""

Note to the Student: How to

Study and Discuss Cases
Get a good idea and Sta' with it. Dog it and work at it until it's done, and one right.
-W,1<D'"" \

You enroll in a "case-method" course, pIck up the book of case s udles or the stack
of loose-leaf cases. ~nd get ready for the first class meeting. If this is your first expe-
rience with case discussions. the odds are that you are clueless a d a little anxious
about how to prepar~ for this course. That is fairly normal, but som thing you should
try to break through ~uickly in order to gain the maximum benefit from your studies.
QUIck breakthroughs\ come from a combmatlOn of good attItude. kood "mfrastruc-
ture:' and £!OodexecutIon-this note offers some tIpS.
\,
\
,
Good A:itud' \ I

Students learn best that which they teach themsel ves. Passive and mi dless learning
is ephemeral. Active. thindful learning simply sticks. The case metho makes learn-
ing sticky _by placing Ydu in situalions that require the invention of tool and concepls
ill your Oll'll terms. The\ most successful case-method students share a set of charac-
teristics that drive self-t~achin2':
1. Personal initiative, ~elf-r;liance: Case studies rarely suggest how t \proceed.
Professors are more like guides on a long hike: They can't cany you, but they can
show you the way. Yo~ must arrive at the destination under your own ~ower. You
must fi2'ure out the ca~e on vour own. To teach vourself means that yo must sort
ideas o~t in ways that \nake~sense to you perso~aIly. To teach yourself" s to give
yourself two gifts: the Idea you are trying to learn and greater self-confidence in
vour own abilitv to ma~ler the world.

c." .rn, '" 0'""","00' R"o<j '"m. co,,,, '0' D '"" "'" u"'"" '" ,,' ~"'",. D. ,.
School Foundation. Charlottes\'ille. VA. All ri2:hts resen"ed. To order copies. send a/1 e-mail to
[email protected]~. No pal~ of this pu/Jlicmion may be reproduced, stored in a retrie1"a!
SYSTem, [[sed ill (I spreadsheet, or rm,}smitred in c{//\" f'orm or b\"am" means-electronic. mechanic I. ;7hoiO-
[:opying. recording. or Olherwise-ll.iJ 101l/rhe pen~li5sion aftile Darden School Foundation. Re\". j ';05.
 ..
xXvi Note to the Student: How to Study and Discuss Cases

2. Curiosity, a zest for exploration as an end in itself: Richard P. Feynman. who

won the Nobel Prize in Physics in 1965. was once asked whether his key discovery
was worth it. He replied. "[The Nobel P \ize is] a pain in the [neck]. ... I don't
like honors .... The prize is the pleasurelof finding the thing out, the kick in the
discovery. the observation that other peoMe use it [my work]-those are the real
things; the honors are unreal to me." t \
3. A willingness to take risks: Risk-taking \s at the heart of all learning. Usually,
one learns more from failures than from successes. Banker Walter Wriston once
said, "Good judgment comes from experIence. Experience comes from bad
judgment" \
4. Patience and persistence: Case studies ar~ messy, a realistic reflection of the fact
that managers don't manage problems. the~ manage messes. Initially, reaching a
solution will seem to be the major challengf' But once you reach a solution, you
may discover other possible solutions and then face the choice among the best
alternatives. \
5. An orientation to community and discussion: Much of the power of the case
method derives from a willingness to talk wi1thothers about your ideas and your
points of confusion. This is one of the paradoxes of the case method: You must teach
yourself, but not in a vacuum. The poet T. S. IJ:liotsaid, "There is no life not lived in
community." Talking seems like such an ineffibient method of sorting through the
case, but if explorat~n is an end in itself. then bIking is the only wa;. Furth~ermore,
talking is an excellent means of testing your dwn mastery of ideas. of rooting out
points of confusion, and, generally, of prepari~g yourself for professional life.
6. Trust in the process: The learnings from a case-method course are impressive. They
arrive cumulatively over time. In many cases, th~ learnings continue well after the
course has finished. Occasionally, those learningk hit you with the force of a tsunami.
But generally, the learnings creep in quietly bul powerfully like the tide. After the
case course, you will look back and see that your\thinking. mastery, and appreciation
have changed dramatically. The key point is tliat you should not measure the
success of your progress on the basis of any sin1le case discussion. Trust that, in
the cumulative work over many cases, you will gain the mastery you seek.

