International business case study

The study of problems andsolutions through the case method has long been a training feature of law and medicine and is now used to train managers and administrators in industry and gover

BUSINESS CASE STUDY

The Association of Business Executives

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Advanced Diploma in Business Management

INTERNATIONAL BUSINESS CASE STUDY

Contents

4 Solving the Case Study Problem: The Examination 19

The Case Study Examination 21

Case Study Learning and Management 27Your ABE Examination – Checklist 28

Study Unit 1

An Introduction

Contents Page

First Reading – the Case as a Scenario 4

2 An Introduction

A WHAT CONSTITUTES A CASE?

The Case Study method of training is now extensively used in professional managementtraining to give the trainee an insight into "real life" situations The study of problems andsolutions through the case method has long been a training feature of law and medicine and

is now used to train managers and administrators in industry and government by enablingpersonnel to obtain historical experience from case analysis

Simply, this means asking the questions:

 What has happened in the past?

 What is the current situation?

 What should be done now and for the future?

In detail, you, as case analyst, are required to bring to the study the knowledge of businessprinciples and techniques, understanding of human behaviour in the work environment, andability to assess the pressures and influences which affect an organisation

A case, therefore, is not just a limited description of a situation, an example crystallised andstatic, but is dynamic in the sense that it is the result of past events and changes in

organisation or personnel, and is subject to future influences from within and from outsidethe organisation which may affect decisions

In the main, cases are actual "real-life" situations studied within an organisation, often by anindependent case writer, and created on the basis of information and data obtained,

preferably factual but sometimes assumptions resulting from discussions with personnelinvolved in the case situation

B PREPARING FOR YOUR EXAM

The ABE Examination Board supplies the actual case upon which you are to be examinedapproximately four weeks before the actual examination date, to enable you to study thecase and make an assessment of it You may take notes and refer to them in your

examination itself This booklet will enable you to be thoroughly prepared for your exam.Some of the criteria used in assessing Case Study submissions are shown in Table 1.1

An Introduction 3

Table 1.1: Criteria For the Grading of Case Studies (Good and Bad Examples)

Grade Knowledge and

Comprehension

Analysis and Application

Communication Skills

1

(Distinction)

Quotes appropriatetheoretical knowledgee.g theories andtechniques

Demonstratesadequatecomprehension ofknowledge, e.g by use

of illustrative example,analogy or explanation

Appliestheories/principlescorrectly to thecircumstances quoted

Analyses the situationand inter-relatesmaterial from variousparts of the case

Considers andevaluates alternativesolutions where theseexist Evaluation leads

to selection of afeasible solution (notnecessarily the 'best'solution)

Logical structuring ofthe entire answer

Analysis and evaluationare developed

comprehensively, i.e

no faults or gaps in thelogic Answer is welllaid out, well presented(use of headings,illustrations, tables, etc)and well written

(legible, grammaticallycorrect and effectivestyle of writing)

2

(Very good

pass)

Quotes appropriatetheoretical knowledgee.g theories (correctlyattributed), principlesand techniques

Demonstratesadequatecomprehension ofknowledge, e.g by use

of illustrative examples,analogy or explanation

Application oftheories/principlesshows someweaknesses, e.g

failure to recognise alllimitations or to use allevidence available

Alternative solutionsare not fully evaluated,even if the 'right'solution is reached

Logical structuring ofthe entire answer

Analysis and evaluationare developed

comprehensively, i.e

no faults or gaps in thelogic Answer is welllaid out, well presented(use of headings,illustrations, tables etc)and well written

(legible, grammaticallycorrect and effectivestyle of writing)

4

(Marginal

fail)

Shows a reasonablegrasp of basictheories/principles butsome elements appear

to be lacking

Comprehension is notfully proven, e.g basicfacts are quoted(correctly) but notexplained, noillustrative examplesused

Circumstancesinadequately analysedand hence fails torecognise majorproblems which need

to be considered

Does not demonstratethe ability to applyknowledge whichhe/she obviously has in

a practical way (theseare common faults,often demonstrated bymere repetition ofmaterial from the case

Answer is adequatelypresented, given thelimitations of analysisand application

Structure is poor,although knowledge isreasonably clear

Grammar is at amarginal level

4 An Introduction

Grade Knowledge and

Comprehension

Analysis and Application

Communication Skills

5

(Clear fail)

