Business Case Analysis: Integral Strategic Management Study
BCA Case Study Analysis is essential for Strategic Management courses. It provides real-life examples of strategic issues faced by organizations, helping students apply theoretical concepts effectively. Understand the purpose, objectives, and approach to case study analysis, including situational analysis and strategic alternatives. Gain valuable insights into managerial decision-making and strategic planning processes in different industries.
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Business Case Analysis (BCA) By Priyanka Darshana MBA (AUS), ACMA (UK), CGMA, ACMA (SL), B.B Marketing sp
BCA Case study analysis is an integral part of a course in strategic management. The purpose of a case study is to provide students with experience of the strategic management problems that actual organizations face
Introduction to case study A case study is a particular account of a set of circumstances faced by an industry, specific organization orindividual. It provides information about a real life business situation and gives examples of how strategic issues are managed by real organizations. A case study describes an actual situation, such as the current state of an industry and factors influencing it or, for example, specific problems facing an organization. When undertaking such analysis, you would be expected to utilize relevant theoretical concepts andframeworks.
Objective of Business Case study 1. Increase your understanding of what managers should and should not do in guiding a business tosuccess. 2. Build your skills in sizing up company resource strengths and weaknesses and in conducting strategic analysis in a variety of industries and competitive situations. 3. Get valuable practice in identifying strategic issues that need to be addressed, evaluating strategic alternatives, and formulating workable plans of action. 4. Enhance your sense of business judgment 5. Gaining companies, thereby business experience. in-depth exposure acquiring something close to actual to different industries and
Approach to case study analysis Read the case study Situational analysis Problem/decision statement Strategic analysis Strategic alternative Recommendation
Step 01: Situational analysis The situation phase of the problem solving process is basically a synopsis and evaluation of a firm current situation. Situational analysis Internal analysis External analysis
Models of situational analysis Internal analysis SWOT Analysis Financial Analysis External Analysis PESTEL Analysis Industry analysis (5Fs) Competitor analysis
Situational analysis : Internal organizational assessment SWOT analysis is the conventional management technique which is used to assess the company current position. Evaluate the strength, weakness , opportunities and threat
Financial analysis for diagnosing the firm current strategy Strategy formulation Assess the current situation Identify the current strategy of the firm and assess how well that strategy is doing in terms of financial performance Identify the inadequacies of firm value drivers and reason for deviations- Internally driven or external driven Strategic or operational level actions
Financial Analysis Profitability analysis Key expenses analysis Short term liquidity Business efficiency Financial gearing Investors
Situational analysis: External analysis PESTEL Analysis Political factors Economic factors Social and cultural factors Technological factors Ecological factors Legal factors
Situational analysis: Five forces analysis Industry or sector profitability is determined by FIVE competitive forces Barraging power of the customer Bargaining power of the supplier Threat of new entrants Threat of substitutes Revelry
Situational analysis: Competitor analysis Competitors are the companies who competing in a same market segment Narrow definition Identify the strategic group/Competitor profiling matrix Broader definition of the competitor
Step 02: Problem/Decision statement The identification and clear presentation of the problem(s) , opportunity or issue(s) facing the company is the most critical part of the analysis framework. Only a problem properly defined can be addressed. Tools used in Step 02 can help you to identify the problems / issues of the organization.
Problem/Decision statement Example How can XYZ Plc survive? What factors drive the declining trends of company sales? How to drive the XYZ Plc growth in 5 years
Strategic analysis Strategic analysis will facilitate firm to identify the possible alternatives available to address the problem/issue or the decision. Models of strategic analysis Ansoff matrix /Market growth share matrix Expansion policy matrix BCG product portfolio analysis
Market option matrix and Expansion method matrix Market penetration Product development Market development Diversification Related Unrelated Corporate strategic options Company Outside Inside Mergers & Acquisition Joint venture Alliances Franchises Mergers & Acquisition Joint venture Alliances Franchises Licensing Internal development Home country Geographical location Exporting Overseas office Overseas manufacture Multinational operation Global operation International
The BCG Portfolio Matrix Market Share High Low Stars Question Marks ???? High Anticipated Growth Rate Cash Cows Dogs Low
Strategic alternative Strategic alternatives are the strategic options or actions that appear to be viable solution to the problem, issue or the decision situation that you have posed. List all possible alternative available to the current strategic issue or to drive the decision.
Evaluation of strategic alternative Evaluate the each alternative using Jhonson and Scholes 3 strategic test . Financial feasible to the shareholders Acceptable to the other stakeholders Suitable to the organization current objective and the competitive position
Recommendation This is the final stage of the business case analysis. If your analysis has been through the action recommendation that your propose should flow directly from it. First part of your recommendation section address what specific actions should be taken and why with justifications The second part of the recommendation should address the implementation. State clearly who should do what, when and where. Implementation plan shows that your recommendations are both possible and practical.
Workshop 02 - Conduct a business case analysis ILO Addressed: ILO 05 - Analyze, discuss and present some cases; ILO 06 - Comment on other s analysis with a clear position Key Activities: Exercise - Each team to present their analysis on the selected business case; Teams in the audience to present their critical comments and debates on the business case analysis presented Mandatory Readings: Selected Case Studies from: 1. Compaq in crisis 2. Gillette and the men s wet-shaving market 3. Beefing up the beefless Mac: McDonald s expansion strategies in India 4. Southwest Airlines
Workshop 02: Each team would be assigned a case study presentation for which they should listen to carefully when presented by another team, and when given the time should draw critical comments and debate for and/or against the points that were presented by the presentation team. Each team would be allowed a time of 10 minutes for their critical comments and debate.
