By Gil McWilliam & Kim Warren 1. Why Cases?

Business problems happen in a dynamic and complex environment, which makes apparently easy concepts difficult to apply, and cases are the best replication of this complex environment. People do get frustrated with cases (there never seems to be quite enough information, or it isn't in the way you want it) - but that's what it's like in "the Real World" too. Not all cases will have obvious questions to be answered at the end. Sometimes it is up to you to decide what the issues are and what the problems are to be solved. Moreover, there is rarely a single uniquely correct answer to a case. In the words of our colleague Professor Ken Simmonds: "It is the job of a manager to consider creatively the options that are open to the company. Often students and executives tend to assume that business problems are of the kind described by the equation 6 + 2 = 8, where 8 is the uniquely correct solution. It is more often true that a better analogy would be the equation 8 = 6 + 2, where the "6+2" is but one of an infinite set of numbers whose addition, subtraction, multiplication or division would all equal 8". So what cases are designed to do is to explore the theory and practice with a view to helping you analyse business problems, using the frameworks and tools you'll read about and discuss in class, and with creativity and argument, generate and evaluate the strategic options. Case studies are important learning devices during the MBA. They are more than simply an academic exercise - they help develop skills that will be important in any field of business; comprehension, issue identification, analysis, succinct presentation and persuasion.

2. Preparing For Case Discussion In Class

Careful preparation should include your reading the case on your own and coming up with your own individual views as to what are the main issues and problems, and what you would do if you were the manager in question, or a consultant assigned to help the company. Then discuss the case in your study group before the class (several people may be asked to defend their positions in class, and experience shows that there is some degree of safety in numbers so prepare in groups before class). This 3-stage process (individual, small group and then big class) really does make for an enjoyable and valuable learning session. It is unlikely that all the groups will come up with the same observations and solutions, and the process of arguing them through will help you to understand the complexities, power, and importantly the limits too, of the theories, frameworks and analytical tools you will be studying. Here are some tips to help you tackle cases:

Skim the case quickly to get an idea of the general situation.

Read again in depth to understand the full facts - investigate issues you don't understand. Explore each exhibit for important data. List the problems and issues that have to be confronted. Do enough number crunching to understand what is happening and what ratios etc are critical. Consider the area of theory that the class is due to cover. See if the concepts and frameworks you have read or been told of can help. If so, apply them. If not, (and all theory has its limitations) be prepared to explain why. Be thorough - cover all functions and all market sectors etc. Support opinions with analysis. If you make judgments not based on case evidence, explain why you believe that judgment is reasonable. If you make assumptions (which you may often need to), make clear what those assumptions are and state them clearly. Use charts, tables and graphs to illustrate your conclusions. Prioritise your proposals and make sure they are realistic in timescale and within the resources available. Review your action plan to check it addresses your earlier set of issues. Avoid recommendations that are uncertain as to their achievability (e.g. 'take over the largest rival'), with no plan for what to do if this is impossible. Avoid recommendations that would be disastrous if they went wrong -watch out for the down-side.

3. Writing Up Cases For Assessment

Most of you will have spent a good deal of your commercial lives writing business reports of one sort or another, but reports for assessment have to be still more structured, and must show your learning. Reports are not essays. They do not look like essays. They do not have long, unbroken passages of prose. They have headings and subheadings and may include charts, lists or bullet-points. They are brief and to-the-point. With this in mind there will usually be a word limit (often about 1,500 words). A case write-up gives you an opportunity to apply the analytical skills and frameworks from class to a real business situation. You need both to demonstrate and apply your knowledge. Remember, your teacher can only mark what is on paper, not what was in your head, what you intended to say but didn't, what you thought was obvious. Knowing who is going to read a report will enable you to give the reader what he or she wants and needs. Before you put pen to paper you should think about the audience for your report.

3.1. Your Audience

In many instances, the case write-up should not be addressed to the course instructor. Of course, they will be the real reader, but you should write your report as if it is addressed to someone in the company under discussion. For example, you might see yourself not as a student but as a consultant who has been commissioned by the company. It will often help to imagine a specific individual to whom you are giving your advice. In writing to such a person, you may have to find a way of combining objectivity and diplomacy, e.g. if it looks like they are in trouble. It is important to note, however, occasionally you will be faced with cases which have specific questions for you to address and these may not be suitable for writing up as a 'consultant's' report. In these situations, decide who the proper audience might be (including the teacher) and address the write-up accordingly.

