I am Confused! No I am Not Confused!

ORIENTATION TO THE CASE METHOD

Only the curious will learn and Only the resolute overcome the obstacles to learning. The QUEST QUOTIENT has always been more important than INTELLIGENCE QUOTIENT

What is a Case study?

A description of a management situation A teaching vehicle which has a good story, material for analysis and should pose decision question /action Example :Whether to launch a new product? Market Analysis Competitor Analysis Customer Analysis Break-even and Financial Analysis

What are the goals of a case?

GOALS Provides students the skills to be effective managers Provides a view of variety of chosen corporate setting and enables one to appreciate and grapple with management problems and for business thinking. CONSTRAINTS No one can provide skills they can only help acquire and improve skills The classroom may not be the best place to get the view of a business activity

Receiving Knowledge Versus Making It

In the lecture method, learners

receive
knowledge from an expert.

In the case method, learners

make the knowledge with

the assistance of an expert

This fundamental shift causes many new case method students to be confused and uncertain about how they should go about learning.

How does the case study compare with other teaching pedagogues?
Case Knowledge Technique Skills Philosophy Approaches     Problem Set      Role Play Lecture 

PROBLEMS ENCOUNTERED IN CASES

 Information that includes noise irrelevancies, dead ends, and false, biased, or limited testimony by characters in the case.  Unstated information that must be inferred from the information that is stated.  A nonlinear structure in which related evidence is scattered throughout the text and is often disguised or left to inference

Need For Theory in Case Analysis

Get into the car and it does not start? Engine? Fuel? Electrical System? Are Headlights On?

Is Engine Turning Over?

What is Fuel Gauge Showing?

Similarly Case Study requires strong theoretical base for Meaningful analysis

You can know the name of a bird in all the languages of the world, but when you're finished, you'll know Absolutely nothing whatsoever about the bird... So let's look at the bird and see what it's doing -- that's what counts. I learned very early the difference between knowing the name of something and knowing something.

TYPES OF CASES

PROBLEM CASE DECISION CASE

EVALUATION CASE

PROBLEM SCENARIO
It is a situation in which
there is a significant outcome or performance, and there is no explicit explanation of the outcome or performance

For example 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.

Whats The Real Problem?

Symptoms POOR MARKS Symptomatic Cure TUTORIALS Real Problem - DSYLEXIA

Immediate Treatment - SPECIAL LEARNING TECHNIQUES Long Term Treatment - DEVELOP ALTERNATE LEARNING MODEL

DECISION CASE
An executive must decide whether to:
 Launch a product  Move a plant  Pursue a merger  Provide financing for a

planned expansion
 Sign a controversial labour agreement

Solving A Decision Case

Decisions Options Decision Criteria Relevant Evidence

The goal is to determine the decision that creates the best fit between the available evidence and the criteria

EVALUATION CASE
Evaluations express a judgment about the worth, value, or effectiveness of a performance, act, or outcome SOLVING AN EVALUATION CASE Evaluation Criteria Relevant Evidence

How to prepare for a case

      

Read quickly who is the protagonist, what is his/her situation. Re-read -Highlight and Distinguish important information. Decide on the action issues. Decide what analysis questions will help solve action issues. Use data, make assumptions and answer the analysis questions. Arrive at alternative solutions. Choose a solution that best solves the action issues DISCUSS THE MANAGEMENT LEARNING

4 Ps of the case method

Preparation

Promptness

Presence

Participation

Good Case Analysis

Be complete Avoid rehashing case facts Make reasonable assumptions Don t confuse symptoms with problems Sales down symptom not problem Don t confuse opportunity with taking action Large market but no resources Make good use of evidence developed in the situation analysis Recognize Alternatives Reach a clear decision

Overview of Case Framework

Situation Analysis

Problems and Opportunities Generation and Evaluation of Alternatives

Financial Analysis of Alternatives

Decision

Overview of Analysis Structure

SITUATIONAL ANALYSIS
Nature of Demand Nature of Competition Environmental Climate Industry Cost Structure Skills of the firm Distribution structure Firm s Financial resources

PROBLEMS AND OPPORTUNITIES

Key Problem Areas Key Opportunities On Balance situation is

GENERATION OF ALTERNATIVES
Define objectives/ criteria Evaluate Alternatives

DECISION

Aim for success, not perfection. Never give up your right to be wrong Because then you will lose the ability to learn new things and move forward with your life. Dr.David Burns

ROSE - SITUATIONAL ANALYSIS



Nature of Demand
  

Product has irregular demand. It is expensive for companies to maintain top of mind awareness for unpredictable product purchases. NO VISIBLE BENEFITS OF CREATING A BRAND IN PARTY-WARE CATEGORY.

