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10 Financial Analytics Case Studies [2024]

Financial analytics merges the precision of data science with the strategic depth of financial theory, creating an indispensable toolkit for navigating the complexities of the modern business landscape. This field utilizes sophisticated data analysis techniques alongside financial insights to bolster strategic decision-making, enhance financial performance, and influence policy formulation. Its broad applicability spans a multitude of activities, including advanced risk management practices, nuanced investment analysis, and the optimization of financial strategies, playing a pivotal role in guiding companies through the intricacies of the financial markets.

The discussion presents ten illustrative case studies that spotlight the significant impact of financial analytics across various industries. These examples reveal how entities ranging from burgeoning startups to established corporate giants have leveraged analytical methodologies to address pressing challenges, capitalize on emerging opportunities, and propel their strategic goals. Through this exploration, we aim to shed light on the practical deployment of financial analytics, underscoring its potential to not only resolve complex dilemmas but also to drive innovation, streamline operations, and foster sustainable growth. Through the lens of these narratives, financial analytics is revealed as a cornerstone of competitive advantage and organizational resilience, demonstrating its critical role in enabling businesses to maneuver adeptly through the evolving financial terrain.

10 Financial Analytics Case Studies

1. risk management in banking sector: jpmorgan chase & co..

JPMorgan Chase & Co. has harnessed the power of big data analytics and machine learning to revolutionize its approach to risk management. The bank’s use of advanced algorithms enables the analysis of vast datasets, identifying subtle patterns of fraudulent activities and potential credit risk that would be impossible for human analysts to detect. This capability is powered by AI technologies that learn from data over time, improving their predictive accuracy with each transaction analyzed.

Furthermore, JPMorgan employs predictive analytics to forecast future financial risks, allowing for preemptive measures to be taken. The bank has also developed sophisticated simulation models that can assess the potential impact of various market scenarios on its portfolio, enhancing its stress testing processes. These technological advancements have not only bolstered the bank’s resilience against financial uncertainties but have also led to a more dynamic and responsive risk management strategy. The adoption of these technologies has yielded significant benefits, including reduced operational costs, minimized losses from fraud, and an overall improvement in financial health and stability.

Related: How Can AI Be Used in Financial Analytics?

2. Portfolio Optimization for an Investment Firm: BlackRock

BlackRock’s proprietary platform, Aladdin, stands as a testament to the integration of cutting-edge technology in financial analytics for portfolio management. Aladdin’s comprehensive suite combines risk analytics, portfolio management, and trading tools into a single platform. This integration allows for real-time analysis and optimization of investment portfolios. The platform employs quantitative models that leverage historical and current market data to simulate various investment strategies, assessing their potential risks and returns.

Moreover, Aladdin utilizes machine learning to refine its predictive capabilities, enabling more accurate forecasting of market movements and asset performance. This allows BlackRock to tailor investment portfolios that are closely aligned with the client’s risk tolerance and financial goals, achieving optimal risk-adjusted returns. The use of such sophisticated analytics tools has empowered BlackRock to navigate complex markets more effectively, ensuring strategic asset allocation and informed decision-making. Clients benefit from enhanced portfolio performance, greater transparency in investment processes, and improved risk management.

3. Revenue Forecasting for a Retail Chain: Walmart

Walmart’s approach to revenue forecasting exemplifies the strategic use of data analytics and machine learning in retail. By analyzing a diverse array of data sources, including sales records, customer demographics, and buying patterns, Walmart applies sophisticated forecasting models that incorporate seasonal trends, promotional impacts, and economic indicators. This analytical rigor enables Walmart to make accurate predictions about future sales trends, which is essential for inventory management and marketing strategy formulation.

The retail giant’s investment in machine learning technologies further refines its forecasting models, allowing for adjustments in real time based on emerging data. This dynamic approach to forecasting supports Walmart in maintaining optimal inventory levels, reducing stockouts or overstock situations, and maximizing sales opportunities. Additionally, Walmart leverages these insights to tailor marketing efforts, enhancing customer engagement and satisfaction. The integration of these advanced technologies into Walmart’s operational framework has led to significant improvements in efficiency, cost savings, and overall financial performance, setting a benchmark for the retail industry.

Related: How Can CFO Use Financial Analytics?

4. Financial Analytics in Healthcare Cost Reduction: Kaiser Permanente

Kaiser Permanente utilizes a comprehensive approach to financial analytics, integrating predictive analytics, data visualization, and advanced statistical models to scrutinize patient care data, treatment outcomes, and operational costs comprehensively. This multifaceted analysis allows Kaiser to identify inefficiencies and areas where improvements can be made without compromising the quality of patient care. For instance, by employing predictive analytics, Kaiser can forecast patient admissions and manage staffing levels more efficiently, reducing unnecessary labor costs.

Data visualization tools are beneficial for conveying intricate data insights throughout an organization, enabling informed decision-making based on data. These technologies have enabled Kaiser Permanente to implement strategic cost-saving measures, such as optimizing supply chain logistics for medical supplies and reducing readmission rates through better patient care programs. The result is a dual achievement: maintaining high standards of patient care while significantly reducing operational costs, demonstrating the power of financial analytics in balancing cost efficiency with quality healthcare delivery.

