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2
ANALYSIS

This book teaches an approach to cases that complements business concepts and theories. Its purpose is to provide a starting point for analysis that
aids tire use of theories and frameworks and quxntitative formulas, all

of

r,vhich are indispensable for reaching conclusions about a case and building an

areiument for those conclusions.The case situation approach identifies features of a case that can be helpful to its anaiy,sis and encourages active reading.

THINKING, NOT READING, IS KEY

Students new to the case methocl usually believe the rnost reliable way tc) understand a case is to r-ead it from start to finish and thern reread it irs manv times as necessary. (That's why many business school students think speedreading courses can help them.) They rush into a case, highlighter in hand, reading as if the case were a textbook chapter. For case analysis 1'ou need to know when to read fast and when to read slowly.You should also spend more time thinking about a case than reading it. Wiren -vou begin work on a new case, you dont kno'rv u,hat to look for. That is the major dilenma that corfionts everyone who reads a case. In an active approach to a case, you start thinking b{ore you read the case. Afld as you start reading it, you ask questiorx about the content. Then you seek
answers in the case itself.As you find partial or full answers, you think about how they relate to each other and to the big picture ofthe case.You dont make knor,vledge by reading. Reading is never the primary lrcsource of case analysis, Reading is simply an instrument directed by the thought process that makes meaning lrom the text.

TYPES OF CASE SITUATIONS

Four rypes ofsituations occur repeatedly in
cases:

. . . .

Problems Decisions Evaluations Rules

People sometimes react indignantly ro this classification.They insist that there are a multitude of situations portrayed in cases, and it's misleading to say they're reducible to four.The four are not the oflll silLrrli.rs lound in cases, but many case situations do belong in one of the four categories, and when they do, an arvareness of which one can help organize analysis.This approach isnt the only correct way-ir is one way.Tiy it and see if it helps.

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HOW TO ANALYZE A CASE

Feel free to integmte pieces of it with your owr way of dealing with cases. The greatest value of the case situation approach may be that it causes you

to think about how you think about

case studies.

Problems The wordproblemhas many meanings.The meaning can be vague, referring to something thatt difficult or troubling.The definitiot of problem as a case situation, howeveq is quite specific. It is a situation in which (1) there is a significant outcome or performance, and (2) there is no explicit explanation of the outcome or performance.To put it simply, a problem is a situation in which something important has happened, but we dont know why it did. Cases provide marry examples of problems defined this way. In one, a well-trained, well-intentioned manager has tried to introduce a wofihwhile change in the sales strategy of an organization-a change supported by a detailed, data-driven analysis everyone admits is a breakthrough-and has failed to get any of the sales staff to go along- In another, 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. He has no idea why the two firms would fall so far behind in their payments. Both of these cases describe situations that involve negative outcomes. al The causes of these sorts of outcomes are lmportant to know for a p ritaso&: the knowledge can help implgve the situation. The change effort may be self-destructive because it ha\tr{veaknesses that are not apparent, or the manager may be good at many things but is a poor change agent.The manufacturer's retail customers may have large accounB palable because they have sloppy internal controls-or they may both be on the verge of bar*ruptcy.These possibilities illus*ate why accurate carxal analysis is vital. A conceptually flawed clnnge is addressed very differently &om an individual who isnt well suited to lead change. If both situations exist, the corrective action is that much more complex. Retail operations that need to clean up their accounting processes might require the manufacturer to engage in negotiations over a period of time, but two firms with bad debts that might go bankrupt require the supplier's immediate attenlion. Success can also be a problem in the special meaning used here.Take the case of a company that specializes in outdoor adverrising. It operates in three different market segments, but the case doesnt tell you which is the most profitable, much less why.Another case describes the development of a country over a period ofthirty years or so; after severe political and social up* heaval, the country slowly recovers and exceeds the performance of most countries in the region. But the case doesn? state how much more successfi.rl

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de:rl of data, both economic and demographic, sons for the country's revival.

the country has been relative to its neighbors, and while it provides a great it doesnt erllmerare the rea-

