Business Management

Study Manuals

Advanced Diploma in
Business Management

INTERNATIONAL
BUSINESS CASE STUDY

The Association of Business Executives

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Advanced Diploma in Business Management

INTERNATIONAL BUSINESS CASE STUDY

Contents

Unit Title Page

1 An Introduction 1
What Constitutes a Case? 2
Preparing for Your Exam 2
Preliminary Study 4
You as Case Analyst 4
Checklist 5

2 Case Presentation and Content 6

Case Presentation 8
Evaluation of Information and Data 9
Checklist 11

3 Analysis 13
Identifying the Problem(s) 14
Analysis 14
Checklist 17

4 Solving the Case Study Problem: The Examination 19

Solving the Problem 20
The Case Study Examination 21

5 Review 23
Learning from Cases 24
Case Study Learning and Management 27
Your ABE Examination – Checklist 28
 1

Study Unit 1
An Introduction

Contents Page

A. What Constitutes a Case? 2

B. Preparing for Your Exam 2

C. Preliminary Study 4
First Reading – the Case as a Scenario 4

D. You as Case Analyst 4

E. Checklist 5

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2 An Introduction

A. WHAT CONSTITUTES A CASE?

The Case Study method of training is now extensively used in professional management
training to give the trainee an insight into "real life" situations. The study of problems and
solutions through the case method has long been a training feature of law and medicine and
is now used to train managers and administrators in industry and government by enabling
personnel to obtain historical experience from case analysis.
Simply, this means asking the questions:
 What has happened in the past?
 What is the current situation?
 What should be done now and for the future?
In detail, you, as case analyst, are required to bring to the study the knowledge of business
principles and techniques, understanding of human behaviour in the work environment, and
ability to assess the pressures and influences which affect an organisation.
A case, therefore, is not just a limited description of a situation, an example crystallised and
static, but is dynamic in the sense that it is the result of past events and changes in
organisation or personnel, and is subject to future influences from within and from outside
the organisation which may affect decisions.
In the main, cases are actual "real-life" situations studied within an organisation, often by an
independent case writer, and created on the basis of information and data obtained,
preferably factual but sometimes assumptions resulting from discussions with personnel
involved in the case situation.

B. PREPARING FOR YOUR EXAM

The ABE Examination Board supplies the actual case upon which you are to be examined
approximately four weeks before the actual examination date, to enable you to study the
case and make an assessment of it. You may take notes and refer to them in your
examination itself. This booklet will enable you to be thoroughly prepared for your exam.
Some of the criteria used in assessing Case Study submissions are shown in Table 1.1.

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 An Introduction 3

Table 1.1: Criteria For the Grading of Case Studies (Good and Bad Examples)

Grade Knowledge and Analysis and Communication Skills

Comprehension Application

1 Quotes appropriate Applies Logical structuring of

(Distinction) theoretical knowledge theories/principles the entire answer.
e.g. theories and correctly to the Analysis and evaluation
techniques. circumstances quoted. are developed
Demonstrates Analyses the situation comprehensively, i.e.
adequate and inter-relates no faults or gaps in the
comprehension of material from various logic. Answer is well
knowledge, e.g. by use parts of the case. laid out, well presented
of illustrative example, Considers and (use of headings,
analogy or explanation. evaluates alternative illustrations, tables, etc)
solutions where these and well written
exist. Evaluation leads (legible, grammatically
to selection of a correct and effective
feasible solution (not style of writing).
necessarily the 'best'
solution).

2 Quotes appropriate Application of Logical structuring of

(Very good theoretical knowledge theories/principles the entire answer.
pass) e.g. theories (correctly shows some Analysis and evaluation
attributed), principles weaknesses, e.g. are developed
and techniques. failure to recognise all comprehensively, i.e.
Demonstrates limitations or to use all no faults or gaps in the
adequate evidence available. logic. Answer is well
comprehension of Alternative solutions laid out, well presented
knowledge, e.g. by use are not fully evaluated, (use of headings,
of illustrative examples, even if the 'right' illustrations, tables etc)
analogy or explanation. solution is reached. and well written
(legible, grammatically
correct and effective
style of writing).

