Getting Ready to Write the Case Exam

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Getting Ready to Write the Case Exam
Newville Tigers Case used within this slide deck
for illustration purposes.
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Report Contents

• Cover Page
• Executive summary
• Management issue, strategic problem,
  recommendation, major implementation issues
• Introduction
• The reports contents
• Body of Report
• Analyses
• Recommendation
• Implementation Plan
• Conclusion
• Appendices or exhibits

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Managing Your Time Hint

• Do as much financial analysis as you can
  beforehand. This provides you with insight about
  where the organization is making or losing money
  and will provide you with a good foundation when
  you start working on the case examination

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The Key for Success Manage your Time

• Work the backgrounder beforehand more on this
  below
• Set milestones for your work
• Do not over invest in any one area
• You will never have enough time to do everything
  you would like to do
• Go for the major points worry later about the
  minor points

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Working the Backgrounder (BG)

• Backgrounder conveys most of the information that
  you will be required to complete in boxes 1-4
• The Additional Information document might include
  additional information relevant to these boxes.
• You should do any financial analysis you can with
  the Backgrounder information so that you will get
  a feeling for this organizations financial
  situation
• Remember that the Backgrounder will contain many,
  but not all, of the constraints, risks, and
  stakeholder preferences

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The Steps with Time Allocations During the Exam

• Step 1 Scan Additional Information (5 minutes)
• Step 2 Fill in Storyboard While Reading AI (55
  minutes)
• Step 3 Situation Analysis (10 minutes)
• Step 4 Issue Identification Analysis (60
  minutes)
• Step 5 Rank Alternatives (15 minutes)
• Step 6 Recommendation(s) (5 minutes)
• Step 7 Provide Evidence of Viability/Feasibility
  of Recommendations (10 minutes)
• Step 8 Implementation Plan and Financial
  Summary (60 minutes)
• Step 9 Prepare Report (20 minutes)

suggestions only will differ with each case
some will be weighted differently on strategic vs
business issues.
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Managing your Time on the CE

• NEVER NEVER NEVER plan on transcribing. Organize
  your report layout so you only have to write
  something once.
• Do not evaluate both sides of a strategic
  alternative. For example introduce the new
  product or do not introduce the new product.
  Rejecting the initiative automatically means
  accepting the alternative.
• Do not evaluate status quo situation in the case
  as it is a repetition of the situation analysis.
• Use incremental analysis when evaluating
  alternatives

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More Time Management Hints

• Storyboard your responsePrepare sheets for all
  elements of the response so you do not forget
  anything (cover page, executive summary
  introduction situation analysis analysis of
  issues implementation plan conclusion
  appendices (quantitative analysis for each issue
  that requires one)
• Rather than highlighting something in the exam,
  record it on your handwritten or typewritten
  response.
• Bullets are okay (and recommended)! But be sure
  to communicate in full sentences and be clear
  about your point.

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Box 1 Identify or Infer the Mission

• The opening mission is usually given if not,
  you need to infer what it is by studying the
  organizations current strategy
• Remember that you should revise the mission
  statement if you recommend a strategy the moves
  the organization in a new direction
• The mission should reflect which of the three
  generic strategies (or combination of these) that
  the organization is using or trying to use

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Box 2 Internal Data

• This is where you gather the important facts
  about the organizations internal characteristics
• You will find these facts in both the
  Backgrounder and the Additional Information
• The facts will include
• The organizations resources (tangible and
  intangible)
• Stakeholder preferences
• Organization culture
• Internal acts that support the organizations
  strategy are strengths those that impair the
  strategy are weaknesses
• Be on the lookout for constraints and
  circumstances that could turn into weaknesses
  (risks)
• Evaluate the organizations financial situation
  using suitable ratios. If there are benchmark
  ratios use them compute ratio trends and
  interpret

