CASE STUDY

Strategic Management Cases

TEAM CASE PROJECT
The Team Case Project involves working in a 4 to 5-person team to conduct strategy analysis, strategy formulation
in a formal presentation format. Your team will adopt the role of a group of strategy consultants hired by a client
to analyze its business and make recommendations for solving its strategic issues. The businesses will be provided
to you in the form of the required Harvard cases (See schedule). You will deliver your project by presenting your
analysis and solutions as if you are consultants reporting to the top management team (TMT) of the company.
Your team presentation will be graded using the rubric that may be found on Canvas. An Excellent presentation
will contain all the following elements:
1.
Issues/Problems Definition
a.
Sound understanding of all the central issues of the case.
b.
A clear statement and articulation of the central issues.
c.
Issues are explicitly and clearly linked to organizational mission, internal and external analyses.
2.
External Analysis: Application of Concepts and Integration of Case Data.
a.
Sound application of appropriate tools to analyze the external environment.
b.
Comprehensive and in-depth use of appropriate quantitative and qualitative case data to support
analyses.
c.
Application of sound and persuasive logic to the case issues.
3.
d.
In-depth financial and statistical analysis.
Internal Analysis: Application of Concepts and integration of Case Data
a.
Sound application of appropriate strategic management tools to analyze the internal environment.
b.
Comprehensive and in-depth use of appropriate quantitative and qualitative case data to support
analyses.
c.
Application of sound and persuasive logic to the case issues.
4.
d.
In-depth financial and statistical analysis.
Formulation of Strategic Recommendations; Financial Analysis, and Implementation
a.
Course of action is directly linked to the issues, and clearly builds on the analyses.
b.
Demonstrates clear evidence of an organizational perspective. Integrates across multiple functional
areas.
5.
c.
Criteria used to choose course of action clearly articulated.
d.
Priority and rationale of recommendation action items provided.
Slides Presentation: Content, Design, Presentation Skills, and Financial Attachments
a.
The presentation met all the information requirements of the assignment and information was
presented in logical sequence and structure.
b.
Seamless presentation with all presenters confidently contributing to the discussion of the issue.
c.
Slides displayed elements of effective design. Fonts, colors, backgrounds, etc. are effective,
consistent, and appropriate, and text is clear.
d.
Presenters were familiar with the materials.
e.
f.
Presenters made eye contact and faced the audience.
Presentation was an integrated whole and not just parts joined together by individual team
members.
g.
Outstanding bibliography listing most of the most important sources.
h.
Pictures of team members on introductory slide
Recommended Presentation Time Segments:
●Introduction/Organization Description/Problems (3-4 min)
●External/Internal Analysis (15 min)
●Alternatives/Recommendations/Financial Analysis (10 min)
●Conclusion (1 min)
●Questions (5 min)
Case Questions, Financial Analysis and 10K Reports – 2024 Summer
10K Reports A 10-K is a comprehensive report filed annually by a publicly-traded company
about its financial performance and is required by the U.S. Securities and Exchange
Commission (SEC). The report contains much more detail than a company’s annual report,
which is sent to its shareholders before an annual meeting to elect company directors. Some of
the information a company is required to document in the 10-K includes its history,
organizational structure, financial statements, earnings per share, subsidiaries, executive
compensation, and any other relevant data. The SEC requires this report to keep investors
aware of a company’s financial condition and to allow them to have enough information before
they buy or sell shares in the corporation, or before investing in the firm’s corporate bonds.
Ratio Analysis Required Ratio analysis is a required component of your Case Slide
Presentation, They may either be integrated into your slides or attached at the end of your slide
presentation. If the case does not include financials, you may need to consult the Company’s
10K. If it is not a public company, you may have to do some financial research. The Canvas
Module, Financial Analysis Resources (Required for Case Analysis), provides financial analysis
tools and information that you may use in case. In addition, your text has many sources that are
helpful in your financial analysis. If your case does not include financial statements, please
consult the 10K Report for your assigned company to obtain the financial information you need
to do ratio analysis. If your case is not a publicly traded company, you may need to consult
business and financial papers and journals. The Hill/Schilling text has financial information in a
number of places: 1 ● Appendix to Chapter 1: Enterprise Valuation, ROIC, and Growth. P 34. ●
Hill Text, Section 3-6: Analyzing Competitive Advantage and Profitability. P. 91-96. ● Hill Text:
Introduction: Analyzing a Case Study and Writing a Case Study Analysis. Includes the Role of