5. Enhancing Customer Loyalty through Analytics: American Express

American Express’s strategy for enhancing customer loyalty involves a sophisticated analytics infrastructure that leverages big data, machine learning, and predictive analytics. The company analyzes vast datasets encompassing spending patterns, customer feedback, and engagement levels to gain deep insights into customer behavior and preferences. Machine learning models are then employed to personalize offerings and rewards, tailoring services to individual customer needs and expectations.

This personalized approach is made possible by American Express’s investment in AI and natural language processing (NLP) technologies, which enable the company to analyze unstructured data sources, such as customer feedback on social media and review platforms. The insights derived from these analyses inform targeted marketing campaigns and loyalty programs, fostering a sense of value and recognition among customers. This strategy has proven effective in strengthening customer relationships, enhancing satisfaction, and, ultimately, driving loyalty and retention in the competitive financial services market.

Related: Will AI Replace Financial Analysts?

6. Predictive Analytics in Credit Scoring: Kabbage

Kabbage’s innovative approach to credit scoring exemplifies the transformative potential of financial analytics in fintech. By leveraging machine learning algorithms and big data analytics, Kabbage analyzes a wide array of non-traditional data sources, including online sales, banking transactions, and social media activity, to assess the creditworthiness of small businesses. This data-driven approach allows Kabbage to generate more accurate and nuanced credit profiles, especially for businesses with limited credit histories or those traditionally underserved by conventional banks.

The technology stack employed by Kabbage includes advanced machine learning models that continuously learn and adapt based on new data, improving the accuracy of credit assessments over time. Furthermore, Kabbage utilizes natural language processing to analyze textual data from social media and other digital platforms, gaining insights into the business’s customer engagement and market presence. This comprehensive and inclusive approach to credit scoring has not only enabled Kabbage to expand access to credit for small businesses but has also streamlined the application and approval process, making it faster and more user-friendly.

7. Operational Efficiency through Process Analytics: Toyota

Toyota’s implementation of the Toyota Production System (TPS) is a benchmark in manufacturing excellence, deeply integrated with real-time data analysis and financial metrics to enhance operational efficiency. The TPS, known for its principles of Just-In-Time (JIT) production and continuous improvement (Kaizen), is further empowered by financial analytics to reduce waste and optimize production flow. Toyota employs advanced data analytics tools to monitor every aspect of the production process, from inventory levels to equipment efficiency, allowing for immediate adjustments that reduce downtime and material waste.

The integration of Internet of Things (IoT) technology into Toyota’s manufacturing processes allows for the collection of real-time data from machinery and equipment, enabling predictive maintenance and reducing unplanned outages. By correlating this operational data with financial performance, Toyota can directly measure the impact of process improvements on cost savings and productivity, ensuring that its manufacturing operations are not only efficient but also cost-effective. This holistic approach to operational excellence through data analytics has kept Toyota at the forefront of the automotive industry.

Related: Role of Data Analytics in FinTech?

8. Real Estate Investment Analysis: Zillow

Zillow leverages a sophisticated combination of financial analytics, machine learning, and big data to revolutionize real estate investment analysis. The platform’s Zestimate feature employs statistical and machine learning models to analyze millions of property listings, sales data, and regional market trends, providing an accurate estimate of a home’s market value. This technology enables investors and homebuyers to identify potential investment opportunities and assess property values with a high degree of accuracy.

Beyond Zestimate, Zillow uses geospatial analysis and predictive modeling to understand local real estate trends, demographic shifts, and economic indicators that could affect property values. This comprehensive analytical approach allows Zillow to offer a suite of tools and insights that empower users to make informed decisions in the real estate market. For investors, this means the ability to quickly identify undervalued properties, predict future market movements, and optimize investment portfolios according to changing market conditions.

9. Strategic Planning for a Tech Giant: Google

Google’s strategic planning and decision-making processes are deeply rooted in financial analytics, leveraging the company’s vast data resources and AI capabilities. Google uses predictive modeling and scenario analysis to forecast market trends, consumer behavior, and technological advancements. This enables the tech giant to identify emerging business opportunities, assess the viability of new products, and allocate resources effectively.

Google’s investment in cloud computing and AI technologies, such as TensorFlow for machine learning and BigQuery for data analytics, exemplifies its commitment to harnessing data for strategic advantage. These tools allow Google to process and analyze large datasets quickly, deriving insights that inform its innovation strategies and support data-driven decisions. By continuously analyzing financial metrics in conjunction with market data, Google can navigate market uncertainties, capitalize on new opportunities, and sustain its leadership in the tech industry.

Related: How to Become a Financial Analyst?

10. Enhancing Supply Chain Resilience: Procter & Gamble (P&G)

P&G’s approach to enhancing supply chain resilience is a prime example of financial analytics applied to operational challenges. The company utilizes digital twin technology, which creates a virtual model of the supply chain, enabling P&G to simulate various scenarios and predict the impact of disruptions. This predictive capability, combined with real-time analytics, allows P&G to anticipate supply chain vulnerabilities, optimize inventory management, and maintain product availability even in the face of unforeseen challenges.

P&G’s use of predictive analytics extends to demand forecasting, where machine learning models analyze sales data, market trends, and consumer behavior to predict future product demand accurately. This foresight enables the company to adjust production and distribution plans proactively, minimizing the risk of stockouts or excess inventory. The integration of these technologies into P&G’s supply chain strategy not only improves operational efficiency but also enhances the company’s ability to respond agilely to market changes, ensuring a competitive advantage in the fast-moving consumer goods industry.