4 Shows a reasonable Circumstances Answer is adequately

(Marginal grasp of basic inadequately analysed presented, given the
fail) theories/principles but and hence fails to limitations of analysis
some elements appear recognise major and application.
to be lacking. problems which need Structure is poor,
Comprehension is not to be considered. although knowledge is
fully proven, e.g. basic reasonably clear.
Does not demonstrate
facts are quoted Grammar is at a
the ability to apply
(correctly) but not marginal level.
knowledge which
explained, no
he/she obviously has in
illustrative examples
a practical way (these
used.
are common faults,
often demonstrated by
mere repetition of
material from the case
study).

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4 An Introduction

Grade Knowledge and Analysis and Communication Skills

Comprehension Application

5 Answer reveals Poor analysis of Answer very poorly

(Clear fail) fundamental gaps or circumstances. presented, and difficult
misunderstandings in Applications totally to follow.
basic knowledge, and unsatisfactory due to a
fails to reveal adequate lack of knowledge and
comprehension even of comprehension.
correct theories and
principles.

C. PRELIMINARY STUDY
First Reading – the Case as a Scenario
In order to relate your studies to a practical case, we have included an example of our ABE
International Business Case Study and suggested answers in the appendix at the end of this
workbook. You should use it for reference and to test your understanding of the principles of
case analysis and examination techniques.
The first reading should be a "read through" only. Do not consciously try to make any
judgments at this stage. They will come later. The object is to read as you would read a
play – the case constitutes a scenario in which previous events and current situations
provide a historical background and present the personnel and their relationships as the play
opens. The Case Study is the first act. Read it informally, without pausing, and delay your
formal study so as to allow a period during which you digest what you have read. In this
way, you give time for ideas to develop. Do not be tempted to grasp a point which appears
to you to have immediate interest; it cannot be studied in isolation and so it is better to obtain
an overall impression of events at the first reading and study the detail later when you look
for problems, recognise them and consider what to do.

D. YOU AS CASE ANALYST

Your initial reading of the Sample Case will provide a general picture of developing events
and the personnel involved, against a background of corporate development over a period of
time.
Exhibits in the form of performance data and other documents are given as a source of
information, to indicate the degree of sophistication of management of the organisation.
From this information, you must assess the strengths and weaknesses of the enterprise, the
extent of problems existing, and how to remedy them.
You will learn to:
(a) Understand the underlying causes of problems appearing in failures of performance
through organisational or personnel inadequacies;
(b) Evaluate facts and opinions and differentiate between them;
(c) Determine
 What is happening and why;
 What should be happening;

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 An Introduction 5

 How to remedy the situation.

We shall proceed as follows in the ensuing Study Units:
 Case presentation, in which you will study the purpose and objectives of case study
and the methods of dealing with particular features of the case;
 Evaluation of the data and information provided;
 Identification of the problem, not always immediately apparent as the root cause but
seen in the inadequacies of performance and morale;
 Analysis of the problem situations and their cause by assessment of:
(i) Organisation,
(ii) Personnel,
(iii) Systems and procedures,
(iv) Corporate strengths and weaknesses,
(v) Barriers to co-operative effort.
 Solving the problems, testing the creative ability of the analyst to see potential
alternative solutions and predict results, subject to possible contingency factors.
The Case Study method of training is an extension of the conventional teaching methods of
lectures/study manuals and note-taking. It provides an opportunity for those of you with a
wide study background to become involved in a "real-life" situation and, by analysing
problems and seeking to solve them, obtain an understanding of the causes of such
problems first-hand and the confidence to make recommendations and decisions. It is, in
fact, a replication of the process followed by most Consultants.
You must consider what the case writer is trying to convey to you, in a teaching context. The
first reading of the sample case may lead you to the point of view that the problems centre
on human resources and their attitudes and relationships. This may be so, but you will find
other reasons within the organisation as a whole which will lead you to take a wider view and
understanding of where matters went wrong, what ought to have been done and what you
consider should be done.
The successful operation of many businesses is based on a wide business understanding of
economics, business law, trade conditions and the knowledge that success depends on the
inter-dependency of all the disciplines which make up the total enterprise. Interface barriers
within an organisation, whether vertically between manager and subordinate or horizontally
between managers, should have no place in an organisation directed towards the benefit of
all involved.

E. CHECKLIST
1. From your first reading, what is your general assessment of the case?
2. Have you any views on possible organisational problems?
3. Do you consider that in further detailed studies you will be faced with additional
problems?
4. What are the strategic implications of this global venture?