Financial Analysis in Case Study Analysis, P. C-6 to C-17
Case Questions
Case 8 – Coca-Cola
7.1. Early on Coca Cola adopted a franchised bottler system. The system still persists today.
What have been the benefits of this system? What have been the limitations?
7.2. During the 1980s and then again in the 2000s Coke (and Pepsi) began to acquire bottlers.
Why? Why did it subsequently spin off the acquired bottlers?
7.3. What explains Coca Cola’s rise to dominance in the first half of the twentieth century?
7.4. How was Pepsi able to come back from near bankruptcy and gain share at the expense of
Coke from the 1950s through to 1975?
7.5. How did the launch of the Pepsi challenge change the nature of competition in the industry
? 7.6. During the 1990s Coca Cola gained market share back from Pepsi and was significantly
more profitable. Why do you think this was the case?
7.7. What are the threats facing Coke in the 21s century? What steps has the company taken to
deal with these? What is your evaluation of the company’s strategy?
Issues:
➔ Decline in CSD consumption: Analysis of the reasons behind the falling per capita
consumption of carbonated soft drinks.
➔ Competition and market dynamics: Pressure from Pepsi and boutique beverage
companies.
➔ Health concerns and regulatory pressures: Impact of sugary drink taxes and healthrelated criticisms.
➔ Organizational restructuring: Effects and challenges of the ongoing bottling
reorganization.
★ The central issues include declining market share in core soda products, rising
competition in the non-carbonated beverage market, and the need for organizational
agility in response to market changes.
Book Title: eTextbook: Strategic Management: Theory & Cases: An
Integrated Approach
Case 8. Coca-Cola
Case 8. Coca-Cola
By Charles W. L. Hill Foster School of Business University of Washington
Seattle, 98105 August 2022
C8-1. Introduction
On May 1, 2017, James Quincey became CEO of The Coca-Cola Company (CocaCola). The 52-year-old British businessman had worked at Coca-Cola since 1996.
He had held leadership positions in Coke’s operations in Latin America and
Europe before being made COO in 2015. He lost no time in signaling that he
would push for a major shift in Coca-Cola’s strategy. He stated that the 130year-old company must speed up the development of products beyond soda to
become a “total beverage company,” and that the company “needs to be bigger
than the core brand.” To do that he has said, the company must not be afraid to
make mistakes.
Quincey became CEO at a challenging time for Coca-Cola. Consumption of
carbonated soft drinks (CSD), which still accounted for 70% of Coca-Cola’s
business, had been declining. In 2000, Americans drank 53 gallons of CSDs per
capita, up from 23 gallons per capita in 1970. By 2016 consumption had fallen
back to 38.5 gallons per capita.
Similar declines were occurring elsewhere
in the world. Sales of Coca-Cola’s core Coke mega brand (which included Coke
and all its variants) had fallen by 5% over the last three years in the United
States and 1% worldwide. Overall, CSDs accounted for about 24% of all nonalcoholic beverage consumption in the United States in 2017, down from
around 37% in 2000. Sugary drinks were being attacked as a major source of
obesity. In a possible harbinger of things to come, several national and local
governments had placed “sin taxes” on sugary drinks in an effort to reduce
their consumption. Coca-Cola’s core brands were also being pressured by its
perennial rival, Pepsi-Cola, and by numerous boutique beverage companies
who had found it easier to bring new niche products to market. Some of these
newer brands were using stevia, a natural plant-based zero-calorie sweetener,
as an alternative to the synthetic sweetener aspartame that is widely used in
diet CSD. The growth of such alternatives may have played a role in a sharp
decline in consumption of diet CSD, such as Diet Coke, which has seen its U.S.
sales volume fall every year since 2006. Paralleling the fall in CSD
consumption, in the United States consumption of bottled water has grown
dramatically from 13.2 gallons per capita in 2000 to 39.3 gallons per capita in
2016 when for the first time, Americans consumed more bottled water than
CSDs.
