Logical Structuring

Case Competition Training

Strategy and Operations
January 8, 2008

2005 Deloitte Inc.

Logical Structuring Agenda

Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Dos and Donts
Appendix

Purpose
The purpose of this session is to help prepare you for this weeks case
competition.

Objectives
By the end of this session you should have a better understanding of:
How to logically structure a case presentation:

Logical Structuring & Storyboarding

How to use quantitative and qualitative data to support your research

Research Tips

Example

How to execute a successful presentation:

Professionalism

Examples of previous presentations:

DOs & DONTs

Logical Structuring Agenda

Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Dos and Donts
Appendix

Why does structure matter?

1. Makes the message precise
Forces the writer to be dead clear about what they are
communicating to the reader, preventing messages that are unclear,
unintended, or intellectually empty
2. Reveals gaps in thinking
Enables the writer to identify gaps by anticipating and responding to
the readers questions before the communication is delivered
3. Provides clarity to the reader
Prevents the reader from working to understand the message,
thereby eliminating the possibility that your message is misunderstood
or ignored entirely
Memo A
John Collins telephoned to say he cant make the
meeting at 9:00. Hal Johnson says he doesnt mind
making it later or even tomorrow, but not before
10:30 and Don Clifford wont return from Frankfurt
until tomorrow late. The conference room is
booked tomorrow, but free on Thursday. Thursday
at 11:00 looks to be a good time. Is that okay with
you?

Memo B
Could we reschedule todays 9:00 meeting
to Thursday at 11:00? This would make it
more convenient for Collins and Johnson,
and would permit Clifford to be present. It
is also the only other time this week that the
conference room is free.

The Pyramid Structure

Governing Thought:
States the answer to the question
raised in the readers mind

Key Line:
Major points which, taken
together prove the answer

Support:
Data and facts which
support the key line

Explains how
or why

An Unstructured Communication

ABC should go online

and the first priority should be to
defend its current market share

Primary benefits
of the internet
strategy

Opportunities
and threats

ABCs
ABCs current
current
ABCs
Without
ABCs
Without an
an
customers
customers are competitors online channel ABCs online
competitors
ABCs online
more
more likely
likely to
to are increasing
ABC
risks
sales
in
are
increasing
ABC
risks
sales
in 2005
2005
shop
shop online
online
their online
losing
some
could
reach
losing
some
could
reach
than
than the
the
product
customers
$100mm
product
customers to
to
$100mm
general
general
assortment
competitors
assortment
competitors
population
population

Defend
Defend
market
market share

Grow
revenue
revenue

Develop
Develop
deeper
deeper
relationships
relationships
with
with
customers
customers

Support
Support ABCs
operating
operating
strategy
strategy

A Structured Communication

Acme can reduce costs by

$10mm in the next 2 years
through some operational
improvements

Governing Thought:

Key Line:

Support:

Re-engineer core
functions to save $5mm

Evaluate
Evaluate
internal
internal
cost
cost of
of
core
core
function
function

Compare
Compare
cost
cost of
of
function
function to
to
best-in-class
best-in-class
benchmarks
benchmarks

Adopt
Adopt best
best
practices
practices
based
based on
on
benchmarks
benchmarks

Outsource non-core
functions to save $3mm

Differentiate service
levels to save $2mm

Evaluate
Evaluate
cost
cost and
and
service
service
level
level of
of
potential
potential
partners
partners

Determine
Determine
economic
economic
level
level of
of
service
service for
for
each
each
segment
segment

Select
Select
non-core
non-core
functions
functions

Choose
Choose
one
one
partner
partner for
for
each
each
function
function

Segment
Segment
customers
customers
by
by value
value

Shift
Shift lower
lower
value
value
segments
segments
to
to lower
lower
cost
cost
channels
channels

Three Key Rules to Apply When Building a Pyramid

1.

Ideas at any level must be summaries of the ideas grouped below

Derived from high-level ideas

Point of a paragraph is a summary of the sentences it contains

2.

Idea in each grouping must always be the same kind of ideas

All ideas are from the same logical grouping

Label idea with a plural noun

3.

Ideas in each grouping must be in a logical order

Deductively

Chronologically

Structurally

Comparatively

Copyright 2006 Deloitte Development LLC. All rights reserved.

Elements of the Introduction

Situation:

Governing Thought:
Answer

Key Line:

Support:

10

A statement about the

subject with which you know
the reader will agree

Complication: The complicating event that

create the tension in the
story
Question:
The implicit question that
results from the complication

Structuring a Response to How

Acme must develop a

value proposition tailored
to the coyote market.