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Study Unit 2
Case Presentation and Content

Contents Page

A. Case Presentation 8
Case Features 8
Framework of the Case 8

B. Evaluation of Information and Data 9

Extent and Adequacy 9
Collection and Arrangement 9
Related Information and Data 10

C. Checklist 11

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8 Case Presentation and Content

A. CASE PRESENTATION
Case Features
Whilst each case is different in form and detail, there is a fundamental basic structure which
enables the analyst to assess the main activities involved. In a study of a global trading
organisation, for example, the main features presented will be:
 Current situation within the company and the business environment
 Organisational, objectives and strategies
 History of change and development
 Human Resources – attitudes and relationships
 Functional performances related to company strategies.
These features are presented in different degrees of intensity and detail according to the
teaching purpose of the case writer and real life events which form the structure of the case.
It is the analyst's aim to understand and evaluate the main features of the case and the
degree of emphasis given to the constituent parts, identifying problems and restructuring to
improve performance.
The study of a case which emphasises a particular area of an organisation is directed to
assessing the extent to which this major resource area provides an efficient service and
contributes to organisational profitability. From the evidence given, you must determine
how far these two objectives are fulfilled and the reasons for any shortcomings which you
find in the purchasing operations, taking into account the company organisation and
operations as a whole.
We look, therefore, not only at the strengths and weaknesses of the discipline concerned,
but at those of the company in terms of its organisation, plans and objectives, human
resources, direction and performance.

Framework of the Case

At this stage, having obtained a general idea of the situation, you will find it useful during
subsequent readings to make notes of ideas which come to mind. These need not
necessarily be in any particular order initially, but will form the basis for a more formal
arrangement.
You will find that the main features of case study which we outlined earlier, appear in any
case you may encounter. You will need to develop your understanding of the "current
situation" of the case you are given in terms of organisation and human resources and the
events leading up to it. The following headings may be useful.
(a) Current situation
 What sort of organisation are you dealing with?
 Is it large or small?
 What does it do?
 Where does it operate?
 Who are the key players?
 How long have they been there?
 What are their aims?

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 Case Presentation and Content 9

(b) Company organisation

 How is the company controlled?
 Who makes decisions?
(c) Company sites
 Where is the company situated?
 Is there more than one site?
 Does this cause logistical problems?
(d) Company staff
 How many are there?
 Over how many sites?
 What sort of age groupings/nationalities?
(e) Company problems
 What problems have you identified so far?
 No doubt there are other problems, not yet identified.

B. EVALUATION OF INFORMATION AND DATA

Extent and Adequacy
The information given in the case may, in some respects, be sufficient, but there may be
inadequate overall information and data to make a judgment.
This is particularly so in the provision of data. Sets of figures and general summaries may
not identify clearly the objectives, rate of change and extent of change. The use of key
ratios to indicate operating performances is a valuable aid to management evaluation of
performance, and, if not given in the case details, should be computed where possible from
the information given.
It is useful for you to work out this information, to be retained in your dossier of notes both
for the more detailed analysis to follow and for examination purposes. The introduction of
techniques in support of judgments will indicate to the examiner the extent of the analyst's
work.
Check your case to assess the performance figures given to you in the case and how you
can obtain more sensitive indicators, both operating and financial.

Collection and Arrangement

The case presentation notes in the earlier part of this study unit show how basic information
can be collated to produce a history of events and the involvement of personnel. You may
find this arrangement of the main features of the case a suitable way of making preliminary
notes from which the detailed analysis can proceed. Remember that you must take into the
examination room the Case Study supplied to you in advance for study and analysis upon
which you are to be examined. You may also take with you any notes, references and books
to help you in answering the questions.
It is prudent therefore to have notes and references carefully arranged for easy access to
avoid unnecessary delay in looking up material.

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10 Case Presentation and Content

You may find it useful to have noted the main features of the case, describing:
(a) Organisation and management
The structure should be charted, if not already given in chart form in the case details.
(b) Time-span
The history of events as far as they are chronicled involves:
 Foundation of the company
 Development and changes
 Acquisitions
 Divestments.
This will help you to make judgments on corporate objectives.
(c) Human resources
List the people involved:
 Their positions in the company and in transactions with the company
 Attitudes
 Successes and failures
 Other information you think relevant.
(d) Performance
Outline in broad terms the fulfilment of objectives and shortcomings.
By extracting such points of reference from the case details, the analyst is able to:
 Relate personnel to circumstances;
 Investigate personnel attitudes and relationships;
 Deduce possible areas of conflict within the organisation and external pressures
affecting performance.