These financial analytics case studies demonstrate the transformative power of financial analytics across diverse sectors, highlighting how the strategic integration of technologies such as artificial intelligence, machine learning, predictive analytics, and data visualization enables organizations to unearth valuable insights, streamline operations, and fulfill strategic objectives. As the domain of financial analytics advances, the adoption of these sophisticated technologies becomes imperative for businesses intent on navigating the intricacies of today’s financial landscape. This evolution not only fuels innovation but also secures a competitive advantage, ensuring that companies remain agile and forward-thinking in an era of unprecedented change.

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Liquidity Ratios: Can We Pay Our Bills?

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Introduction: Ratio analysis is a powerful tool in financial analysis, providing insights into a company's performance. This guide will explore the applicati

Finance Health

Ratio Analysis

Invest Decision

Real Life Case

Invest Strategy

Business Metric

Finance Data

Exploring Ratio Analysis Through Real-Life Case Studies

Dec 4, 2023 5:54 AM - Parth Sanghvi

Image credit: Austin Distel

Introduction:.

Ratio analysis is a powerful tool in financial analysis, providing insights into a company's performance. This guide will explore the application of ratio analysis through diverse case studies, showcasing its significance and practical implications in decision-making.

Understanding Ratio Analysis:

Ratio analysis involves the examination of various financial ratios to evaluate a company's financial health, performance, and operational efficiency. Key ratios include liquidity, profitability, solvency, and efficiency ratios.

Importance of Case Studies in Ratio Analysis:

Real-life case studies offer practical demonstrations of how ratio analysis influences decision-making and provides actionable insights for investors, analysts, and businesses.

Case Study Examples:

Liquidity Ratio Impact on Small Business:

• Analyzing the current ratio and quick ratio of a small business to assess its ability to meet short-term obligations during a cash crunch.

Profitability Ratios in Tech Companies:

• Comparing net profit margin and ROE among tech giants to identify profitability leaders in the industry.

Solvency Ratio Impact in the Retail Sector:

• Analyzing debt-to-equity ratios in the retail sector during economic downturns to evaluate resilience and risk management strategies.

Efficiency Ratios and Manufacturing Operations:

• Assessing inventory turnover ratios and receivables turnover ratios in manufacturing firms to streamline operational efficiency.

Valuation Ratios in Investment Decisions:

• Using P/E ratios and P/B ratios to make informed investment decisions in different sectors based on market sentiment.

Lessons Learned from Case Studies:

Holistic Evaluation: How combining multiple ratios provides a comprehensive view of a company's performance.

Industry Benchmarking: The significance of benchmarking ratios against industry averages for accurate comparative analysis.

Impact on Decision-making: How ratio analysis influences investment, strategic, and operational decisions.

Leveraging Insights from Ratio Analysis:

Continuous Monitoring: Regularly reviewing ratios to detect trends and identify areas needing improvement.

Predictive Analysis: Using historical data from ratios to forecast future performance and trends.

Conclusion:

Ratio analysis case studies provide actionable insights and practical applications for businesses and investors. Learning from these real-life examples empowers stakeholders to make informed decisions based on a thorough understanding of financial ratios.

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• Financial statements: Balance, income, cash flow, and equity

Financial Statement Analysis: How It’s Done, by Statement Type

Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications.

What Is Financial Statement Analysis?

Financial statement analysis is the process of analyzing a company’s financial statements for decision-making purposes. External stakeholders use it to understand the overall health of an organization and to evaluate financial performance and business value. Internal constituents use it as a monitoring tool for managing the finances.

Key Takeaways

• Financial statement analysis is used by internal and external stakeholders to evaluate business performance and value.
• Financial accounting calls for all companies to create a balance sheet, income statement, and cash flow statement, which form the basis for financial statement analysis.
• Horizontal, vertical, and ratio analysis are three techniques that analysts use when analyzing financial statements.

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How to Analyze Financial Statements

The financial statements of a company record important financial data on every aspect of a business’s activities. As such, they can be evaluated on the basis of past, current, and projected performance.

In general, financial statements are centered around generally accepted accounting principles (GAAP) in the United States. These principles require a company to create and maintain three main financial statements: the balance sheet, the income statement, and the cash flow statement. Public companies have stricter standards for financial statement reporting. Public companies must follow GAAP, which requires accrual accounting. Private companies have greater flexibility in their financial statement preparation and have the option to use either accrual or cash accounting.

Several techniques are commonly used as part of financial statement analysis. Three of the most important techniques are horizontal analysis , vertical analysis , and ratio analysis . Horizontal analysis compares data horizontally, by analyzing values of line items across two or more years. Vertical analysis looks at the vertical effects that line items have on other parts of the business and the business’s proportions. Ratio analysis uses important ratio metrics to calculate statistical relationships.

Types of Financial Statements

Companies use the balance sheet, income statement, and cash flow statement to manage the operations of their business and to provide transparency to their stakeholders. All three statements are interconnected and create different views of a company’s activities and performance.