Problem analysis begins rvith a definirion of the prol'ienr. That seems obvious, yet many cases don't state a problem. So first, you need to realize a problem exists and then define it for yourself. Next, you .,vork out an explanation ol the problem by linking the outcome or performance to its root causes-this is the main rvork of problem analysis. To carry it out, you'l1
need relevant tools, the specialized urethods ofbusiness disciplines such organizational behavior or opera tions mana genlent.
as

Decisions
cases are organized around an explicit decision. The second paragraph of "General Motors: Packard Electric l)ivision" (r-eproduced in this book) begins with this sentence: " Ihe Product, Process, and Reliabiliq, (PPR) committee, which had tire final responsibility for the new product development process, had asked [Davidl Schramm for his an:rJysis and recommenrlation as to wirether Packard Electric should cornmi.t to the RIM grommet fr>r a 1992 modei year car." Like many cases, this one complicates that decision irnmediately: Schramm mrxt make up his mind rn ithin a rneek, and the product developnrent people and manufacturine disagree over which

Manv

way to go. The existence of an explicit decision is an irnportant distinction,because nearly a1i business cases involve decisions. In marrv of these cases, howe.*er, the decisions are implicit and dependent on another situarion. Let's take a case described earlier that involves a problem: the outdoor adverrising company. The case implies a decision: What is the best str:rtegry the companv should purslle it the future? This decision can only be made after the company's current strategy and how rvell it works are analyzed. The clecisions featured in cases vary greatly in scope, consequcrrce, and available data.An executive must decide whetirer to launch a product, move a plant, pursue a merger, or provide financing for a plamed expansion-or the presiderrt of a country must decide whether to sign a controversial trade agreement. Regardless of the dimensions of a decision, analyzing it requires the follorving:

. . .

Decision options

I)ecision criteria
Relevant evidence

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identifdng decision optiorfs is ofren easy because rhe case tells you u,'hat they are.As soon as you encoirt ter a stared decision, you should look for a statement of the alternatives.\If they arent stated, then the first goal of analysis is to come up u,ith plJuslb.ie decision options. The most important part of a decision analysis is determining the criteria.A rational decision cant be made u,ithout appropriare criteria.A decision case isnt likely to state criteria-they have to be deril'ed through
carefLl study of the specifics of the case, rt ith the help of specialized methocls. The critcria are used to develop evidence to complete a decision analysis. The soal is to detenrrine the decision thar creares the best fit benveen the available evidence and the criteria. In the General Motors case, a possible dccision criteria is value to the customer.The reader needs to find evidence inclicating which option delivers the greatest value to rhe customer. (That doesn't settle the nlatter, though, because there are other criteria.) One other characteristic of decision analysis deserves mention here. Ther-e is no objectively correct decision.The standard for a good decision is the one that creates more benefits than the alternatives and has fewer or less
severe dor,vnsides.

Evaluations
Evaluirtions express a judggnent about the rvorth,value, or efrectiveness of a perfonnance, act, or oufcorne.The nnir of analysis of an evaluation can be an individual, a group, a department, an entire organization, a country, or a global region.An annuai per{orm:rnce evaluation of an en-rployee is a realworld example. So is a nerv CEC) evaluating the perfonnance of the company she is nor.r, heading.An evaluation can also irwoive the assessrnent of an act, such as a decision that has already been taken. Herc is an exarnple:

Frow

the perspecthr of rurrcrtt ELi mernbcrs, do you agree with their dccisiou to enlar{e the Union by ten new rnembeys?

Finally, an outcome can be the subject of an assessment.The comperidve

position of a companv, fbr instance, is the outcorne of nurnerous decisions

and peformances as well as conlingencies such as macroeconomic conditiorx.