Governing Thought:

S: Acme must increase its

focus on the coyote market
C: Acme is not currently
focused on the coyote
market
Q: How can Acme focus on
the coyote market?

How?

Key Line:

11

Understand the unique

needs of coyotes

Adapt product line to meet

coyote needs

Educate coyotes on Acmes

ability to meet their needs

Step 1

Step 2

Step 3

Structuring a Response to Why

DrugsRUs should spend

$25 million to accelerate
the approval process for
Antizak

Governing Thought:

Why?

Key Line:

12

S: Approval for DrugsRUs new

lifestyle drug Antizak is
taking longer than
expected
C: DrugsRUs can spend $25
million to accelerate the
approval process
Q: Should DrugsRUs spend
$25 million to accelerate
the approval process?

The Antizak market is

expected to top $1 billion
per year

Earlier approval allows

DrugRUs more time
before patent protection
expires, which is worth
$200 million in profit

Competitors are
developing a substitute
that may capture the
market if launched first

Reason 1

Reason 2

Reason 3

Which Question is Raised - How or Why?

S:
C:
Q:
A:

The plant is not meeting its widget production goals

The production line is frequently stopped because of insufficient parts
What should the plant do differently?
The parts procurement process needs to be redesigned to reduce fulfillment time

S:
C:
Q:
A:

Sows Ear Inc. developed a silk purse product line 2 years ago
Since then, the silk purse division has been unprofitable
What should Sows Ear do?
Sows Ear Inc. should abandon its silk purse product line

S:
C:
Q:
A:

ABC, a book retailer, is considering developing an online channel

The online retail book market is dominated by 2 strong players
Should ABC develop an online channel?
Yes, ABC should go online

S:
C:
Q:
A:

You have undertaken a number of initiatives to improve customer service

Customer service continues to result in decreased customer satisfaction
How can we improve customers service?
We must redesign customer service

13

Clarifying Grouped Ideas

List the Points

Activities:

14

Synthesize
findings from
interviews,
research and
analysis
Create a list
of key points

Identify the Type

of Point

Put the points

into categories
by defining the
kind of problem
being discussed,
attempting to
use similar level
of abstraction
across
categories

Summarize the
Points

Write a
sentence that
states the
essence of
each category

Order the Points

Put the points in

logical order,
such as order of
importance or
time order

The Importance of MECE

Example

Mutually
Exclusive

Do any of the points

overlap?

MECE

Making Dinner:
Select menu
Buy ingredient
Prepare courses
Mobile Phone Types:
Analog
Digital
GSM

Collectively
Exhaustive

Have all possibilities

been covered?

Reasons to acquire competitor ABC:

Complimentary customer base
Superior technology
Digestible size

Points across horizontal levels of the pyramid should be MECE

(Mutually Exclusive, Collectively Exhaustive)

15

Storyboarding
Creating a storyboard provides an outline for the presentation and the path you will follow:
Uses Pyramid Structure as a foundation
Maps out the storyline of a presentation
Establishes team and judging panels expectations about what is to be produced and delivered
Helps organize work and define data needs
Establishes evaluation frameworks and criteria used in the assessment
Facilitates greater productivity and higher quality
Keeps an engagement focused

16

Creating the Storyboard

Governing Thought:

Key Line:

Overall
Overall costs in Mexico are
75%
75% lower
lower than
than in
in
Wisconsin,
Wisconsin,
resulting
resulting in
in recovery
recovery of
of
moving
moving costs
costs in
in 6 months

Cutting
Cutting Edge
Edge Corporation
Corporation
should
should close
close its razor
manufacturing
manufacturing operation
operation
in
in Wisconsin
Wisconsin and
and
manufacture
manufacture razors
razors in
in
Mexico
Mexico

Mexico
Mexico provides an
operating
operating environment that
is
is as
as stable
stable as
as Wisconsin,
Wisconsin,
ensuring
ensuring continuity
continuity of
of
operations
operations

Support:
One page for each idea

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Situation
Complication
(Question)

Page 1

Page 2

Manufacturing
Manufacturing technology
technology is
is
more
more advanced
advanced in
in Mexico
Mexico
than
than in
in Wisconsin,
Wisconsin, enabling
enabling
Cutting
Cutting Edge
Edge to
to leverage
leverage
leading
leading edge
edge capabilities
capabilities