Balance Sheet

The balance sheet is a report of a company’s financial worth in terms of book value. It is broken into three parts to include a company’s assets ,  liabilities , and  shareholder equity . Short-term assets such as cash and accounts receivable can tell a lot about a company’s operational efficiency; liabilities include the company’s expense arrangements and the debt capital it is paying off; and shareholder equity includes details on equity capital investments and retained earnings from periodic net income. The balance sheet must balance assets and liabilities to equal shareholder equity. This figure is considered a company’s book value and serves as an important performance metric that increases or decreases with the financial activities of a company.

Income Statement

The income statement breaks down the revenue that a company earns against the expenses involved in its business to provide a bottom line, meaning the net profit or loss. The income statement is broken into three parts that help to analyze business efficiency at three different points. It begins with revenue and the direct costs associated with revenue to identify gross profit . It then moves to operating profit , which subtracts indirect expenses like marketing costs, general costs, and depreciation. Finally, after deducting interest and taxes, the net income is reached.

Basic analysis of the income statement usually involves the calculation of gross profit margin, operating profit margin, and net profit margin, which each divide profit by revenue. Profit margin helps to show where company costs are low or high at different points of the operations.

Cash Flow Statement

The cash flow statement provides an overview of the company’s cash flows from operating activities, investing activities, and financing activities. Net income is carried over to the cash flow statement, where it is included as the top line item for operating activities. Like its title, investing activities include cash flows involved with firm-wide investments. The financing activities section includes cash flow from both debt and equity financing. The bottom line shows how much cash a company has available.

Free Cash Flow and Other Valuation Statements

Companies and analysts also use free cash flow statements and other valuation statements to analyze the value of a company . Free cash flow statements arrive at a net present value by discounting the free cash flow that a company is estimated to generate over time. Private companies may keep a valuation statement as they progress toward potentially going public.

Financial Performance

Financial statements are maintained by companies daily and used internally for business management. In general, both internal and external stakeholders use the same corporate finance methodologies for maintaining business activities and evaluating overall financial performance .

When doing comprehensive financial statement analysis, analysts typically use multiple years of data to facilitate horizontal analysis. Each financial statement is also analyzed with vertical analysis to understand how different categories of the statement are influencing results. Finally, ratio analysis can be used to isolate some performance metrics in each statement and bring together data points across statements collectively.

Below is a breakdown of some of the most common ratio metrics:

• Balance sheet : This includes asset turnover, quick ratio, receivables turnover, days to sales, debt to assets, and debt to equity.
• Income statement : This includes gross profit margin, operating profit margin, net profit margin, tax ratio efficiency, and interest coverage.
• Cash flow : This includes cash and earnings before interest, taxes, depreciation, and amortization (EBITDA) . These metrics may be shown on a per-share basis.
• Comprehensive : This includes return on assets (ROA) and return on equity (ROE) , along with DuPont analysis .

What are the advantages of financial statement analysis?

The main point of financial statement analysis is to evaluate a company’s performance or value through a company’s balance sheet, income statement, or statement of cash flows. By using a number of techniques, such as horizontal, vertical, or ratio analysis, investors may develop a more nuanced picture of a company’s financial profile.

What are the different types of financial statement analysis?

Most often, analysts will use three main techniques for analyzing a company’s financial statements.

First, horizontal analysis involves comparing historical data. Usually, the purpose of horizontal analysis is to detect growth trends across different time periods.

Second, vertical analysis compares items on a financial statement in relation to each other. For instance, an expense item could be expressed as a percentage of company sales.

Finally, ratio analysis, a central part of fundamental equity analysis, compares line-item data. Price-to-earnings (P/E) ratios, earnings per share, or dividend yield are examples of ratio analysis.

What is an example of financial statement analysis?

An analyst may first look at a number of ratios on a company’s income statement to determine how efficiently it generates profits and shareholder value. For instance, gross profit margin will show the difference between revenues and the cost of goods sold. If the company has a higher gross profit margin than its competitors, this may indicate a positive sign for the company. At the same time, the analyst may observe that the gross profit margin has been increasing over nine fiscal periods, applying a horizontal analysis to the company’s operating trends.

Congressional Research Service. “ Cash Versus Accrual Basis of Accounting: An Introduction ,” Page 3 (Page 7 of PDF).

Internal Revenue Service. “ Publication 538 (01/2022), Accounting Periods and Methods: Methods You Can Use. ”

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How to Write a Case Study Analysis

Step-By-Step Instructions

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When writing a business case study analysis , you must first have a good understanding of the case study . Before you begin the steps below, read the business case carefully, taking notes all the while. It may be necessary to read the case several times to get all of the details and fully grasp the issues facing the group, company, or industry.

As you are reading, do your best to identify key issues, key players, and the most pertinent facts. After you are comfortable with the information, use the following step-by-step instructions (geared toward a single-company analysis) to write your report. To write about an industry, just adapt the steps listed here to discuss the segment as a whole.

Step 1: Investigate the Company’s History and Growth

A company’s past can greatly affect the present and future state of the organization. To begin, investigate the company’s founding, critical incidents, structure, and growth. Create a timeline of events, issues, and achievements. This timeline will come in handy for the next step. 

Step 2: Identify Strengths and Weaknesses

Using the information you gathered in step one, continue by examining and making a list of the value creation functions of the company. For example, the company may be weak in product development but strong in marketing. Make a list of problems that have occurred and note the effects they have had on the company. You should also list areas where the company has excelled. Note the effects of these incidents as well.