Like decision

analy.sis,

evaluation requires appropriate criteria.-Without

them, there are no standards for assessing worth, value, or eflectiveness.As in decision analysis, evaluative criteria are inferred from the particulars ofa situation with irelp front specializecl methods. Er,'aiuating a company's financial performance over a five-vear period can be undertaken with a long iist of financial {brmulas, but the circumstances portrayed in the case corne ioto play as well.The numbers may shorv that a company has a steadily declining

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pertormance over the period, but it stiil may be doing well because the national econorny is slunrping and the conrpany is actually doing better: than its competitor-s. An orrerall evaluarion expr-esses the best fit betrvec'n the evidence and the cr:itelia. In the example just given, measured against purely financial criteria, the company is doing poorly.Yet, the cvidence pertaining to nracroecononric ancl competitive criteria alters the evaluation: in a tough market, the company is actualiy per{orn:ring better than its peers. Another requirelnent of eval.ration is that it include both positive and negative sides. A leader has strengths and weaknesses, and both are irtcluded in an accurate evaiuation. Morcover, there may be aspects of the leader's performance that are ambiguous-he has delegated power rvidely; but it is too earl)i to tell whetirer the managcrs below him can hanclle the power. Ancl this individualt performance as a ieader could be substantially affected by factors outside his control-corporate headcy-rarters has interr,'enecl irr his prornotion decisions and insisted that certain favorites be elevatetl even though thev aren't the best-qualified candidates. Rules ilarrtitative nrethods\ can plovide critical information abor,it business sitttailor-i-i:For exmfE. srv rhcrc is a need to cor)lparc the raltre of a compan5' when a specific condition exists---a partnership with another companyand when it doesnt exist.The way to calculate future cash values-one that experts and experience support as reasonably accurate-is net present value.An NPV calculation is done according to a forrnula. Mathematically, there is a right way to perform the calculation; any other way provides an inaccurate result. For rules analysis, you need to know:

The type of information needed in

situation

The appropriate rule to furnish that information The corect way to apply the rule The data necessary to execute the rule
Rules anaiysis e-xists in virtualll. every area of business.A breakeven calculation is a mle used in marketing. In manufacturing. quantitative nrethods are used lor process anallrsis, and accounting and finance consist prirnarily of mles.The scope of rules is very narrow. For the most part, they are useful on.ly in specific sets of circumstances, brit in those cit:umstances are very prociuctive.There is J con'ect .way to execute or pedorm the rule,

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HOWTOANALYZEACASE
and the output is of one type.A well-defined set of rules is needed to analyze a company's liquidity.Those rules are the most usefirl in the situation, because they are designed to be. Each calculation specified by a rule has a procedure that must be followed. If it isnt, the result is a meaningless number. Each calculation yields a precise output ofa prescribed type (e.g., a percentage less than or equal to zero). Qualitatite methods are different &om rules.There are often many alternative methods for obtaining the same or similar informarion. To analyze the quality of leadership in an organization or its competitive strategy, there are a large ru,lmber of methods to choose from. There is no prescribed method that provides correct idormation about competitive adr,zntage. In mar:heting, two different methods can be applied to the same situation, can produce very di$erent resulm, and can both be usefirl--or useless.A second difference between rules and qualitative methods is how they are executed. There is a correct way to execute a rule such as the forrnula for net present value; there is no objectively couect way to execute quaiitative methods for arnly zing co mperition. That is not to say that rules analysis lacks uncertainties and amtriguities. Any calcularion about the future involves unceftainty. This uncertainry is built into formulas through assumptions, and assumptions involve judgment, not objective tnrth- Settling on a growth or inflation rate over a certain period of time is speculativa The key is the reasoniog behind the choice. Central bankers can be wrong atrout inflation and growth, and so can the rest of us,Assumptions need to have a reasonable basis, but reasonable people can disagree about them. But note that the argument is absut assumptions, not about the rules themselves. (E*perm do argre about the fitness of rules and make changes to them, but a{ier they do, everyoae uses the changed rutre aad executes it the same way.) Somecimes, though, an idiosyncratic assumption has no material effect on the result of a calculation. In the earlier valuation example, you might assume a growth rate tltat is too optimistic, but if the rate is the same for the calculation with and without the partnership, it should have no efGct on the comparison of the end values. The results ofrules analysis frequendy provoke sharp differences ofopinion.What two people infer from the same numerical results can diverge. Economists are famous for looking at the same set of numbers and coming to vasdy different conclusions about thern, even though they all agree on the formulas and data that have produced the numbers.The same is true in companies. One executive can read financial numbers as conirmation that a stratogy is working, wh:ile another can read them as a warning that disaster looms. In short, numbers dont e4plain what they mean, and they dont make decisions for you.