Each
requires
a set-up
page

Logical Structuring Agenda

Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Dos and Donts
Appendix

18

Quantitative and Qualitative Observations

Its important to use both quantitative and qualitative observations to support
your recommendation
Qualitative data and analysis is required as hard justification for your
recommendation (e.g., dollar savings, head count reduction)
Qualitative data can be used to support and explain the meaning of quantitative
research
Combining methods leads to a balanced, persuasive argument

Quantitative

Definition

Examples

Sources

Numerical and statistical

Firm stock value

Most suitable when the

objective is to measure or
quantify data

Market share

financial
statements

Net Present Value

Answers the what questions

Qualitative

surveys
censuses

Interpretive and insightful

Pending lawsuits

press releases

Most helpful when the goal is

to understand situations or
provide context

Consumer trends

annual reports

Answers the how and why"

questions
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statistical studies

Market perception industry white

papers
analyst reports

Research Tips
Structuring your research using a defined approach can help you research
effectively in a short period of time

Several models can be applied to help you structure your research. One
example is Porters Five Forces

Your approach to case research should mirror the logical structuring of your
presentation

Governing Thought (Recommendation) Key Lines Support

But how do you know what your recommendations are before conducting
your research?
Answer: Guess.

Based on your initial impressions of the case, generate some hypotheses on

what you think the company should do. Then, based on your hypotheses,
look for supporting evidence

The advantage of this approach is that it can dramatically reduce the amount
of time spent on research. You will be focusing your efforts on facts that
support your hypotheses

Begin by creating a research log

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This is a file that documents all of the research sources that have been
reviewed and includes a summary of key findings, facts and sourcing
information. A research log allows for easy dissemination of key findings
saving time. Assign a format and owner up front

Example

21

Logical Structuring Agenda

Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Dos and Donts
Appendix

22

Professionalism Execution of the presentation

There are two key avenues for case competitors to convey professionalism:
(1)The execution of the presentation
(2)The presentation materials
Assign roles early subject matter experts and presenters
Who answers questions on which topics?
Rehearse the presentation to clearly define:
Sequence what order will the team members will present in?
Duration how long should each section take?
Hand-offs how will each section of the presentation smoothly and
logically transition from one team member to the next?
Contingency plan which sections could be reduced or eliminated?
Pay special attention to numbers, statistics, charts and analysis
Inability to convincingly defend figures is a common pitfall
Be able to recall sources and assumptions without having to use
reference material

23

Professionalism Presentation Materials

Alignment
Check text and object alignment to ensure a consistent look across slides
Ensure headings and text boxes are in the same place, as you flip through
your slides
Colour Scheme
A muted colour scheme is generally recommended
Avoid dark backgrounds, very bright colours or too many colours
Ensure that your colour scheme both prints well and projects well
Font
Sans-serif font styles tend to work best: Arial, Verdana, Tahoma
Font size should be readable, but not too large (min ~12pt)
Consistency
Be consistent with font size, font style and colour scheme
Be consistent with punctuation at the end of bullets - Either use it or do
not, but do not use it inconsistently
Be consistent with overall structurei.e. use of tag lines versus just
headers
Use the slide master to create a template to ensure consistency
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Logical Structuring Agenda

Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Dos and Donts
Appendix

25

DOs & DONTs

DOs
Brainstorm as a team to develop a strategy and agree to an execution plan
Divide and conquer the work to efficiently execute on the plan
Determine required tasks, dependencies and agree to roles for each team
member
Have each person create their slides based on an agreed upon template
(designed in Slide Master)
Avoid version control issues by having one person own the master and others
provide send over their slides for inclusion in the master
Proof-read your presentation for spelling, grammar, content and logic
Recognize each others strengths in determining roles for the presentation
Group members should present material they are most comfortable with
Confident speakers can present larger portions of the presentation
Leave time to rest the night before the presentation

26

DOs & DONTs

DONTS
Dont fall victim to analysis paralysis

Instead, set a deadline for making a recommendation decision and stick to

it

You will not come up with a recommendation that is irrefutable and 100%
supported by the facts, so at some point, your group must make a decision
and run with it spend the rest of the time supporting your decision and
creating a compelling story

Dont let disagreements impact your teams dynamics

Agree upfront on a conflict resolution method (e.g. vote or unanimous

agreement)

Disagreements can lead to productive discussions, so take a few minutes

to hear each point of view and then make a decision on next steps

Dont leave facts or figures unsourced always include references in the

research log for easy footnoting in your final presentation
Dont leave formatting until the end

27

Last Years Case Competition Topic

Question
In early 2006, managers in technology and media companies around the world
observed Google with awe, envy, and fear. The companys opportunities seemed
boundless. What would Google do next?
Two Options
One option was to stay focused on the companys distinctive competence:
developing superior search solutions and monetizing those solutions through
targeted advertising.

