Case Analysis

An approachA guidelineA winning

methodology

Samiksha Banga
Neha Bhardwaj

Structure of Presentation

The Case
IDR
The process
Some critical Ratios
Dos and Don'ts
Porters Forces
Some more techniques

6/17/2010

IIT Kanpur

I keep six honest serving men

They taught me all I knew;
Their names are What and Why and When;
And How and Where and Who.
Rudyard Kipling

6/17/2010

IIT Kanpur

The case
Tells you stories, including

facts,

opinions,

projections,

results,

expectations,

plans,

policies,

programs
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IIT Kanpur

IDR
Identify
Diagnose
Recommend

6/17/2010

IIT Kanpur

Process

Skim
Read thoroughly
Exhibits
What the strategic issues are?
Number crunching

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IIT Kanpur

Process contd.
Apply the concepts and techniques of strategic
analysis you have been studying

SWOT
PESTLE
Porter
Ansoff
BCG

Support your diagnosis and opinions with reasons

and evidence
Action plan and set of recommendations
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IIT Kanpur

Some Critical Ratios

Profit Margin
Earnings/Share
ROE
Debt/ Equity
Inventory Turnover

6/17/2010

Price-Earnings ratio
Asset turnover
Current Ratios

IIT Kanpur

Dos and Donts

Do
Brainstorm/Discuss
Assume everyone
has read the case
Tables, Charts,
Graphics
Quote theories

6/17/2010

Dont
rely on unsupported
opinions,
overgeneralizations
I think, I feel, I
believe
Explain the theories

IIT Kanpur

Porters Horizontal forces

Threat of substitutes

Threat of
established Rivals

Cost and time constraints

7 major competitors

Purchase decisions mainly

made at high level
management

Small firms- a large

number

Manufacturers reputation,

machine performance

Some manufacturers
chose to offer a full
line of only one of the
product, while others
chose to offer one
product of each type

Price and parts availability.

Threat of new entrants

Economies of scale exist
Expensive Downtime

Price Sensitive, Quality

conscious. (governments or
large construction and mining
companies.

Government control (mining)

Customer training of complex
machines and after-sales
service is a daunting task.
Large capital investment

6/17/2010

IIT Kanpur

10

Porters Vertical Forces

Bargaining
power of
suppliers

Forward Integration
Backward integration

Bargaining
Power of
customers

Competition
Switching costs

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IIT Kanpur

11

Broad

Identification of strategies
Cost Leadership

Differentiation

Relative Market share

Scope

Weak

Strong
High

Narrow

Over performers

Cost Focus

Cost

In-band
leaders

Differentiation
focus
Differentiation

Below band ROA

leaders

Source of Competitive Advantage

In-band
followers
Distant/Below
band followers

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IIT Kanpur

Low

12

Some more techniques

BCG Matrix
Ansoff Matrix

7 Ps of Marketing
7 Ss of Strategy
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IIT Kanpur

13