A summary of the case analysis I N T R O D U C T I O N Preparing an effective case analysis: The full story Hearing with the aid of implanted technology: The case of Cochlear™ – an Australian C A S E O N E high-technology leader Delta Faucet: Global entrepreneurship in an emerging market C A S E T W O DaimlerChrysler: Corporate governance dynamics in a global company C A S E T H R E E Gunns and the greens: Governance issues in Tasmania C A S E F O U R Succeeding in the Sydney indie music industry C A S E F I V E Nucor in 2005 C A S E S I X News Corp in 2005: Consolidating the DirecTV acquisition C A S E S E V E N Shanghai Volkswagen: Implementing project management in the electrical engineering division C A S E E I G H T Television New Zealand: Balancing between commercial and social objectives C A S E N I N E From greenﬁeld to graduates: University of the Sunshine Coast C A S E T E N Whole Foods Market, 2005: Will there be enough organic food to satisfy the C A S E E L E V E N growing demand? Wal-Mart Stores Inc.: Dominating global retailing C A S E T W E L V E
INTRODUCTION A SUMMARY OF THE CASE ANALYSIS PROCESS
Case analysis is an essential part of a strategic management course and is also perhaps the most entertaining part of such a course. The ‘full story’ that follows this summary gives you considerable detail about how to go about a case analysis, but for now here is a brief account. Before we start, a word about attitude – make it a real exercise. You have a set of historical facts; use a rigorous system to work out what strategies should be followed. All the cases are about real companies, and one of the entertaining bits of the analysis process is to compare what you have said they should do with what they really have done. So, it is best not to check the Internet to see current strategies until you have completed your analysis. What follows is one analytical system, a fairly tight one that you may want to adapt according to how much time you have and the style of the case.
in the Australian ice-cream industry, the demographic analysis may have this comment: ‘A large baby boomer generation is now becoming more health-conscious. This presents opportunities in health foods and healthy alternatives for conventional foods. It also presents opportunities for low-fat ice creams.’ Or, in analysing the demographics of the Cochlear™ ﬁrm, you may conclude that there is a global market of 1.8 million profoundly deaf people and that this provides a huge undeveloped market for the implantable hearing devices industry.
STEP 3 THE
E X T E R N A L A N A LY S I S
S T E P 1 W H AT
INDUSTRY IS IT?
You must decide on this early. This is an important step, because it changes the analysis – for example, your industry analysis will yield different conclusions depending on what industry you determine.
STEP 2 GENERAL
A N A LY S I S
Analyse the six generic elements – economic, sociocultural, global, technological, political/legal and demographic – and work out what the important facts are. There may be many issues and facts in each element, but you put down only the important ones. It is also important to avoid the common error of over-emphasis on the ﬁrm in question. So, assuming the ﬁrm operates
Analyse the ﬁve forces (that is, supplier power, buyer power, potential entrants, substitute products and rivalry among competitors) and explain brieﬂy what is signiﬁcant for each. For example, what are the issues involved in new entrants into the industry? For the implantable hearing devices industry, these may include the need for understanding of intricate new technology, possession of a reputation in the global deaf community for safe and effective product development, and links to research institutions. This makes the industry hard to enter. Each force needs a brief...
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