Navigating the Case Analysis Process for Strategic Management Dr. Paul N. Friga 2005

1. Navigating the Case Analysis Process for Strategic Management Dr. Paul N. Friga 2005

2. Overview of Document • This slide deck is designed to guide students through the process of analyzing a case study for a general management or strategic management course • It is a step-by-step process that is illustrated with an actual case study - Singapore International Airlines: Strategy with a Smile (Thunderbird, 2001) • The material is organised into 5 phases – and each is supported by a suggested approach, tips and sample output from the case (but remember to try and solve the case before reading the sample output from the case!)

3. Objectives of Case Analysis • Application of theoretical concepts • Development of managerial skills • Use of disciplined problem-solving process • Group discussions afford multiple context and perspective opportunities • Deal with ambiguity The goal is not to arrive at one right answer but to learn how to journey toward an answer effectively and efficiently Source: HBS Note – An Introduction to Cases (Shapiro, 1984)

4. Model for Effective Case Analysis Case Analysis Process 3. Summarising 4. Synthesising 5. Concluding 1. Framing 2. Labeling • What are the objectives? • Identify the key question • Flip through the case • Skim read the case • Carefully read the beginning and end • What are the facts? • Label the facts in the margins of the case: • General (GEN) • Industry (IND) • Competition (COM) • Strength (STR) • Weakness (WEA) • What is important? • Summarise the facts • Eliminate unimportant • Eliminate redundant • Mark most important • What are the options? • State the 1-3 key questions • Identify options (MECE) • State decision criteria • Summarise pros/cons • What is the answer? • Take a position • Identify the few key supporting facts • Discuss implementation • Mention risks The key to good case analysis is to break down the case facts into a clear, understandable and useful form

5. Model for Effective Case Analysis Case Analysis Process 3. Summarising 4. Synthesising 5. Concluding 1. Framing 2. Labeling • What are the objectives? • Identify the key question • Flip through the case • Skim read the case • Carefully read the beginning and end • What are the facts? • Label the facts in the margins of the case: • General (GEN) • Industry (IND) • Competition (COM) • Strength (STR) • Weakness (WEA) • What is important? • Summarise the facts • Eliminate unimportant • Eliminate redundant • Mark most important • What are the options? • State the 1-3 key questions • Identify options (MECE) • State decision criteria • Summarise pros/cons • What is the answer? • Take a position • Identify the few key supporting facts • Discuss implementation • Mention risks The key to good case analysis is to break down the case facts into a clear, understandable and useful form

6. Phase 1 – FramingKey Question: What are the objectives?

7. Case Template - Framing Key Question: Flipping and Skimming: Beginning of Case: Ending of Case: Note: Answer key is at the end of this deck; please attempt to fill in the template before looking at possible answers

8. Model for Effective Case Analysis Case Analysis Process 3. Summarising 4. Synthesising 5. Concluding 1. Framing 2. Labeling • What are the objectives? • Identify the key question • Flip through the case • Skim read the case • Carefully read the beginning and end • What are the facts? • Label the facts in the margins of the case: • General (GEN) • Industry (IND) • Competition (COM) • Strength (STR) • Weakness (WEA) • What is important? • Summarise the facts • Eliminate unimportant • Eliminate redundant • Mark most important • What are the options? • State the 1-3 key questions • Identify options (MECE) • State decision criteria • Summarise pros/cons • What is the answer? • Take a position • Identify the few key supporting facts • Discuss implementation • Mention risks The key to good case analysis is to break down the case facts into a clear, understandable and useful form

9. Phase 2 – LabelingKey Question: What are the facts?

10. Case Template - Labeling General Environment: Industry: Competition: Label in the case and capture here Strengths: Weaknesses: Note: Answer key is at the end of this deck; please attempt to fill in the template before looking at possible answers

11. Model for Effective Case Analysis Case Analysis Process 3. Summarising 4. Synthesising 5. Concluding 1. Framing 2. Labeling • What are the objectives? • Identify the key question • Flip through the case • Skim read the case • Carefully read the beginning and end • What are the facts? • Label the facts in the margins of the case: • General (GEN) • Industry (IND) • Competition (COM) • Strength (STR) • Weakness (WEA) • What is important? • Summarise the facts • Eliminate unimportant • Eliminate redundant • Mark most important • What are the options? • State the 1-3 key questions • Identify options (MECE) • State decision criteria • Summarise pros/cons • What is the answer? • Take a position • Identify the few key supporting facts • Discuss implementation • Mention risks The key to good case analysis is to break down the case facts into a clear, understandable and useful form

12. Phase 3 – summarisingKey Question: What is important?

13. Case Template - Summarising • General Environment: • Limit to 3-4 most important • Industry: • Limit to 3-4 most important External • Competition: • Limit to 3-4 most important What is really important? • Strengths (of company under study): • Limit to 3-4 most important Internal • Weaknesses (of company under study): • Limit to 3-4 most important Note: Answer key is at the end of this deck; please attempt to fill in the template before looking at possible answers

14. Model for Effective Case Analysis Case Analysis Process 3. Summarising 4. Synthesising 5. Concluding 1. Framing 2. Labeling • What are the objectives? • Identify the key question • Flip through the case • Skim read the case • Carefully read the beginning and end • What are the facts? • Label the facts in the margins of the case: • General (GEN) • Industry (IND) • Competition (COM) • Strength (STR) • Weakness (WEA) • What is important? • Summarise the facts • Eliminate unimportant • Eliminate redundant • Mark most important • What are the options? • State the 1-3 key questions • Identify options (MECE) • State decision criteria • Summarise pros/cons • What is the answer? • Take a position • Identify the few key supporting facts • Discuss implementation • Mention risks The key to good case analysis is to break down the case facts into a clear, understandable and useful form