Goodin!mttu,,",, \
"Infrastructure" consists of all the resources that tme case-method student can call
upon. Some of this is simply given to you by the pr6fessor: case studies. assignment
questions, supporting references to textbooks or articlks, and computer data or models.
But you can go much further to help yourself. consi~er these steps:
1. Find a quiet place to study. Spend at least 90 minutes there for each case
study. Each case has subtleties to it that you will cliss unless you can concentrate.
__ A_f_t_er
two or three visits. your quiet place will take Ion the attributes of a habtt:

,~,""" , "",m". ,", "<d'''" '1"'"''"' n""" 0", ,,=",'\ M"" ~'''''' ~",,," '"g. ,.,,,. "
 \
\

,-,,,.1'''','1.1,

N,o '" ill, ;ruo<"' How', "",.j"'N Cow, ~,'

Youw,ll,h p 'm1' '

wm~og "'" ud, mo" ""I y, Be ,u" " ,pei~ '"0 ugh "me '"
the qUIet place t~ give yourself a chance to really engage the cas I'
2. Get a business dictionary. If you are new to business and financ some of the
terms will seem ~oreign; if English is not your first language, many of the terms
r,
will seem foreignl if not bizarre. Get into the habit of looking up ~rms that you
don't know. The Benefit of this becomes cumulative.
3. Skim a business lewspaper each day, read a business magazin , follow the
markets. Reading\a newspaper or magazine helps build a context £r the case
study you are trying to solve at the moment, and helps you make c nnections
between the case dudy and current events. The terminology of busi ess and
finance that you se~ in the publications helps to reinforce your us1fof the
dictionary. and hastbns your mastery of the terms that you will see in the cases.
Your learning by rekding business periodicals is cumulative. Som~ students
choose to follow a g~od business-news Web site on the Internet. Tho~e Web sites
,",
have the virtue of beIng inexpensive and efficient. but they tend to scteen too
1
much. Having the prilnted publication in your hands and leafing throukh it help
I the process of discov~n:, which is the whole point of the exercise. \
4. Learn the basics of Jpreadsheet modeling on a computer. Many case studies
now have supporting data available for analysis in Microsoft Excel sprbadsheet
files. Analyzing the dafa on a computer rather than by hand both speed~ up your
work and extends your\ reach. \
5. Form a study group. The ideas in many cases are deep: the analysis cdn get
complex. You \\"ilIleanJ more and pelform better in class participation bv
discussing the cases toiflher in a learning team. Your team should devc\te an
average of an hour to each case. High-performance teams show a numb of
common attributes: \
a. The members commit to the success of the team.
b. The team plans aheak, leaving time for contingencies.
c. The team meets regularlv. ~ ~
d. Team members Sh~w\up~for meetings and are prepared to contribute.
e There may or may noti be a formal leader. but the assIgnments are cleaL' Team
members meet theIr assIgned obhgations.
\ ~ -
6. Get to know your profess@r. In the case method. students mevitably learn are
from one another than fromlthe instructor. But the teacher is part of the lear~ing
infrastructure, too: a resourc~ to be used w. 'iselv. Never troll for answers in ad\viance
of a case discussion. Do yoJr homework: use ~classmates and learning teams to
clear up most of your qUesti~ns so that you can focus on the meaties~ issues 'ith
the teacher. Be very organizep and focused about what you would like to disJpss.
Remember that teachers like to learn. too: If vou reveal a new insi ght about a case
or bring a clipping about a rel'tlted issue in cu~rrentevents, both the~professor ahd

pmf,,,,,,, me ",h," '0 <he "I'm',

the student can gain from the it time together. Ultimately, the best payoff to th~,
ey" wheo he m ,he m,,"', M ideo
Note to the Student: How to Study and Discuss Cases

