Logical Structuring
Case Competition Training
Strategy and Operations
January 8, 2008
Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
Purpose
The purpose of this session is to help prepare you for this week’s case competition.
Objectives
By the end of this session you should have a better understanding of:
How to logically structure a case presentation:
Logical Structuring & Storyboarding
How to use quantitative and qualitative data to support your research
Research Tips
Example
How to execute a successful presentation:
Professionalism
Examples of previous presentations:
DOs & DON’Ts
Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
Why does structure matter?
Makes the message precise
Forces the writer to be “dead clear” about what they are communicating to the reader, preventing messages that are unclear, unintended, or intellectually empty
Reveals gaps in thinking
Enables the writer to identify gaps by anticipating and responding to the reader’s questions before the communication is delivered
Provides clarity to the reader
Prevents the reader from “working” to understand the message, thereby eliminating the possibility that your message is misunderstood or ignored entirely
Memo A John Collins telephoned to say he can’t make the meeting at 9:00. Hal Johnson says he doesn’t mind making it later or even tomorrow, but not before 10:30 and Don Clifford won’t return from Frankfurt until tomorrow late. The conference room is booked tomorrow, but free on Thursday. Thursday at 11:00 looks to be a good time. Is that okay with you?
Memo B Could we reschedule today’s 9:00 meeting to Thursday at 11:00? This would make it more convenient for Collins and Johnson, and would permit Clifford to be present. It is also the only other time this week that the conference room is free.
Governing Thought: States the answer to the question raised in the readers mind
Key Line:
Major points which, taken together prove the answer
The Pyramid Structure
Support:
Data and facts which support the key line
Explains how or why
K:\INDUSTRY\FS\2001\Pyramid Princ\feb\001pyramid\
Opportunities
and threats
ABC should go online
and the first priority should be to defend its current market share
Primary benefits
of the internet
strategy
An Unstructured Communication
ABC’s current customers are more likely to shop online than the general population
ABC’s competitors are increasing their online product assortment
Without an
online channel ABC risks losing some customers to competitors
ABC’s online sales in 2005 could reach $100mm
Defend
market share
Grow
revenue
Develop deeper relationships
with customers
Support ABC’s operating
strategy
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Acme can reduce costs by $10mm in the next 2 years through some operational improvements
Differentiate service levels to save $2mm
Segment customers by value
Determine economic level of service for each segment
Shift lower value segments to lower cost channels
Re-engineer core functions to save $5mm
Evaluate internal cost of core function
Compare cost of function to best-in-class benchmarks
Adopt best practices based on benchmarks
Outsource non-core
functions to save $3mm
Select non-core functions
Evaluate cost and service level of potential partners
Choose one partner for each function
A Structured Communication
Governing Thought:
Key Line:
Support:
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Ideas at any level must be summaries of the ideas grouped below
Derived from high-level ideas
Point of a paragraph is a summary of the sentences it contains
Idea in each grouping must always be the same kind of ideas
All ideas are from the same logical grouping
Label idea with a plural noun
Ideas in each grouping must be in a logical order
Deductively
Chronologically
Structurally
Comparatively
Three Key Rules to Apply When Building a Pyramid
Answer
A statement about the subject with which you know the reader will agree
The complicating event that create the tension in the story
Situation:
Complication:
The implicit question that results from the complication
Question:
Elements of the Introduction
Governing Thought:
Key Line:
Support:
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Acme must develop a value proposition tailored to the coyote market.
Understand the unique needs of coyotes
Adapt product line to meet coyote needs
Educate coyotes on Acme’s ability to meet their needs
How?
Structuring a Response to How
Governing Thought:
Key Line:
S: Acme must increase its focus on the coyote market
C: Acme is not currently focused on the coyote market
Q: How can Acme focus on the coyote market?
Step 1
Step 2
Step 3
K:\INDUSTRY\FS\2001\Pyramid Princ\feb\001pyramid\
DrugsRUs should spend $25 million to accelerate the approval process for Antizak
The Antizak market is expected to top $1 billion per year
Earlier approval allows DrugRUs more time before patent protection expires, which is worth $200 million in profit
Competitors are developing a substitute that may capture the market if launched first
Why?
Structuring a Response to Why
S: Approval for DrugsRUs new lifestyle drug Antizak is taking longer than expected
C: DrugsRUs can spend $25 million to accelerate the approval process
Q: Should DrugsRUs spend $25 million to accelerate the approval process?
Reason 1
Reason 2
Reason 3
Governing Thought:
Key Line:
K:\INDUSTRY\FS\2001\Pyramid Princ\feb\001pyramid\
Which Question is Raised - How or Why?
S: The plant is not meeting its widget production goals
C: The production line is frequently stopped because of insufficient parts
Q: What should the plant do differently?