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l{orvever, the interpretation of the output of ruies is distinct &om the rules themselves. If the right rule is applied and correctly perlormed, and the rule doesnt involve a controversial assumption (ike dre predicted gro\'vth rate of GNP), everyone will come up with exactly the same result. If a qualitarive method relevrurt to a situatioll is applied to the sarne set of facts in a rvay consistent with the generally understood meaning olits concepts, everyone rvil1 not necessarily come up rvith the same result.That is the fundamental di{1-erence between ruies, as defined here, and qualitative methodsRules arent pursued further in this book. Learning rules analysis means

learning a certain categorv of rules-valuation, for instance-and when and how to use them.That iearning is the province of accountinEs, finance, tax, and other areas that are intensetry rule governed. F{or.vever, it may be helpful to remember that when rules depend upon assumptions, the values
chosen for them require an argument. Moreover, the informarion rules provide

has great importance tbr the analysis of problems, decisions, and evaluations.Accounting rules can diagr<lse the financial health of atr organization. Macroecononrics is inr,-aluable in evaluating a nation's developnleut strategy. Financial rules are indispensable to a decision about whether to sell a company at a gi',,en time and price. Rules are a large and important subset of the specialized methods necessary to understand case situations.

CASE ANALYSIS AS A PROCESS

\,vay anvone else does.There is a clitlerence, though, befween personal study habie and a process for anaiyzing a case"The latter involves more than habits and practices. It concerns how 1,ou think about a case. The intention of this section is to suggest a process that has helped case method students become more elficient and productive.This process is designed for case discussion preparation, but it is easily adapted to a process for u,riting a case essay. (Hon'ever, the way a case is analvzed for ln cssay is nrore prescriptive,sint'c an essay nltrst havc certain elements. Chapters 10 through 12 u,ill explain these elements.) The key to the process is active readirrg" Active reading is interrogative aod purposeful.You ask questions about the case and seek answers. Questions give a purpose for reading; they direct and lbcus study on important aspects of a situation.The rnoment you sense that yotr are reading without purpose, stop and regroup. It may be a good time to step away and strerch, do some iteratite, meaning you make multiple -voga, or walk- Active reading is also passes through a case.W-ith each iteration, the purpose of reading changes: you are iooking for new information or looking at old jgformati,qp in a new way Three concepts contribute to acti\re .""airrg, ,$ol, , pirrt of vieui and a-hypothesis.

The way you analyze a case differs from the

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Goal of Analysis

At first it rnay seem obvious.lil/hat other goal can there be lbr analyzing a to understand ir? The probleni is that "unclerstanding,,is too vague.Another way to think about the goal is, How do you know when to conclude the st*dy of a case? This is an ir.nportant question. Il you tlont have a concrete linrit,you can drili arong for hours,,ruch ofit taken up by distracti.n and u.directed elrort. Here is a nlore concrete goal: vou are lamiliar with the in{brmation in the case, you ha'u,e .orr. ,o , c.nclusion
case than reasonable, and you have thought about other possible conclusions and ."vhv yours is preferable to them.

about the main issue, you have evidence showing why -vour concrusion is

time.

This substantive goal can be combined rvith a time limit. Allocate a ser amount of time-two hours, for example--for each case.At the end of the period, stop and settle for whatever you knor,v about rhe case.This is a very good rvay to put constructivp prcssurc on yourself to nrake the most of the qotiel.e Point of View

T.

anchor analvsis, take advantage of rvhat's already

shoes. Her dilemma sho,ld be your dilemma. lf it'.s a <iecision, set a recommended decision as your goal. whe, you adopr the persona of the mai' character, doni assume that -vou're dealing with a car<rboard cutout, a clramaric veneer. consider rhe character's stren*hs, responsibilities, and blind spots. By all means, too, be sensitive to the dilemmas characters find themselves in. often, a good question ro ask yourself is,w1ry is the person in this

point of view of the protagonist-the,rain character. put yourself in her

i,

the case.Adopt the

dilemura?

