Guide to Case Analysis
• Strategic Vision/Mission
Implications: A well-designed business mission is the foundation for priorities, strategies plans, and work
assignments. A good mission statement can be broad in scope to fit with stakeholders, customer-centric,
enduring, socially responsible.
Identify Strategic Objectives
• Five Forces
• Look at fixed costs and resources of rivals
• Customer preferences, is it a fad?
• The presence of subs puts a ceiling on the price that can be charged before customers leave
• Suppliers: backward integration, company gaining control of suppliers too
• Driving Forces – Look at the industry’s future (PEST)
o General Environment – Demographic, Socio-cultural, Political-Legal, Technological , Economic,
• Economic Traits – Nature of the industry
• Key Success Factors – relate this to five forces
• Competitive Intelligence – Identify and understand rivals’ strengths and weaknesses
relative to industry key success factors
• Use KSFs to do competitive analysis
• Strategic Group Map (If Applicable)
• Identify Current Business Strategy
o Does it make sense? Why or why not?
o Broad vs focus
• How Well Has Current Strategy Been Executed?
• Financial Performance
o Evaluate financing decision: debt to equity ratio, and debt to total assets ratio.
o Have the ratios changed over time? How do they compare with industry norms?
o Are dividend policies reasonable?
o Working capital? Sufficient short term/long term capital?
o Operating costs (TC) going higher than profits?
• Productions/Operations (if applicable)
o Are supplies reliable and reasonable?
o What strategy is being pursued?
Low cost – create barrier to entry
High quality – requires more expenses
Highly automated - require high capital investment, flexibility, labour concerns
First mover – high R&D
• Porter’s (focus vs broad) analysis COST ADV DIFF
o Type 1, 2, cost leadership, best value, good for larget market
o Type 3, differentiation while price sensitive
o Type 4 low cost-focus, 5 best value , focus strategies for small groups
• BCG Matrix
o Portrays diff among divisions in terms of relative market share position and industry growth rate
Stars II Question Marks I
High market share -> high industry growth ^ Low market share, high industry growth
Backward forward horizontal integration Makert penetratin, deve,
Market penetration divestiture