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Case - Google's Strategy in 2013 by JOHN E. GAMBLE Texas A&M University

Guide to Case Analysis -In most courses in strategic management, students use cases about actual companies to practice strategic analysis and to gain some experience in the tasks of crafting and implementing strategy. A case sets forth, in a factual manner, the events and organizational circumstances surrounding a particular managerial situation.

It puts readers at the scene of the action and familiarizes them with all the relevant circumstances. Acase on strategic management can concern a whole industry, a single organization, or some part of an organization; the organization involved can be either profit seeking or not-for-profit.

The essence of the student's role in case analysis is to diagnose and size up the situation described in the case and then to recommend appropriate action steps.

WHY USE CASES TO PRACTICE STRATEGIC MANAGEMENT?

The foregoing limerick was used some years ago by Professor Charles Gragg to characterize the plight of business students who had no exposure to cases.1 The facts are that the mere act of listening to lectures and sound advice about managing does little for anyone's management skills and that the accumulated managerial wisdom cannot effectively be passed on by lectures and assigned readings alone. If anything had been learned about the practice of management, it is that a storehouse of ready-made textbook answers does not exist. Each managerial situation has unique aspects, requiring its own diagnosis, judgment, and tailor-made actions. Cases provide would-be managers with a valuable way to practice wrestling with the actual problems of actual managers in actual companies.

The case approach to strategic analysis is, first and foremost, an exercise in learning by doing. Because cases provide you with detailed information about conditions and problems of different industries and companies, your task of analyzing company after company and situation after situation has the twin benefit of boosting your analytical skills and exposing you to the ways companies and managers actually do things. Most college students have limited managerial backgrounds and only fragmented knowledge about companies and real-life strategic situations.

Cases help substitute for on-the-job experience by (l) giving you broader exposure to a variety of industries, organizations, and strategic problems;

(2) forcing you to assume a managerial role (as opposed to that of just an onlooker);

(3) providing a test of how to apply the tools and techniques of strategic management; and

(4) asking you to come up with pragmatic managerial action plans to deal with the issues at hand.

OBJECTIVES OF CASE ANALYSIS

Using cases to learn about the practice of strategic management is a powerful way for you to accomplish five things:2

1. Increase your understanding of what managers should and should not do in guiding a business to success.

2. Build your skills in sizing up company resource strengths and weaknesses and in conducting strategic analysis in a variety of industries and competitive situations.

3. Get valuable practice in identifying strategic issues that need to be addressed, evaluating strategic alternatives, and formulating workable plans of action.

4. Enhance your sense of business judgment, as opposed to uncritically accepting the authoritative crutch of
the professor or "back-of-the-book" answers.

5. Gaining in-depth exposure to different industries and companies, thereby acquiring something close to actual business experience.

If you understand that these are the objectives of case analysis, you are less likely to be consumed with curiosity about "the answer to the case." Students who have grown comfortable with and accustomed to textbook statements of fact and definitive lecture notes are often frustrated when discussions about a case do not produce concrete answers. Usually, case discussions produce good arguments for more than one course of action. Differences of opinion nearly always exist. Thus, should a class discussion conclude without a strong, unambiguous consensus on what do to, don't grumble too much when you are not told what the answer is or what the company actually did. Just remember that in the business world answers don't come in conclusive black-and-white terms. There are nearly always several feasible courses of action and approaches, each of which may work out satisfactorily. Moreover, in the business world, when one elects a particular course of action, there is no peeking at the back of a book to see if you have chosen the best thing to do and no one to turn to for a provably correct answer. The best test of whether management action is "right' or "wrong" is results. If the results of an action turn out to be "good," the decision to take it may be presumed "right." If not, then the action chosen was "wrong" in the sense that it didn't work out.

PREPARING A CASE FOR CLASS DISCUSSION

If this is your first experience with the case method, you may have to reorient your study habits. Unlike lecture courses where you can get by without preparing intensively for each class and where you have latitude to work assigned readings and reviews of lecture notes into your schedule, a case assignment requires conscientious preparation before class. You will not get much out of hearing the class discuss a case you haven't read, and you certainly won't be able to contribute anything yourself to the discussion. What you have got to do to get ready for class discussion of a case is to study the case, reflect carefully on the situation presented, and develop some reasoned thoughts. Your goal in preparing the case should be to end up with what you think is a sound, well-supported analysis of the situation and a sound, defensible set of recommendations about which managerial actions need to be taken.