Related Information and Data

(a) If applicable, note the changes in personnel and organisation upon results.
(b) Ask questions; study your notes for evidence to support your judgments and
predictions.
(c) Your notes, both general and detailed, will provide the basic data upon which to make
an evaluation as a further step towards the final analysis and recommendations.
In many ways, the Case Analysis is similar to the procedures for Operational Research:
 Identify the problem,
 Collect data,
 Analyse,
 Create models,
 Project alternative solutions,
 Make recommendations,
 Choose the optimum solution.
It may equally be considered the route to successful decision-making in complex situations.

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 Case Presentation and Content 11

C. CHECKLIST
If you have not already done so, try to visualise the company described in your case.
Although you may not work in this particular industry, you no doubt have some experience of
the sort of problems which can occur.
Now recall the summary we made in Section A of this Study Unit. What questions come into
your mind when you review the case so far? At this stage I would give you the following
thoughts; you will undoubtedly have others:
1. Organisation and Management
Is this appropriate for the size of the organisation? Is there the right balance between
centralisation and decentralisation?
2. Problems
The problems described are real, but are they merely the tip of an iceberg? Are there
more major problems waiting to surface?
3. Human Resources
Is there the right mixture of age levels and abilities, or is another problem waiting to
develop in this area?
4. Acquisitions/Divestments
Should the company expand into other areas, or should it concentrate on its core
activities?
Study the details of the case study and then answer the questions raised.

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12 Case Presentation and Content

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 13

Study Unit 3
Analysis

Contents Page

A. Identifying the Problem(s) 14

Problem Areas 14
Symptoms 14

B. Analysis 14
Evaluation 14
Subjective Judgment Factor in Case Analysis 14
Knowledge and Use of Techniques 14
Assessments 15
Inter-related Activities Affecting Functional Performance 16

C. Checklist 17

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14 Analysis

A. IDENTIFYING THE PROBLEM(S)

Problem Areas
Understanding the situation within an organisation is the first step towards identifying the
problem (or problems) and asking why it has occurred, to what extent, how long it has
existed and what are the results now and for the future.
Problems may be organisational or a question of personal relationships, but what we see
initially are often the symptoms only.

Symptoms
Just as the medical adviser's first study of an illness is of the symptoms, so, in studying an
organisation, you may see only the symptoms arising from underlying problems within the
organisation. For Example, problems of late delivery and high prices, apparently requiring
an organisational upheaval in one area, may in fact be caused by inefficient inventory control
allowing insufficient lead times to allow for efficient production. Apparent high prices may be
due to a lack of a standardisation policy and therefore design reluctance to consider the
savings potential of standardisation and use of acceptable commercial tolerances available
in the supply market at lower prices.
Problems present symptoms and their solution normally dispels the surface symptoms. But
be wary – there are cases where symptoms may still appear when the problem has been
solved. For example, a bad image created by late payment of bills may linger in the shape
of a poor credit reputation. This does not necessarily apply to all cases, but is an example of
how strong symptoms appear and why the identification of a problem must depend on the
realisation by the analyst of the need to diagnose underlying problems rather than their
symptoms.

B. ANALYSIS
Evaluation
So far, in speaking of information, we have been concerned with facts. Minutes of meetings,
copies of letters, operating statements, financial results, constitute evidence.
Verbal references to discussions, or opinions given by personnel in the case, may in fact be
true, but it is for the analyst to judge and if satisfied to make an assumption. The
"grapevine" as an information channel of communication may represent the truth, but it must
be treated warily.

Subjective Judgment Factor in Case Analysis

However objective you, the analyst, try to be in assessing a case, the mere fact of studying
events, their development and the people involved, will lead to a feeling of participation.
The assumptions which we discussed in the Evaluation section require a subjective interest.
This should be understood and tempered with a controlled objectivity.
Acceptance of a concept must be based on evidence. An assumption should be related to
the evidence and not be mere opinion.

Knowledge and Use of Techniques

The Case Study in which you will be examined will be "broadly based within the general field
of international business and will assume a sound knowledge of relevant subjects at Diploma
or equivalent level.