Complicating matters, Coca-Cola was in the midst of a major reorganization of
its bottling network. In 2010, Coca-Cola bought North American bottling
operations from its minority owned bottler, Coca-Cola Enterprises. It did the
same with hundreds of bottlers around the world. Now it was refranchising
those bottling plants under terms aimed at making the asset heavy bottling and
distribution operations more efficient, while freeing Coca-Cola to focus on
marketing and product development.
One of Quincey’s first actions as CEO was to announce the company would
eliminate 1,200 jobs at its headquarters in Atlanta, reducing the number of
corporate positions by 20%. The cuts were part of a plan to save $800 million
by 2019. Quincey’s objective was to use about half of those cost savings to
increase investments in new products and marketing. His goal was to raise
Coca-Cola’s revenue and profit growth to 4–6% per year. That was a challenging
target—Coke’s net profits had peaked at $12 billion in 2010 and had steadily
fallen to $6.5 billion by 2016.
BA 405 Team Case Presentation Evaluation Rubric
Case_________________________________________________________________
Team Presenters:
Task
Below Expectations
Meets Expectations
Above Expectations
Issues/Problem
Definition
Vague and limited understanding of the
central issues of the case. Failed to define
the appropriate key issues/problems
raised in the case. Issues are not linked to
organizational mission, internal and
external analyses.
Reasonable understanding of the central
issues of the case. Reasonable articulation
of the issues and problems raised in the
case. Issues are somewhat linked to
organizational mission, internal and
external analyses.
Sound understanding of all the central
issues of the case. A clear statement and
articulation of the central issues. Issues
are explicitly and clearly linked to
organizational mission, internal and
external analyses.
(0-6 points)
(7-8 points)
(9-10 points)
Failed to successfully apply appropriate
analytic tools to analyze the external
environment.
Reasonable application of some analytic
tools to analyze the external environment.
Sound application of appropriate tools to
analyze the external environment.
In-depth use of selective quantitative and
qualitative case data to support analyses;
sound supporting logic. Reasonable
financial and statistical analysis.
Comprehensive and in-depth use of
appropriate quantitative and qualitative
case data to support analyses, sound and
persuasive logic. In-depth financial and
statistical analysis.
External analysis:
Application of Concepts
and Integration of Case
Data
See Chapter 2
Limited use of quantitative and qualitative
case data to support analyses; limited use
of supporting logic; limited financial and
statistical analysis.
(12-17 points)
(0-11 points)
Internal analysis:
Application of Concepts
and Integration of Case
data
See Chapter 3
(18-20 points)
Failed to successfully apply appropriate
analytic tools to analyze the internal
environment.
Limited use of quantitative and qualitative
case data to support analyses; limited use
of supporting logic; limited financial and
statistical analysis.
(0-11 points)
BA 405
Points
Reasonable application of some analytic
tools to analyze the internal environment.
Sound application of appropriate tools to
analyze the internal environment.
In-depth use of selective quantitative and
qualitative case data to support analyses;
sound supporting logic. Reasonable
financial and statistical analysis.
Comprehensive and in-depth use of
appropriate quantitative and qualitative
case data to support analyses, sound and
persuasive logic. In-depth financial and
statistical analysis.
(12-17 points)
(18-20 points)
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Task
Below Expectations
Meets Expectations
Above Expectations
Formulation of Strategic
Recommendations,
Financial Analysis, &
Implementation
Recommendations are vague. Do not
relate to the issues or build on the
internal and external analysis.
Course of action is somewhat linked to the
issues. Somewhat builds on the analysis.
Course of action is directly linked to the
issues. Clearly builds on the analyses.
Recommendations do not take an
organizational perspective. Considers
functional areas in isolation.
Some evidence of taking an organizational
perspective. Some connection to strategy
and integration across a couple of
functional areas.
Demonstrates clear evidence of an
organizational perspective. Integrates
across multiple functional areas.
