01 - Business Case Study Method

8/11/2019 01 - Business Case Study Method

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Business Case Study Method

• a tried and tested teaching-learningmethod adopted in business schools bothwith undergraduate and graduate

programs• enhances learning by drawing out of the

class a fresh exchange of experiences,innovative ideas and practical applications

• develops in the students a stronganalytical and decision-making skills





Pharmaceutical Business Case

Study

• Highlights a specific deviation in the

company’s business operations in the area of

ethical and over-the-counter (OTC) products,

branded and unbranded generics, pricing,promotions, or place or people

• It may be focused on the non-attainment of

marketing and business goals, i.e. sales/

revenues, market share, market growth, marketleadership, profitability and survival of on-going

business concern



Pharmaceutical Business Case

Study

• A pharmaceutical business case can be

prepared from actual marketing problems

• Prepared by researchers or marketing

students. It is NOT designed to illustrate

effective or ineffective handling of

marketing and business problems.

• Use is merely as a basis for discussion in

classes, seminars, and workshops



Objectives of a Pharmaceutical

Business Case Method1. To merge theory and practice to help students

in identifying business and marketing issuesthat need to be addressed.

2. To infuse an integrated approach to exercisesin problem solving, decision making, andproblem analysis so that students will be givenvaluable practice in formulating and evaluating

marketing plans

3. To provide the students case materials thatwill serve as instruments to validate theapplicability of theories in true-to-life business

situations.



Objectives of a Pharmaceutical

Business Case Method4. To guide the students in formulating a thesis

and an approach in putting together a writtenpharmaceutical business case and an oralpresentation of the business case.

5. To enhance decision making skills of thestudents through open debates anddiscussions, sharing of perceptions,

impressions and work-related experiencesamong participants.



A Case for Case Analysis

• Case Analysis is bridging the gap betweenclassroom learning and the so-called real worldof marketing management.

• Provide an opportunity to develop, sharpen and

test analytical skills at: – Assessing situations

– Sorting out and organizing key information

– Asking the right questions

– Defining opportunities and problems

– Identifying and evaluating alternative coursesof action

– Interpreting data



A Case for Case Analysis

• Provide an opportunity to develop, sharpen and

test analytical skills at:

− Evaluating the result of past strategies

− Developing and depending new strategies

− Interacting with other managers

− Making decisions under conditions of

uncertainties− Critically evaluating the work of others

− Responding to criticism



The Case Method

• The use of business cases was developedby the faculty of the Harvard GraduateSchool of Business Administration in the1920s

• Case studies have been widely acceptedas one effective way of exposing studentsto the decision making process

• Cases generally entail both qualitative andquantitative data which the student mustanalyze to determine appropriatealternatives and solutions



The Case Method

• The primary purpose of the case methodis to introduce a measure of realism intomanagement education

• Rather than emphasizing the teaching ofconcepts, the case method focuses onapplication of concepts and sound logic toreal world business problems

• The students learn to bridge the gapbetween abstraction and application andappreciate the value of both.



Basic Approach to Case Analysis

1. Problem definition

2. Alternative courses of action are formulated

3. The alternatives are analyzed in terms of

their strength and weaknesses4. An alternative is accepted and a course ofaction is recommended

• This basic approach is quite useful for

students who are well versed with caseanalysis, particularly for shorter cases,however this framework may be inadequateor oversimplified .



Expanded Framework for Case

Analysis1. Analyze and record the current situation

Phase 1: the environment-economic, social, politicaland legal areas. May contain threats and opportunitiesfor the firm

Phase 2: the industryConsider- rivalry among existing competitors

-Threat of new entrants

-Threat of substitute products

-Bargaining power of suppliers

-Bargaining power of buyers

Phase 3: the firm

Phase 4: marketing strategy-analysis of currentstrategy



Expanded Framework for Case

Analysis

2. Analyze and record problems and their

core elements

3. Formulate, evaluate and record

alternative courses of action

4. Select and record the chosen alternative

and implementation details



Pitfalls to Avoid in Case Analysis

1. Inadequate definition of the problem

2. The search for the answer - There is no oneofficial or correct answer to a case. Rather

there are usually several reasonablealternative solutions

3. Not enough information

4. Use of generalities. Be specific

5. A different situation6. Narrow vision analysis / Change in marketing

element will have effect on the others



Pitfalls to Avoid in Case Analysis

7. Realism

8. The marketing research solution

9. Rehashing the case material10.Premature conclusions



Operational Approach to Case and

Problem Analysis1. Read the case quickly to get an overview of the

situation

2. Read the case again thoroughly. Underline relevantinformation and take notes on potential areas of

concern3. Review outside sources of information on the

environment and the industry. Record relevantinformation and the source of the information

4. Perform comparative analysis of the firm with theindustry and industry averages

5. Analyze the firm

6. Analyze the marketing program




Problem Analysis

7. Record the current situation in terms of

relevant environmental industry, firm and

marketing strategy parameters.

8. Make and record necessary assumptions tocomplete the situational framework

9. Determine and record the major issues,

problems and their core elements

10. Record proof that these are the major issues

11. Record potential courses of action




Problem Analysis

12. Evaluate each initially to determine

constraints that preclude acceptability

13. Evaluate remaining alternatives in terms of

costs and benefits14. Record analysis of alternatives

15. Select an alternative

16. Record alternative and defense of its selection17. Record the who, what, when, where, how and

why of the alternative and its implementation



Case Handling Presentation

• Presenting Group1. The group will prepare a comprehensive group

case report on a scheduled date and time to

the instructor. The group will also providecopies of the report to the members of the

liquidating group

2. The group will prepare a 30 minute presentation of the

case report. The presentation should include a

Powerpoint show, and if the group decides a role-

playing activity.




