III. How to Get the Most from Case Analysis
Strategic management is a highly integrative task that draws on many areas of specialization
at several levels, from the individual to the whole society. Thus, case analysis is enriching as a
In this section we present ten guidelines for how to get the most from case analysis:
1. Keep an open mind.
2. Take a stand for what you believe.
3. Draw on your personal experience.
4. Participate and persuade.
10. Conduct outside research. (NOTE: We caution students to check with the instructor
APPENDIX 2 to Chapter 13 provides an overview of important and widely available
EXHIBIT 13.3 provides several suggestions for how to apply these guidelines, and other
techniques suggested in this chapter, to the preparation of a written case analysis.
Teaching Tip: It is often difficult for students to appreciate a “how-to” chapter such as the
one on Analyzing Strategic Management Cases until they have actually done it—that is,
actually analyzed a case. However, the section in Chapter 13 on How to Get the Most From
Case Analysis can be used to draw out students about the importance of discussion and
The SUPPLEMENT below addresses several of the reasons why conducting strategic case
analysis is important. Case analysis requires decision making and the choices that are made reveal a
Extra Example: Making Tough Choices—Jim Collins on Decision Making
Jim Collins, author of the best-selling business book Good to Great, believes that good decisions often begin by
saying, “I don’t know.” That is, executives who approach situations by asking good questions, doing some research,
and getting multiple opinions typically make better decisions. He learned this from studying leaders when writing
Good to Great. “They were just marvelous at igniting dialogue and debate,” says Collins. For example, ‘When
Colman Mockler at Gillette is trying to decide whether to go with cheaper, disposable plastic razors or more
expensive ones, he asks marvelous questions. He’s Socratic. He pushes people to defend their points of view.’” In
other words, analysis and debate are critical aspects of business decision making.
Once the debate is finished a decision must be made. And it’s rarely, if ever unanimous. “No major decision we’ve
studied was ever taken at a point of unanimous agreement,” says Collins. “There was always some disagreement in
the air.”
Behind those executive decisions is another factor that also makes a huge difference in how decisions are made. It
has to do with the decision-makers outlook on life. Some refer to it as “locus of control.” When asked about the role
of “psychology” in business decision making, Collins mused: “Do you believe that our ultimate outcomes in life are
externally determined—for example, ‘I came from a certain family, I got the right job’? Or do you believe that how
your life turns out is ultimately up to you, that despite all the things that happen, you are ultimately responsible for
your outcomes?”
“Consider the airline industry, and think of all the events and factors outside managerial control that have hit it since
1972: fuel shocks, interest rate spikes, deregulation, wars, 9/11. And yet the No. 1 performing company of all
publicly traded companies in terms of return to investors for a 30-year period from 1972 to 2002 is an airline.
According to Money magazine’s retrospective look in 2002, Southwest Airlines beat Intel, Wal-Mart, GE—all of
them! Now what would have happened if the folks at Southwest had said, ‘Hey, we can’t do anything great because of
our environment’? You could say, ‘Yeah, the airline industry is terrible. Everyone in it is statistically destined to lose
money.’ But at Southwest, they say, ‘We are responsible for our own outcomes.’”
Source: Useem, J. 2005. Jim Collins on Tough Calls. Fortune, October: 89–94.
IV. Useful Decision-Making Techniques in Case Analysis
A. Integrative Thinking
We introduce the concept of “integrative thinking” that was developed by Roger Martin in
EXHIBIT 13.4 illustrates the four stages of integrating thinking and deciding processes.
STRATEGY SPOTLIGHT 13.3 provides the example of integrating thinking by the founder of Red
Hat, Bob Young.
Teaching Tip: We have found that it can be very illuminating for students to apply
integrative thinking to a decision that they have encountered in the past—or are presently
faced with. Assign them to groups of four or five and ask them to come up with a decision
situation—and then ask them how using integrative thinking may have helped. One
B. Asking Heretical Questions
We have added this section for the eighth edition. In brief, heretical questions are those that
Discussion Question 15: Can you think of how “heretical questions” may have led to
useful innovations?
C. Conflict-Inducing Techniques
Although the word “conflict” often has a negative connotation, it can be very helpful in
arriving at better solutions to cases. It can provide an effective means for new insights, as well as
STRATEGY SPOTLIGHT 13.4 provides guidelines for making team-based approaches to
case analysis more effective.
In this section, we look at the phenomenon known as “groupthink” and suggest ways of
preventing groupthink. Then, we will suggest some conflict-inducing decision-making techniques—
1. Symptoms of Group Think and How to Prevent It
Irving Janis identified several symptoms of groupthink. These include
1. An illusion of vulnerability.
3. Stereotyped views of members of opposing groups.
4. The application of pressure to members who express doubts about the group’s
6. An illusion of unanimity.
Janis also provided several suggestions for preventing groupthink:
1. Leaders must encourage group members to address their concerns and objectives.
2. When higher-level managers assign a problem for a group to solve, they should
3. Before a group reaches its final decision, the leader should encourage members to
4. The group should invite outside experts and encourage them to challenge the
5. The group should divide into subgroups and various times, under different
6. After reaching a preliminary agreement, the group should hold a “second chance”
2. Using Conflict to Improve Decision-Making
Two conflict-inducing decision-making approaches that have become quite popular include
With the devil’s advocate approach, the devil’s advocate tries to come up with problems
Dialectical inquiry attempts to accomplish the goals of the devil’s advocate in a more
constructive manner. Here, a problem is approached from two alternate points of view. The goal is
that by critiquing opposing perspectives—a thesis-antithesis approach—a creative synthesis will
occur. Dialectical inquiry involves the following steps:
1. A proposal and the information that was used to derive it are identified.
3. A counter plan (antithesis) is identified that is believed to be feasible, politically
4. A debate ensues in which individuals favoring each plan provide their arguments and
5. A “synthesis” emerges, which, hopefully, includes the best components of each
EXHIBIT 13.5 provides a graphical representation of the devil’s advocate and dialectical
inquiry decision-making techniques.