28

Alternatively, Google could branch into new arenas:

Build Google into a portal like Yahoo! Or MSN by aggregating content into
thematic channels

Extend Googles role in e-commerce beyond search into a more active

role as an intermediary facilitating transactions

Challenge Microsofts hegemony over the PC desktop by developing

products to compete with Office and Windows

Evaluation Criteria
Analysis

Presentation

Identified key problems

Spoke clearly and concisely

Used supporting facts/data

Structured storyline well

Drew accurate conclusions

Slides were visually attractive

Considered risk

Showed enthusiasm and professionalism

Offered original insights

Recommendation

Question & Answer

Followed logically from analysis

Answered question posed

Dealt with all issues raised

Provided convincing explanations

Used decision criteria

Showed sounds business judgment

Admitted weakness

End result was practical/realistic

Answered as a team

29

Last Years 2nd Place Case

30

Bright Colour Scheme

31

32

33

1. Communicate recommendation in the

beginning of the presentation
2. Set expectations

34

35

36

37

Evaluate each recommendation

against the 3 criteria

38

39

40

41

Data Sourcing

42

Pretty Pie Chart

43

44

45

46

47

48

49

Last Years Winning Case

50

Terry Huang
Aron Lau
Ke Zhang
Godmans Chow

What is the situation?

Question: What should Google do?

Complication: Company is facing boundless
opportunities.
Stay focused with Googles distinctive competencies.
Branch into new arenas.

Recommendation: Google should stay with its core

competencies providing superior search solutions

$6.5 billion by end of 2011

Introduction

New frontiers?

Growth Strategy

Agenda

Growth Strategy

Growth Strategy

Implementation

Overview of the approach

Measurement Metrics:
Market Potential

What should
Google do?

Fit with Mission

Use Pyramid
Structure to
Frame the
Storyboard

Extend
Googles core
search &
targeting
competencies.

Option 1

Branch into
new areas

Build Google
into a portal

Extend
Googles role
into ecommerce

Develop
Products to
Compete with
Office &
Windows

International
Search

Mobile
Advertising

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Introduction

Option 2

Narrowcasting

Implementation

Google should stay focus with its core competence

Driven by Company Philosophy

It is best to do one thing really, really well developing superior search
solutions

Market Potential
Has opportunity to further monetize its search solutions through
targeted advertising

Charts data sourced from provided Business Case Description

Introduction

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

Google should not branch into new arenas. The three arenas proposed deviates from the company
mission, or have tremendous risks (market potential).

Googles mission - To organize the worlds information and make it

universally accessible and useful.
Inconsistent Font
Build Google into a
portal

Extend Googles role in

e-commerce

Develop products to
compete with Office and
Windows

Were not in the portal

business, were in the
business of making all
the worlds information
accessible and useful.

Acting as an
intermediary facilitating
transactions (Google
Checkout) is consistent
with the mission of the
company.

There is strategic
leverage in building an
ecosystem around
content and advertising
that is an extension of
our search mission.

- Schemidt

Introduction

New frontiers?

- Schemidt

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

Google should not extend in e-commerce or develop products to compete with Microsoft due to the
high risks (market potential) involved.

Extend Googles role in e-commerce

1. Strong competition:
eBay has 39.2% of the e-commerce market. eBay facilitates eCommerce by
offering tools such as PayPal1.
PayPal has 24% market share of U.S. online payments market. It is eBays
major electronic payment method1.
2. No incentive for PayPal users to switch to using Google Checkout
3. Despite Google Checkouts launch in June, 2006. PayPal posted revenues of
$417 million, a 37% growth rate compared with 2005s fourth quarter2.
Inconsistent
Alignment

1 Wikipedia.org
2 CNN.com
Introduction

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

Google should not extend in e-commerce or develop products to compete with Microsoft due to the
high risks (market potential) involved.