3.2. The Role Of Assumptions

The case report should be written so that the receiver will both understand its analysis and argument, and be in a position to act on its recommendations or conclusions. It should be in jargon-free business English, well-argued and supported by sound analysis, from which your recommendations for action will flow. You can assume that he/she probably knows the background and history of the company - there will be no need to repeat this in your submission. Do not repeat the case back to the reader - this is a waste of valuable "words" and time. However, you should not assume that your reader has expert knowledge of the techniques and frameworks you use. Include enough explanation for a reasonably intelligent manager to understand what you mean. Moreover, given that these reports are intended for action, it is important that you not only do the analysis, but that you also conclude from it. There may be instances when you have to make assumptions either about knowledge or about information which is "missing" from the case. For example, in the case there may be scant information about a competitor, but you think it is safe to assume that, being half the size of "your" company, they will not find it easy to retaliate to a drop in price. This is an assumption on your part based on the relative economies of scale which each company enjoys because of its size of output. You need to state openly that you are making this assumption, and you also need to consider how valid it is, and what would happen if this were not a safe assumption (ie could they receive subsidies from other sister divisions for example?) Good business decisions are the result of a blend of rigorous and logical analysis of the facts (quantified where possible) plus the application of creativity and judgment. Occasionally you will have to imagine what it is like to buy a certain product or service. You will have to make assumptions about how people are likely to behave. Many people are uncomfortable with this process of making assumptions. They would like to "know" for certain. Sometimes in business it is possible to find out "for sure" through marketing research (to test the hypotheses for example). On other occasions, such certainty is impossible. Through the class discussion your teachers will explore your assumptions and hypotheses, and, importantly, the rationale behind them. They will rarely be seeking the "right" answer, but they will press you to justify your assumptions and hypotheses.

3.3. Description & Analysis

There is a difference between description and analysis. If you merely describe what has happened or describe a firm's situation this is insufficient on its own. You must conclude from this description. For example, many of you will no doubt find a simple SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) a useful way of gathering together disparate bits of information about a company or an opportunity. However if is not enough to write a SWOT, and then assume that this is self-explanatory. You must spell out the implications from this analysis. For example, having carried out a SWOT analysis you might conclude that: Company A has this huge opportunity but they have no cash with which to take advantage of it, therefore they should raise money or seek a joint venture partner. Raising money from the bank will be difficult because we can see from their weaknesses that they have a poor credit rating. However their access to xyz technology (a strength) may mean that an appropriate partner will find them interesting...)

3.4. Structuring The Report

A report should logically argue a set of recommendations based on analysis, argument and justification. As such most reports will naturally fall into three sections: 1. Analysis of the problem(s) 2. Exploration of alternative solutions/strategies 3. Recommendation plus justification of strategy, detailing any implementation considerations that result from the chosen strategy. You should be persuasive - you want the company to accept your analysis and act upon your recommendations. The logic of your argument is therefore vitally important, and the structure of your presentation requires some thought. Bad reports usually result from a poor structure, not a poor understanding of the problem. The following is a model structure that can be used for most case reports, but please don't be slavish about it; let your own style show through.

3.5. A Model
Title Page A cover page giving the title and the author, and the date of the report Numbered headings and subheadings (e.g. 2., and 2.1, 2.2... ), may be combined with Title page for a short report. A brief summary of the subject of the report and the recommendations The objectives of the report and the problems it is to address. It may give background information, (e.g. the objectives of the company, or the reason for some strategy they have pursued). An analysis of the existing situation; identification of problems, causes and patterns; statement of assumptions.

List of contents

Executive Summary

Introduction

Analysis

Evaluation of Alternatives

It is likely that there will be several options to be considered (including doing nothing). Each of these alternatives will have its pros and cons. This section identifies and evaluates each of them. A statement and justification of each recommendation, with the steps needed to implement it. This should include the likely effect of following your proposals, and any possible circumstances that might make them inappropriate (indicating things that will need monitoring), together with what to do if those circumstances come about. Detailed figure analysis can best be shown in tabular or graph form as exhibits or appendices. Even qualitative information may be best shown in exhibit form. If this is done economically, it can be put into the body of the report; larger tables or figures may have to be appendices. But beware do not put anything in an appendix that is not referred to in the main text, or that is not key to your argument. Appendices should not be used as a "brain dump'.

Recommendations and Implementation Strategies

Exhibits and Appendices

The exact style of your report is very much up to you, bearing in mind the subject matter and the reader. In the business world, reports may be long or short, loose or highly structured, but remember - senior executives have one resource in very short supply - time. Use case studies written for assessment here at London Business School to develop a structured style of writing. Remember though, that here the reader is in the unusual position of having to read as many as 60 reports on the same subject. Clarity, good presentation and imagination on are therefore highly valued.

3.7. How To Approach Writing Up A Case

The Golden Rule is to write up your work from back to front, or put another way, do not write up your report as you would analyse it. Your report will start with your conclusions and recommendations in the Executive summary at the front, so your reader will know what your conclusions are before he/she embarks on reading the body of the report. Report writing is not an art form. Don't build up to a dramatic climax as in music or a novel. Start with the conclusion supported by broad justifications. Then tuck in all the fine details, so that they are there - and seen to be there - should the reader wish to examine the fine details of your argument (to prove to him/herself that it is right, or so that s/he can confidently argue your case to their boss). As a rule, if your summary takes more than about a minute to read, it is too long. In ordinary business life, it is unusual to find a situation so complex that its essence cannot be distilled into five or six sentences. The reader may be ready to accept some of your conclusions instinctively. Others s/he may want to question. Almost certainly, s/he will consider some points more interesting,

surprising, or incredible than the rest. So your report should be set out with headings and sub-headings, so that the reader can skip and go straight to the points that interest them most. The clearer the presentation, the easier the argument will be to follow. Reports do not have to be typed, they can be hand-written - so long as they are readable and clearly presented. The word count is serious. The number of words you have used should be written on the title page. Some teachers literally stop reading at the word-limit; others read on but reduce marks progressively, the more the limit is exceeded. Appendices are not included in the word count.