To prepare a case for class discussion, we suggest the following approach:

1. Skim the case rather quickly to get an overview of the situation it presents. This quick overview should give you the general flavor of the situation and indicate the kinds of issues and problems that you will need to wrestle with. If your instructor has provided you with study questions for the case, now is the time to read them carefully.

2. Read the case thoroughly to digest the facts and circumstances. On this reading, try to gain full command of the situation presented in the case. Begin to develop some tentative answers to the study questions your instructor has provided. If your instructor has elected not to give you assignment questions, then start forming your own picture of the overall situation being described.

3. Carefully review all the information presented in the exhibits. Often, there is an important story in the numbers contained in the exhibits. Expect the information in the case exhibits to be crucial enough to materially affect your diagnosis of the situation.

4. Decide what the strategic issues are. Until you have identified the strategic issues and problems in the case, you don't know what to analyze, which tools and analytical techniques are called for, or otherwise how to proceed. At times the strategic issues are clear-either being stated in the case or else obvious from reading the case. At other times you will have to dig them out from all the information given; if so, the study questions will guide you.

5. Start your analysis of the issues with some number crunching. A big majority of strategy cases call for some kind of number crunching-calculating assorted financial ratios to check out the company's financial condition and recent performance, calculating growth rates of sales or profits or unit volume, checking out profit margins and the makeup of the cost structure, and understanding whatever revenue-cost-profit relationships are present. See Table l for a summary of key financial ratios, how they are calculated, and what they show.

6. Apply the concepts and techniques of strategic analysis you have been studying. Strategic analysis is not just a collection of opinions; rather, it entails applying the concepts and analytical tools described in Chapters l through l3 to cut beneath the surface and produce sharp insight and understanding. Every case assigned is strategy related and presents you with an opportunity to usefully apply what you have learned. Your instructor is looking for you to demonstrate that you know how and when to use the material presented in the text chapters.

7. Check out conflicting opinions and make some judgments about the validity of all the data and information provided. Many times cases report views and contradictory opinions (after all, people don't always agree on things, and different people see the same things in different ways). Forcing you to evaluate the data and information presented in the case helps you develop your powers of inference and judgment. Asking you to resolve conflicting information "comes with the territory" because a great many managerial situations entail opposing points of view, conflicting trends, and sketchy information.

8. Support your diagnosis and opinions with reasons and evidence. The most important things to prepare for are your answers to the question "Why?" For instance, if after studying the case you are of the opinion that the company's managers are doing a poor job, then it is your answer to "Why?" that establishes just how good your analysis of the situation is. If your instructor has provided you with specific study questions for the case, by all means prepare answers that include all the reasons and number-crunching evidence you can muster to support your diagnosis. If you are using study questions provided by the instructor, generate at least two pages of notes!

9. Develop an appropriate action plan and set of recommendations. Diagnosis divorced from corrective action is sterile. The test of a manager is always to convert sound analysis into sound actions-actions that will produce the desired results. Hence, the final and most telling step in preparing a case is to develop an action agenda for management that lays out a set of specific recommendations on what to do. Bear in mind that proposing realistic, workable solutions is far preferable to casually tossing out off-the-top-of-your-head suggestions. Be prepared to argue why your recommendations are more attractive than other courses of action that are open.

PARTICIPATING IN CLASS DISCUSSION OF A CASE

To orient you to the classroom environment on the days a case discussion is scheduled, we compiled the following list of things to expect:

1. Expect the instructor to assume the role of extensive questioner and listener.

2. Expect students to do most of the talking. The case method enlists a maximum of individual participation in class discussion. It is not enough to be present as a silent observer; if every student took this approach, there would be no discussion. (Thus, expect a portion of your grade to be based on your participation in case discussions.)
3. Be prepared for the instructor to probe for reasons and supporting analysis.

4. Expect and tolerate challenges to the views expressed. All students have to be willing to submit their conclusions for scrutiny and rebuttal. Each student needs to learn to state his or her views without fear of disapproval and to overcome the hesitation of speaking out. Learning respect for the views and approaches of others is an integral part of case analysis exercises. But there are times when it is OK to swim against the tide of majority opinion. In the practice of management, there is always room for originality and unorthodox approaches. So while discussion of a case is a group process, there is no compulsion for you or anyone else to cave in and conform to group opinions and group consensus.