The SUPPLEMENT below presents four different methods of conducting a class discussion
that can be used to enhance learning in the case analysis process.
Extra Example: Approaches to Structuring Class Discussion (Excerpt)
1. Discussion Question Format: When the class begins, the instructor may call the names of the two students who
have been chosen to open the class (the students chosen normally do not know the
instructor’s choice ahead of time). Each is asked a separate question drawn from
the prepared assignment. By having initial questions limited to those assigned,
students learn that homework preparation pays off.
The quality of the opening is of primary importance, because a good initial
contribution made by well-prepared students can substantially improve the depth
of the class session. The instructor can help ensure a successful opening by
carefully choosing the two students who begin each class, reviewing the class
cards and seating chart to identify the most appropriate choice.
2. The Vote Format: Some cases lead to clear-cut “yes” or “no” decisions. A few may lead to
three or four mutually exclusive or clear-cut decisions. In such situations, the
instructor can heighten the students’ commitment to a decision by having them
vote. During the vote, the instructor should note those taking an “unpopular”
view or who are on the minority side as well as those who are abstaining. The
instructor usually draws a laugh upon asking, “Who are the diplomats? Who did
not vote?”
The two opening contributors can then be chosen on the spot, usually a student
representing the minority viewpoint as the first opener and the second contributor
from the majority. The tone of the discussion is then set and contributors are
encouraged to argue persuasively in order to influence peers to change their
positions on the issue. Some students will change their minds, and their
explanations of the change often prove to be a tremendous learning experience.
Before class is concluded, the teacher should take another vote to determine
whether the class is shifting its position.
3. Role-Playing Format: Prior to class or spontaneously, class members can be assigned different
managerial roles and asked to discuss a case from the viewpoint of their assigned
roles. Such an approach is likely to bring out the interpersonal aspects of the
situation more effectively than other formats. While role-playing is often exciting,
it may be inefficient because it is extremely time-consuming. For this approach to
be effective, the instructor should summarize or ask students to summarize the
key insights and concepts derived from such a class discussion.
4. Audio-Visual Format: Another format that is especially useful toward the end of the course is to
have small study groups tape their case analyses. The tapes can be evaluated
either by the group that made the tape or by the entire class. Such presentations
provide students an opportunity to work in groups, supplement the preparation
they must do for the comprehensive written analysis of cases, and improve their
presentation skills. In the absence of audio-visual taping equipment, the same
objectives can be achieved by having students make flip charts or slide
presentations for class review.
Source: Charan, R. 1976. Classroom techniques in teaching by the case method. Academy of Management Review, 1:
116–123.
V. Following the Analysis-Decision-Action Cycle in Case Analysis
In Chapter 1, we defined strategic management as the analyses, decisions, and actions that
organizations undertake in order to create and sustain competitive advantages. Emphasize that the
Each of the thirteen chapters of this book includes techniques and/or information that may
be useful in a case analysis. However, not all of the issues presented will be important in every case.
1. Analyzing organizational goals and objectives. A company’s vision, mission, and objectives
keep organization members focused on a common purpose. They also influence how an
2. Analyzing the external environment. The business environment has two components. The
general environment consists of demographic, sociocultural, political/legal, technological,
3. Analyzing the internal environment. A firm’s internal environment consists of its resources
and other value-adding capabilities. Value-chain analysis and a resource-based approach to
4. Assessing a firm’s intellectual assets. Human capital is a major resource in today’s
knowledge economy. As a result, attracting, developing, and retaining talented workers is a
5. Formulating business-level strategies. Firms use the competitive strategies of
differentiation, focus, and overall cost leadership as a basis for overcoming the five
competitive forces and developing sustainable competitive advantages. Combinations of
6. Formulating corporate-level strategies. Large firms often own and manage portfolios of
businesses. Corporate strategies address methods for achieving synergies among these
7. Formulating international-level strategies. Foreign markets provide both opportunities and
potential dangers for companies that want to expand globally. To decide which entry
8. Formulating entrepreneurial strategies. New ventures add jobs and create new wealth. To
do so, they must identify opportunities that will be viable in the marketplace, as well as
9. Achieving effective strategic control. Strategic controls enable a firm to implement
strategies effectively. Informational controls involve comparing performance to stated goals
10. Creating effective organization designs. Organizational designs that align with competitive
strategies can enhance performance. As companies grow and change, their structures must
11. Creating a learning organization and an ethical organization. Strong leadership is essential
for achieving competitive advantages. Two leadership roles are especially important. The
12. Fostering corporate entrepreneurship. Many firms continually seek new growth
opportunities and avenues for strategic renewal. In some corporations, autonomous work
units such as business incubators and new venture groups are used to focus corporate
VI. Summary
Strategic management case analysis provides an effective method of learning how companies
analyze problems, make decisions, and resolve challenges. Strategic cases include detailed accounts
of actual business situations. The purpose of analyzing such cases is to gain exposure to a wide
In this chapter, we have discussed the importance of strategic case analysis and described
the five steps involved in conducting a case analysis—becoming familiar with the material,