A: The parts procurement process needs to be redesigned to reduce fulfillment time
S: Sow’s Ear Inc. developed a silk purse product line 2 years ago
C: Since then, the silk purse division has been unprofitable
Q: What should Sow’s Ear do?
A: Sow’s Ear Inc. should abandon its silk purse product line
S: ABC, a book retailer, is considering developing an online channel
C: The online retail book market is dominated by 2 strong players
Q: Should ABC develop an online channel?
A: Yes, ABC should go online
S: You have undertaken a number of initiatives to improve customer service
C: Customer service continues to result in decreased customer satisfaction
Q: How can we improve customers service?
A: We must redesign customer service
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Clarifying Grouped Ideas
List the Points
Identify the Type of Point
Summarize the Points
Order the Points
Synthesize findings from interviews, research and analysis
Create a list of key points
Put the points into categories by defining the kind of problem being discussed, attempting to use similar level of abstraction across categories
Write a sentence that states the “essence” of each category
Put the points in logical order, such as order of importance or time order
Activities:
K:\INDUSTRY\FS\2001\Pyramid Princ\feb\001pyramid\
The Importance of MECE
MECE
Mutually Exclusive
Do any of the points overlap?
Example
Making Dinner:
Select menu
Buy ingredient
Prepare courses
Collectively Exhaustive
Have all possibilities been covered?
Mobile Phone Types:
Analog
Digital
GSM
Reasons to acquire competitor ABC:
Complimentary customer base
Superior technology
Digestible size
Points across horizontal levels of the pyramid should be MECE (Mutually Exclusive, Collectively Exhaustive)
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Storyboarding
Creating a storyboard provides an outline for the presentation and the path you will follow:
Uses Pyramid Structure as a foundation
Maps out the storyline of a presentation
Establishes team and judging panel’s expectations about what is to be produced and delivered
Helps organize work and define data needs
Establishes evaluation frameworks and criteria used in the assessment
Facilitates greater productivity and higher quality
Keeps an engagement focused
Creating the Storyboard
Cutting Edge Corporation should close its razor manufacturing operation in Wisconsin and manufacture razors in Mexico
Overall costs in Mexico are 75% lower than in Wisconsin, resulting in recovery of moving costs in 6 months
Key Line:
Governing Thought:
Mexico provides an operating environment that is as stable as Wisconsin, ensuring continuity of operations
Manufacturing technology is more advanced in Mexico than in Wisconsin, enabling Cutting Edge to leverage leading edge capabilities
Support:
One page for each idea
Page 2
Page 1
Situation Complication (Question)
Each requires a set-up page
K:\INDUSTRY\FS\2001\Pyramid Princ\feb\001pyramid\
Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
Quantitative and Qualitative Observations
Pending lawsuits
Consumer trends
Market perception
Firm stock value
Market share
Net Present Value
Examples
press releases
annual reports
industry white papers
analyst reports
Interpretive and insightful
Most helpful when the goal is to understand situations or provide context
Answers the “how” and “why" questions
Qualitative
financial statements
statistical studies
surveys
censuses
Numerical and statistical
Most suitable when the objective is to measure or quantify data
Answers the “what” questions
Quantitative
Sources
Definition
It’s important to use both quantitative and qualitative observations to support your recommendation
Qualitative data and analysis is required as hard justification for your recommendation (., dollar savings, head count reduction)
Qualitative data can be used to support and explain the meaning of quantitative research
Combining methods leads to a balanced, persuasive argument
Research Tips
Structuring your research using a defined approach can help you research effectively in a short period of time
Several models can be applied to help you structure your research. One example is Porter’s Five Forces
Your approach to case research should mirror the logical structuring of your presentation
Governing Thought (Recommendation) Key Lines Support
But how do you know what your recommendations are before conducting your research?
Answer: Guess.
Based on your initial impressions of the case, generate some hypotheses on what you think the company should do. Then, based on your hypotheses, look for supporting evidence
The advantage of this approach is that it can dramatically reduce the amount of time spent on research. You will be focusing your efforts on facts that support your hypotheses
Begin by creating a research log
This is a file that documents all of the research sources that have been reviewed and includes a summary of key findings, facts and sourcing information. A research log allows for easy dissemination of key findings saving time. Assign a format and owner up front
Example
Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
Professionalism – Execution of the presentation
There are two key avenues for case competitors to convey professionalism:
The execution of the presentation
The presentation materials
Assign roles early – subject matter experts and presenters
Who answers questions on which topics?
Rehearse the presentation to clearly define:
Sequence – what order will the team members will present in?
Duration – how long should each section take?
Hand-offs – how will each section of the presentation smoothly and logically transition from one team member to the next?
Contingency plan – which sections could be reduced or eliminated?