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 Analysis 15

It will cover a situation dealing with a range of international business issues at strategic level.
It is your task to analyse what has happened to cause current problems and to ask
questions. You have to consider what will be the result if the current situation is allowed to
continue without adjustment and, by predicting alternative paths in future operations, offer
strategic solutions or, as is often the case, alternative solutions.
Alternative solutions are based on predictions of what may happen as a result of following
different courses of action. The analyst's job may end at this point, but a recommendation
may be asked for and given.

Assessments
Remember that a Case given to you for examination is primarily a description of a situation.
As we begin the study, it is the opening act of a play, a dramatic piece. As we first see it, or
read it, we are faced with:
 A situation;
 A previous history of events;
 People and relationships;
 Problems, now and predictable.
Whilst in the play the action unfolds as we watch, the Case Study does not provide this
facility but requires us to search for the real problems and consider how they can be solved.
Since we are dealing with a commercial situation, we shall need to assess the many
ingredients of:
 Organisation
 Human Resources
 Systems
 Planning – resources, opportunities, positive and negative influences within and
outside the company.
Let us examine them in more detail.
(a) Organisation
All society in various degrees has an organised base – rules and regulations, structure,
systems, morals and ethics. In the multinational company, the organisation is
structured to combine the efforts of many skills and professional expertise to obtain the
maximum benefit from a concerted effort, whether in manufacturing or distribution, in
one or more parts of the world.
To relate the structure of an organisation to the objectives of the company is a complex
problem in itself, and failure to do so will be revealed in monitoring actual results. This
area is therefore a fruitful source of information to the analyst when studying a case.
Consider the structure, draw a chart, visualise the communication channels and
personal relationships involved at all levels, and you will understand the fertile ground
in which problems may grow and the need for control and constructive direction.
(b) Human resources – attitudes and relationships
An organisation as charted shows the structure of relationships and the levels and type
of authority – line and staff. It does not show the human aspect and the need to make
the organisation work through teamwork. The ability of people of different character in
varied disciplines and locations, and of different nationalities, to combine at all levels in
seeking maximum use of skills is essential to the benefit of the whole organisation.

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16 Analysis

Ambition, stress, frustration, desire for status, often lead to less than maximum co-
operation and interface barriers between parts of an organisation.
Lack of communication may appear as a problem of organisation, whereas it is often a
symptom of a problem arising from inadequate co-operation between people.
The inability of management to judge personnel because of lack of comprehensive job
descriptions or staff appraisal techniques is a further factor associated with
unsatisfactory performance.
(c) Systems and techniques
 Systems consist of procedures, operational methods linked by formal
communication channels, enabling work to proceed efficiently.
 Techniques are in the main directed to providing information and data in a
concentrated form as an aid to control.
Management services, in the form of O & M recommendations by systems analysts,
ensure that a department is administered efficiently, with suitable equipment, formal
work flow charts, job "stations" and appropriate workload. The use of computer
controlled systems of data processing has increased the efficiency of systems controls
in disciplines with a large volume of paperwork, formerly difficult to control as a unified
system within a department and with related departments.
Inefficient control of systems is a cause of problems, the symptoms of which are
manifest in delay and inaccuracies.
(d) Planning
 Resources
A company operates by setting OBJECTIVES.
To fulfil the objectives there must be PLANNING.
Plans, to be successful, require adequate RESOURCES.
Optimum utilisation of resources and the avoidance of problems rests with skilled
MANAGEMENT.
 Finance management
Working capital, cash liquidity and cash flow, access to investment funds, require
skilled finance management to support continuous and successful trading. With
sound financial support, opportunities may be taken to expand, in product
range and markets, research and development. Without sufficient working
capital or the ability to raise funds, competitiveness suffers.
 Influences within and outside the company
In assessing the history of events in the life of a company, the effect of
sociological or economic changes, if not foreseen, can create problems, as
products become unpopular, or inflation prices a product out of the market as
costs of materials and wages increase.

Inter-related Activities Affecting Functional Performance

The management of input of materials or goods into a manufacturing or distributive
organisation and the distribution of the end product from the factory or over the counter, are
"linked" systems.
This, in manufacturing, materials management overlaps with physical distribution
management at the production stage.

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 Analysis 17

In distribution, purchasing and sales personnel form a combined merchandising exercise.