Hypothesis

a,y fact-based anal).tic activiry- in r.vhich multiple concl'sio.s are possible. hypothesis olrers rhe advantage of a concrere statenrent you can test agai,st case evidence- Say that the protagonist of a case must evaiuate an individual she has hired-a rising star-, but also a person who arienares ma'y peopie inside the fir,r a,d cuts some corners in his relentless pursuit of

t.

one of the most useful constructs 1or resoiving the protagonistt dilemma is a hypothesis.Ahypothesis is "a renradve expranarion thar acc.unls fbr a set of llcts and can be tested by further investipption."2 It is indispensable to scie,ce a'rl

new business.The h,vpothesis is that dre new hire should receive a high rat ng despite some flarvs in his performance. To test it, ll har.,e to ,leo-elop a 1r<ru

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ANALYSIS

strong argument, based on relevant criteria, facts, and inGrences, that backs a positive evaluadon but also recognizes poor peformance on other criteria. Cases dont allorv just any hypothesis.The available evidence in the case sets the rational linit on the range of hypotheses.A hypothesis that canl be

argued from evidence in the case is simpil, an unsubstantiated opinion. Flor,vever, there is a range of possible hypotheses allout every case. A contrarian's position-one that opposes what seem to be safer h1'potheses and can be argued frorn evidence-can have a galvanizing efrect in a discussion, forcing everyone to look at the evidence from an entirely nern' angle or consider evidence no one else has noticed.

DESCRIPTION OF PROCESS
lfhe
has

rest of this chapter oudines five phases:

a process

for r,vorking on cases.The process

1. Situation

2. 3.

Questions Hl,pothesis

4- Proofand action
5. Alternatives
The process is ureant to be flexible and adaptable. Experiment with it.
using the cases in this book. Many MI3A students dont give much thought to their case-siudy approach, not because it is unimportant but because rhey dont see anything tangibie to think about. Lrltinlateiy, the value of tire process described below depends on rvhether it prompts you to thirr& about
YOUr Ol,Vn prOCeSS.

1. Situation (5 minutes)

The most dilEcult part of a case analysis seems to be the beginning.You

to bridge the gap between no knowledge about the case and knou4* edge sufiicient to form a hypothesis"That gap can look very wide as y'ou begin reading a case thick r,vith detail; it can seem to be all parts and no whole. Earlier in the chapter, I srressed that it is hard to find something rvhen you don't know vu'hat you're looki-ng for. To get started, you can structurkafraiysis r,vith a series of questrjons.The process I advocate is understanding$e blg p.ictr-Lqqf rst and thenYlling it in with detaiis. Start by asking this question; What is the situation?
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Usually reading the first and last secf,iorx of the case is str{Ticient to iden* the situation.Decisions and evaruatiorx tend to u" ro,.i *rr" u"g;*"g Problenu are harder to recogrrizg and more details about ia.rrti6rrrrg ;;* ,r" provided in chapter 5-A chamcteristic of a protrrem case is the atrsence of any actionabre statement made by or abort tie protagonist. often, the main character is reflecting on a situation and wonderiog irhr, to doReading the first and last secfioru of the case can often pro,ide far more information than just the type of situation. In decision .rio, th.r" *.rio* may speci$ the decision options.That is true of the case..General Motors: Packard Eleetric Division-" If you doat find options at the begin'ing or end of a case, you should scan other secrions.The opening o, .iai1g of * grobj"* case may present a qarrial or complete dooriptio.ior*r" f*Bt"*. In all types of cases, the initial and final secions frequefftry *ap.o, I o*io, or conflict important to the analysis. In ..Generzl Moton,,,ttie firrt section identifies the decision and a conflict between two functional g*rfr. rlr" turc sides of the conflict" with the protagonist in the middre, # ,.rrrence points for analysis. Why do the product ""'rn development p.opi* ,o strongly supporr an innor'ative componenr that they're *iiri"g r. Lt"', r"rmidable risk? And r,'rry are the rnanufaeturing peopre just as adamaat that the company should not go forward with the i*por"o, in the short term? A*er readiag the opeaings aad closing sections, you should put the case . aside for a mo,'lent and consider *hrt y-lo have learned. Is the situation a problem, decision, or e.r,aruation? Do you have any ideas about the causar frameworls or criteria that might fit the situatisn? Does it seem you,lr have to cut through a rarge am.urlt of inform*tion i,, the case or inu* inferences because the information is ^rrry scarce? Are there any hints in the rwo lectilns about causes, crj*erta, or eveil a prausible decision or evaluation? Ds the hints seem reliable orjust , *y t, th.o* you
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the si,uation or an evaluation-The

