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Unlock This CourseCase study analysis is a crucial skill for your iGCSE Business exam. You'll be given real-world scenarios about small businesses and need to demonstrate your understanding by analysing their situation, identifying problems and suggesting solutions. This isn't just about memorising facts - it's about applying business knowledge to real situations.
Key Definitions:
Case studies help you understand how business theory works in practice. They show you the messy reality of running a business - where multiple factors interact and there's rarely a perfect solution. This prepares you for real business challenges.
Use this systematic approach to tackle any small business case study. PACED stands for Problem, Analysis, Context, Evaluation and Decision.
Start by identifying the main issues facing the business. Don't just list everything - focus on the most significant problems that are affecting performance or threatening survival.
Cash flow shortages, declining sales, increased competition, staffing issues, rising costs, poor location, outdated products.
Financial data showing trends, customer complaints, employee turnover, market changes, competitor actions.
Which problems are most urgent? Which could cause business failure? Focus on these first in your analysis.
Maya opened a small café in 2019. Initially successful, she's now struggling with rising rent, fewer customers due to a new coffee chain nearby and difficulty finding reliable staff. Her monthly profit has dropped from £2,000 to £500 and she's considering closing. What would you identify as her main problems?
Numbers tell a story in business case studies. You need to interpret financial data to understand what's really happening.
Look beyond just profit figures. Examine trends, ratios and cash flow patterns to get the full picture of business performance.
Is the business making money? Look at gross profit margin (sales minus cost of goods sold) and net profit margin (after all expenses).
Are sales increasing or decreasing? Are costs rising faster than revenue? Monthly comparisons reveal important patterns.
Can the business pay its bills? Positive cash flow is essential for survival, even if the business is profitable on paper.
Every business decision affects different groups of people. Understanding stakeholder interests helps you suggest balanced solutions.
Owners: Want profit and business growth
Employees: Want job security and fair wages
Managers: Want business success and career progression
Customers: Want quality products at fair prices
Suppliers: Want reliable payment and continued orders
Local Community: Want employment and responsible business practices
Good case study analysis doesn't just identify problems - it suggests realistic, practical solutions and evaluates their likely effectiveness.
Think creatively but realistically. Consider the business's resources, constraints and market position when suggesting improvements.
Short-term (0-6 months): Quick fixes to address urgent problems
Medium-term (6-18 months): Strategic changes requiring planning and investment
Long-term (18+ months): Major restructuring or expansion plans
Understanding typical problems helps you quickly identify issues in case studies and suggest appropriate solutions.
Cash flow problems, high costs, low profit margins, difficulty accessing finance, poor financial planning.
Poor location, weak brand awareness, ineffective advertising, losing customers to competitors, unclear target market.
Staff shortages, poor quality control, inefficient processes, outdated technology, supply chain disruptions.
Knowing the content is only half the battle. You need to present your analysis clearly and persuasively in exam conditions.
Use clear paragraphs with topic sentences. Start with your main point, then provide evidence and explanation. Finish with evaluation or consequences.
• Use business terminology correctly
• Refer to specific information from the case
• Consider multiple stakeholder perspectives
• Evaluate advantages and disadvantages
• Make justified recommendations
• Generic answers that could apply to any business
• Ignoring financial data provided
• Unrealistic solutions given the business size
• One-sided arguments without evaluation
• Vague recommendations without justification
Tom runs a small computer repair shop. His revenue last year was £45,000 with costs of £38,000. This year, revenue has dropped to £35,000 while costs increased to £40,000. A large electronics retailer opened nearby offering cheaper repairs with a 30-day guarantee. Tom's repairs take 3-5 days, but he offers more personalised service. He's considering reducing prices, expanding into phone repairs, or focusing on business customers. What would you recommend and why?
Case study analysis improves with practice. The more scenarios you work through, the better you'll become at spotting patterns and developing solutions.
Remember that small businesses succeed through focus, flexibility and understanding their customers. Use these principles to guide your analysis and recommendations.