In all cases, the success or failure of functional performance directly affects the overall
performance of the company.
I have indicated areas in which problems may occur, and it is for you to note any of these
areas which appear in a Case Analysis and make an assessment of whether they are the
source of problems or can be traced as such from apparently unrelated symptoms. It is your
skill in carrying out the assessment which will lead you to a final analysis and suggest ways
to solve the problems which you have identified.

C. CHECKLIST
As a "self help" exercise, draw up a list of the main features of the sample case and add the
notes which you have collected to the appropriate sections of the list.
In this way, you will formalise ideas and relate them to events and personalities and move a
step forward to analysing the problems and deciding how they should be resolved.

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Study Unit 4
Solving the Case Study Problem: The Examination

Contents Page

A. Solving the Problem 20

Case Analysis and Creativity 20
Forecasting Results in a Multi-Choice Situation 20
Contingency Planning 20

B. The Case Study Examination 21

Role of the Case Analyst 21
How to Prepare? 21
Answering the Questions 21
Problem Situations 22

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20 Solving the Case Study Problem: The Examination

A. SOLVING THE PROBLEM

Case Analysis and Creativity
A determination to find one way of resolving a problem situation with the certainty it would be
the right one ignores the fact that, in a dynamic industrial organisation, many variables have
to be taken into account which may lead to the possibility of more than one solution.
The evaluation of alternatives calls for creative skills on the part of the analyst in projecting
forward results and predicting events arising from different decisions, influenced as they are
by pressures within the organisation and by social, political and economic changes.
It is important therefore that the analyst should approach the Case Study with confidence in
his or her ability to identify the problem and create a solution from the information and data
provided, though conscious of the need to consider other possibilities of changing conditions
within and external to the case as presented.
Case Analysis is considered a creative exercise in which the analyst brings personal
knowledge and experience to the study of problems, and, having analysed a situation,
undertakes a creative reconstruction to solve the problem.

Forecasting Results in a Multi-Choice Situation

As a case analyst, you must consider the alternative ways in which a situation could develop
and the effect on performance. Only after consideration of the possible results of alternative
actions can the assessment be judged and a recommendation made and justified.

Contingency Planning
In considering alternative solutions, it is important to take into account the possibilities of
unforeseen contingencies, reinforcing the need to prepare alternatives even if one solution
appears predominant.
The analyst's predictions of events, as distinct from forecasting quantitative results, should
take account of what is likely to happen in an organisation if a certain course of action is
taken, and equally what would be the effect of changing conditions within the organisation or
the environment upon the structure of the organisation and the personnel within it.
The creation of a solution to a problem situation in an industrial context is dependent on two
important factors in case analysis:
 Is it possible to create alternative solutions from the information given?
 Since predictions are made primarily on information provided, mainly historical, final
judgment must take into account contingency planning as a feature of any
reconstruction programme.

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B. THE CASE STUDY EXAMINATION

Role of the Case Analyst
What is expected of you? It is required that you bring to the analysis:
 A sound knowledge of the International Business syllabus and all related subjects, and
that you apply their essential theories, principles and techniques to a realistic business
situation.
 The ability to identify problems and provide a solution or alternative solutions if
appropriate to the problem, and make a recommendation which can be justified.
 The communication skills to produce a logical, clear analysis, and, if necessary,
present a well-written report, i.e. legible and free from grammatical and spelling
mistakes.

How to Prepare?
Since you receive the Case Study ahead of the examination date, you are able to make an
assessment and build up a collection of notes which you are allowed to take into the
examination room with your copy of the Case Study. This will give you confidence in making
a sound analysis and dealing with the examination questions.
Make good use therefore of the pre-examination period:
 Make notes of facts, opinions, organisations, human resources – at first in a general
way, but later in more detail as you understand the situations, identify problems and
analyse their causes.
 Learn to recognise symptoms. These often appearing at first sight to be the
problems which you are looking for – poor performance, loss situation, communication
failures, complaints. The problems lie much deeper and you are required to search for
the underlying causes.
 Identify problems – in recognising symptoms, for example, international barriers and
communication failures. The basic problem may emerge as a personality clash
between managers or lack of confidence by one department in another's efficiency.
 Support the diagnosis with facts and figures where relevant. Treat the impulse to
make assumptions with care. Be objective and seek to link any assumptions with
evidence.
 Collate and summarise your material so it is available for easy reference to support
and justify your analysis, enabling you to reproduce your ideas clearly and logically in
the examination.