nced to know abowt the situation?

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ortu"u" questions is:what

Here are questioas specific to each situation:

PROBLEM
or what is the subject of the prot{em (e.g., a manager, a company, what is the probter.nJ Am I rring to account for a failure, a urr::r, or somerhing more ambiguoroi linaJt the dgoi6can"r;;; problem to the subject? Who is responsible for the
a country)?

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12

ANALYSIS

tire protagonist) and what nright he need to know to do soneething

ab<iut it?

DECISION
'What are the decision options? Do any seem particularly strong or weak? What's at stake in the decision? What are the possible criteria? What rnight the rnost important criteria be for this kind of decision? Are any of the criteria explicitiy discussed in the case (case heading; can sometimes give good clues)?

EVALUATION
'W'ho or what is being evaluated? Who's r-esponsible for the evaluation? What'.s at stake?What are the possibie criteria?'lVhat nright the most important criteria be tor this sort of er,aluation? Are any of the criteria explicitly discussed in the case (case headings can sonletimes give vou

good clues)? You u,ont be able to answer these questions now.That will take further study.To make this firstpass through the textmore tarlleted,it's usetui to do a con.tent in.uen.tory.Its purpose is to locate information that might be used to answer the questions about the situarion. To pedorrn a fast irrventory scan the headings in the text. Reacl a little ol the sections, especially those that seem to have vaiuable inforuration. Exarnine the exhibits to get a sense of what they convev.You r.rdl learn something about the case----:iometimes a great deal more than 1,ou might expecrt. You'll also build a map of the usefirl content. Because cases often ar-ent linear in their organization, this map is very important; pieces r:f informatioo related to the salne issue will be found in different sections of the case and

in the ex1-ribits.
lJse a pencil or pen to mark up the case. Mark high-value sections and circle facts, numbers, and statemcnts of possible importance. Be sure to capture any thoughts about the answers to your questions. antl record new questions that corne to mjnd. Note r.vhat issues particular exhibits may illun'rinate, and what calculations might be performed later to yield relevant

information.
3. Hypothesis (45 minutes)

Armed with a list of thingp you \4,ant to know about the situation and a nrap of the content, you are ready for this qtrestion: What\ nry hypothesis? This is the most iurportant phase of work on the case. Through close study of high value sections and exhibits, you narrow the possibiiities to the

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HOW TO ANALYZE A CASE 13

one that seems most plausible to you. If there are three alteraatives for a decision, test them, starting with the one you suspect has the most pnomise. Flere are some other suggestions for structuring your work at this point:

PROBLEM

' ' ' . '

Make sure you know the problem that needs to be diagnosed. consider whether the characteristics of the problem,rrgg*i causes.

Think about the framewotks that seem most appropriate to the situation. Quickly review the specifics of the frameworks ifyou arent sure of them.
Pursue the diagnosis by looking at case information through the lens of the cause you are most certain about.

For each cause, make a separate pass through the case looking for evidence ofit.