You're essentially conducting a partial SWOT analysis to get a better understanding of the company's strengths and weaknesses. A SWOT analysis involves documenting things like internal strengths (S) and weaknesses (W) and external opportunities (O) and threats (T). 

Step 3: Examine the External Environment

The third step involves identifying opportunities and threats within the company’s external environment. This is where the second part of the SWOT analysis (the O and the T) comes into play. Special items to note include competition within the industry, bargaining powers, and the threat of substitute products. Some examples of opportunities include expansion into new markets or new technology. Some examples of threats include increasing competition and higher interest rates.

Step 4: Analyze Your Findings

Using the information in steps 2 and 3, create an evaluation for this portion of your case study analysis. Compare the strengths and weaknesses within the company to the external threats and opportunities. Determine if the company is in a strong competitive position, and decide if it can continue at its current pace successfully.

Step 5: Identify Corporate-Level Strategy

To identify a company’s corporate-level strategy, identify and evaluate the company’s mission , goals, and actions toward those goals. Analyze the company’s line of business and its subsidiaries and acquisitions. You also want to debate the pros and cons of the company strategy to determine whether or not a change might benefit the company in the short or long term.​

Step 6: Identify Business-Level Strategy

Thus far, your case study analysis has identified the company’s corporate-level strategy. To perform a complete analysis, you will need to identify the company’s business-level strategy. (Note: If it is a single business, without multiple companies under one umbrella, and not an industry-wide review, the corporate strategy and the business-level strategy are the same.) For this part, you should identify and analyze each company’s competitive strategy, marketing strategy, costs, and general focus.

Step 7: Analyze Implementations

This portion requires that you identify and analyze the structure and control systems that the company is using to implement its business strategies. Evaluate organizational change, levels of hierarchy, employee rewards, conflicts, and other issues that are important to the company you are analyzing.

Step 8: Make Recommendations

The final part of your case study analysis should include your recommendations for the company. Every recommendation you make should be based on and supported by the context of your analysis. Never share hunches or make a baseless recommendation.

You also want to make sure that your suggested solutions are actually realistic. If the solutions cannot be implemented due to some sort of restraint, they are not realistic enough to make the final cut.

Finally, consider some of the alternative solutions that you considered and rejected. Write down the reasons why these solutions were rejected. 

Step 9: Review

Look over your analysis when you have finished writing. Critique your work to make sure every step has been covered. Look for grammatical errors , poor sentence structure, or other things that can be improved. It should be clear, accurate, and professional.

Business Case Study Analysis Tips

Keep these strategic tips in mind:

• Know the case study ​backward and forward before you begin your case study analysis.
• Give yourself enough time to write the case study analysis. You don't want to rush through it.
• Be honest in your evaluations. Don't let personal issues and opinions cloud your judgment.
• Be analytical, not descriptive.
• Proofread your work, and even let a test reader give it a once-over for dropped words or typos that you no longer can see.
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Writing a Financial Case Study: Effective Guide

Table of Contents

Writing a great financial case study can be challenging, but not impossible. A financial case study is essential tool for any business looking to showcase its success stories to potential customers. A well-written case study provides insights into the company’s financial performance, strategies, and key achievements. If you’re wondering how to write a financial case study , you’re in the right place. In this article, we’ll take a closer look at a financial case study, tips for writing one, and samples to inspire your writing.

What is a Financial Case Study?

A financial case study is an in-depth analysis of a company’s financial performance, outlining its key achievements, challenges, and strategies . It’s typically written in a narrative form and used to showcase the company’s success stories to potential customers, investors, and stakeholders.  A financial case study can cover various aspects of a company’s finances. Including revenue growth, profit margins, cost management, cash flow, investment decisions, and financial risks.

How to Write a Financial Case Study

Now that we’ve covered some useful tips for writing a financial case study let’s take a look at the steps involved in writing one:

Choose your subject

The first step in writing a financial case study is choosing your subject. Make sure your subject is relevant to your objective and your target audience. This could be a particular product or service, market segment, or financial achievement.

Collect your data

Once you’ve chosen your subject, collect all the relevant financial data. This could include financial statements, sales reports, customer feedback, or any other relevant data to your objective.

Analyze your data

Once you have all your data, analyze it to identify key insights and trends. Look for patterns in revenue growth, profit margins, cost management, and any other relevant financial metrics to your objective.

Structure your case study

Once you have your key insights, structure your case study into a narrative form. Use a storytelling approach to make your case study more engaging and memorable. Start with an introduction that provides context and background information. Then, outline the key achievements and challenges, and conclude with a summary of the key insights and lessons learned.

Add visuals

While your case study will primarily be focused on financial data, adding visuals can help make it more appealing and easier to understand. This could include graphs, charts, tables, or infographics illustrating key insights and trends.

Edit and revise

Once you’ve completed your first draft, edit and modify your case study to ensure it’s clear, concise, and engaging. Ensure your writing style is appropriate for your target audience, and check for any errors or inconsistencies.

Useful Tips for Writing a Financial Case Study

Writing a compelling financial case study requires analytical and storytelling skills. These insightful tips can help you write a persuasive case study:

Define your objective

Before you start writing your case study, define your objective. What is your aim with this case study? Do you want to showcase your company’s financial success, highlight a specific product or service, or demonstrate your industry expertise? Defining your objective will help you focus on the most relevant information and structure your case study accordingly.

