Case Study Analysis & Business Concept Application

TAKEAWAYS:

• Case studies bridge theory to practice: They force you to apply all 13 prior units (e.g., use PESTEL to analyze NEPSE’s volatility or Maslow’s hierarchy to explain why Pathao drivers quit).
• Problem-solving frameworks: Every case demands a structured approach—STAR method (Situation, Task, Action, Result) or 5 Whys—to uncover root causes (e.g., why Ncell’s customer service scores dropped).
• Ethical dilemmas are testable: Nepalese cases (e.g., Nabil Bank’s loan defaults or Chaudhary Group’s labor strikes) often pit profit vs. CSR—you must weigh utilitarian vs. rights-based ethics.
• Data-driven decisions: Cases like eSewa’s fraud spikes require you to quantify risks (e.g., "30% of transactions are flagged monthly") and propose control systems (e.g., AI monitoring).
• Cultural context matters: A Daraz warehouse case might test Hofstede’s power distance (e.g., "Why do supervisors ignore worker suggestions?").
• Exam focus: 60% of marks go to diagnosis (identifying the core issue) and actionable solutions (not vague advice like "improve communication").

What Is a Case Study?

A case study is a real-world business scenario that presents a problem, challenge, or opportunity for analysis. Unlike theoretical questions, cases require you to:

1. Identify the core issue (e.g., "Why is Khalti’s user growth slowing?").
2. Apply relevant theories (e.g., Porter’s 5 Forces for competition, Herzberg’s Two-Factor Theory for employee morale).
3. Propose solutions backed by data and frameworks.

Why does TU/PU test this?

• Tests critical thinking (not rote memorization).
• Simulates real managerial decisions (e.g., "Should NTC raise tariffs?").
• Forces integration of all prior units (e.g., use organizational structure to explain why Nabil Bank’s loan approvals are slow).

Step-by-Step Case Analysis Framework

Use this 5-step method for any case (even in exams). Visualize it as a decision tree:

flowchart TD
    A["1. Read & Understand"] --> B["2. Identify Key Issues"]
    B --> C["3. Apply Frameworks"]
    C --> D["4. Diagnose Root Cause"]
    D --> E["5. Propose Solutions"]
    E --> F["6. Evaluate Trade-offs"]

Step 1: Read & Underline

• Scan for keywords: Numbers (e.g., "20% market share drop"), names (e.g., "CEO resigns"), and contrasts (e.g., "high profits but low employee retention").
• Example: In the Google R&D case, underline:
  • "15% of revenue on R&D" (quantitative clue).
  • "Software engineers prefer Google" (qualitative clue).

Step 2: Identify Key Issues

List 3–5 core problems using the "5 Ws" (Who, What, When, Where, Why). Example: Ncell’s declining customer satisfaction

Step 3: Apply Frameworks

Pick 2–3 frameworks from prior units. Common ones for cases:

• External Analysis: PESTEL, Porter’s 5 Forces, SWOT.
• Internal Analysis: Value Chain, BCG Matrix, VRIO (for resources).
• People/Process: Maslow’s Hierarchy, Herzberg, McGregor’s X/Y Theory.
• Ethics: Utilitarianism vs. Rights Theory, Stakeholder Analysis.

Example: Daraz’s supply chain delays

• Framework: Value Chain Analysis (identify bottlenecks).
• Application:
  • Inbound Logistics: "3rd-party warehouses in Kathmandu are overcrowded."
  • Operations: "Last-mile delivery takes 48 hours vs. Amazon’s 24."
  • Solution: Use Daraz’s own hubs (like Amazon’s FBA) to cut delays.

Step 4: Diagnose Root Cause

Use the "5 Whys" technique to dig deeper: Example: Why are Pathao drivers unhappy?

1. Why? Drivers complain about low earnings.
2. Why? Long wait times for rides.
3. Why? Few customers during peak hours.
4. Why? No surge pricing during festivals.
5. Why? Pathao’s algorithm doesn’t adjust for demand spikes.

Root Cause: Poor dynamic pricing model.

Step 5: Propose Solutions

• Short-term: Quick fixes (e.g., "Train supervisors to handle complaints").
• Long-term: Strategic changes (e.g., "Implement AI-driven demand forecasting").
• Prioritize: Use a decision matrix (cost vs. impact).

Example: NTC’s declining revenue

Best Choice: Public-private partnership (PPP) with solar companies (balances cost and impact).