15. Phase 4 – synthesisingKey Question: What are the options?

16. Case Template – synthesising Note: Answer key is at the end of this deck; please attempt to fill in the template before looking at possible answers

17. Model for Effective Case Analysis Case Analysis Process 3. Summarising 4. Synthesising 5. Concluding 1. Framing 2. Labeling • What are the objectives? • Identify the key question • Flip through the case • Skim read the case • Carefully read the beginning and end • What are the facts? • Label the facts in the margins of the case: • General (GEN) • Industry (IND) • Competition (COM) • Strength (STR) • Weakness (WEA) • What is important? • Summarise the facts • Eliminate unimportant • Eliminate redundant • Mark most important • What are the options? • State the 1-3 key questions • Identify options (MECE) • State decision criteria • Summarise pros/cons • What is the answer? • Take a position • Identify the few key supporting facts • Discuss implementation • Mention risks The key to good case analysis is to break down the case facts into a clear, understandable and useful form

18. Phase 5 – ConcludingKey Question: What is the answer?

19. Case Template - Concluding Implementation Overall Recommendation Risks Key Supporting Facts Note: Answer key is at the end of this deck; please attempt to fill in the template before looking at possible answers

20. Final Tips • The key to success in case analysis is to take a structured approach to organising and using facts • It is easy to get carried away with too much data and lose sight of the need for a clear story with a few supporting ideas • Prepare for multiple outcomes and see the pros and cons • Use hypotheses to focus analysis but do not get personally attached to one ‘possible solution’ • In strategic management, there is no one right answer, but there are better and worse ways to present ideas • Be structured, objective and thorough and you will succeed

21. Answer Key –Singapore International Airlines • A sample set of possible answers is presented in this section to the Singapore International Airlines: Strategy with a Smile (Thunderbird, 2001) case • Remember to try the case on your own first, using the suggested approach, tips and templates from the preceding slides • You very well may come up with different and/or additional concepts than those shown here, but remember, it is not the actual answer, but theprocess that leads to learning

22. Model for Effective Case Analysis Case Analysis Process 3. Summarising 4. Synthesising 5. Concluding 1. Framing 2. Labeling • What are the objectives? • Identify the key question • Flip through the case • Skim read the case • Carefully read the beginning and end • What are the facts? • Label the facts in the margins of the case: • General (GEN) • Industry (IND) • Competition (COM) • Strength (STR) • Weakness (WEA) • What is important? • Summarise the facts • Eliminate unimportant • Eliminate redundant • Mark most important • What are the options? • State the 1-3 key questions • Identify options (MECE) • State decision criteria • Summarise pros/cons • What is the answer? • Take a position • Identify the few key supporting facts • Discuss implementation • Mention risks The key to good case analysis is to break down the case facts into a clear, understandable and useful form

23. Case Example – FramingSingapore International Airlines • Key Question: • How can SIA best position itself for the future? • Should SIA invest in Virgin Atlantic? • Should SIA pursue a low-cost strategy? • Should SIA stay in the Star Alliance? • Flipping and Skimming: • What is most notable during the flip & skim? • 16 page case with 10 exhibits and a glossary • Lots of data provided – not all will be relevant • The organization of the case is: (i) introduction; • (ii) industry; (iii) markets – NA, Europe, Asia; • (iv) alliances; (v) Singapore – country and company; • (vi) issues moving forward • Beginning of Case: • What is going on and what is the problem? • The timetable is the beginning of the 21st Century (1999) • A major strategic issue is the possible investment in VA • Other strategic issues include: (i) increasing • competition; (ii) labour costs are rising; (iii) customers • are moving toward lower fares; (iv) alliances • Ending of Case: • What other insights may impact our decision? • An important fact is that even though the airline industry • is increasingly global, there are very few true global • players • The alliance decision is critically important • SIA leaders seem to be in support of the VA investment

24. Case Example – LabelingSingapore International Airlines Here are two examples of labeling Note: the most important issues are summarised in the next slide

25. Case Example – summarisingSingapore International Airlines • General Environment: • Globalization is increasing demand for international air travel (esp. to Asia) • Political changes include the increase of free trade markets (like Singapore) • Economic conditions are important as recessions cause price sensitivity • Industry: • Consolidation in the airline industry is increasing to enhance scale and scope • Alliances are the hottest strategy tool as companies seek global connections • Customers are increasingly price sensitive but business segments are loyal • There are little to no substitutes for international air travel External • Competition: • Key domestic competitors are Japan Airlines, Thai Airways, and Cathay • Key international competitors are United, KLM, and British Airways • SIA has the best cost structure for premium level service but losing ground What is really important? • Strengths: • Reputation and brand image of the “Singapore Girl” • Young fleet and excellent training facilities and programs • Extensive regional and international route network Internal • Weaknesses: • Increasing difficulty supplying high quality labour at low costs (esp. Singapore) • “Buttoned Down” image may not be attractive to younger demographic • High cost structure needed for high quality service is difficult to change

26. Case Example – synthesisingSingapore International Airlines

27. Case Template – ConcludingSingapore International Airlines SIA should set a strategic Vision to be the leading global premier service airline Implementation Risks • Invest in VA (but go high end) • Stay in Alliance • Expand high quality labour pool • Alliances don’t deliver • Costs get too high • Other airlines act first • This is a critical time as technology and global reach • require a high-end international access airline • SIA’s best strengths are high end service and global routes • Going low-cost will damage long-term profit potential