3.8. Computers
Just a couple of words about computers. They can be both a blessing and a curse. First, don't get obsessed with the spreadsheet. A host of sensitivities are of no value if you have simply made some incorrect assumption or not considered broader implications. Hours spent building sophisticated spreadsheets may therefore be positively damaging. This is not to say don't do the analysis - just be careful to do the right analysis and do it economically. Word processing programmes are now brilliant at helping you structure your report some even include an "outlining" feature that allows you to hide the detail text and see only the headings and sub-headings. So use this power and make sure your argument is sound before filling in the detail. The more sophisticated packages allow very easy inclusion of graphics and tables, but be careful not to devote hours to glorious pictures at the expense of getting the argument light. Save it, save it! save it! At least once a week we come across students in a desperate state because 'the computer lost my work'. Whatever the cause, the computer didn't - you did. You should always have a sound copy on another disc that you can return to without losing more than a half-hour's work. This is particularly critical before undertaking some major filehandling exercise, like merging data or graphics into some word processors. To be absolutely safe, check that your back-up copy works as well as your working copy before making such a leap. Develop early on a rigorous back-up procedure that works for you and stick to it, particularly when deadlines are getting tight - if anything can go wrong, that's when it will.

4. Case Study Write-ups

A summary of "DO'S AND DON'TS" DO

Think about your reader, both the imagined business person and the person grading the paper. Be clear about whether it is necessary to address separately both the firm and its industry, not forgetting rivals, before linking the analyses together to arrive at proposals. Before writing work out your answer logically - go from 'data', (numbers, facts and ideas) through analysis, using frameworks, to arrive at conclusions, which have implications for the firm(s), which suggest recommendations for action, that suggest performance outcomes.

If your proposals are dependent on unknown information, say how that information would affect your decision, and how you might gather it. Cover the full breadth of the case - all relevant sectors etc. Use simple tables and diagrams to communicate important points economically, not forgetting to say what you conclude from them. Identify key information that you need to use. Look for simple numbers that tell you something important. Set out a line of argument in headings and subheadings before starting to fill in the paragraphs with text, tables and diagrams. Be clear about which frameworks are useful for which purposes. Answer the questions, even if not necessarily in the order that they are asked. Identify the key decisions facing the firm and be clear about what the firm should do, while being cautious about future uncertainties. Set out feasible scenarios of future conditions that have important implications for the firm and your proposals.

DON'T

Repeat case facts unless adding interpretation or to emphasise important points. Give analysis without saying what it tells you and how it affects what the firm should do. Tell the reader what you are going to do, just do it. Pose rhetorical questions, especially if you fail to answer them

5. Or here's another approach.

Attacking Cases By Craig Smith 1. Read the case quickly in its entirety. Read it, don't just scan it but do not underline, highlight, or make marginal notes. Pay particular attention to the introduction and the conclusion (in these paragraphs the case writer is often summarizing the case and laying out key decisions). 2. Without referencing or re-reading the case, draft a statement of the fundamental issues/decisions. Outline your preliminary conclusions, recommendations and supporting rationale ("bullet points"). Review the case discussion questions. 3. Put the case aside for several hours, preferably overnight. 4. Thoroughly review the case exhibits for content and analyze key exhibits, especially the financial statements.

5. Rigorously re-read the case. Highlight or underline key facts, ideas, and "trigger words" (numbers and specific words, never complete sentences or paragraphs). Make marginal notes to "index" the case for future reference and record prompted ideas. 6. Draft a preliminary 1 page "idea map" of the case that contains all of the key points. (Force the content onto 1 page; but at this stage, don't be concerned with format, sequencing or categorization just get the ideas down in a concise format.) 7. Re-construct the idea map, grouping related ideas and facts. (Again, force the content to a single page.) Look for consistencies/inconsistencies in the facts, information gaps, etc. Revisit the case discussion questions: can you answer them? Do they suggest areas of analysis that you might have missed? 8. Referencing the re-constructed idea map, extract the 4 to 6 most important/pivotal conclusions. Write them down! Be able to justify their relevance, impact, and validity. 9. Re-draft your statement of the fundamental issues/decisions and pivotal conclusions/recommendations. 10. Discuss the case details in your group, then precisely outline the issues, decisions, pivotal conclusions and recommendations. Be prepared to "open" the case in class.