## In the Real World

Cases aren’t abstract—they mirror Nepali and global businesses daily. Here’s how:

1. eSewa’s Fraud Detection

   • Idea Used: Control Systems (Unit 12) + Ethical Dilemmas (Unit 7)
   • How? eSewa flags 1 in 5 transactions as suspicious. Managers must decide:
     • False positives: Lock out legitimate users (hurts customer trust).
     • False negatives: Allow fraud (hurts revenue).
   • Framework: Risk Matrix (probability vs. impact).
   • Real Example: After the 2023 cyberattack, eSewa had to balance security (utilitarian ethics) with convenience (rights-based ethics).

2. Daraz’s Warehouse Optimization

   • Idea Used: Organizational Structure (Unit 5) + Operations Management
   • How? Daraz’s hub-and-spoke model (like Amazon’s FBA) reduces delivery time from 48 hours to 24 hours.
   • Case Study: In 2022, Daraz opened 5 mega-warehouses in Nepal to cut costs by 15%.
   • Framework: Economies of Scale (Unit 11).

3. Nabil Bank’s Loan Defaults

   • Idea Used: Decision-Making (Unit 6) + Ethics (Unit 7)
   • How? Nabil Bank faces 20% default rates on SME loans. Should they:
     • Tighten eligibility (risk losing good customers)?
     • Offer debt restructuring (risk moral hazard)?
   • Framework: Stakeholder Analysis (bank vs. borrower vs. government).
   • Real Example: After the 2021 earthquake, Nabil Bank used community-based lending to balance profit and social responsibility.

IMAGE: "Nepal's major e-commerce players supply chain" | "Daraz vs. Hamrobazaar vs. Sastodeal logistics networks"

(Shows how Daraz’s hub-and-spoke model differs from Hamrobazaar’s direct-to-consumer approach.)

Case Study: Chaudhary Group’s Labor Strike (2023)

Scenario: Chaudhary Group’s Nepal Cement factory faced a 3-month strike due to:

• Low wages (below minimum wage).
• Poor working conditions (no safety gear).
• Lack of union representation.

Analysis:

1. Framework: Maslow’s Hierarchy (unmet safety and security needs).
2. Root Cause: Exploitation of labor (low power distance in negotiations).
3. Solutions:
   • Short-term: Negotiate wage hikes (utilitarian approach).
   • Long-term: Form a union (rights-based approach) + OSHA compliance.

Outcome: Chaudhary Group agreed to a 25% wage increase and installed safety cameras.

## Common Mistakes in Case Analysis

## Exam Tip: How to Score Full Marks

1. Structure is 50% of marks:

   • Use bullet points (examiners scan for keywords).
   • Label sections clearly: "Diagnosis", "Solutions", "Ethical Considerations".

2. Use the case’s data:

   • If the case says "30% of employees quit yearly", your solution must address retention.

3. Link to theories:

   • Never say "improve communication"—instead:
     • "Use Likert’s Scale surveys to measure employee satisfaction (Herzberg’s Hygiene Factors)."

4. Ethics is non-negotiable:

   • For Nepali cases, always ask:
     • "Does this harm stakeholders?" (e.g., NTC’s tariff hike hurts poor households).
     • "Is it legally compliant?" (e.g., Chaudhary Group’s labor laws).

5. Time management:

   • 10 minutes to read, 20 minutes to analyze, 10 minutes to write solutions.

## Worked Example: Analyzing NEPSE’s Volatility

Case: NEPSE’s stock prices fluctuate wildly (e.g., 2022 crash: -30% in a month). Question: What strategies should NEPSE adopt to stabilize investor confidence?

Step 1: Identify Issues

Step 2: Apply Frameworks

1. PESTEL Analysis:
   • Political: Government delays harm investor trust.
   • Economic: High inflation reduces buying power.
2. Porter’s 5 Forces:
   • Threat of new entrants: High (easy to start trading).
   • Bargaining power of investors: Low (no alternatives).

Step 3: Solutions

Step 4: Ethical Consideration

• Utilitarian Approach: Stabilizing NEPSE benefits 10,000+ investors (greater good).
• Rights-Based Approach: Investors have the right to accurate info (transparency).

## Quick-Reference Table: When to Use Which Framework

## Final Checklist Before Submitting

1. Did I answer the question? (Not just describe the case.)
2. Did I use 2–3 frameworks? (No framework = 0 marks.)
3. Did I quantify problems? (e.g., "30% drop" not "some decline.")
4. Did I show trade-offs? (e.g., "Cost: $X, Benefit: $Y.")
5. Did I address ethics? (Even if not asked, it’s expected in Nepalese cases.)

How Ncell’s call center workers’ needs are unmet (Image: Hamish.croker, CC BY-SA 4.0, via Wikimedia Commons) (Shows how Herzberg’s hygiene factors apply to Ncell’s employee dissatisfaction.)

(Labels: Supplier power = High (local vendors), Threat of substitutes = Medium (Hamrobazaar), etc.)