CHAPTER 6

HOW TO ANALYZE PROBLEM-DIAGNOSIS SCENARIO CASES

What explains the success of one company and the troubles of another in an intensely competitive industry? How do you account for the sudden, precipitous decline of an entire economy? Why does a service that seemed to have limited potential explode into a billion-dollar industry, and why does a startup with a highly praised business plan and capital from prestigious investors flop?

We assume that these outcomes aren’t arbitrary—that it wasn’t only luck that produced them. While chance undoubtedly plays some role, if it were the only factor, business schools wouldn’t exist. Some kind of logic underlies the end results. But what is that logic? An entire category of case scenarios poses ...

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