If the case has a lot of quantitative evidence, to what cause is it most relevant? If you dont have a,cause relevaat to the quaatitative evidence, formulate one-'work up as much relevant, high-value quantitative evidence as you can. In
a case cause.

problem.

with a protagorrist, consider whether she is a potenrial Ifyou think she is, work out how she contributes to the

DECISION

. . ' ' '

Review the criteria you have come up with so far.Which do you

have the most confidence in?

Review the decision options. Do any seem especially strong or

weak?

the

Apply the criterion fhat seerru to identify the most evidence in

case.

Investigate the strongest decision option with the criterion you have the most confidence in. or, if you're reasonably certainatrout which is weakest, see ifyou can dismiss that option quickly.
case has a lot of quantitative evidence,which criterion is most relevant to it? If you don't have a criterion retreva.sf to the quantitative evidence, formulate one-work up as much relevant, hijh-value

Ifthe

quantitative evidence

as

you can-

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ANALYSIS

. lf there are conflicts

about the decision between individuals or groups, think about rvhy that is. Look at the decision from the point ofview ofeach ofthe parties to the conflict. position in relation to the ilecision, considcr u'hy that
is.

. If the protagonist is in a dillicult

EVALUATION

. .

Review the criteria you have come up with so far.Which do

have the most confidence in?

1,ou

rveaknesses)?

What are the telns of the evaluarion going to be (e.g., strengfhs,/ Do any stand out in the case (e.g., an obvior.rs strength

of an individual)?

. Do you already have a sense of the bottom-line . .

evaluation you favor? If .vou do, what are the reasons for the preference? Pursue those reasons. Start by appiying the criterion that seenrs to idenrifi. the most evidence in the case. Investigate the most positive ratin5! or the most negative with the criterion 1,ou have the most confidence in. evidence, which criterir:n is ruost

. If the case has a lot of quantitative

relerant to it? Ifyou dont have a criterion relevant to the quantita* tive evidence, formulate one. Work up as rnuch relevant, high-value quantitative evidence as you can.

Trkirg notes helps you organize and remember information, but it serves the equally important purpose of recording your tirought process.Without note taking, you can too easily stray from active reading. Of course, note taking can degenerate into transferring infbrmation in the case to a piece of paper or computer screen. Notes on a case don't simply record facts.They capture anything that might lead to answers to the questions you've asked. It may sound trivial, l-rut I reconunend that studenrs try to contain the "highlighter habit."This study aid is weil adapted ro the lecture model of Iearning, but it can be a detriment to case study. Highlighting sentences is satistying because it makes you Gel you're doing somerhing. In realiry rvhat 1.ou're doing is nurking senterlces to think about later, and that's a setup lbr passive reading.You should be thinking about statemerts tlrc frst tinre you encounter them.That said, higlrlighters can be useful as a tool to difGrentiate related content: facts about one aspect of the case, for example, or te\.t and nurabers that belong to one cateplory of evidence.

Lifiiv*:'si

HOW TO ANALYZE A CASE 15

A pencil or pen is more conducive to active reading-to write down

questions and make notes.W.hen you begin to gravitate toward a conclusion,stop work aad write it down.The fimction of a hypothesis is to give you a position to try out, ltot a fi.nal conclusion, so listea carefully to your

intuition. Ifyou have time, put the case away after t}is iteration. Even a short break
can be usefi;l.There is scientific evidence that our subconsciorx min* are much better at dealing with complexity than our conscious minds.Turning yorrr attention to sornetling else allorars tlut subcorxcious capacity to work on the infornr.ation you have collected.

4. Proof and Action (4A minutes)

hypothesis drives a diEerent approach to the case-You want to prove something, not look for something to prove.Ask these questiorr.: What elidence ilo I have that supports the lrypothesis? What additional eyidewe d.o I need?

