MGT4394 Business
Policy & Strategy
Introduction to Case Analysis
Introduction to Case Analysis: Overview
An Active Learning Overview with Today’s Mini-Case
The Movie Exhibition Industry in 2011
Session Objectives
• Understand the approaches, benefits & pitfalls for case discussion
• Understand the basic framework for strategy analysis, including the overall process and tools for assessing external forces and competitive advantage.
• Able to define what a strategic issue is.
• Able to distinguish between symptoms, causes and outcomes of strategic issues.
• Understand the process for the development and assessment of strategic alternatives. Class Format
How to Discuss a Case
10-15 min
Discussing as Case – Active Exercise “The Movie Exhibition Industry in
2011”
20-30 min Part 1: Situational understanding.
10 min Part 2: Identify the strategic issue.
15 min Part 3: Developing and evaluating alternatives.
COURSE OBJECTIVES
WHAT THE COURSE IS NOT: This is not simply a recap of material in other courses, it is a framework for integrating the materials and for seeing and managing the firm as a whole.
In MGT 4394, Business Policy and Strategy, you will develop your critical thinking skills at:
• Understanding how firms gain and sustain competitive advantage;
• Analyzing strategic business situations and formulating strategy; and
• Implementing strategy and organizing the firm for strategic success.
How do you discuss a case?
• Daily case discussions the largest component of the course
• Why? Collaboration
– Multiple functional perspectives (top management team)
– None of us area as smart as all of us
– Sense making
• Class flow
– improvisational jazz: basic components
– no two sections of class exactly the same
– may not reach the conclusions(!) This doesn’t mean (1) there’s no answer or (2) someone is wrong
• Case discussion = personal risk taking
– The silence factor:
• Unnoticed = not promoted
• Always listening is learning; never speaking is hiding
– Dumb questions?
– Learning the tools & concepts, focus on their implication & meaning
How do you discuss a case?
• Reducing risk – the wrong way
– State simple facts without context & meaning
– Canned comments
– Speeches (your individual conversation / perspective) – Delay and Assess – wait for the “right” answer, then jump on the bandwagon!
– Repeat what was covered in the earlier section How do you discuss a case?
• Reducing risk – the right way
– Speak up early
– Be prepared
• know the key facts and situation, be ready to work from there
• prepare the preparation questions; think about the thought questions – Looking ≠ seeing
– Have applied the tools already learned, attempted to cover those for the day
– Laugh, especially at our self
– Ask: What does it mean? Why? What’s next?
The Movie Exhibition
Industry in 2011
1. Why do people go to the movies?
Why?
∆?
2A. What’s the trend in attendance?
2B. Is there a problem? Why? What explains the trend?
3. Profitability for exhibitors: Components & Trends
Strategic Issues
STRATEGIC ISSUE – the primary, long-term matter facing the organization, typically long-term in nature, requires a significant commitment of organizational attention and resources to resolve, and is difficult/impossible to avoid. Is likely the result of multiple causes.
What’s going on?
What’s causing it?
What should we do?
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Framing Strategic Issues
Example: Strategic issues facing music studios in the age of Napster, P2P, etc.
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General Issue:
– How must the business model of the recording industry adapt to survive in the age of digital downloads?
Alternative ways of framing the issue:
Defensive Framing:
– Frustrated and Lack of Understanding – How do we stop these %$#!* kids from stealing music?
– Aggressively Defensive: How to stop the illegal downloading?
– Cautiously Defensive: How to stop downloading while not alienating consumers? Mixed Defensive & Offensive Framing:
– How to continue a successful business while putting