Nature of Competition
 

Private Label brands like Party! have muscle power INTENSE CATEGORY COMPETITION

Environmental Climate
   

Price sensitivity high if the order value is very high. Social gatherings on the rise. Outsourcing of parties and weddings to event management companies/ contractors. GROWING DEMAND

ROSE - SITUATIONAL ANALYSIS

 

Skills of the firm Weakness

  

No core competence in building brands and creating promotions. No market power to charge a premium Rose might be able to create a brand, what about equity?

Strengths
  

Ability to design, print, and manufacture high-quality paper goods. Rose could probably get away with a modest price premium New line s superior quality and the company s emphasis on selling its products through independent stores, where less pricesensitive consumers usually shop.

ROSE - SITUATIONAL ANALYSIS

Distribution structure
  

Rose distributes through several distributors and individual retailers. Largely sold through the push of retailers. Largely dependent on retailers to have products at the right place at the right time. BUYING POWER OF BUYER HIGH

Firm s Financial resources

 

Limited resources to build a brand. FINANCIAL MUSCLE POWER?

OPTION 1 Produce for Party! a line of premium private-label products



UPSIDE
 

 

B2B marketing. Regular Demand. Stable growth. Good returns. Rose will gain clout with Party! due to the procurement efficiencies that Party! will generate by dealing with just one vendor. Tom can use that clout to convince the chain to continue carrying the commodity party-ware products of Rose. Retailers build their own brand equity by selling top-quality merchandise. Party! will therefore need high-quality specs and creative designs. If Party! Myopically insists on cheap, low-quality products, Tom should pass on Party! s offer and take the idea to some of the other large retailers. Can launch its own brand after few years of market experience.

OPTION 1 Produce for Party! a line of premium private-label products



DOWNSIDE
       

Cannot launch Rose as a national brand for some years. Market opportunity does not wait for any player. As Party s brand gains strength, Rose will be pressured to reduce its margins. Will need to expend on technological innovations for the company s survival. Consolidation in the retailing industry is inevitable as the shakeouts in grocery show. Independents will be affected by Tom s decision to produce Party! s line. Independent retailers will need sustained marketing activity. Better packaging and point-of-sale displays by Rose will offer added value to the independents.

OPTION 2 Create a brand and invest in its development

UPSIDE
          

In every product category branding is important. Branding of commodities a trend to stay. Brands offer the comfort of familiarity in an increasingly hostile world. (Toilet Paper) Branding allows to charge a premium for the products. Parties are happy occasions, where consumers will happily spend that extra 7% to do things right. Advertising isn t the only way to build awareness. The most important branding vehicle is the product itself. The intelligent development of the brand name and innovative uses of the logo can work. A logo will serve as a brand ambassador at every party. Develop unique product packaging and point-of-sale display materials. A supplier can build a strong business by maintaining a direct relationship with consumers, over retailers heads.

OPTION 2 Create a brand and invest in its development

DOWNSIDE
 

     

Limited Market Size, so Intra category competition will be fierce. If Party! and Rose simultaneously launch branded lines, they will end up competing for the same consumer, and they will compromise the success of both brands. Rose has limited resources so ability to compete low. Branding effort unlikely to reach the intended TA as Rose has several distribution channels. Branding is not important when it comes to party ware because most people don t buy such products on a regular basis. Building brand awareness will cost the company a great deal of money Rose s rivals will outprice it in the short run. Large retailers would not allow a supplier to build supplier s brand and use premium pricing.

OPTION 3
Become the Category Manager for Party!
     

Propose that Party! appoint Rose as the party-ware Category Manager. Can create a party zone of dedicated retail shelf space in every store. Focused display will enhance sales. This cost-savings opportunity since the party zone would allow Party! to reduce the number of lines and assortments carried by Party! Rose could manage the chain s party-ware inventory and promotions. Rose s commodity products that sell only on price are ideal candidates for retailer branding.

WHAT DOES PARTY! GET  Rose will add value to their operations.  Rose will develop new products, better packaging, and merchandising  Rose will manage entire supply chain to store-level inventory.  Rose will develop a deep understanding of the consumer.

OPTION 4 DO NOTHING
Will leave the door open for rivals to exploit both opportunities.  Rival may launch a pioneering brand in the industry category  Rival may attempt a private-label development in a commodity market  Will exert pressure on Rose sales in the lone run.


OPTION 5 Do both projects

    

Capital To Be Injected Source? Segregation of resources difficult. Enhanced Capacity Enhanced Marketing Effort Confusion in Distribution

Bobs Meltdown - Problem Definition

 Bob Dunn s behavior - The big problem at Concord?  No - Jay Nguyen s at fault. Jay has clearly been struggling for some time with fundamental issues about the company and its future.  He needs to do some deep and fast thinking about where he s taking Concord Machines and what he wants from each member of his executive team.  CEOs can t have secret agendas.