Limited explanation of the criteria used to
choose the recommendations. No priority
of recommendation action items or
rationale provided.
Criteria used to choose the
recommendations not explicit. Priority of
recommendation action items provided,
but limited rationale provided.
(0-21 points)
(22-26 points)
The presentation met partial information
requirements of the assignment and
information was presented in a
disorganized way.
The presentation meets some of the
information requirements of the
assignment and information is mostly
presented in logical sequence and
structure
See Chapters 4 -12
Depending on the case
Slide Presentation:
Content, Design,
presentation and
financial attachments
Series of individual segments by
presenters that are not well connected
nor well-presented
Uneven presentation with varying levels
of presentation skills
Slides display elements did not exhibit
effective design. Fonts, colors,
backgrounds, etc. are ineffective,
inconsistent and not appropriate, and text
is unclear.
Slides displayed elements of effective
design. Fonts, colors, backgrounds, etc.
were somewhat effective, fairly consistent
and mostly appropriate. Text was mostly
clear.
Presenters seemed confused with the
materials and the voice over PP was not
coordinated.
Presenters were mainly familiar with the
materials and the voice over PP was
adequate.
Presentation seemed to be parts joined
together by individual team members, a
camel and not a thoroughbred.
Presentation was generally integrated and
team members demonstrated some
efforts at coordination.
Incomplete bibliography.
Bibliography contains some of the key
topic sources.
No pictures of team members
Pictures of team members on
introductory slide
(0-11)
Points
Criteria used to choose course of action
clearly articulated. Priority and rationale
of recommendation action items
provided.
(27-30 points)
The presentation met all the information
requirements of the assignment and
information was presented in logical
sequence and structure
Seamless presentation with all presenters
confidently contributing to the discussion
of the issue
Slides displayed elements of effective
design. Fonts, colors, backgrounds, etc.
are effective, consistent and appropriate,
and text is clear.
Presenters were familiar with the
materials and the voice over PP was
coordinated.
Presentation was an integrated whole and
not just parts joined together by individual
team members
Outstanding bibliography listing most of
the most important sources
Pictures of team members on
introductory slide
(18-20)
(12-17)
BA 405
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Total Points
_________________
Comments:
BA 405
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BA 405 Case Analysis Guidelines
Strategic Management Cases
A strategic-management case describes an organization’s external and internal conditions and
raises issues concerning the firm’s vision, mission, strategies, objectives, and policies. Most of
the information in a strategic-management case is established fact, but some information may
be opinions, judgments, and beliefs. Strategic-management cases may be more comprehensive
than those you may have studied in other courses. They generally include a description of
important internal (management, marketing, finance/accounting, production/operations,
research and development (R&D), management information systems) and external issues. A
case puts you at the scene of the action by describing a firm’s situation at some point in time.
Strategic-management cases are written to give you practice applying strategic-management
concepts. The case method for studying strategic management is often called learning by
doing.
Your Team should take the role of outside consultants preparing a report to the organization’s
Board of Directors. General considerations in preparing a case include:
•
•
•
Be Practical. There is no such thing as a complete case, and no case ever gives you all
the information you need for conducting analyses and making recommendations.
Likewise, in the business world, strategists never have all the information they need to
make decisions: Information may be unavailable or too costly to obtain, or it may take
too much time to obtain. So, in analyzing cases, do what strategists do every day—
make reasonable assumptions about unknowns, perform appropriate analyses, and
make decisions.
Be Realistic. Avoid recommending a course of action beyond an organization’s means.
No organization can possibly pursue all the strategies that could potentially benefit the
firm. Estimate how much capital will be required to implement your recommendation.
Determine whether debt, stock, or a combination of debt and stock could be used to
obtain the capital. Make sure your suggestions are feasible. Do not prepare a case
analysis that omits all arguments and information not supportive of your
recommendations. Rather, present the major advantages and disadvantages of several
feasible alternatives.
Be Original. Do not necessarily recommend the course of action that the firm plans to
take or actually undertook, even if those actions resulted in improved revenues and
earnings. The aim of case analysis is for you to consider all the facts and information
relevant to the organization at the time, to generate feasible alternative strategies, to
choose among those alternatives, and to defend your recommendations. Support your
position with charts, graphs, ratios, analyses, and the like.