Answer revealsfundamental gaps ormisunderstandings inbasic knowledge, andfails to reveal adequatecomprehension even ofcorrect theories andprinciples

Poor analysis ofcircumstances

Applications totallyunsatisfactory due to alack of knowledge andcomprehension

Answer very poorlypresented, and difficult

to follow

C PRELIMINARY STUDY

First Reading – the Case as a Scenario

In order to relate your studies to a practical case, we have included an example of our ABEInternational Business Case Study and suggested answers in the appendix at the end of thisworkbook You should use it for reference and to test your understanding of the principles ofcase analysis and examination techniques

The first reading should be a "read through" only Do not consciously try to make any

judgments at this stage They will come later The object is to read as you would read aplay – the case constitutes a scenario in which previous events and current situations

provide a historical background and present the personnel and their relationships as the playopens The Case Study is the first act Read it informally, without pausing, and delay yourformal study so as to allow a period during which you digest what you have read In thisway, you give time for ideas to develop Do not be tempted to grasp a point which appears

to you to have immediate interest; it cannot be studied in isolation and so it is better to obtain

an overall impression of events at the first reading and study the detail later when you lookfor problems, recognise them and consider what to do

D YOU AS CASE ANALYST

Your initial reading of the Sample Case will provide a general picture of developing eventsand the personnel involved, against a background of corporate development over a period oftime

Exhibits in the form of performance data and other documents are given as a source of

information, to indicate the degree of sophistication of management of the organisation.From this information, you must assess the strengths and weaknesses of the enterprise, theextent of problems existing, and how to remedy them

You will learn to:

(a) Understand the underlying causes of problems appearing in failures of performancethrough organisational or personnel inadequacies;

(b) Evaluate facts and opinions and differentiate between them;

(c) Determine

 What is happening and why;

 What should be happening;

An Introduction 5

 How to remedy the situation

We shall proceed as follows in the ensuing Study Units:

 Case presentation, in which you will study the purpose and objectives of case study

and the methods of dealing with particular features of the case;

 Evaluation of the data and information provided;

 Identification of the problem, not always immediately apparent as the root cause but

seen in the inadequacies of performance and morale;

 Analysis of the problem situations and their cause by assessment of:

(i) Organisation,

(ii) Personnel,

(iii) Systems and procedures,

(iv) Corporate strengths and weaknesses,

(v) Barriers to co-operative effort

 Solving the problems, testing the creative ability of the analyst to see potential

alternative solutions and predict results, subject to possible contingency factors

The Case Study method of training is an extension of the conventional teaching methods oflectures/study manuals and note-taking It provides an opportunity for those of you with awide study background to become involved in a "real-life" situation and, by analysing

problems and seeking to solve them, obtain an understanding of the causes of such

problems first-hand and the confidence to make recommendations and decisions It is, infact, a replication of the process followed by most Consultants

You must consider what the case writer is trying to convey to you, in a teaching context Thefirst reading of the sample case may lead you to the point of view that the problems centre

on human resources and their attitudes and relationships This may be so, but you will findother reasons within the organisation as a whole which will lead you to take a wider view andunderstanding of where matters went wrong, what ought to have been done and what youconsider should be done

The successful operation of many businesses is based on a wide business understanding ofeconomics, business law, trade conditions and the knowledge that success depends on theinter-dependency of all the disciplines which make up the total enterprise Interface barrierswithin an organisation, whether vertically between manager and subordinate or horizontallybetween managers, should have no place in an organisation directed towards the benefit ofall involved

E CHECKLIST

1 From your first reading, what is your general assessment of the case?

2 Have you any views on possible organisational problems?

3 Do you consider that in further detailed studies you will be faced with additional

problems?

4 What are the strategic implications of this global venture?

6 An Introduction

Related Information and Data 10

8 Case Presentation and Content

A CASE PRESENTATION

Case Features

Whilst each case is different in form and detail, there is a fundamental basic structure whichenables the analyst to assess the main activities involved In a study of a global tradingorganisation, for example, the main features presented will be:

 Current situation within the company and the business environment

 Organisational, objectives and strategies

 History of change and development

 Human Resources – attitudes and relationships

 Functional performances related to company strategies

These features are presented in different degrees of intensity and detail according to theteaching purpose of the case writer and real life events which form the structure of the case

It is the analyst's aim to understand and evaluate the main features of the case and thedegree of emphasis given to the constituent parts, identifying problems and restructuring toimprove performance

