FACULTY OF MANAGEMENT STUDIES – MBA – SEMESTER 1

MBUA503: CRITICAL THINKING AND CASE ANALYSIS

REFERENCE MATERIAL
Module 4: Introduction to Case Analysis
Definition: A method of learning by analysing real-world business problems and
developing decision-making skills.
Purpose of Case Analysis
a. To bridge theory and practice.
 Classroom theories (like SWOT, Porter’s Five Forces, or Ratio Analysis) often seem
abstract.
 The case method brings them alive by applying them to real-world business
situations.
 It helps students see how concepts are not just academic but actually guide managerial
decision-making.
b. To enhance problem-solving and decision-making ability.
 Managers must make choices with incomplete data, uncertainty, and risk.
 Cases put students in the shoes of decision-makers and help them develop a structured
approach: diagnose → analyse → decide.
c. To build analytical and communication skills.
 Analytical skills: Break a complex case into smaller parts, identify causes, and apply
tools.
 Communication skills: Present solutions logically and persuasively, both in writing and
in group presentations.
Objectives of Case Analysis
1. Identify the core issues in a situation.
 Move beyond surface-level problems.
 Write a crisp problem statement (one or two sentences).
2. Apply strategic and analytical tools.
 Select the right framework for the situation.
 Tools include SWOT, PESTLE, Porter’s Five Forces, Ratio Analysis, Value Chain,
Break-even, etc.
3. Develop alternative solutions.
 Generate 2–3 possible strategies.
 Alternatives should be realistic, distinct, and address the root cause of the problem.
4. Recommend the best course of action.
 Choose the most feasible and impactful alternative.
 Support recommendation with evidence and structured evaluation.
5. Enhance team-based decision making.
 Cases are often solved in groups, simulating real corporate teamwork.
 Students learn to debate, listen, compromise, and present collectively.
Process of Case Analysis (Step-by-Step)
1. Preliminary Reading: Skim the case for context.
 Read quickly to grasp the industry, company background, and main decision area.
 Note the key characters and timeline.
 Output: 2–3 sentence summary of the situation.
2. Detailed Reading: Highlight facts, data, and events.
 Go line by line; underline important facts, financial figures, and events.
 Pay attention to exhibits, charts, and numbers—they often hold the solution.
 Output: A list of key facts and data.
3. Problem Identification
 Ask: What is the real problem here?
 State it clearly in one or two sentences.
 Avoid confusing symptoms (surface issues) with root causes (underlying drivers).
4. Distinguish between symptoms and root causes.
 Use methods like the “5 Whys” or Fishbone Diagram to dig deeper.
 Example: Why falling revenue? → Poor cash flow. Why poor cash flow? → Costly
acquisitions not generating returns.
5. Application of Tools.
 Select and apply frameworks to analyze the situation.
 SWOT: Strengths, Weaknesses, Opportunities, Threats.
 PESTLE: Political, Economic, Social, Technological, Legal, Environmental.
 Porter’s Five Forces: Industry competition and attractiveness.
 Ratio Analysis: Profitability, liquidity, solvency.
 Value Chain: Internal efficiency.
6. Generating Alternatives: Develop 2–3 actionable strategies.
 Each must be feasible and different from the others.
 Avoid vague alternatives (e.g., “improve marketing”)—make them actionable.
7. Evaluation: Compare feasibility, cost, and impact.
 Use a decision matrix (criteria such as cost, time, risk, feasibility, strategic fit).
 Score each alternative and select the best.
8. Recommendation: Choose the most viable alternative.
 Clearly state your choice and back it with reasoning.
 Provide 3–4 solid justifications based on data and analysis.
9. Implementation Plan: Define steps, timelines, responsibilities.
 Translate recommendation into an action roadmap.
 Include: who does what, by when, with what resources.
Benefits of Learning Case Method
 Enhances Problem-Solving Skills: Students learn structured problem identification
and solution-building.
 Improves Decision-Making: Cases require prioritization among alternatives.
  Builds Analytical Ability: Application of tools to break down complex issues.
 Encourages Multiple Perspectives: Students learn to appreciate different viewpoints.
 Boosts Communication Skills: Presenting solutions improves clarity, persuasion, and
confidence.
 Teamwork & Collaboration: Cases often require group work, simulating corporate
teamwork.
Types of Cases
1. Problem-Solving Case Analysis
 Focus: Identify the central problem(s) and suggest feasible solutions.
 Example: A company facing declining sales – students analyze causes and
recommend marketing strategies.
2. Decision-Making Case Analysis
 Focus: Managerial decision at a crossroads; alternatives are available, and a choice
 must be made.
 Example: Whether a firm should expand into a new market or not.
3. Evaluation Case Analysis
 Focus: Critically assess a policy, strategy, or decision already taken, and judge its
