Getting Ready to Write the Case Exam

1. Getting Ready to Write the Case Exam *Newville Tigers Case used within this slide deck for illustration purposes.

2. Cover Page Executive summary Management issue, strategic problem, recommendation, major implementation issues Introduction The report’s contents Body of Report Analyses Recommendation Implementation Plan Conclusion Appendices or exhibits Report Contents

3. 5 2 8 4 6 1 7 3 9

4. Do as much financial analysis as you can beforehand. This provides you with insight about where the organization is making or losing money and will provide you with a good foundation when you start working on the case examination Managing Your Time Hint

5. Work the backgrounder beforehand – more on this below Set milestones for your work Do not over invest in any one area You will never have enough time to do everything you would like to do Go for the major points – worry later about the minor points The Key for Success – Manage your Time

6. Backgrounder conveys most of the information that you will be required to complete in boxes 1-4 The Additional Information document might include additional information relevant to these boxes. You should do any financial analysis you can with the Backgrounder information so that you will get a feeling for this organization’s financial situation Remember that the Backgrounder will contain many, but not all, of the constraints, risks, and stakeholder preferences Working the Backgrounder (BG)

7. Step 1 – Scan Additional Information (5 minutes) Step 2 – Fill in Storyboard While Reading AI (55 minutes) Step 3 – Situation Analysis (10 minutes) Step 4 – Issue Identification & Analysis (60 minutes) Step 5 – Rank Alternatives (15 minutes) Step 6 – Recommendation(s) (5 minutes) Step 7 – Provide Evidence of Viability/Feasibility of Recommendations (10 minutes) Step 8 – Implementation Plan and Financial Summary (60 minutes) Step 9 – Prepare Report (20 minutes) The Steps with Time Allocations During the Exam* *suggestions only – will differ with each case – some will be weighted differently on strategic vs business issues.

8. NEVER NEVER NEVER plan on transcribing. Organize your report layout so you only have to write something once. Do not evaluate both sides of a strategic alternative. For example “introduce the new product” or “do not introduce the new product”. Rejecting the initiative automatically means accepting the alternative. Do not evaluate status quo situation in the case as it is a repetition of the situation analysis. Use incremental analysis when evaluating alternatives Managing your Time on the CE

9. “Storyboard” your response—Prepare sheets for all elements of the response so you do not forget anything (cover page, executive summary; introduction; situation analysis; analysis of issues; implementation plan; conclusion; appendices (quantitative analysis for each issue that requires one) Rather than highlighting something in the exam, record it on your handwritten or typewritten response. Bullets are okay (and recommended)! But be sure to communicate in full sentences and be clear about your point. More Time Management Hints

10. The opening mission is usually given – if not, you need to infer what it is by studying the organization’s current strategy Remember that you should revise the mission statement if you recommend a strategy the moves the organization in a new direction The mission should reflect which of the three generic strategies (or combination of these) that the organization is using or trying to use Box 1 – Identify or Infer the Mission

11. This is where you gather the important facts about the organization’s internal characteristics You will find these facts in both the Backgrounder and the Additional Information The facts will include The organization’s resources (tangible and intangible) Stakeholder preferences Organization culture Internal acts that support the organization’s strategy are strengths – those that impair the strategy are weaknesses Be on the lookout for constraints and circumstances that could turn into weaknesses (risks) Evaluate the organization’s financial situation using suitable ratios. If there are benchmark ratios use them – compute ratio trends and interpret Box 2 – Internal Data

12. Backgrounder – Internal Scan (Provided)

13. Backgrounder – Internal Scan (Provided)

14. Backgrounder – External Scan (Provided)

15. Backgrounder – External Scan (Provided)

16. Other Stakeholder Preferences Constraints

17. Other • Stakeholder Preferences • Miller – Improve area safety • Gagnon – Develop an optimistic budget • Agani – Develop a conservative budget • DeVue – Sell beer at games • Nack – Don’t sell beer at games • Constraints • Salary cap of $1.7 million • Area capacity limited to 5,020 seats and 4 boxes • Event capacity 3 event rooms, one arena

18. Liquidity Current ratio – a liquidity measure – always provides insights Quick ratio – identifies excessive inventory issues in a manufacturing firm – not a big issue in this case Efficiency Ratio Net income/sales – always provides insight Turnover Ratios Sales/Assets – a good overall measure Sales/Average Accounts Receivable – not a big issue in this case since receivables are not large Cost of goods sold/inventory – not a big issue in this case since this is not a manufacturing or retail operation Leverage Ratios Assets/Equity – always provides insights Profitability Net income/equity – always provides insights Net income/assets – always provides insights Financial Risk Earnings before interest and taxes/intererst Key Ratios

19. Ratios

20. The current ratio averages about 1 which is significantly below 2 – the usual rule of thumb value Times interest earned suggests low financial risk except for 2006 Net income to revenue is small – this is a low margin business that relies on total asset turnover and a reasonable level of leverage to provide an adequate return on equity Total asset turnover averages slightly less than 3 which may be reasonable in this type of business Leverage is very low Insight From Ratio Analysis

21. These are the facts about the environment facing the firm Useful facts include PESTE Porter Industry Key Success Factors External facts that the organization can exploit are opportunities – facts that have the potential to impair performance are threats Remember to look for external constraints and facts (risks) that can turn into threats Boxes 3 and 4 – External Data

22. You have identified the organization’s current strategy and its mission statement You have gathered the data about the organization’s environment both internal and external You have labelled these facts as strengths, weaknesses, opportunities, or threats You have identified the industry and firm key success factors You have identified any risks and constraints You have identified the organization’s financial situation You have a good understanding of the organization and you are ready to address the issues that arise in the additional information Summary to Date

23. Study the marker’s comments Study the general feedback on the case provided on the CPP site. Reviewing Your Work

24. Add additional SWOT points from the AI Delete any SWOT points that have changed from the BG Identify the issues (you cannot do this from the information provided in the BG) Strategic and operational Evaluate alternatives for dealing with the issues (you cannot do this from the info provided n the BG) Qualitative Quantitative Identify the criteria you will use to recommend what to do (focus on constraints, financing availability, key SWOT—ROBUST RECOMMENDATIONS deck) Make specific recommendations Identify and discuss the implementation issues 3 parts: Address/try to solve cons to recommended alternatives (some may be weaknesses Solve remaining relevant weaknesses Action Plan: WHO is going to do WHAT, WHEN and HOW MUCH (if feasible) Now you are ready for the Additional Information (AI)

25. Recommendations Decisions Matrix Criteria—one possible approach

26. Implementation Plan