INTRODUCTION Preparing an effective case analysis C-3 CASE 1 CASE 2 CASE 3 CASE 4 CASE 5 CASE 6 CASE 7 ABB in China, 1998 C-16 Ansett Airlines and Air New Zealand: A flight to oblivion? C-31 BP–Mobil and the restructuring of the oil refining industry C-44 Compaq in crisis C-67 Gillette and the men’s wet-shaving market C-76 Incat Tasmania’s race for international success: Blue Riband strategies C-95 Kiwi Travel International Airlines Ltd C-105
Beefing up the beefless Mac: McDonald’s expansion strategies in India: C-120
Nucor Corporation and the US steel industry C-128
CASE 10 Pacific Dunlop: Caught on the half volley C-157 CASE 11 Philip Morris C-173 CASE 12 Pisces Group of Singapore C-188 CASE 13 Raffles, Singapore’s historic hotel C-194 CASE 14 Southwest Airlines, 1996 C-205
Preparing an effective case analysis
In most strategic management courses, cases are used extensively as a teaching tool.1 A key reason is that cases provide active learners with opportunities to use the strategic management process to identify and solve organisational problems. Thus, by analysing situations that are described in cases and presenting the results, active learners (that is, students) become skilled at effectively using the tools, techniques and concepts that combine to form the strategic management process. The cases that follow are concerned with actual companies. Presented within the cases are problems and situations that managers and those with whom they work must analyse and resolve. As you will see, a strategic management case can focus on an entire industry, a single organisation or a business unit of a large, diversified firm. The strategic management issues facing not-for-profit organisations also can be examined using the case analysis method. Basically, the case analysis method calls for a careful diagnosis of an organization’s current conditions (as manifested by its external and internal environments) so that appropriate strategic actions can be recommended in light of the firm’s strategic intent and strategic mission. Strategic actions are taken to develop and then use a firm’s core competencies to select and implement different strategies, including business-level, corporatelevel, acquisition and restructuring, international and cooperative strategies. Thus, appropriate strategic actions help the firm to survive in the long run as it creates and uses competitive advantages as the foundation for achieving strategic competitiveness and earning above-average returns. The case method that we are recommending to you has a rich heritage as a pedagogical approach to the study and understanding of managerial effectiveness.2
As an active learner, your preparation is critical to successful use of the case analysis method. Without careful study and analysis, active learners lack the insights required to participate fully in the discussion of a firm’s situation and the strategic actions that are appropriate. Instructors adopt different approaches in their application of the case analysis method. Some require active learners/students to use a specific analytical procedure to examine an organisation; others provide less structure, expecting students to learn by developing their own unique analytical method. Still other instructors believe that a moderately structured framework should be used to analyse a firm’s situation and make appropriate recommendations. Your lecturer or tutor will determine the specific approach you take. The approach we are presenting to you is a moderately structured framework. We divide our discussion of a moderately structured case analysis method framework into four sections. First, we describe the importance of understanding the skills active learners can acquire through effective use of the case analysis method. In the second section, we provide you with a process-oriented framework. This framework can be of value in your efforts to...