Identify your audience

Who are you writing this case study for? Is it for potential customers, investors, or stakeholders? Understanding your audience’s needs and interests will assist you in tailoring your writing style and pinpointing the most relevant financial metrics.

Use a storytelling approach

While a financial case study is primarily focused on numbers, using a storytelling approach can help make your case study more engaging and memorable. Use real-life examples, quotes from key stakeholders, and anecdotes to illustrate your points.

Focus on the key metrics

While including every financial metric available is tempting, focus on the most important ones that demonstrate your company’s success. This could consist of revenue growth, profit margins, customer retention, or any other financial metric relevant to your objective.

Be transparent

While you want to showcase your company’s success, don’t avoid discussing any challenges or mistakes. Being transparent about your company’s financial journey can help establish credibility with potential customers and investors.

Financial Case Study Samples

To help inspire your writing, here are some sample financial case studies from various industries:

Objective : To showcase XYZ’s financial growth and success in the electric car market. Audience : Investors, financial analysts, and industry experts. Approach : XYZ’s financial case study focuses on the company’s ability to disrupt the automotive industry and generate sustainable revenue growth. The case study highlights the company’s innovative business model, product design, and marketing strategies. It also showcases the company’s financial performance, including revenue growth, profit margins, and market share. Visuals : Graphs and charts illustrating XYZ’s revenue growth, market share, and financial performance over the years.

Objective: To demonstrate ABC’s financial strength and success in the retail industry. Audience : Investors, financial analysts, and business leaders. Approach : ABC’s financial case study focuses on the company’s ability to deliver consistent financial performance and generate significant shareholder value. The case study highlights the company’s low-cost business model, operational efficiency, and customer-centric approach. It also showcases the company’s financial performance, including an increase in earnings, profit margins, and return on investment. Visuals : Tables and graphs that illustrate ABC’s financial performance over the years, including revenue, profit, and shareholder returns.

Objective : To showcase ZYX’s financial success and impact on the travel industry. Audience : Investors, financial analysts, and industry experts. Approach : ZYX’s financial case study focuses on the company’s ability to disrupt the hospitality industry and generate sustainable revenue growth. The case study highlights the company’s innovative business model, customer-centric approach, and marketing strategies. It also showcases the company’s financial performance, including revenue growth, profit margins, and market share. Visuals : Infographics and charts that illustrate ZYX’s impact on the travel industry, including the number of listings, bookings, and revenue generated.

Writing a great financial case study requires analytical and storytelling skills. By defining your objective, and identifying your audience, you can create a practical case study that showcases your company’s financial success. Remember to collect and analyze your data, structure your case study into a narrative form, and revise your writing to ensure it is engaging. This guide on how to write a financial case study will enable you create a case study that helps you achieve your business objectives.

Abir Ghenaiet

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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Financial Case Study Analysis

In the fast-paced world of finance, through the labyrinth of data can be akin to finding a needle in a haystack. However, with the right tools and methodologies, you can extract invaluable insights that drive strategic decision-making and foster business growth.

By diving into a financial case study analysis, you'll uncover not just numbers on a page but a narrative that reveals the true heartbeat of a company. Understanding this narrative can be the key to a treasure trove of opportunities and mitigating potential risks.

Key Takeaways

• Evaluate financial health for informed decisions.
• Identify areas for improvement and performance enhancement.
• Compare metrics with industry peers for benchmarking.
• Analyze trends, risks, and make data-driven strategic decisions.

Importance of Financial Analysis

Why is financial analysis essential for making informed business decisions?

Financial analysis plays a critical role in providing a thorough understanding of a company's financial health. Through financial health assessment, businesses can evaluate their current financial standing, identify areas of improvement, and make strategic decisions to enhance overall performance.

By conducting performance benchmarking, companies can compare their financial metrics with industry peers or competitors to gain insights into their relative position and identify areas where they may need to catch up or where they excel.

Profitability analysis is another key aspect of financial analysis that helps businesses assess the efficiency of their operations and identify opportunities to increase profitability. By analyzing various financial ratios and metrics, organizations can pinpoint areas where they can cut costs, optimize resources, or explore new investment opportunities to drive growth and enhance their financial performance.

Identifying Key Financial Indicators

To effectively assess a company's financial health and performance, it's fundamental to identify key financial indicators that provide valuable insights into its operational efficiency and profitability. Key ratios play an essential role in this assessment, offering a snapshot of various aspects of a company's financial status.

Here are four key financial indicators to contemplate when evaluating a company's financial health:

• Profit Margin : This ratio indicates the company's profitability by showing how much profit it generates for each dollar of revenue.
• Return on Investment (ROI) : ROI measures the return on an investment relative to its cost, providing insight into the efficiency of capital deployment.
• Debt-to-Equity Ratio : This ratio reveals the proportion of debt and equity a company is using to finance its assets, indicating its financial leverage.
• Current Ratio : The current ratio assesses the company's ability to cover its short-term liabilities with its short-term assets, reflecting its liquidity position.

Analyzing Financial Trends

When analyzing financial trends, you'll focus on:

• Revenue growth analysis
• Expense trend evaluation

These two vital points provide essential insights into the financial health and performance of a company. By examining these trends, you can identify patterns, make informed decisions, and drive strategic actions.