Pay special attention to numbers, statistics, charts and analysis
Inability to convincingly defend figures is a common pitfall
Be able to recall sources and assumptions without having to use reference material
Professionalism – Presentation Materials
Alignment
Check text and object alignment to ensure a consistent look across slides
Ensure headings and text boxes are in the same place, as you flip through your slides
Colour Scheme
A muted colour scheme is generally recommended
Avoid dark backgrounds, very bright colours or too many colours
Ensure that your colour scheme both prints well and projects well
Font
Sans-serif font styles tend to work best: Arial, Verdana, Tahoma
Font size should be readable, but not too large (min ~12pt)
Consistency
Be consistent with font size, font style and colour scheme
Be consistent with punctuation at the end of bullets - Either use it or do not, but do not use it inconsistently
Be consistent with overall structure—. use of tag lines versus just headers
Use the slide master to create a template to ensure consistency
Logical Structuring Agenda
Purpose and Objectives
Logical Structuring & Storyboarding
Quantitative and Qualitative Observations
Professionalism
Do’s and Don’ts
Appendix
DOs & DON’Ts
DOs
Brainstorm as a team to develop a strategy and agree to an execution plan
Divide and conquer the work to efficiently execute on the plan
Determine required tasks, dependencies and agree to roles for each team member
Have each person create their slides based on an agreed upon template (designed in ‘Slide Master’)
Avoid ‘version control’ issues by having one person own the ‘master’ and others provide send over their slides for inclusion in the master
Proof-read your presentation for spelling, grammar, content and logic
Recognize each others’ strengths in determining roles for the presentation
Group members should present material they are most comfortable with
Confident speakers can present larger portions of the presentation
Leave time to rest the night before the presentation
DOs & DON’Ts
DON’TS
Don’t fall victim to ‘analysis paralysis’
Instead, set a deadline for making a recommendation decision and stick to it
You will not come up with a recommendation that is irrefutable and 100% supported by the facts, so at some point, your group must make a decision and run with it – spend the rest of the time supporting your decision and creating a compelling story
Don’t let disagreements impact your team’s dynamics
Agree upfront on a conflict resolution method (. vote or unanimous agreement)
Disagreements can lead to productive discussions, so take a few minutes to hear each point of view and then make a decision on next steps
Don’t leave facts or figures unsourced – always include references in the research log for easy footnoting in your final presentation
Don’t leave formatting until the end
Last Year’s Case Competition Topic
Question
In early 2006, managers in technology and media companies around the world observed Google with awe, envy, and fear. The company’s opportunities seemed boundless. What would Google do next?
Two Options
One option was to stay focused on the company’s distinctive competence: developing superior search solutions and monetizing those solutions through targeted advertising.
Alternatively, Google could branch into new arenas:
Build Google into a portal like Yahoo! Or MSN by aggregating content into thematic channels
Extend Google’s role in e-commerce beyond search into a more active role as an intermediary facilitating transactions
Challenge Microsoft’s hegemony over the PC desktop by developing products to compete with Office and Windows
Evaluation Criteria
Recommendation
Followed logically from analysis
Dealt with all issues raised
Used decision criteria
Showed sounds business judgment
End result was practical/realistic
Question & Answer
Answered question posed
Provided convincing explanations
Admitted weakness
Answered as a team
Analysis
Identified key problems
Used supporting facts/data
Drew accurate conclusions
Considered risk
Offered original insights
Presentation
Spoke clearly and concisely
Structured storyline well
Slides were visually attractive
Showed enthusiasm and professionalism
Last Year’s 2nd Place Case
Bright Colour Scheme
Communicate recommendation in the beginning of the presentation
Set expectations
Evaluate each recommendation against the 3 criteria
Data Sourcing
Pretty Pie Chart
Last Year’s Winning Case
Terry Huang
Aron Lau
Ke Zhang
Godmans Chow
What is the situation?
Question: What should Google do?
Complication: Company is facing boundless opportunities.
Stay focused with Google’s distinctive competencies.
Branch into new arenas.
Recommendation: Google should stay with its core competencies – providing superior search solutions
$ billion by end of 2011
Agenda
Overview of the approach
What should Google do?
Branch into new areas
Extend Google’s core search & targeting competencies.
International Search
Mobile Advertising
Narrowcasting
Build Google into a portal
Extend Google’s role into e-commerce
Develop Products to Compete with Office & Windows
Use Pyramid Structure to Frame the Storyboard
Measurement Metrics:
Market Potential
Fit with Mission
Option 1
Option 2
Google should stay focus with its core competence
Driven by Company Philosophy
It is best to do one thing really, really well – developing superior search solutions
Market Potential
Has opportunity to further monetize its search solutions through targeted advertising
Charts’ data sourced from provided Business Case Description
Google should not branch into new arenas. The three arenas proposed deviates from the company mission, or have tremendous risks (market potential).