effectiveness.
 Example: Evaluating the impact of a merger or acquisition.
4. Illustrative/Descriptive Case Analysis
 Focus: Describes a real situation in detail to highlight processes, practices, or
phenomena without pressing problems.
 Example: Study of Toyota’s lean manufacturing system.
5. Exploratory/Diagnostic Case Analysis
 Focus: Explore issues that are not clearly defined, diagnose underlying causes.
 Example: Diagnosing why employee turnover is unusually high.
6. Critical Incident Case Analysis
 Focus: A specific event or incident that requires in-depth analysis.
 Example: A crisis like a product recall or a financial scandal.
7. Implementation Case Analysis
 Focus: How to execute a strategy or solution effectively, dealing with practical
barriers.
 Example: Rolling out a new ERP system across multiple branches.
8. Comparative Case Analysis
 Focus: Compare two or more cases, companies, or strategies to extract insights.
 Example: Comparing Tesla vs. BYD in global EV markets.
9. Narrative Case Analysis
 Focus: Story-based, emphasizes human and organizational elements, usually
qualitative.
 Example: Leadership challenges faced by a startup founder.
 10. Quantitative/Analytical Case Analysis
 Focus: Heavy use of data, statistics, financial ratios, and models to derive insights.
 Example: Financial restructuring decision based on cost-volume-profit analysis.
Identifying and Analysing the Issues, Problems and Opportunities
 Issues: Challenges that need attention.
 Problems: Root causes, not just symptoms.
 Opportunities: Potential areas for growth, innovation, or competitive advantage.
Steps:
1. Read the case and list all possible issues.
2. Distinguish between symptoms vs. problems using 5 Whys or Fishbone Diagram.
3. Identify opportunities for the firm in the external environment.
Example: Byju’s Crisis
 Symptom: Revenue decline, mounting debt.
 Problem: Overexpansion through risky acquisitions.
 Opportunity: International expansion in EdTech and enterprise partnerships.
Distinguishing Problem vs. Symptom
 Problem: Root cause affecting performance.
 Symptom: Observable outcome of the problem.
 Example: Symptom: Declining sales.
 Problem: Weak distribution strategy, poor pricing, or lack of innovation.
Developing and Evaluating Alternative Solutions
Developing Alternatives:
 Generate 2–4 distinct, realistic strategies.
 Must address root causes, not just symptoms.
 Ensure feasibility within available resources.
Evaluating Alternatives:
 Apply criteria such as feasibility, cost, time, risk, and strategic fit.
 Use a decision matrix for structured comparison.
Example (Byju’s):
 Alt 1: Divest non-core acquisitions → + immediate cash, – brand perception hit.
 Alt 2: Restructure debt → + buys time, – increases financial risk.
 Alt 3: Expand into global corporate learning → + new revenue, – requires upfront
investment.
Evaluation Matrix: Students score each on feasibility, impact, cost, and risk → choose
the best.
Making Recommendations for Action
Steps to Formulate Recommendations:
1. State the chosen strategy clearly (no ambiguity).
2. Justify why it is the best alternative (use evaluation results).
3. Outline implementation plan – steps, timeline, responsible managers.
4. Anticipate risks and mitigation strategies.
 Checklist for Good Recommendation:
 Is it actionable?
 Does it address the root cause?
 Is it measurable (KPIs, timelines)?
 Is it realistic given constraints?
Example:
For Byju’s Crisis:
 Recommendation: Divest non-core acquisitions, focus on cash generation from core
product.
 Implementation:
o Short-term (0–6 months): Freeze acquisitions, reduce overhead, renegotiate
debt.
o Medium-term (6–12 months): Divest 3 subsidiaries, focus marketing on core
product.
o KPIs: Cash flow improvement, ARPU growth, churn reduction.
 Risks: Brand dilution → mitigate via communication campaign.

Do’s (What to Follow) Don’ts (What to Avoid)

Don’t jump to solutions without fully understanding
Read the case carefully (at least twice)
the case
Differentiate facts vs assumptions Don’t mix up symptoms with root causes
Identify the core problem, not just the visible issue Don’t stop at surface-level observations
Apply strategic tools systematically (SWOT, PESTLE, Don’t rely only on theory without applying it to case
VRIO, BMC, etc.) facts
Don’t overload with irrelevant details or
Support analysis with data, numbers, evidence
unnecessary data
Generate multiple strategic alternatives Don’t present only one vague solution
Evaluate alternatives with clear criteria (feasibility,
Don’t ignore risks, feasibility, or financial aspects
cost, risk, sustainability)
Provide actionable recommendations (short-term + Don’t give generic or vague suggestions (“improve
long-term) marketing”)
Don’t be biased toward one side (e.g., only
Consider all stakeholders’ perspectives
management or only employees)
Write in a structured format (Intro → Issues →
Don’t write in a disorganized or lengthy, unfocused
Analysis → Alternatives → Recommendations →
way
Conclusion)