Revenue Growth Analysis

Analyzing revenue growth trends provides valuable insights into the financial performance and potential future success of a company. When examining revenue growth, consider the following:

• Revenue Forecasting: Utilize historical data and market trends to predict future revenue streams accurately.
• Competitive Analysis: Compare your revenue growth to industry competitors to evaluate your market position.
• Market Segmentation: Identify which market segments are driving revenue growth for targeted strategies.
• Pricing Strategy: Assess the impact of pricing changes on revenue growth and adjust strategies accordingly.

Expense Trend Evaluation

In evaluating financial trends, closely monitor and analyze expense trends to guarantee the company's operational efficiency and cost management practices. By examining expense reduction strategies and utilizing trend forecasting techniques, you can pinpoint areas where costs can be optimized.

Analyzing expense trends over time allows you to pinpoint any spikes or dips, enabling you to take proactive measures to maintain financial stability. Look for patterns in expenses and compare them to revenue trends to safeguard a balanced financial strategy.

Implementing effective cost control measures based on these analyses can lead to improved profitability and sustainability for the organization. Keep a keen eye on expense trends as they can provide valuable information for strategic decision-making and long-term financial health.

Evaluating Potential Risks

To assess the potential risks associated with the financial case study, identify and prioritize key risk factors that may impact the analysis. When evaluating potential risks in the financial case study, consider the following:

• Risk Assessment : Begin by conducting a thorough risk assessment to identify all potential threats to the financial analysis process. This includes market risks, regulatory risks, and operational risks that could impact the outcomes.
• Mitigation Strategies : Once risks are identified, develop effective mitigation strategies to address each risk factor. This may involve diversifying investments, implementing hedging strategies, or establishing contingency plans to minimize potential negative impacts.
• Financial Health Evaluation : Evaluate the overall financial health of the organization under study to understand its resilience to different risk scenarios. This will help in determining the level of risk tolerance and the ability to withstand financial shocks.
• Scenario Planning : Engage in scenario planning to simulate different risk scenarios and assess their potential impact on the financial analysis. By considering various outcomes, you can better prepare for uncertainties and make informed decisions.

Uncovering Insights for Decision Making

Explore the data to unearth key insights important for informed decision-making in the financial case study analysis. By delving into financial metrics and adopting an analytical approach, you can extract valuable decision insights with significant financial implications. Through a meticulous examination of the data points and trends, you can identify patterns, outliers, and correlations that provide a deeper understanding of the financial landscape under scrutiny.

Analyzing financial metrics such as revenue growth, profit margins, return on investment, and cash flow patterns can offer vital insights into the financial health and performance of the entity in question. These insights can guide decision-making processes, helping you make informed choices based on concrete data rather than intuition or speculation.

Strategic Guidance Through Analysis

When analyzing financial case studies, strategic planning tips serve as important pillars for decision-making processes.

By leveraging data-driven insights, you can navigate complexities and uncertainties with more clarity.

Strategic guidance through analysis empowers you to make informed choices that align with your long-term objectives.

Strategic Planning Tips

Utilize a structured approach to strategic planning by integrating key performance indicators with market trends analysis. When making strategic decisions and financial forecasts, consider the following tips:

• Set Clear Goals: Define specific and measurable objectives aligned with the overall business strategy.
• Evaluate Competitor Strategies: Analyze competitors' moves to anticipate market shifts and stay ahead.
• Regularly Review KPIs: Monitor key performance indicators to track progress towards goals and adapt strategies accordingly.
• Stay Agile: Be prepared to adjust plans swiftly in response to changing market conditions or unforeseen challenges.

Data-Driven Decision Making

To better align your strategic planning efforts with data-driven decision making, integrate key performance indicators with thorough market analysis for enhanced strategic guidance. Data analysis plays an important role in informing your decision-making process by providing valuable insights into market trends, customer behavior, and financial performance.

By utilizing data-driven approaches, you can identify opportunities for growth, pinpoint areas for improvement, and make informed decisions that are backed by evidence. Effective decision making hinges on the ability to interpret and leverage data effectively.

Incorporating data analysis into your strategic planning allows you to stay agile, responsive to market changes, and proactive in addressing challenges. Embracing a data-driven mindset empowers you to navigate complexities with confidence and make strategic choices that drive success.

Driving Business Success

Implementing a strategic approach to operations is imperative for driving business success in today's competitive market environment. To achieve this, consider the following key strategies:

• Efficiency Enhancement : Streamlining processes and workflows can lead to performance improvement and cost reduction. Implementing automation and optimizing resource allocation can help maximize output while minimizing expenses.
• Market Analysis : Conduct thorough market research to identify opportunities for growth and profit maximization. Understanding consumer needs and competitor strategies can provide insights for developing effective business plans.
• Customer Relationship Management : Building strong relationships with customers can enhance loyalty and drive repeat business. Implementing customer feedback mechanisms and personalized services can lead to increased customer satisfaction and retention.
• Employee Development : Investing in employee training and development can boost productivity and morale. Engaged and skilled employees are more likely to contribute positively to the company's overall success.

Practical Tips for Evaluation

To evaluate the effectiveness of the key strategies discussed in driving business success, practical tips for evaluation can provide valuable insights into the overall performance and impact of these initiatives.

