INTRODUCTION

One of the most effective pedagogical tools available is the case method of study. This approach affords students the opportunity to apply their managerial knowledge and personal experience to specific, and often messy, real-world problems. The case method is particularly effective for senior undergraduate and graduate students who have previously been exposed to a wide array of managerial tools and techniques, or have gained invaluable first-hand management experience.

Many students initially experience some difficulty when approaching a case analysis. The purpose of this document is to introduce you to learning with cases. It discusses background issues regarding business cases and the case method, the typical anatomy of a business case, and an accepted method for structuring a case analysis.

BUSINESS CASES & THE CASE METHOD

1. What is a Business Case?

Broadly speaking, a case can be defined as "a description of an actual situation, commonly involving a decision or problem, normally written from the viewpoint of the decision maker involved which allows the student to step figuratively into the shoes of the decision maker or problem solver." At first glance it may appear that this definition can also describe an exercise or problem found at the back of a text book, but there is an important difference. As specified in the definition, cases are actual situations, not hypothetical problems or contrived exercises.

If realism was the sole distinguishing feature of business cases, then newspaper or magazine articles might suffice in the use of the case method. But business cases contain another unique feature - release. The information in the case, even if the firm or situation described has been disguised, was released to the case writer with permission. This information was not available as public knowledge. Moreover, the case facts are presented along with issues such as managerial attitudes and other details that are unlikely to be included in a typical journalistic treatment of the topic or events.

A business case can never contain all of the facts and background information available to the managers in the actual business situation. The case writer must sift through all of the information and select the subset of data to include in the case so that the case can be amenable to reading, comprehension, and analysis. Well written business cases need not be huge documents to capture the richness available to the case writer. Indeed, some of the best and most effective cases available are deceptively brief, requiring students to carefully contemplate the facts provided and their implications rather than have a thorough discussion of the issues provided within the case.

To better understand just what a case is and the variety of forms it may take, we can describe cases along three critical dimensions: analytical, conceptual, and presentation. Each of these dimensions can be divided into three degrees.

A case-based course would begin with cases ranked lower in difficulty along all three dimensions and gradually build up to higher degrees along all three dimensions.

In conclusion, the business case is an abbreviated description of a real business problem or decision. The case is written to mimic real business settings in that it is presented with little structure or guidance for analysis.

2. What is the Case Method?

We are all familiar with the classroom scenario where the professor stands at the front of the room lecturing on a topic and the students are expected to absorb this information. Typically, in this situation, student participation is limited to asking questions concerning the material or for clarification of some point. While many believe this is an appropriate technique for introducing students to new concepts or techniques, even more agree that it is difficult or impossible for students to learn how to apply these concepts or techniques in a lecture-based setting. The case method is designed to address this shortcoming and provide a mechanism for synthesis and application.

In the case method the person at the front of the room acts as a facilitator for the class discussion of the case. The facilitator keeps the discussion on-track and focused on the case. The students are expected to be active participants in the process, providing the review of the case facts and background, the analyses of the problems contained in the case, and making recommendations for action. The responsibilities of the facilitator and students for the effective use of case method study are summarized in Exhibit 2.

The case discussion is not directed at the facilitator. Participants present their comments and assessments to the entire group. The lively interchange of ideas and opinions allows a much greater variety of interpretations of the case and its issues than would be possible in a directed discussion. It is not the facilitator's role to agree or disagree with, nor approve or disapprove of any of the comments made by the participants.

It should be clear that the successful use of case study as a learning tool depends on the participation and preparation of everyone involved. The "round table" style of case discussion in the classroom requires that everyone can contribute. Students cannot attend class without previously preparing the case in the hope that the case discussion can work without them, or that the professor will somehow "do" the case for the class.

CASE ANALYSIS

1. Background

The key tasks of the case student are to absorb the details of the case, consider the implications of the facts presented, and to apply a structured approach in the analysis and resolution of the problem or decision. At the outset it is important to recognize that cases do not have a "right" answer. This is often a source of frustration for students more familiar with directed exercises or structured problems. Because of the nature of cases (i.e., limited information, unstructured format), it is not surprising that various interpretations and subsequent analyses of the case will emerge during the case discussion.

But there is a counter-balance to the open-ended nature of cases that aids students in their analysis. While there may not be a single right answer to a given case study, students who have developed a strong foundation of managerial and IS concepts, techniques and theories will quickly begin to sort out how to select the appropriate tools to analyze different types of managerial problems and issues. Students will also learn that brining appropriate tools to bear on a problem will yield superior and more appealing recommendations.

2. The Anatomy of a Business Case

Cases are a well accepted teaching tool in many business schools. The largest single producer of business cases is Harvard Business School, followed by the Western Business School of The University of Western Ontario. Additional sources for business cases include other universities, such as the Darden School of The University of Virginia, as well as centralized publishers such as the European Clearinghouse for Business Cases. Overall, these sources provides hundreds of new business cases each year to add to their already large catalogues. Despite this huge output of cases each year, business cases tend to adhere to a general format.

The opening paragraph of a business case sets up the balance of the document for the reader. Typically, we are introduced to the central character in the case, known as the decision maker, in this opening paragraph. Other basic details are often provided here as well, such as the point in time at which the case is set, the name of the firm, the decision maker's position, some idea of the decision at hand, and perhaps a hint at the urgency of or deadline for the decision. The first paragraph is intended to set the stage for the remainder of the case.