Good Execution
Good attitude and infrastructure must be fmployed properly-one needs good execution.
The extent to which a student learns depends on how the case study is approached.
What can one do to gain the maximum\from the study of those cases')
1. Reading the case. The very first time you read any case. look for the forest not
the trees. This requires that your first\reading be quick. Do not begin taking notes
on the first round: instead. read the case like a maQ.azine article. The first few
paragraphs of a well-constructed casel usually say ~something about the problem-
read those carefully. Then quickly rea~ the rest of the case. mainly seeking a sense
of the scope of the problems and what information the case contains to help
resolve them. Leaf throuQ.h the exhibit~, 10okinQ.for what information they hold
rather than for any analy;ical insights. 'tt the c;nclusion of the first pass, read any
supporting articles or notes that your instructor may have recommended.
2, Getting into the case situation. Devel~p your "awareness." With the broader
perspective in mind, the second and mor~ detailed reading will be more productive.
The reason is that as you now encountdr details, your mind will be able to
organize them in some useful fashion rather than inventorying them randomly.
Making links among case details is neceJsary for solving the case. At this point
you can take notes that will set up your a~aIYSis.
The most successful students project themselves into the position of the decision-
maker because this perspective helps ther link case details as well as develop a
stand on the case problem. Assignment questions may help you do this. but it is
a good idea to get into the habit of doing it yourself. Here are the kinds of questions
you might try to answer in preparing every \case:
Who are the protagonists in the case? '[ho must take action on the problem?
\"ihat do they have at stake? What pressures are they under?
What business is the company in? Wha~ is the nature of its product? What is
the nature of demand for that product? fhat is the firm's distinctive compe-
tence? With whom does it compete?" Wqat is the structure of the industry?
Is the firm comparatively strong or weakj In what ways?
What are the goals of the finn? What is the firm's strategy in pursuit of those
goals? (The goals and strategy may be explicitly stated, or they may be implicit
in the way the firm does business.) What are the firm's apparent functional
policies in marketing (e.g., push versus pu~1strategy), production (e.g., labor
relations, use of new technology, distributdd production versus centralized),
and finance (e.g., the use of debt financing) payment of dividends)? Financial

'Think broadly about competitors. In A COlll1ecticlt/ YOl1keeill K\~ Arthur's Court. Mark Twain wrote.
"The best swordsman in the world doesn't need to fear the second1best swordsman in the world: no. the
person for him to be afraid of is some ignoram antagonist who has\never had a sword in his hand before; he
doesn't do the thing he ought to do. and so the expert isn"t prepared for him: he does the thing he ought not
to do: and it often catches the expert out and ends him on the spot:"

..~""'"""'- __ .
 Note to the Student: How to Study and Discus Cases xxix

':~~; and business str\ategies can be inferred from an analysis of the financial ratios
.\b~ and a sources-aNd-uses-of- funds statement \
I~
How well has th~ firm performed in pursuit of its goals? (The an~wer to this
~r
"~,
"y<,~".
"

question calls fO~simple analysis using financial ratios, such as the DuPont
r"f.;f system. compoulild growth rates. and measures of value creation.\
':):
!iff, The larger POintYf this phase of your case preparation is to b~'oaden your
il~' awareness of the issues. Warren Buffett, perhaps the most succes~I'fUIinvestor
ii0,' in history, said, ". I ny player unaware of the fool in the market pI' bably is the
,i~.'.
,,',> fool in the market:\' Awareness is an important attribute of successfll managers.
,~
3. Defining the problem. A common trap for many executives is to assUI~e that the
I"ii~~ issue at hand is the real\~problem most worthy of their time, rather than a symptorn
of some larger problem that reallY deserves their time. For instance, a l~nder is .
,i~
,;..",.. often asked to advance unds to help tide a firm over a cash shortfall. Careful
"?:'.
" .
~.: study may reveal that thb key problem is not a cash shortfalL but rather ~roduct
i~, obsolescence, unexpectdd competition, or careless cost management Ev~n in
cases where the deCiS~?n\isfai::y narrowly defined (e.g., a capital-~xpen9iture
cholCe), the "problem g~nerally turns out to be the behevabllny ot certmc key
assumptions. Students who are new to the case method tend to focus narr?wly in
defining problems and often overlook the influence that the larger setting has on
the problem. In doing thal. the student develops narrow specialist habits, rlever
achieving the general-ma~ager perspective. It is useful and important for ~\ou to
define the problem yourself and, in the process, validate the problem as suggested
by the protagonist in the case. \
4. Analysis: run the numbe~s and go to the heart of the matter. Virtually 'lUI
finance cases require numerical analysis. This is good because figure-work lends
rigor and structure to your t~inking. But some cases. reftecting reality. invit~ you
to explore blind alleys. If you are new to finance, even those explorations wi\ll
help you learn3 The best cake students develop an instinct for where to devote
their analysis. Economy of dffort is desirable. If you have invested wisely in
problem definition. economibal analysis tends to follow. For instance, a stud nt
might assume that a particula~ case is meant to exercise financial forecasting
skills and will spend two or clore hours preparing a detailed forecast instead f
preparing a simpler forecast ih one hour and conducting a sensitivity analysis \
1
based on key assumptions in the next hour. An executive rarely thinks of a siturltion
as having to do with a forecashng method or discounting or any other techniqJe.
but rather thinks of it as a pro~lem of judgment deciding on which people or \.
concepts or environmental con~itions to bet The best case analyses get down tb
the key bets on which the execJtive is wagering the prosperity of the firm and hIs
or her career. Get to the busine~s issues quickly. and avoid lengthy churning
through relatively unimportant blculations.