5. Don't be surprised if you change your mind about some things as the discussion unfolds. Be alert to how these changes affect your analysis and recommendations (in the event you get called on).

6. Expect to learn a lot in class as the discussion of a case progresses; furthermore, you will find that the cases build on one another-what you learn in one case helps prepare you for the next case discussion.

There are several things you can do on your own to be good and look good as a participant in class discussions:

Although you should do your own independent work and independent thinking, don't hesitate before (and after) class to discuss the case with other students. In real life, managers often discuss the company's problems and situation with other people to refine their own thinking.

- In participating in the discussion, make a conscious effort to contribute, rather than just talk. There is a big difference between saying something that builds the discussion and offering a long-winded, off-the- cuff remark that leaves the class wondering what the point was.

- Avoid the use of "I think," "I believe," and "I feel"; instead, say, "My analysis shows -" and "The company should do .because ." Always give supporting reasons and evidence for your views; then your instructor won't have to ask you "Why?" every time you make a comment.

- In making your points, assume that everyone has read the case and knows what it says; avoid reciting and rehashing information in the case-instead, use the data and information to explain your assessment of the situation and to support your position.

- Bring the printouts of the work you've done on Case-TuTor or the notes you've prepared (usually two or three pages' worth) to class and rely on them extensively when you speak. There's no way you can remember everything off the top of your head-especially the results of your number crunching. To reel off the numbers or to present all five reasons why, instead of one, you will need good notes. When you have prepared thoughtful answers to the study questions and use them as the basis for your comments, everybody in the room will know you are well prepared, and your contribution to the case discussion will stand out.

WRITTEN CASE ANALYSIS

In writing your analysis and evaluation, bear in mind four things:

1. You are obliged to offer analysis and evidence to back up your conclusions. Do not rely on unsupported opinions, over-generalizations, and platitudes as a substitute for tight, logical argument backed up with facts and figures.

2. If your analysis involves some important quantitative calculations, use tables and charts to present the calculations clearly and efficiently. Don't just tack the exhibits on at the end of your report and let the reader figure out what they mean and why they were included. Instead, in the body of your report cite some of the key numbers, highlight the conclusions to be drawn from the exhibits, and refer the reader to your charts and exhibits for more details.

3. Demonstrate that you have command of the strategic concepts and analytical tools to which you have been exposed. Use them in your report.

4. Your interpretation of the evidence should be reasonable and objective. Be wary of preparing a one- sided argument that omits all aspects not favorable to your conclusions. Likewise, try not to exaggerate or overdramatize. Endeavor to inject balance into your analysis and to avoid emotional rhetoric. Strike phrases such as "I think," "I feel," and "I believe" when you edit your first draft and write in "My analysis shows," instead.

The Ten Commandments of Case Analysis

To be observed in written reports and oral presentations, and while participating in class discussions.

l. Go through the case twice, once for a quick overview and once to gain full command of the facts; then take care to explore the information in every one of the case exhibits.

2. Make a complete list of the problems and issues that the company's management needs to address.

3. Be thorough in your analysis of the company's situation (make a minimum of l to 2 pages of notes detailing your diagnosis).

4. Look for opportunities to apply the concepts and analytical tools in the text chapters-all of the cases in the book have very definite ties to the material in one or more of the text chapters!!!!

5. Do enough number crunching to discover the story told by the data presented in the case. (To help you comply with this commandment, consult Table l in this section to guide your probing of a company's financial condition and financial performance.)

6. Support any and all off-the-cuff opinions with well-reasoned arguments and numerical evidence; don't stop until you can purge "I think" and "I feel" from your assessment and, instead, are able to rely completely on "My analysis shows."

7. Prioritize your recommendations and make sure they can be carried out in an acceptable time frame
with the available resources.

8. Support each recommendation with persuasive argument and reasons as to why it makes sense and should result in improved company performance.

9. Review your recommended action plan to see if it addresses all of the problems and issues you identified-any set of recommendations that does not address all of the issues and problems you identified is incomplete and insufficient.

10. Avoid recommending any course of action that could have disastrous consequences if it doesn't work out as planned; therefore, be as alert to the downside risks of your recommendations as you are to their upside potential and appeal.

Attachment:- stratgic managment Case.pdf