Answering the Questions

You have no doubt been urged many times to read the examination questions carefully for
their meaning and extent and to answer directly what the question requires. This exhortation
bears repetition.
 Marshall your main points – give brief explanations, supported by examples of
techniques and data charts where relevant and helpful.
 Plan the presentation – clearly written in short paragraphs in logical order.
 Justify recommendations by reasoned arguments.
 Plan to use the time allowed to give adequate time to each question.
 Plan the content and structure of each answer.

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22 Solving the Case Study Problem: The Examination

 Make sure your handwriting is legible.

 Do not assume the examiner can read your mind. Explain your answer.
In the pre-examination stage when you study the case, you may find it helpful to try to predict
possible questions and note them with the points which you consider would answer them.
Ask yourself what points you see as particularly suitable to test by questioning. At least have
a number which seem obvious areas to question. Although this technique can be considered
as a "spin-off" to your analysis of what problems are evident within the case details and what
should be done to resolve them, you should be careful not to put too much emphasis on it.

Problem Situations
Cases specifically directed to International Business can involve you in problem situations in
manufacturing, distributive or service organisations in many parts of the world. Within these
varied spheres of operations, problems arise in similar ways, in organisation, planning,
personnel attitudes and relationships, procedures, systems, techniques, laws and socio-
economic pressures. You must be prepared to undertake a Case Study in any of these
fields, from knowledge and experience acquired in your work and studies, and with the
added advantage of a pre-examination period to study the case upon which you are to be
examined.
It may be that the Case Study relates to an industry which is unfamiliar to you. Do some
research as to how the sort of business described would operate in real life.

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Study Unit 5
Review

Contents Page

A. Learning from Cases 24

Principles and Practice 24
Preparation and Analysis 24

B. Case Study Learning and Management 27

C. Your ABE Examination – Checklist 28

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24 Review

A. LEARNING FROM CASES

Principles and Practice
The use of the Case Study method in support of management and professional training is
directed to the following key objectives:
 Examination of business situations on a "real life" basis;
 Identification of problems affecting performance;
 Analysis of causes;
 Solving the problem(s).
The study and analysis must be pursued scientifically, based on facts, and the assessment
made objectively.
The creativity and judgment of the analyst in producing alternative solutions should be
supported by statistical models, wherever relevant, taking into account variables and
contingency planning to enable predictions to be made with most chance of success.

Preparation and Analysis

The practical steps to be taken in conducting a Case Study require that the initial approach
to the case should be the preparatory period, the collection of information upon which the
analysis will be made.
We can indicate the specific elements of each period as follows:
(a) Preparation
 First reading – general impressions.
 Subsequent readings:
(i) Compile notes of information and data as they interest you in your
readings. Do not aim to keep them in any particular order at this stage.
(ii) "Fill in" with organisation charts and lists of personnel and events.
(iii) Sort, observe relationships in facts as well as personnel.
(iv) Tabulate for easy access to information under examination conditions.
Method of tabulating can be to your own preference. The aim is to show
causal relationships between events and people – what has happened in
the past and what have been the results to produce the current situation.
The simplest way of marshalling your information is to collect it under sections and
make a short synopsis of each with the detailed notes and charts attached. The
subject headings could be as follows, but you would modify them as you wished:
 Organisation
(i) corporate
(ii) functional
(iii) charts
 Objectives
(i) policy
(ii) planning – corporate
– functional

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 Human Resources
(i) related to organisation
(ii) careers
(iii) attitudes
(iv) relationships, within the organisation and within the business environment –
for example, with suppliers or customers.
 History of Events
(i) changes, developments
(ii) crisis points
(iii) related to personnel
 Performance
(i) data, corporate and functional
(ii) targets, controls
(iii) systems and techniques
(iv) effects of change
This will give you an overall "picture" of the material you have acquired, and the detail,
enabling you to make an evaluation of the strengths and weaknesses of the case and
the adequacy of the information.
You may feel that in certain areas you would have liked to have more information. If
you have to answer a question on which you think that sufficient factual information
has not been provided in the case, your answer may be subject to assumptions which
you have had to make to proceed with the analysis. Explain this in your answer and
justify your assumptions as far as you can by related evidence.
(b) Analysis
Once you have marshalled all the information you consider essential, you can proceed
to analyse the information and data which you have acquired.
 Evaluation
Is your information entirely factual or have you collected opinions? How
substantial is the anecdotal evidence?
Apart from the validity of information, there is also the importance of collected
facts to the main features of the case and its problems. You must ask yourself
whether the information is relevant to the analysis or is necessary only to provide
a total description of the situation and events, i.e. mere "padding".
 Diagnosis
Symptoms are evidence of underlying problems. For example, poor
performance figures affecting profits are the symptoms of deeper problems in the
organisation or in the markets in which the company operates.
 Solving the problem
The solution is not just a matter of isolating a problem, stating why it has
occurred and passing judgment on what were the causes and what should be
done. How to deal with the problem must be tested by asking:
(i) Is there more than one possible solution?

