Case Analysis

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Case Analysis Recommendation 101
Fulltime MBA Class of 2013 August 16, 2011 Glenn
Voss
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(No Transcript)
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Competition
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Case Analysis Recommendation 101
In case analysis, you apply frameworks and models
to generate insights into a real or simulated
business problem. You also calculate metrics to
evaluate the likely outcomes associated with
various alternatives. Your recommendation is
formulated as a strategy.
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Case Analysis Recommendation 101
Models Frameworks Metrics Concepts Terminology
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What is Terminology?

• A system of words used to name concepts in a
  particular discipline.
• Examples
• Objectives, Resources Capabilities
• Segmentation, Targeting Positioning
• Product, Price, Promotion-Communication,
  Place-Channel
• Customer Relationship Management
• Customer Acquisition Retention
• Customer Satisfaction Value

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Terminology

• An objective is defined as
• The criterion by which the success or failure of
  the strategy is measured.
• Characteristics of well-written objectives
• Lists a quantified standard of performance.
• Designates a clear time frame.
• States goal in measurable terms.
• Should be challenging but realistic.
• Objectives frequently require trade-offs e.g.,
  increasing market share versus increasing
  profits acquiring new customers versus retaining
  current customers.

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Terminology (continued)

• Resource tangible (e.g., equipment, machinery,
  mail list), intangible (e.g., brand name,
  customer knowledge), or human assets that the
  firms currently possesses.
• Capability the ability to deploy individual
  resources (e.g., patents, know-how, brand names,
  equipment) to perform a task or activity to
  produces a desired end result. What the firm can
  do (i.e., skills) as a result of teams of
  resources working together.

We are interested in resources capabilities
that are rare valuable.
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Common Job Interview Mistakes
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What is a Metric?

• A measure for quantitatively assessing a complex
  process or outcome, along with procedures for
  carrying out and interpreting the measures.
• Examples
• Revenues Profits (Break-even, ROI)
• Contribution Margin
• Customer Lifetime Value
• Conversion/Purchase Rates
• Awareness/Recognition

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What is an Analytic Framework?

• A structured approach to defining, analyzing or
  communicating the characteristics of a complex
  system or process.
• Examples
• Comprehensive Metabolic Panel
• Googles PageRank Algorithm
• SWOT Analysis
• Case Analysis
• Strategy Formulation

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Case Analysis

• Define the problem or objective.
• Enumerate the decision factors.
• Consider relevant information.
• Identify the best alternative.
• Develop a plan for implementing the chosen
  alternative.
• Evaluate the decision (alternatives) and the
  decision process.

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What is a Model?

• A hypothetical or simple description of a complex
  system or process.
• Effective strategies rely on insightful or valid
  models.
• Examples
• Aristotles Geocentric Model
• Newtons Model of Classical Mechanics
• Product Life Cycle Model
• Price Response Models
• Advertising Response Models

• accounted for all observations of the movement of
  the sun and the moon, and the planets, and the
  stars
• good predictor of future positions of celestial
  bodies (i.e., verifiable)
• simplicity (Principle of Parsimony) - as few
  assumptions or rules as possible no
  contradictions.

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Modeling the Marketing Process
SWOT Analysis
Company
Customers
Competitors
Collaborators
Context
Market Segmentation
Selection Targeting
Product/Service Offering Positioning
Product/Service Offering
Place/ Channel
Promotion/ Communication
Pricing
Customer Relationship Management
Customer Acquisition
Customer Retention
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Mountain Man

• This case addresses whether a beer company should
  introduce a brand extension in response to
  changing competitor strategies customer tastes.
  Read the case, define the problem, identify
  alternative solutions key issues. Use the
  following questions to help guide the evaluation.
• What has made Mountain Man Lager successful (Is
  it successful?)? What is its competitive
  advantage? Define the key competitors. What has
  caused Mountain Man Lagers decline in spite of
  its strong brand?
• What are/should be the objectives for Mountain
  Man Lager over the next 2-5 years?
• How would introduction of MM Light affect these
  MM Lager objectives? Specifically, what level of
  cannibalization do you predict and why?
• What are/should be the marketing and financial
  (e.g., breakeven) objectives? Can MM Light
  achieve those objectives?
• Who would be the target customers competitors
  for MM Light?
• What marketing capabilities are necessary to make
  a MM Light introduction successful? Does
  Mountain Man currently possess these capabilities?

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Mountain Man SWOT
Strengths Weaknesses
Capabilities (e.g., Product, Channels, Communications, Price, CRM) 1. 2. Resources 1. 2. Capabilities (e.g., Product, Channels, Communications, Price, CRM) 1. 2. Resources 1. 2.
Opportunities Threats
External focus on 1. Customers 2. Collaborators 3. Competition 4. Socioeconomic, technological, legal, product life cycle Context External focus on 1. Customers 2. Collaborators 3. Competition 4. Socioeconomic, technological, legal, product life cycle Context
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MM Marketing Strategy
Mountain Man Lager Mountain Man Light
Objectives Quantified, measurable with a specified time frame Challenging realistic
Target Customers Likely to be loyal?
MM Competitive Advantage Key capabilities ? is based on is based on
Positioning Statement For , MM Lager is a that, unlike , offers For , MM Light is a that, unlike offers
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Optional Mountain Man Exercise

• Conduct analyses that quantify the expected
  outcome associated with each alternative using
  the Mountain Man Excel spreadsheet. If you need
  more background on breakeven analysis, review the
  Breakeven Tool. If you need more background on
  calculating net present value, review the
  Discounting Future Income and Present Value Tool.
  
• To complete the spreadsheet, start with the
  worksheet titled MMLagerDecline. Fill in the key
  assumptions that are highlighted in yellow. The
  spreadsheet should fill in as you enter these
  numbers. Note that constructing spreadsheets in
  this manner is important because it allows you to
  conduct What-if analyses by simply changing
  your assumptions.
• Continue to fill in each worksheet in a similar
  manner, leaving the Summary sheet for last. The
  MMLagerGrowth sheet allows for the possibility of
  allocating resources and effort to reversing the
  recent decline in MM Lager sales. If you (and I)
  have completed everything appropriately, the
  Summary sheet should summarize each of the
  options. You now need to assign likely
  probabilities to each outcome associated with the
  Light go/no-go decision.