Google’s mission - To organize the world’s information and make it universally accessible and useful.
Build Google into a portal
“We’re not in the portal business, we’re in the business of making all the world’s information accessible and useful.”
- Schemidt
Develop products to compete with Office and Windows
“There is strategic leverage in building an ecosystem around content and advertising that is an extension of our search mission.”
- Schemidt
Extend Google’s role in e-commerce
Acting as an intermediary facilitating transactions (Google Checkout) is consistent with the mission of the company.
Inconsistent Font
Google should not extend in e-commerce or develop products to compete with Microsoft due to the high risks (market potential) involved.
Extend Google’s role in e-commerce
1. Strong competition:
eBay has % of the e-commerce market. eBay facilitates eCommerce by offering tools such as PayPal1.
PayPal has 24% market share of . online payments market. It is eBay’s major electronic payment method1.
2. No incentive for PayPal users to switch to using Google Checkout
3. Despite Google Checkout’s launch in June, 2006. PayPal posted revenues of $417 million, a 37% growth rate compared with 2005’s fourth quarter2.
1
2
Inconsistent Alignment
Google should not extend in e-commerce or develop products to compete with Microsoft due to the high risks (market potential) involved.
1. Strong competition: Microsoft
2. Difficult for new entrant: OpenOffice currently only has 14% of the enterprise software market as of 2004 – Hard to convince user to switch to new desktop applications1
3. Relatively small potential revenue
The market for Office is only an annual revenue of $1 billion1
Too small of a market size comparing to Google's currently advertising business (140 million vs. billion)
Develop products to compete with Office and Windows
1
Google should continue to strengthen its expansion into the international online advertisement market.
. internet user is 30% of all users in the world.
By 2009, it will decrease and become %.
. online ads spending slowed down recently while online ads spending from the international market are increasing at a faster speed.
The Winning Case Used Extensive DATA to Back Up its Statement
International Online Advertising Entry Analysis
Late to the game. Lack of understanding of the local environment
Partner with local companies, leverage our leading technology, and adapt to local environment.
Perhaps government regulations (censorship issue in China)
Google's competitors entered the market earlier, and tailored products to adapt to local customers.
Yahoo, MSN, Local search engines (Baidu)
What are the risks
How does Google become a player?
What are the potential barriers to entry
How do their products & services differ
Who is the competition?
We believe the emerging mobile advertising market is a fit for both Google’s technological expertise and philosophies.
The potential of the mobile user base is promising, projected to rise to 1 billion users of 3G data services by 2011.
Mobile advertising revenues is expected to reach $ billion dollars by 2011.
Asia – Europe Business: 3G in the world : June 20th 2006
: Nov 15th 2006
More Data!!
Mobile advertising market analysis before entry.
We believe the emerging narrowcasting market is a fit for both Google’s technological expertise and philosophies.
Narrowcasting revenue in the US is projected to reach $ billion by 2009 - >$700 million in network/software operations.
Targeted online gaming advertising worth is projected to be worth $ billion by 2010.
CapV InfoStats March 2005
Businessweek Jan 2007
Even More Data!!!
Narrowcasting market analysis before entry
Changing government regulations on public ads.
Inaccurate forecast of market.
Partner with existing players, leverage Google’s user targeted algorithms for more targeted ads.
Privacy concerns, government billboard regulations, aesthetic trends
Current infrastructure of fixed targeted content that is not user targeted
EK3, Scala, ipSigns
What are the risks?
How do we become a player?
What are the potential barriers to entry
How do their products & services differ
Who is the competition?
Google can approach to enter the international online searching and advertising market with relative ease.
To continue strength its expansion in the international online advertisement market
Identify potential international market to expand its service
Conduct market research to understand customer behavior
Develop localized applications and adapt to taste of local customers
Cooperate with local business (partnership, M&A)
Google can approach to enter the narrowcasting and mobile advertising market with relative ease
Tie into the current and emerging markets with Google’s current technology and infrastructure.
Froogle
Google
Maps
Google
Mobile
Google
News
Blogger
Google
Server
Targeted User
Group/Individual
System
Integrator
Advertiser/Contents
Retail
Corporate
Hospitality
Services
Public Spaces
____
Gamers
____
Mobile device users
San Fran Wifi
____
Game developers
____
Mobile service providers
Anyone
Inconsistent Font
Google’s projected growth in the next 5 years
Mobile Advertising : $(assuming 1/3 market share)
Narrowcasting: $ (assuming 1/3 market share)
International Search
$ ($ market with 20% annual growth)
Combined revenue growth of an additional $ by the end of 2011.
Clear Visual Representation
Recommendation Again Backed Up by DATA!
