GUIDELINES FOR CASE ANALYSIS
The following guidelines are designed to assist in the case analysis process. The Guidelines
are not intended to be a rigid format, however. Each question is intended to surface
information that will be helpful in analyzing and resolving the case. Each case is different,
and some parts of these guidelines may not apply in every case.
Following each case are discussion questions that should be answered as part of any
complete case analysis. The heart of any case analysis is the recommendations made based
upon a solid logical foundation. The questions dealing with Problem and Issue
Identification and Analysis and Evaluation should be used to define and then defend
recommendations made in the final Recommendations step.
Guidelines for Analyzing Cases
Problem and Issue Identification
1. What are the central facts of the case? What assumptions are you making about these
facts?
2. What is the major overriding issue in the case? What major question or issues does this
case address that merits study at this point in the course?
3. What sub-issues or related issues are present in the case that merit consideration now?
Analysis and Evaluation
1. Who are the stakeholders in the case and what are their stakes? What challenges,
threats or opportunities are posed by these stakeholders?
,2. What economic, legal, ethical, and philanthropic responsibilities does the company have,
and what is the nature and extent of these responsibilities?
3. If the case involves company actions, evaluate what the company did or did not do in
handling the issue affecting it.
Recommendations
1. What recommendations do you have for this case? If a company's strategies or actions
are involved, should the company have acted as it did? What action should the
company take now? Why? Be as specific as possible. List several options as well as the
pros and cons of each alternative. Be prepared to discuss why you eliminated those
options you discarded and defend your chosen alternative. Mention and discuss any
important implementation considerations. This last step is crucial because
recommendations that cannot be implemented are worthless.
, Case 1: Walmart: The Main Street Merchant of Doom
1. What are the major issues in the case? Assess Walmart’s corporate social responsibility
using the four-part CSR model. Is Walmart socially responsible while it has a devastating
impact on small merchants? What about its impact on communities in terms of sprawl,
traffic congestion, and impact on the appearance of the environment? What responsibility,
if any, does the company have to these merchants or to the communities in which it
enters?
Walmart has been criticized for the aggressive and even predatory tactics that it takes with
respect to local merchants. Competition is what drives Walmart, and a merchant who
competes directly with them will lose. Is it unethical for any company, not just Walmart, to
drive out any and all competition? Is Walmart using its size and ability to undersell small
local merchants until they are driven out to establish an unfair monopoly on local markets?
Is this a violation of the spirit of anti-monopoly laws?
The following is an assessment of Walmart’s corporate social responsibility using the four-
part CSR model:
Economic: Walmart’s economic performance has been outstanding. According to the text,
in 2010, Walmart was the largest retailer in the world with over $408 billion in sales. Its
goal of providing quality merchandise at a low cost to consumers meets society’s economic
expectations for the company.
Legal: Walmart’s adherence to the laws of the country generally has been good, but an
explosion of lawsuits by employees and other stakeholders is tarnishing the company’s
image in this area. According to Walmart’s annual report for the year ended January 31,
2010, the company is a defendant in “various cases containing class-action allegations.”
The company notes that if these cases are “decided adversely to [the company] or settled
by [the company],” it could result in a material liability to the company and adversely
impact the company’s “financial condition or results of operations.” In April 2010, the
Ninth Circuit Court of Appeals, sitting en banc, upheld the class-action status in Dukes v.
Wal-Mart Stores, Inc., a class-action lawsuit “brought on behalf of all past and present
female employees in all of our retail stores and warehouse clubs in the United States.” The
certified class includes approximately 1.6 million individuals.
, Ethical: Walmart’s internal policies have certainly been above the spirit of the law.
Questions may be raised, however, about (1) the degree to which it has considered its
impact on other small stores and merchants and to town culture, and (2) certain
employment-related practices which have resulted in mammoth lawsuits for the company.
Discretionary: Walmart’s contributions to the local community, Buy American program,
and the recycling centers all speak to the positive aspects of societal expectations. At the
time of this writing, Walmart has several corporate citizenship initiatives, including, among
others, scholarships to high school seniors, fundraisers for The Children’s Miracle Network
Telethon, and environmental programs. However, Walmart is often criticized for the
predatory practices it uses against local merchants and its lack of sensitivity to community
needs when a store is closed and to community culture.
Walmart also has been condemned for its impact on communities in terms of sprawl, traffic
congestion, and appearance of the environment. The website, Wal-Mart Watch
(http://walmartwatch.com), notes that Walmart’s entry into new communities results in
abandoned retail space, increased traffic congestion and dead and decaying areas in such
communities.
As noted, questions may be raised about some of Walmart’s practices and effects described
in the case. Walmart’s responsibility to community merchants could extend to the point
that Walmart should teach them how to complete with, not against them. Predatory
competition designed by department managers to increase store sales should be stopped
and punished if necessary.
2. Sam Walton has been called a motivational genius. After reading this case, and with what
you have observed at your local Walmart store, explain how this motivational genius
empowered the employee? What is the “Walmart Way”? Explain its impact on the
associate and on the community. What has happened now that Sam is no longer the
motivational leader?