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Backgrounder Internal Scan (Provided)
Strengths Weaknesses
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Backgrounder Internal Scan (Provided)
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Backgrounder External Scan (Provided)
Strengths Weaknesses
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Backgrounder External Scan (Provided)
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Other

• Stakeholder Preferences
• Constraints

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Other

• Stakeholder Preferences
• Miller Improve area safety
• Gagnon Develop an optimistic budget
• Agani Develop a conservative budget
• DeVue Sell beer at games
• Nack Dont sell beer at games
• Constraints
• Salary cap of 1.7 million
• Area capacity limited to 5,020 seats and 4 boxes
• Event capacity 3 event rooms, one arena

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Key Ratios

• Liquidity
• Current ratio a liquidity measure always
  provides insights
• Quick ratio identifies excessive inventory
  issues in a manufacturing firm not a big issue
  in this case
• Efficiency Ratio
• Net income/sales always provides insight
• Turnover Ratios
• Sales/Assets a good overall measure
• Sales/Average Accounts Receivable not a big
  issue in this case since receivables are not
  large
• Cost of goods sold/inventory not a big issue in
  this case since this is not a manufacturing or
  retail operation
• Leverage Ratios
• Assets/Equity always provides insights
• Profitability
• Net income/equity always provides insights
• Net income/assets always provides insights
• Financial Risk
• Earnings before interest and taxes/intererst

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Ratios
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Insight From Ratio Analysis

• The current ratio averages about 1 which is
  significantly below 2 the usual rule of thumb
  value
• Times interest earned suggests low financial risk
  except for 2006
• Net income to revenue is small this is a low
  margin business that relies on total asset
  turnover and a reasonable level of leverage to
  provide an adequate return on equity
• Total asset turnover averages slightly less than
  3 which may be reasonable in this type of
  business
• Leverage is very low

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Boxes 3 and 4 External Data

• These are the facts about the environment facing
  the firm
• Useful facts include
• PESTE
• Porter
• Industry Key Success Factors
• External facts that the organization can exploit
  are opportunities facts that have the potential
  to impair performance are threats
• Remember to look for external constraints and
  facts (risks) that can turn into threats

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Summary to Date

• You have identified the organizations current
  strategy and its mission statement
• You have gathered the data about the
  organizations environment both internal and
  external
• You have labelled these facts as strengths,
  weaknesses, opportunities, or threats
• You have identified the industry and firm key
  success factors
• You have identified any risks and constraints
• You have identified the organizations financial
  situation
• You have a good understanding of the organization
  and you are ready to address the issues that
  arise in the additional information

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Reviewing Your Work

• Study the markers comments
• Study the general feedback on the case provided
  on the CPP site.

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Now you are ready for the Additional Information
(AI)

• Add additional SWOT points from the AI
• Delete any SWOT points that have changed from the
  BG
• Identify the issues (you cannot do this from the
  information provided in the BG)
• Strategic and operational
• Evaluate alternatives for dealing with the issues
  (you cannot do this from the info provided n the
  BG)
• Qualitative
• Quantitative
• Identify the criteria you will use to recommend
  what to do (focus on constraints, financing
  availability, key SWOTROBUST RECOMMENDATIONS
  deck)
• Make specific recommendations
• Identify and discuss the implementation issues
• 3 parts
• Address/try to solve cons to recommended
  alternatives (some may be weaknesses
• Solve remaining relevant weaknesses
• Action Plan WHO is going to do WHAT, WHEN and
  HOW MUCH (if feasible)

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Recommendations Decisions Matrix Criteriaone
possible approach
What are you Basing your Recommendations on Alt One Alt Two Alt Three Alt Four
Strategic Fit ? ? ? ?
Shareholders Preference ? ? ?
Financials Bank/Profitability ? ?
Branding Store/Product ? ? ?
Customer ?
Inventory ? ?
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Implementation Plan
Actions Q1 Q2 Q3 Q4 Who Cost
Action 1 ? HR 5k
Action 1
Step Three
Step Four
Step Five
Step Six