Amante, Inez Ayroso, Justine Cue, Lanz Rojas, Edward Umpa, Juan Paolo

Mr. Eugenio Villanueva Strategic Management June 28, 2013

Preparing an Effective Case Analysis

There are actually six steps in preparing an effective case analysis namely gaining familiarity, recognizing symptoms, identifying goals, conducting the analysis, making the diagnostic and lastly doing the action plan.

Gaining Familiarity

The first step in preparing an effective case analysis is gaining familiarity. You should be familiar with the facts in the case and research for more new facts. You should know the general situation of the business and its main issue. It is important that the facts that were researched are verifiable by more than two sources. Professional case analysts and decision makers prefer facts rather than interference, speculations and assumptions. If the information represents an individuals person al judgement then it is called an interference. Speculation on the other hand are informations that are not verifiable. Finally, assumptions are information that are independent of verifiable sources and it arises either through individual or group discussions.

Recognizing Symptoms The second step is recognizing symptoms. There is big difference in comparing it into a problem. Many would try to correct the symptoms instead of finding the problem. When you face a problem, it requires a solution by helping the company improve their performance. On the other hand, a symptom is an undesirable situation that triggered to be the cause of a problem. It is basically an indicator of a problem. Symptoms should be identified to further find the main problem in a certain situation. The main focus of the analysis should be the actual cause of the problems to find an effective solution to it.

Identifying Goals

The third step in preparing an effective case analysis is identifying the goals of the business or the individual in the case. By identifying the goals, intent and mission it

can give more clarity with regards to the major problem of the case and think of alternative solutions for the problem.

Conducting the Analysis

The fourth step in preparing an effective case analysis is conducting the analysis. Sometimes, cases are analyzed in a poor manner, usually because of a busy schedule or the difficulty/complexity of the case. History and experience proves that good understanding of the issues is important, and a step to developing answers or solutions. To properly analyze a case, you must be very curious and question everything that comes in your way.

Making the Diagnostic

The fifth step in preparing an effective case analysis is identifying and clarifying the root of the problem by doing a comparison of the businesss or the individuals goals to facts. Searching for predicaments is important in this step, these are situations wherein goals dont fit with the known facts. A secret to an effective diagnosis is to identify the problems that affects the long term performance and also those that needs immediate attention.

Doing the Action Plan

The last and final step in preparing an effective case analysis is doing the action plan. This process is about identifying the alternative action for the problem. The selection of the criteria will be used to evaluate the identified alternatives. There is a proven rule of thumb that is valuable to decision makers and that is to select an alternative that will leave other plausible alternatives available if ever the one selected fails. Once the best alternative is selected, next is to specify an implementation plan. It is a must to do a reality check with regards to the feasibility of the alternatives chosen. Thus, there is a great importance in giving enough thought and consideration with regards to all the issues that affects the implementation of the alternatives selected.

Source: http://faculty-staff.ou.edu/S/Mark.P.Sharfman1/5313/Preparing_an_Effective_Case_Analysis.pdf

Amante, Inez Ayroso, Justine Cue, Lanz Rojas, Edward Umpa, Juan Paolo

Mr. Eugenio Villanueva Strategic Management June 28, 2013

Case Analysis: McDonalds Corporation International & Philippine Setting

Gaining Familiarity McDonalds corporation in the Philippines is one of the largest fast food chains in the country. It has 32,000 fast food chains in 118 countries. Their sales revenue reached more than a billion in year 2008 despite the recession that started early that year. Although back in year 2003 there was a decline in its stock price that made their first quarterly loss. The main problem was the com panys failure to notice their customers interests and needs that made them less competitive. To get back on track, they changed from expanding the number of units while relying much on their core products, to focus on improving their products and upgrades of existing properties. However here in the Philippines, the leading fast food chain is the local favorite Jollibee. The change in strategy of Mcdonalds happened later here in our country but the underlying question now is, was the change in strategy a ble to help Mcdonalds Philippines to have an increase of market share? Lets now go back and look at the Philippine fast -food market. Taste tests after taste tests have shown that Filipino fast-food customers prefer, for example, Jollibees hamburger with its cooked-in taste versus McDonalds original bland-tasting hamburger. Many say that McDonalds was slow to learn this and adapt. The truth is that its the bureaucracy at Headquarters in Oak Brook, Illinois, that was responsible for why McDonalds Philippines took such a long time to come out with a built -in taste hamburger to challenge Jollibees. So, a key factor in Jollibees market share leadership comes from its customer intimacy, its tailoring its menu items to the changing Filipino palate. Source: http://business.inquirer.net/93156/how-come-mcdonalds-never-beat-jollibee-as-marketleader