The following guidelines are designed to assist in the case analysis process. The Guidelines
are not intended to be a rigid format, however. Each question is intended to surface
information that will be helpful in analyzing and resolving the case. Each case is different,
and some parts of these guidelines may not apply in every case.
Following each case are discussion questions that should be answered as part of any
complete case analysis. The heart of any case analysis is the recommendations made based
upon a solid logical foundation. The questions dealing with Problem and Issue
Identification and Analysis and Evaluation should be used to define and then defend
recommendations made in the final Recommendations step.
Guidelines for Analyzing Cases
Problem and Issue Identification
1. What are the central facts of the case? What assumptions are you making about these
facts?
2. What is the major overriding issue in the case? What major question or issues does this
case address that merits study at this point in the course?
3. What sub-issues or related issues are present in the case that merit consideration now?
Analysis and Evaluation
1. Who are the stakeholders in the case and what are their stakes? What challenges,
threats or opportunities are posed by these stakeholders?
,2. What economic, legal, ethical, and philanthropic responsibilities does the company have,
and what is the nature and extent of these responsibilities?
3. If the case involves company actions, evaluate what the company did or did not do in
handling the issue affecting it.
Recommendations
1. What recommendations do you have for this case? If a company's strategies or actions
are involved, should the company have acted as it did? What action should the
company take now? Why? Be as specific as possible. List several options as well as the
pros and cons of each alternative. Be prepared to discuss why you eliminated those
options you discarded and defend your chosen alternative. Mention and discuss any
important implementation considerations. This last step is crucial because
recommendations that cannot be implemented are worthless.
, Case 1: Walmart: The Main Street Merchant of Doom
1. What are the major issues in the case? Assess Walmart’s corporate social responsibility
using the four-part CSR model. Is Walmart socially responsible while it has a devastating
impact on small merchants? What about its impact on communities in terms of sprawl,
traffic congestion, and impact on the appearance of the environment? What responsibility,
if any, does the company have to these merchants or to the communities in which it
enters?
Walmart has been criticized for the aggressive and even predatory tactics that it takes with
respect to local merchants. Competition is what drives Walmart, and a merchant who
competes directly with them will lose. Is it unethical for any company, not just Walmart, to
drive out any and all competition? Is Walmart using its size and ability to undersell small
local merchants until they are driven out to establish an unfair monopoly on local markets?
Is this a violation of the spirit of anti-monopoly laws?
The following is an assessment of Walmart’s corporate social responsibility using the four-
part CSR model:
Economic: Walmart’s economic performance has been outstanding. According to the text,
in 2010, Walmart was the largest retailer in the world with over $408 billion in sales. Its
goal of providing quality merchandise at a low cost to consumers meets society’s economic
expectations for the company.
Legal: Walmart’s adherence to the laws of the country generally has been good, but an
explosion of lawsuits by employees and other stakeholders is tarnishing the company’s
image in this area. According to Walmart’s annual report for the year ended January 31,
2010, the company is a defendant in “various cases containing class-action allegations.”
The company notes that if these cases are “decided adversely to [the company] or settled
by [the company],” it could result in a material liability to the company and adversely
impact the company’s “financial condition or results of operations.” In April 2010, the
Ninth Circuit Court of Appeals, sitting en banc, upheld the class-action status in Dukes v.
Wal-Mart Stores, Inc., a class-action lawsuit “brought on behalf of all past and present
female employees in all of our retail stores and warehouse clubs in the United States.” The
certified class includes approximately 1.6 million individuals.
, Ethical: Walmart’s internal policies have certainly been above the spirit of the law.
Questions may be raised, however, about (1) the degree to which it has considered its
impact on other small stores and merchants and to town culture, and (2) certain
employment-related practices which have resulted in mammoth lawsuits for the company.
Discretionary: Walmart’s contributions to the local community, Buy American program,
and the recycling centers all speak to the positive aspects of societal expectations. At the
time of this writing, Walmart has several corporate citizenship initiatives, including, among
others, scholarships to high school seniors, fundraisers for The Children’s Miracle Network
Telethon, and environmental programs. However, Walmart is often criticized for the
predatory practices it uses against local merchants and its lack of sensitivity to community
needs when a store is closed and to community culture.
Walmart also has been condemned for its impact on communities in terms of sprawl, traffic
congestion, and appearance of the environment. The website, Wal-Mart Watch
(http://walmartwatch.com), notes that Walmart’s entry into new communities results in
abandoned retail space, increased traffic congestion and dead and decaying areas in such
communities.
As noted, questions may be raised about some of Walmart’s practices and effects described
in the case. Walmart’s responsibility to community merchants could extend to the point
that Walmart should teach them how to complete with, not against them. Predatory
competition designed by department managers to increase store sales should be stopped
and punished if necessary.
2. Sam Walton has been called a motivational genius. After reading this case, and with what
you have observed at your local Walmart store, explain how this motivational genius
empowered the employee? What is the “Walmart Way”? Explain its impact on the
associate and on the community. What has happened now that Sam is no longer the
motivational leader?