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26 Review

(ii) What would be the results of alternative decisions?

(iii) Is the problem one of human resources
or organisation
or planning to meet objectives with scarce resources?
In the case of the latter, for example, is there scope for building performance
models to prove results to be expected from the alternative solutions, by using
available statistics and, by extrapolation, deducing the effect of variables and
contingency planning on results?
 Decision
Choice of a solution from several alternatives is based mainly on:
(i) The objective for which the company is aiming;
(ii) The evaluation of the emphasis to be given to the variables in the case and
the prediction of the outcome which could be expected in choosing from
alternatives.
The quantitative forecasts may need to be "weighted" to take into account
contingency factors which can upset the best laid plans.
Matters to be included:
(i) Staff appraisal – joint setting of objectives and monitoring of results.
(ii) Encouragement of initiatives:
– Works visits
– Job rotation
– Representation by staff at international meetings
(iii) Introduction of formal procedures directed to a more professional
approach to operations:
Technical – capability
– capacity
– quality assurance
Financial – techniques of assessment to include the ratio of current
assets to current liabilities to show strength of working capital
in support of a growing order programme
Management – professionalism
– industrial relations
(iv) Use of manuals:
– Statement of principles and objectives
– Organisation within the department and relationship with other
departments
– Job descriptions
– Responsibilities
– Procedures
– Training programmes.

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B. CASE STUDY LEARNING AND MANAGEMENT

The contribution of the Case Study to management education lies in the re-creation and
publication of a wide range of varied "real life" business problem situations which can be
studied and analysed in an academic environment.
In this way, the analyst has the best of both worlds, the experience of being involved in
problems which are basically real, and the time to study, consider and produce a
recommendation for appraisal.
Decisions are made, on a mature study of the facts of the situation, and often similar
patterns of behaviour and performance will appear in varied cases.
To determine causes of problems which are not at first sight clearly apparent, with probably
insufficient evidence to be obtained from data and from personnel, requires skilful
management in understanding human behaviour, the strengths and weaknesses of personal
character and aptitudes and the ability to reconstruct events, interpret data and identify the
real problems. It requires the capacity to combine qualitative with quantitative assessments,
to see a problem clearly and objectively and, having made a decision, implement and
monitor.
A final word: a case may not necessarily be full of unsolved problems. The problems may
have been the prologue to constructive and successful action. The value of such a case is in
recognising the appropriate ways of dealing with potential difficulties and avoiding future
problems. You may not always agree with the action taken, but the study will give you an
opportunity to make your own analysis and consider whether you could make any
refinements which would alter the course of events and final results. The case which follows
in the Appendix is for you to study, analyse and test your findings.
Approach this as if it were your Case Study examination, that is:
 A first reading to give you a general idea of the case situation – events, human
resources, type of organisation.
 Subsequent readings for note-taking, collecting and arranging organisation structures,
the position and attitudes of personnel within the organisation, history of events, data,
systems and techniques for analysis and your ideas of what would constitute
constructive solutions to the problems you have identified.
 Write your own summary report on the situation.

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C. YOUR ABE EXAMINATION – CHECKLIST

1. You should acquaint yourself thoroughly with the Case Study before the examination.
2. You must take your copy of the Case Study into the examination.
3. Time allowed: 3 hours
4. Answer ALL questions
5. All questions carry different marks. Note the mark allocation and budget your time
accordingly
6. Calculators are allowed
7. This is an open book examination and you may consult any previously prepared written
material or texts during the examination. You must not insert such material into your
answer book. Only answers that are written during the examination on paper supplied
by the examination centre will be marked.
8. Candidates who break ABE regulations, or commit any malpractice, will be disqualified
from the examinations.

© ABE and RRC