Recognizing Symptoms The symptoms or the causes of the problem of Mcdonalds is having Jollibee as their main competitor in the Philippine fast food chains. Jollibee having a bigger advantage compared to Mcdonalds gave them a threat in developing their own strategy in terms of getting a larger market. Since Jollibee has an edge in capturing Filipinos in terms of their local brand, Mcdonalds will be following the lead of Jollibee. Jollibee was

able to capture 18% of the market while Mcdo only 10% of the market. As for the number of branches, Jollibee has the leading number across the country compared to McDonalds which has lesser branches. International setting: McDonalds criticised and resisted by trade unionists, local residents, nutritionists and many others in almost every town and country where theyve planned a new store despite their sophisiticated and expensive propaganda about being a benefit for the community. They are resisted for what they are and for what they represent. They remain a focus for controversy. If McDonalds continue this expansion, will they stay as the top 1 fast food chain in the world or will they gain more enemies that will be against them? Source: http://www.mcspotlight.org/issues/rants/expansion.html Philippine setting: Since Jollibee is the leading fast food chain business here in the country, Jollibee has many branches rather than McDonalds and caters more to Pinoy consumers. One advantage Jollibee had was offering hamburgers and other fastfood with a distinct Filipino flavor. For instance, Jolly Spaghetti has a sweet meat sauce with hotdog slices. Can McDonalds compete for a greater market share or rather be the top 1 here in the Philippines? Source: http://www.abs-cbnnews.com/business/02/11/13/how-jollibee-beat-mcdonaldsphilippines

Identifying Goals Both McDonalds in the international and in the Philippine setting has one common goal which is to increase their market share and be the top 1 fastfood chain in each country but if you will look at it as a country basis and as a global perception, there are some different goals that each has to set International Setting: As McDonalds stay as the top 1 fastfood chain worldwide, they continue to expand and expand to different countries worldwide and every sulok of these countries are being touched already. Their main goal as an international fastfood chain is to remain as the top 1 fastfood chain in the world. Philippine Setting: The Goal of the Mcdonalds in the Philippine perspective is to take over the most market share in the fast food industry and be the top 1 here in the Philippines. Their main goal is to have vast branches throughout the Philippines and gain more market share.

Conducting the Analysis International Setting: For the McDonalds in a global perception, they remain on top because mainly they take care of their investors and try to improve the business itself. From the website that we got it says,

But there are at least a handful of reasons to be positive if you're an investor, chief among them that McDonald's tends to reward its owners. We will reinvest in the business first, and after that we will return all free cash flow to shareholders," Thompson said, adding that the company funneled $1.6 billion into dividends and buybacks in the most recent quarter. Free cash flow, FactSet says, has risen at a compound annual growth rate of 5.5%, and you can seldom have too much of that. It is really a promising statement that they will return all free cash flows and will improve the business through time. Source: http://finance.yahoo.com/blogs/the-exchange/mcdonald-worldwidereach-means-worldwide-problems-201246329.html Philippine Setting: Jollibee is really much more evident in the Philippines because they cater to Filipinos especially to their menu being served. One advantage Jollibee had was offering hamburgers and other fastfood with a distinct Filipino flavor. For instance, Jolly Spaghetti has a sweet meat sauce with hotdog slices. Basically, McDonalds has this American flavour thus giving it a disadvantage to the Philippines. Making the Diagnosis International Setting: Changing direction isn't going to be easy. The company and its stock are to a considerable extent at the mercy of flagging global economies, and it's not going to simply pull out of the countries where it's got bases. For McDonald's, the best thing that can happen is to see some stability, much like the rest of the world. Source:http://finance.yahoo.com/blogs/the-exchange/mcdonald-worldwide-reachmeans-worldwide-problems-201246329.html Philippine Setting: Doing the Action Planning International Setting: Plan Get investors for McDonalds and expand more even if the risk arises Identify Since more investors would be coming as expected, more branches will open up and less competitors will occur since they have a huge market and the company gets bigger and bigger Evaluate Promising statements but reality is a must Implement continuous improvement and upgrades of their product lines to remain as competitive as they are now. Reality Check it is possible to remain their position as the top 1 fast food chain worldwide. They just have to keep their promises and implement as they have planned

Philippine Setting: Plan Research more about the products that Filipinos want Identify SWOT of the Jollibee. As their top 1 competitor they should identify first their enemy and know them well Evaluate Analyze and make effective strategies that should be implemented and the necessary procedures to meet the goals that they set. Implement Adjust to the Filipino culture to earn more market share Reality Check As the group thinks, if McDonalds will implement this kind of solution, it is possible to gain a huge market share and take over the top 1 fast food chain in the