Look at the information you've compiled and ideatify evidence supporting the hypcrlresis.Yor:r firsr priority should be to add ro the evidence you have.What is the strongest evidence? Can you add more to it? Now assess where evidence is missing.'Where will you 6nd more--or is there arqz evidence in the case?Think about any factors you rnay have over* looked such as a cause, criterion, or evaluative category. Go track into the case, with the single purpose of briaging out rnore evidence that aligns wrth your hypothesis.You dont have ro wo* from the first page to the last.You can go direcdy to the sections and exhibits you think have what you need. Of course,you can work from beginning to end if that makes you rnore cornfortable. Just be zure fo stay focused on what
you're tryring to prove. Let's say that you're building an argunlent for a decision option and one of the criteria is cost savings.You've noted some staterrrsnts that irnply your decision option will save money for the firm and circled numbers that you thought were relevant to savings. Collect those numbers now,and work out calculations to estimate the total savings.You may then have one of those gratifying moments of case sardy: from those scattered numbers that looked so inconsequential when viewed individuaily, you've pulled together an estirnate that indicates a very large anaual savings-*and thatt just one part

ofyour argument.
Also give some thought to the actionable content ofyour position- FIow would you implement the decision you're recornmeadiag?'What acfions does your diaposis or evaluation call for? Tbink in practica\ real-wodd, aot ideal-qrodd terrns. Dont jlxt sketch out in your mind a broad

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ANALYSIS

approach to acfion. Think about tangible acrions and write thern down. Finally, give a bit of thought to the order of the actions.An acrion plan is a program in which acfions are taken at a, cerain dme for a reason. It isnt a

to-do list.
5. Abernatives (75 minutes)

It may seem paradodcal, but the last phase of analysis should be to question your own hypothesis: What is the greatest weakness of the hypothrsis? What is
the strongest alternatiue to it?

The inter*ion isn? to uadermine your hard work but to take a step back and look critically at the hlpothesis and the evidence. Every position has a weakness, and you should be the one who recognizes it, not the professor or your peen. Here are some ways to think critically about your work:

PROBLEM
Can the problem be defined difterendy?Would that make a difference to the diagnosis? Are there any holes in the diagnosis---could there be causes rnisoing?lVhat's the weakest parr of the diagnosis? Could an entirely different diagnosis be made?'What would it look like?

DECISION
What's the biggest downside of the recommended decision? How

would you manage the downside?Whatt the strongest evidence against

the recommesdafion? How.urculd a case for the major akernative look?

EVALUATION
Have you been objective and thorough about the evaluative findings that oppose your overall assessmerrt? Think hour a different overall evaluation roight be proved. Have you accounted for factors that the subject of the evaluation couldn't control?

..BUT WHAT IF MY HYPOTHESIS IS WRONG?"

Students have askcd me that qilestion rnany tirlles,A hlrpothesis isnt wrong; when you can't make a credible argument rbr it from case evidence. If vou find 1,ourse1f in that situation-and you ni1l sooner or later-first make sure the difirculty iies r.vith the hl,pothesis and not with your evidence gathering.You may have overiooked important infbrrnatjon or not used speciaiized tools efGctively. If you're certaiir the evidence isn'r there, lace r"rp to it but r-ealize that the work you've already done isnt u,astecl.
a hypothesis fails

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HOWTOANALYZEACASE L7 probably have a good sense of You now have a good grasp ofthe case and work with a new hypothesis is what the evidence is and where it is'Your therefore likely to move along quickly' wroag is to ask'yourself Another way of l."ki"; ;4" f'* of being of a method of case analysis that what the alternative ir. i f i'" not heard fact' makiog analytic mistakes is never leads to dubious conclusions' In proce6$

about the thought iroal*rbl". Through mistakes, we learn more can sometimes be a qrmptom of called case analysis- And a shaky analysis

,l*t trti"g, *t lct it also an invaluable

learaing experience'

NOTES

1.

Michael E.Por tet,Competititrc Sildtegy:TahniquesfuAnalyzinglndusties

The Amerkan

antl Competi'

ron {NerrrYork:The Free Press,

2.

tr980)' ,*'*i'' i'tW Diaio*ory'third

r,-,^- E^+^6. rr^,,.,htnn Miflin M edition @ostoo: Houghton

ComganY 1993).

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