problems are not apparent until after you do the analysis

Five Steps: Step Three

Conduct strategic analyses Determine which strategic issues are

involved Use strategic tools to conduct the analysis

Five-forces analysis PEST analysis SWOT analysis Value chain analysis Resource-Based View of the Firm (VRIO) Contingency frameworks Financial analysis

Test your own assumptions about the case

Five Steps: Step Four

Propose alternative solutions Develop a list of options first without judging them

Do nothing is often a reasonable alternative Evaluate alternatives

Can the company afford it? Is the solution likely to evoke a competitive

response? Will employees accept the change? How will it affect other stakeholders? How does it fit with the vision, mission,

objectives? Will the culture or values of the company change?

Five Steps: Step Five

Make recommendations Make a set of recommendations

that your analysis supports Describe exactly what needs to be done Explain why this course of action will solve the

problem Include suggestions for how best to implement

the proposed solution The solution you propose must solve the

problem you identified

Points to Remember

Always connect the problem(s), alternatives, and recommendations

Often, the problem is stated in the case; you just have to look a little for it

Presentation Requirements

Introduction of Management Team Outline of presentation Company Overview Problem Identification Strategic Analysis Alternatives Recommendation Conclusion/Wrap Up of pertinent information 15-20 minutes in length

Report Requirements

1. Include:a) Cover sheet with:

a) Class and sectionb) Group namec) List of group membersd) Case name and number

b) Historical Overview/Company Profilec) Identify problem(s)d) Strategic Analysise) Alternativesf) Recommendation(s)

2. Be thorough, but brief and concise.3. Use charts and graphs to consolidate information and keep it

interesting.4. Pattern report on presentation

Report Requirements (cont.)

Format-Business style writing 3-5 pages in length Times New Roman font, 12 pt., 1 inch margins Single-space paragraphs Double-space between paragraphs and after headers Section headers in bold; sub-headers italicized; no punctuation

after headers All type should be left justified (do not indent paragraphs) Charts and graphs should be in-line, not in appendix

Watch paragraph lengths, grammar, spelling Consistent formatting throughout Use charts, graphs, images and bullets; be creative but

professional; graphs should not be to big

Submission Requirements

On day of presentation, submit the following: Report Copy of slides

Print 6 to a page; needed for reference only