The next part of the case is usually a description of background information. Here we will be given information regarding the company, its characteristics, strategy, structure, and systems. A description of the firm's products or services is often found here. Market-based information, such as the level of competition, barriers to entry, market share, and market trends would be inserted in this section as well. This section contains many of the details that guide the case analysis and constrain the possible universe of recommendations.

Next, a case usually moves on the provide more details regarding the decision introduced in the first paragraph. We learn more about the other managers involved in the decision and their roles in the case. Specific considerations at the point in time at which the case is set are included here. This section of the presentation of case details usually introduces specific, rather than general, constraints or requirements on the recommendations for the decision.

Finally, a case often includes a summary paragraph recapping the critical facts, and restating some of the points raised in the introductory paragraph.

The above described format is not written in stone. Case writers are free to use any presentation of the case facts they feel would be best suited to the decision in the case. Nonetheless, these basic components usually appear within the case regardless of the specific format or organization.

Because case writing involves a necessary truncation of all of the facts available, case writers tend to choose their words very carefully. Anyone reading a case should immediately be sensitive to the language used by case writers and, in particular, specific phrases. For example, words such as "option," "required," and "preferred" should send immediate clues to the case reader that what is being described is important and must be taken into consideration. The student's ability to notice these clues and attach to them the requisite importance in often a function of familiarity with the case method. In other words, the more cases one does, the better one becomes at recognizing the critical points in each case.

3. The Format of Case Analysis

The format for case analysis discussed in this section should be applied whether or not there is a requirement to hand-in a written case analysis for marks. This format is intended not only to aid the student in the presentation of the analysis of the case, but in the organization of the analytical processes applied to the case.

The format includes three components: the Problem Definition, The Analysis, and the Recommendations. These are discussed in greater detail below.

A. Problem Definition -- Frequently, students are tempted to jump directly into detailed analysis of the case, particularly quantitative analysis. This route cuts off the necessary first step of organizing one's thoughts after reading the case. Once a student begins analyzing cases that score over "1" on any dimension of the Case Difficulty Cube, careful evaluation of the case facts will be necessary before proper analysis can begin.

The problem definition of the case analysis should be short but comprehensive. After reading a case the student may have been presented with quite an array of issues and problems. The student should take a step back and look at the entire body of facts in the case. This should permit the student to recognize both the specific decisions facing the decision maker, as well as the larger conceptual issues at play. A good starting point to frame the problem definition is the opening paragraph of the case, but more insight than contained there will generally be necessary to grasp the fundamental problem(s) in a case.

Be careful that your problem definition is not merely repeating the facts of the case. A well crafted problem definition will serve two goals. First, it will identify the specific problems to be addressed by the analysis. Second, it will identify the larger conceptual issues underlying the case and guiding the analysis.

B. Analysis -- Information systems (IS) cases usually contain different types of information, all of which must be considered to ensure solid recommendations. For example, such cases usually present technological and financial information related to computer hardware, software, database and/or communication systems, as well as IS concepts, techniques and methodologies. Students should have a reasonable knowledge of these terms and concepts prior to tackling a case.

IS cases also require knowledge of managerial concepts, techniques, methodologies and theories, and are often set in the context of one or several other functional areas (e.g., an integrated system serving marketing, accounting and manufacturing departments). This breadth and diversity means that IS cases tend to capture higher scores on the "Case Difficulty Cube".

During the analysis phase, the student must first determine what data is relevant, and then apply the appropriate tools to evaluate that data and consider alternative solutions to the problem. The detailed analysis of the case facts must address the concerns of the decision maker as raised in the case. It must allow for the assessment of the options available to the decision maker by way of the appropriate tool, with a full consideration of the surrounding issues.

C. Recommendations -- This final section of a case analysis should contain no surprises. The recommendations must address the problem or problems as defined at the start of the analysis. This section should recap the previous one by mentioning the results of the analysis. It should specify the actions you recommend be adopted by the decision maker, as well as the timing of their implementation.

4. The Constraints of Case Analysis

Because a case can never contain all of the information available to the decision maker it is sometimes necessary to make certain assumptions. Indeed, your analysis and recommendations may depend on assumptions you make at the outset of your work. It is important, however, to make sure that your assumptions are consistent with the case, and that they are believable.

For example, a manager in a case wishes to evaluate the costs and benefits of installing a new computerized accounting system. According to the vendor, users will require a six-week training course in order to use the new system effectively. This fact may have significant financial and project scheduling implications. It may also imply something about the complexity of the system. You cannot revise this estimate and "assume" that the training can be completed in just three weeks, unless the case contains facts or hints along that line (e.g., if the vendor mentions that previous customers have completed training in three weeks, or if the users are already somewhat familiar with the system).

Making assumptions outside the case facts usually jeopardizes your analysis. The proper way to approach a situation where, you feel, an additional assumption would make a large difference is to first address the decision maker's concerns with the existing constraints. Then, suggest that if a constraint was relaxed another solution or avenue might be preferable. Sometimes case constraints are subtly incorporated into the case facts; it is important to ferret them out.

CONCLUSION

The case method is a well established teaching tool in business programs. As a business student, it is your responsibility to become familiar with the case method and learn how it is applied.