'Case analvsis is often iterative: An underSla1ing of the big issues invites an analvsis of deraii'-':,o" "'_
details rna;' restructure the big issues'and invi~f the analysis ....of other details.
In so~e cases. ge;j;:f- [,::.~;-.=

",m""", m"'" "'" m,," j'" eo," """;'\

[.
I
I
x1"X, Note to the Student How to Study and Discuss Cases
iI
I 5. Prepare to participate: take a stand. [0 develop analytical insights without
I
I making recommendations is useless to ~xecutives and drains the case-study
I
experi~nce of some of its learning powef' A stand means having a point of view
about the problem, a recommendation. and an analysis to back up both of them.
The lessons most worth learning all co~,e from taking a stand. From that truth
flows the educative force of the case method. In the typical case, the student is
projected into the position of an executi~e who must do something in response
to a problem. It is this choice of what to 110that constitutes the executive's stand.
Over the course of a career, an executive \who takes stands gains wisdom. If the
stand provides an effective resolution o~ the problem, so much the better for
all concerned. If it does not. however. the wise executive analyzes the reasons
for the failure and may learn eyen more I\han from a success. As Theodore
Roosevelt wrote:
The credit belon£s to the man" who is actuallYin the arena-whose face is marred
by dust and swe~t and blood ... who kndw~ the great enthusiasms. the great
devotions-and spends himself in a worth)\ cause-':'who. at best. if he win:. knows
the thrills of high achievement-and if he fails. at least fails while daring greatly so
that his place shall never be with those cold Imdtimid souls who know neither victory
nor defeat. \ .
6. In class: participate actively in support or your conclusions, but be open to
new insights. Of course, one can have a stand without the world being any wiser.
To take a stand in case discussions means td participate actively in the discussion
and to advocate your stand until new facts o~ analyses emerge to warrant a
I
I change5 Learning by the case method is not\ a spectator sport. A classic error
I many students make is to bring into the caseimethod classroom the habits of the
I
I lecture hall (i.e., passively absorbing what other people say). These habits fail
I miserably in the case-method classroom beduse they only guarantee that one
I
I absorbs the truths and fallacies uttered by ot~ers. The purpose of case study is
to develop and exercise one's own skills and Judgment. This takes practice and
participation, just as in a sport. Here are two kood general suggestions: (I) defer
significant note-taking until after class and (2\ strive to contribute to eyery case
discussion. ~ . \
7. Immediately after class: jot down notes, cOFrections, and questions. Don't
overinvest in taking notes during class-that jilist cannibalizes "air time" in which
you could be learning through discussing the c~se. But immediatelY after class,
collect your learning~ and q~estions in n~otestHat will capture your~thinking. Of
course. ask a fellow student or your teacher qu~stions to help clarify issues that
~ll~~e~u. \

"Today. a statement such as this would surely recognize women 1 well.

5There is a difference bet\veen taking a stand and pigheadedness. ~othing is served by clinging to your
stand to the bitter end in the face of better analysis or common seAse. Good managers recognize new facts
and good arguments as they corne to light and adapt.
 ....
.•

Note to the Student: How to Study and Disc ss Cases xxxi

8. Once a week, f1ij:1through notes. Make a list of your question , and pursue
answers. Take an \hOur each weekend to review your notes from lass discus-
sions during the p~st week. This will help build your grasp of th~ flow of ihe
course. Studying a subject by the case method is like building a large picture
with small mosaic! tiles. It helps to step back to see the big pictur~. But the main
objective should bb to make an inventory of anything you are undlear about:
terms, concepts, abd calculations. Work your way through this in~entory with
classmates. learni~g teams, and, ultimately, the instructor. This kibd of review
and follow-up bmltls your self-confidence and prepares you to pa~tlclpate more
effectivelv in futurb case discussions. ~
. I
Conclusion: FOCUS\
on Process and Results Will Follow
View the case-method experience as a series of opportunities to test YI ur mastery of
techniques and your bukiness judgment. If you seek a list of axioms ~o be etched in
'. stone. you are bound tb disappoint yourself. As in real life, there afe virtually no
"right" answers to thes~ cases in the sense that a scientific or engingering problem
has an exact solution. lleff Milman has said, "The answers worth getfing are never
found in the back of the book" What matters is that you obtain a way of thinking
about business situation~ that you can carry from one job (or career) the next. In to
the case method. it is la~gely true that how you leam is what you learh6

',I",.

I
°In describing the work of case teL hers. John H. McArthur has said. "How we teach is what e teach."

~
"