• Presenting Group3. The team leader assign case presenters to

discuss the completed case reports before theclass.

4. The group will prepare the presentationmaterials such as posters, mobiles, print ads,flyers, leaflets, and other promotion andmerchandising materials.

5. If necessary , the group will present productprototypes, radio jingles, print ads, andtelevision commercials




• Presenting Group

6. Each member of the group has to fully

understand the business case report. At the endof the oral presentations, they will have to

answer questions from the liquidating group. It

is the responsibility of each member of the group

to give satisfactory answers that will leave nolingering doubt about the soundness of the case

report presentation.




• Liquidating group

1. The liquidating group is given 30 minutes to

interrogate the reporting group

2. The liquidating group will prepare questions

based on the written and oral reports of the

presenting group.

3. The liquidating group should aim to discreditthe business and marketing plan of the

reporting group.




4. The liquidating group usually throws

questions at the person singled out as

the weakest link in the presenting group.

5. The role of the liquidating group is to look

into the soundness of the business case

report,pointing out the weak points, and

beefing up the case analysis, courses ofaction and strategies.




• The aim of the exercise is to encourage a healthylearning-sharing process.

• It hopes to get all members of the group to speak outtheir minds on matters they feel strongly about.

• Each member of the presenting and liquidating group isgiven opportunity to ask and answer questions.

• The team leader of each group acts as a moderator.They see to it that the open forum is managed within theallotted time

• After the liquidating group finishes its job, the rest of theclass get the chance to comment on the case report ofthe presenting group. This time the teacher facilitatesthe discussion




• The teacher facilitator1. The teacher/ facilitator sets the guidelines for the

written group reports, including date of submission.He or she also sets the time allotted for the oral

presentation, intermission, liquidating group’s rejoinderand the class critique.

2. The teacher/facilitator evaluates the finished reports ofthe presenting and liquidating groups. He or she takesnote of areas that are noteworthy,vague or weak. Heor she gives specific comments and suggestions forareas that need improvement. The teacher/facilitatorgives the appropriate grades for the finished reports.




• The teacher facilitator

3.The teacher/facilitator recaps the casediscussion. He or she summarizes the

positive and negative aspects of thewhole proceedings, gives pointers forimprovements, congratulates both thepresenting and liquidating group for theirefforts, and declares the winner of theoral exercise.



Content of the Finished Pharmaceutical

Business Case Report

I. Time Frame

II. Point of view

III. Central problem

IV. Secondary or sub-problems

V. Objectives

VI. Areas of

considerationVII. Alternative coursesof action

VIII. Decision criteria

IX. Recommendation

X. The Business Plan

XI. The Implementation

PlanXII. ManagementControl

XIII. Exhibits and figures



Time Context

• Determine the actual time frame, year,

month of the particular deviation or

problem in the case occurred.

• Analyze the case problem within the actual

period of the case



Point of View

• Higher management point of view-

chairman of the board, president, general

manager, marketing VP or owner of the

company



Central Problem

• Can be a deviation in one of the 4 Ps of themarketing mix (products, price, promotion, andplace)

• A slack in the overall performance of the company

• Business goals not met i.e. in terms ofsales/revenues, market share, market growth, targetmarket leadership or market segments

• When the central problem is not properly stated, the

case analysis is weak and indefensible• The central problem can be expressed in general

declarative statements, question form or by usingone or two phrases.





Objectives

• Expectations in solving the central problem andsub-problems

• Basis for making decisions and courses ofactions

• Objectives are desired results that must beachieved after solving the central problem andsub-problems

• Decide on standard of evaluation when settingcase objectives which must be very specific inorder to implement them as soon as possible.



Examples of Statement of

Objectives• To increase the sales of RiteMED Amoxicillin

capsules (250 mg and 500 mg) to 500 percentby the end of 2005.

• To have RiteMED Philippines capture 50% of

the generic drug market by 2005.• To capture a 100% sales growth for LVP in

2005.

• The statements of objectives should be SMART

(Specific, Measurable, Attainable, Results-Oriented, Time-Bound)

• No motherhood statements



Areas of Consideration

• Information about the cause and effect of thesituation, policies, programs or standardoperating procedures relative to the problems orthe assumptions

• Hard evidence and logical thinking support thesefacts.

• SWOT analysis

strengths and weaknesses of the company

and products relative to competitionOpportunities and threats to the external

environment



Alternative Courses of Action

• Possible answers to problems that have

been clearly identified

• Independent from each other

• Should be able to solve the central

problem or sub-problems

• Workable and achievable

• Should be very specific and quantifiable



Suggested Statements of

Alternative Courses of Action• PROCARD, a fish oil product that is good for the

heart, will be marketed through the multilevelmarketing channel instead of the traditionalpharmaceutical business and marketing

approach effective January 1996, initially inMetro Manila and Luzon

• LVP , a dextrose product , will be relaunchedprimarily in the pharmacy departments of tertiaryhospitals and lying –in clinics nationwide in the

fourth quarter of 2004, at a price discount of10% lower than the market leaders Abbott andEuromed Dextrose





Decision Criteria

• The alternative course of action that

garner the highest percentage ratings shall

be adopted in the final recommendation



CRITERIA

Criteria ACA-1 ACA-2 ACA-3

Sales/Rev 5 4 3

MarketShare

5 4 3

Mkt Growth 5 4 3

Profit 5 4 3

Total 20 16 12



Recommendation

• The best alternative course of action

• Will form the basis for a comprehensive

business and marketing plan that will

ensure early realization of company goals.

Documents

01 - Business Case Study Method