Suggested Oral Presentation Outline (Approximately 30 Minutes)
1. Introduction (1 Minute)
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BA 405 Case Analysis Guidelines
a. Introduce yourselves by name and major. Use the time setting of your case and
analysis based on the information in the text-do not update. Prepare your
strategic plan for the 3-5 forthcoming.
b. Introduce your organization and its products or services, capture interest.
c. Show the outline of your presentation and tell who is doing what parts.
2. Vision and Mission (2 Minutes)
a. Show existing vision and mission statements if available from the firm’s website,
annual report, or elsewhere.
b. Show your “improved” vision and mission and tell how and why it is different.
c. Compare your vision and mission to a leading competitor’s statements.
3. Internal Assessment (7 Minutes)
a. Give your financial ratio analysis. Highlight especially good and bad ratios. Do
not give definitions of the ratios and do not highlight all the ratios.
b. In your financial analysis, use the organization’s 10K Report. A 10-K is a
comprehensive report filed annually by a publicly traded company about its
financial performance and is required by the U.S. Securities and Exchange
Commission (SEC). The report contains much more detail than a
company’s annual report, which is sent to its shareholders before an annual
meeting to elect company directors.
c. Show the firm’s organizational chart if found or create a chart based on
executive titles
d. If you think it is needed as part of your recommendation, present your team’s
improved organizational chart, and tell how and why it is different.
e. Show a market positioning map with firm and competitors. Discuss the map in
light of strategies you envision for firm versus competitors’ strategies.
f. Identify the marketing strategy of the firm in terms of good and bad points
versus competitors and in light of strategies you envision for the firm.
g. Show a map locating the firm’s operations. Discuss in terms of how location may
impact the strategies you envision.
h. Show a value chain analysis chart.
i. Discuss (and perhaps show) the firm’s website and Facebook page in terms of
good and bad points compared to rival firms.
j. List the organization’s most important strengths and weaknesses. Go over highly
rated factors without “reading” any verbatim. Make sure you key internal
factors are quantitative, divisional, and actionable to the extent possible.
4. External Assessment (7 Minutes)
a. Identify and discuss major competitors. Use pie charts, maps, tables, or figures
to show the intensity of competition in the industry. Pave the way for your
recommendations.
b. Show a Competitive Profile Matrix of at least two competitors.
c. Summarize key industry trends citing Standard & Poor’s Industry Survey and IBIS
World information. Highlight key external (economic, social, cultural,
demographic, geographic, technological, political, legal, governmental, and
natural environment) trends as they impact the firm.
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BA 405 Case Analysis Guidelines
5.
6.
7.
8.
d. List the firm’s most important opportunities and threats. Make sure your
opportunities are not stated as strategies
e. Create an External Factor Evaluation (EFE) Matrix.
Strategy Formulation and Implementation (7 Minutes)
a. Based on your analysis, what are the major issues facing your organization?
b. Recommend a specific course of action to solve the issues based on your
analysis.
c. Be specific in terms of both strategies and estimated costs of those strategies.
d. Prepare a timeline for your implementation.
e. Articulate the criteria used to choose course of action and state your priorities
and rationale for recommended actions.
f. Be specific in terms of both strategies and estimated costs of those strategies.
g. Divide your strategies into two groups: (1) Existing Strategies to Be Continued
and (2) New Strategies to Be Started.
h. Show your projected financial ratios and highlight several key ratios to show the
benefits of your strategic plan.
Strategy Evaluation (1 Minute)
a. Prepare a Balanced Scorecard to show your expected financial and nonfinancial
objectives recommended for the firm.
Financial & Ratio Analysis (2Minutes)
a. Attach your financial and ratio analysis the end of your presentation to the end
of your slides.
Conclusion (2 Minutes)
a. Compare and contrast your strategic plan versus the company’s own plans for
the future.
b. Thank audience members for their attention.
c. Genuinely seek and gladly answer questions.
9. Upload your PP or Google slides to Canvas the night before you present
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