The study of a case which emphasises a particular area of an organisation is directed to

assessing the extent to which this major resource area provides an efficient service and

contributes to organisational profitability From the evidence given, you must determine

how far these two objectives are fulfilled and the reasons for any shortcomings which youfind in the purchasing operations, taking into account the company organisation and

operations as a whole

We look, therefore, not only at the strengths and weaknesses of the discipline concerned,but at those of the company in terms of its organisation, plans and objectives, human

resources, direction and performance

Framework of the Case

At this stage, having obtained a general idea of the situation, you will find it useful duringsubsequent readings to make notes of ideas which come to mind These need not

necessarily be in any particular order initially, but will form the basis for a more formal

(a) Current situation

 What sort of organisation are you dealing with?

 Is it large or small?

 What does it do?

 Where does it operate?

 Who are the key players?

 How long have they been there?

 What are their aims?

Case Presentation and Content 9

(b) Company organisation

 How is the company controlled?

 Who makes decisions?

(c) Company sites

 Where is the company situated?

 Is there more than one site?

 Does this cause logistical problems?

(d) Company staff

 How many are there?

 Over how many sites?

 What sort of age groupings/nationalities?

(e) Company problems

 What problems have you identified so far?

 No doubt there are other problems, not yet identified

B EVALUATION OF INFORMATION AND DATA

Extent and Adequacy

The information given in the case may, in some respects, be sufficient, but there may beinadequate overall information and data to make a judgment

This is particularly so in the provision of data Sets of figures and general summaries maynot identify clearly the objectives, rate of change and extent of change The use of keyratios to indicate operating performances is a valuable aid to management evaluation ofperformance, and, if not given in the case details, should be computed where possible fromthe information given

It is useful for you to work out this information, to be retained in your dossier of notes bothfor the more detailed analysis to follow and for examination purposes The introduction oftechniques in support of judgments will indicate to the examiner the extent of the analyst'swork

Check your case to assess the performance figures given to you in the case and how youcan obtain more sensitive indicators, both operating and financial

Collection and Arrangement

The case presentation notes in the earlier part of this study unit show how basic informationcan be collated to produce a history of events and the involvement of personnel You mayfind this arrangement of the main features of the case a suitable way of making preliminarynotes from which the detailed analysis can proceed Remember that you must take into theexamination room the Case Study supplied to you in advance for study and analysis uponwhich you are to be examined You may also take with you any notes, references and books

to help you in answering the questions

It is prudent therefore to have notes and references carefully arranged for easy access toavoid unnecessary delay in looking up material

10 Case Presentation and Content

You may find it useful to have noted the main features of the case, describing:

(a) Organisation and management

The structure should be charted, if not already given in chart form in the case details

(b) Time-span

The history of events as far as they are chronicled involves:

 Foundation of the company

 Development and changes

 Acquisitions

 Divestments

This will help you to make judgments on corporate objectives

(c) Human resources

List the people involved:

 Their positions in the company and in transactions with the company

 Attitudes

 Successes and failures

 Other information you think relevant

(d) Performance

Outline in broad terms the fulfilment of objectives and shortcomings

By extracting such points of reference from the case details, the analyst is able to:

 Relate personnel to circumstances;

 Investigate personnel attitudes and relationships;

 Deduce possible areas of conflict within the organisation and external pressures

affecting performance

Related Information and Data

(a) If applicable, note the changes in personnel and organisation upon results

(b) Ask questions; study your notes for evidence to support your judgments and

predictions

(c) Your notes, both general and detailed, will provide the basic data upon which to make

an evaluation as a further step towards the final analysis and recommendations

In many ways, the Case Analysis is similar to the procedures for Operational Research:

 Identify the problem,

 Choose the optimum solution

It may equally be considered the route to successful decision-making in complex situations

Case Presentation and Content 11

C CHECKLIST

If you have not already done so, try to visualise the company described in your case

Although you may not work in this particular industry, you no doubt have some experience ofthe sort of problems which can occur

Now recall the summary we made in Section A of this Study Unit What questions come intoyour mind when you review the case so far? At this stage I would give you the followingthoughts; you will undoubtedly have others:

1 Organisation and Management

Is this appropriate for the size of the organisation? Is there the right balance betweencentralisation and decentralisation?

12 Case Presentation and Content