Develop products to compete with Office and Windows

1. Strong competition: Microsoft
2. Difficult for new entrant: OpenOffice currently only has 14% of the enterprise
software market as of 2004 Hard to convince user to switch to new
desktop applications1
3. Relatively small potential revenue
The market for Office is only an annual revenue of $1 billion1
Too small of a market size comparing to Google's currently advertising business
(140 million vs. 6.1 billion)

1 Wikipedia.org

Introduction

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

Google should continue to strengthen its expansion into the international online advertisement
market.
U.S. internet user is 30% of all users in the
world.
By 2009, it will decrease and become
27.7%.

U.S. online ads spending slowed down

recently while online ads spending from the
international market are increasing at a
faster speed.

eMarket.com

eMarket.com

The Winning Case Used

Extensive DATA to Back
Up its Statement
Introduction

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

International Online Advertising Entry Analysis

Who is the
competition?

How do their
products &
services differ

What are the

potential
barriers to entry

How does Google

become a player?

What are the risks

Yahoo, MSN,
Local search
engines (Baidu)

Google's
competitors
entered the
market earlier,
and tailored
products to adapt
to local
customers.

Perhaps
government
regulations
(censorship
issue in China)

Partner with local

companies,
leverage our
leading technology,
and adapt to local
environment.

Late to the game.

Lack of
understanding of the
local environment

Introduction

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

We believe the emerging mobile advertising market is a fit for both Googles technological expertise
and philosophies.
The potential of the mobile user base is
promising, projected to rise to 1 billion
users of 3G data services by 2011.

Mobile advertising revenues is

expected to reach $2.9 billion
dollars by 2011.

More Data!!

Asia Europe Business: 3G in the world : June 20th 2006

Introduction

New frontiers?

Growth Strategy

TVweek.com: Nov 15th 2006

Growth Strategy

Growth Strategy

Implementation

Mobile advertising market analysis before entry.

Introduction

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

We believe the emerging narrowcasting market is a fit for both Googles technological expertise and
philosophies.
Narrowcasting revenue in the US is
projected to reach $1.2 billion by
2009 - >$700 million in
network/software operations.

Targeted online gaming advertising worth

is projected to be worth $0.5 billion by
2010.

Even More Data!!!

CapV InfoStats March 2005

Introduction

New frontiers?

Growth Strategy

Businessweek Jan 2007

Growth Strategy

Growth Strategy

Implementation

Narrowcasting market analysis before entry

Who is the
competition
?

How do their
products & services
differ

What are the potential

barriers to entry

How do we become a player?

What are
the risks?

Inaccurate
forecast of
market.

EK3, Scala,
ipSigns

Introduction

Current infrastructure
of fixed targeted
content that is not
user targeted

New frontiers?

Privacy concerns,
government billboard
regulations, aesthetic
trends

Growth Strategy

Partner with existing players,

leverage Googles user targeted
algorithms for more targeted
ads.

Growth Strategy

Growth Strategy

Changing
government
regulations
on public
ads.

Implementation

Google can approach to enter the international online searching and advertising market with relative
ease.
To continue strength its expansion in the international online advertisement market
Identify potential international market to expand its service
Conduct market research to understand customer behavior
Develop localized applications and adapt to taste of local customers
Cooperate with local business (partnership, M&A)

Introduction

New frontiers?

Growth Strategy

Growth Strategy

Growth Strategy

Implementation

Google can approach to enter the narrowcasting and mobile advertising market with relative ease

Inconsistent
Font

Tie into the current and emerging markets with

Googles current technology and infrastructure.
Froogle

Google
Maps

Google
Mobile

Google
News

Blogger

Google
Server
Retail
Targeted User
System
Corporate
Group/Individual
Integrator
Hospitality
Services
Public Spaces
Advertiser/Contents
____
Gamers
Anyone
____
Mobile device users

Introduction

New frontiers?

Growth Strategy

Growth Strategy

San Fran Wifi

____
Game developers
____
Mobile service providers

Growth Strategy

Implementation

Googles projected growth in the next 5 years

International
Search
$4.98B ($2.4B
market with 20%
annual growth)

Recommendation
Again Backed Up
by DATA!

Mobile
Advertising :
$1.0B(assuming
1/3 market
share)

Introduction

New frontiers?

Clear Visual
Representation
Combined
revenue growth
of an additional
$6.5B by the
end of 2011.

Growth Strategy

Growth Strategy

Narrowcasting:
$0.5B
(assuming 1/3
market share)

Growth Strategy

Implementation