Bobs Meltdown KEY ISSUES

Legal Issue  Review the potential risks the company faces should Annette bring legal action for assault or harassment. People Management Issue  Has loaded too much responsibility for profit generation to Bob.  Did not give a thorough orientation to Annette of the business, neither oriented top managers to knowledge management.  The company grapevine - People are buzzing about this incident

Bobs Meltdown- SOLUTION

 Contingency plans need to be put in place immediately for legal issue.  Explain to Annette needs to understand that she made big errors.  Jay should have Annette formulate a detailed strategy for engaging and involving her peers in KM.  He needs to explain to Bob the risks the company faces as a result of his actions and seek apology.  He needs Bob to delegate day-to-day decisions and firefights to his lieutenants; Bob cannot, and should not, continue to do everything himself.  Issue resolution needs to be communicated through the ranks.  Draw-up detailed business plan for Concorde

TRAP EASE - SYNOPSIS

Trap Ease Group has hired Martha House to market a patented, innovative mousetrap Target Group is housewives whom it believes will be attracted to the safety and cleanliness that its trap offers. (The trap traps the mouse alive with no baiting and no mess) The trap is marketed directly to large retail store chains such as Safeway and Kmart. The traps are sold in packages of two and are priced at $2.49 about five to ten times the price of the traditional, spring-loaded trap. Promotion is through trade shows and personal selling. Trap Ease Symptoms - Sales are disappointingly slow

TRAP EASE - SITUATIONAL ANALYSIS

CUSTOMER ANALYSIS Target Group -housewives as they are reluctant to set and bait traditional spring-loaded traps. Also concerned about the safety of children and pets that may be around the home because once the springloaded trap has caught a mouse, one often has a mess resulting from its action. Besides being unpleasant, the mess presents health concerns due to the diseases, which may be carried by mice. Identified need gap for the TG Safety and Cleanliness

TRAP EASE - SITUATIONAL ANALYSIS

COMPETITOR ANALYSIS Trap Ease faces competition from both price ends: Conventional Mouse Traps target Low Income Consumers while Exterminators target High Income Consumers. Trap Ease Benefit/Sacrifice superior to competitors. ratio not

TRAP EASE - SITUATIONAL ANALYSIS

COMPANY ANALYSIS Product: Trap-Ease is a patented mousetrap that is designed to allow consumers to avoid the safety and cleanliness problems associated with traditional mousetraps. Problem Area: Problem of a live mice in the trap for hours together. Price: $1.25 per trap, when sold in packages of two is five to ten times more expensive than traditional traps. Problem Area: More mice more traps Higher cost of eradication.

TRAP EASE - SITUATIONAL ANALYSIS

COMPANY ANALYSIS Place: Products are distributed directly to national chains. Problem Area: Company distribution facilities. lacks truck and

Promotion: Appearances at trade shows and point-of-purchase display. Middlemen advertise Problem Area: No advertising targeted to the end-consumer.

TRAP EASE- PROBLEMS AND OPPORTUNITIES

KEY PROBLEM AREAS No Target Group Insights 7 O model Market Size for traps / mice termination not known Marketing Mix Strategy needs correction KEY OPPORTUNITIES Patented Innovative product Demand for traps exists ON BALANCE SITUATION Is viable with corrections in marketing program

TRAP EASE-SUGGESTED ALTERNATIVE 1 TG = Housewives Need Gap = Safety and Cleanliness Demand = Seasonal Buying Behavior = Emergency Product Current marketing mix unattractive Prices need to be lowered as value delivered low. Huge resources required for advertising and reaching to end-consumer Huge resources required for setting up national distribution system May therefore not be financially viable

TRAP EASE-SUGGESTED ALTERNATIVE 2

Need Gap = Disease Control where food is handled and poisons / rat control measures may be inappropriate and rat disposal may not be a problem. Demand = Synchronized all year Buying Behavior = Industrial Supplies, not much price negotiation, access to supplier important.

TRAP EASE-SUGGESTED ALTERNATIVE 2

POTENTIAL TARGETS Restaurants because of the presence of food also because they cannot use chemicals near food. Food wholesalers or warehouses where large quantities of food may be stored in the channel of distribution. Food manufacturers also need rodent protection. Research laboratories because when rats run loose a researcher would be interested in the ability to capture a mouse without harming it. Exterminators because they must work in areas where chemicals would not be allowed and traditional traps would have the same messiness problem

TRAP EASE-SUGGESTED ALTERNATIVE 2

MARKETING MIX Product: Redesign develop larger sizes of the trap Price: Industrial buyers may negotiate price. Work on costs.Lower distribution /selling expenses by dealing directly Place: Customers small in number and not very dispersed. However no field Appoint Sole Selling Agents force.

Promotion: Trade promotion strategy. Appearing at trade shows avoids pursuing expensive media options.Advertising in trade magazines. Sell to exterminators and they become the sales force