Evaluation techniques play an important role in understanding the outcomes of implemented strategies. Conducting case studies can aid in appraising real-world applications of these strategies, offering practical insights into their success or areas needing improvement.

Utilizing financial metrics such as return on investment (ROI), profitability ratios, and cash flow analysis can provide a quantitative understanding of the impact on the financial health of the business. Decision support tools can assist in making informed choices based on performance analysis.

Benchmarking strategies against industry standards can offer a comparative perspective to gauge the effectiveness of the implemented strategies. By applying these practical evaluation methods, you can gain a thorough understanding of the success and areas of development within your business strategies.

Conducting Thorough Analysis

Conducting a thorough analysis involves delving deep into the data to extract meaningful insights that can drive informed decision-making and strategic planning within your business. To make sure your analysis is exhaustive and effective, consider the following steps:

• Utilize Industry Benchmarks : Compare your financial data against industry standards to identify areas of strength and weakness. This benchmarking process can provide valuable context for evaluating your company's performance.
• Perform Competitor Analysis : Analyze your competitors' financial statements and key performance metrics to understand how your business stacks up against industry rivals. This insight can help you identify opportunities for improvement and areas where you excel.
• Identify Key Financial Ratios : Calculate and analyze important financial ratios such as profitability ratios, liquidity ratios, and leverage ratios. These ratios can offer valuable insights into your business's financial health and performance.
• Consider Trend Analysis : Examine historical financial data to identify trends and patterns that can help you forecast future performance and make more informed decisions. Trend analysis can provide valuable insights into your business's trajectory and potential areas for growth.

As you navigate the financial landscape, remember that analysis is your compass, guiding you through the complexities of numbers and trends.

Just like a skilled chef tasting a dish to adjust the seasoning, your financial analysis allows you to fine-tune your decisions for success.

Trust in the power of data to steer you towards your goals and guarantee your financial journey is as smooth as a well-balanced recipe.

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Home » Case Study – Methods, Examples and Guide

Case Study – Methods, Examples and Guide

Table of Contents

A case study is a research method that involves an in-depth examination and analysis of a particular phenomenon or case, such as an individual, organization, community, event, or situation.

It is a qualitative research approach that aims to provide a detailed and comprehensive understanding of the case being studied. Case studies typically involve multiple sources of data, including interviews, observations, documents, and artifacts, which are analyzed using various techniques, such as content analysis, thematic analysis, and grounded theory. The findings of a case study are often used to develop theories, inform policy or practice, or generate new research questions.

Types of Case Study

Types and Methods of Case Study are as follows:

Single-Case Study

A single-case study is an in-depth analysis of a single case. This type of case study is useful when the researcher wants to understand a specific phenomenon in detail.

For Example , A researcher might conduct a single-case study on a particular individual to understand their experiences with a particular health condition or a specific organization to explore their management practices. The researcher collects data from multiple sources, such as interviews, observations, and documents, and uses various techniques to analyze the data, such as content analysis or thematic analysis. The findings of a single-case study are often used to generate new research questions, develop theories, or inform policy or practice.

Multiple-Case Study

A multiple-case study involves the analysis of several cases that are similar in nature. This type of case study is useful when the researcher wants to identify similarities and differences between the cases.

For Example, a researcher might conduct a multiple-case study on several companies to explore the factors that contribute to their success or failure. The researcher collects data from each case, compares and contrasts the findings, and uses various techniques to analyze the data, such as comparative analysis or pattern-matching. The findings of a multiple-case study can be used to develop theories, inform policy or practice, or generate new research questions.

Exploratory Case Study

An exploratory case study is used to explore a new or understudied phenomenon. This type of case study is useful when the researcher wants to generate hypotheses or theories about the phenomenon.

For Example, a researcher might conduct an exploratory case study on a new technology to understand its potential impact on society. The researcher collects data from multiple sources, such as interviews, observations, and documents, and uses various techniques to analyze the data, such as grounded theory or content analysis. The findings of an exploratory case study can be used to generate new research questions, develop theories, or inform policy or practice.

Descriptive Case Study

A descriptive case study is used to describe a particular phenomenon in detail. This type of case study is useful when the researcher wants to provide a comprehensive account of the phenomenon.

For Example, a researcher might conduct a descriptive case study on a particular community to understand its social and economic characteristics. The researcher collects data from multiple sources, such as interviews, observations, and documents, and uses various techniques to analyze the data, such as content analysis or thematic analysis. The findings of a descriptive case study can be used to inform policy or practice or generate new research questions.

Instrumental Case Study

An instrumental case study is used to understand a particular phenomenon that is instrumental in achieving a particular goal. This type of case study is useful when the researcher wants to understand the role of the phenomenon in achieving the goal.

For Example, a researcher might conduct an instrumental case study on a particular policy to understand its impact on achieving a particular goal, such as reducing poverty. The researcher collects data from multiple sources, such as interviews, observations, and documents, and uses various techniques to analyze the data, such as content analysis or thematic analysis. The findings of an instrumental case study can be used to inform policy or practice or generate new research questions.

Case Study Data Collection Methods

Here are some common data collection methods for case studies:

Interviews involve asking questions to individuals who have knowledge or experience relevant to the case study. Interviews can be structured (where the same questions are asked to all participants) or unstructured (where the interviewer follows up on the responses with further questions). Interviews can be conducted in person, over the phone, or through video conferencing.

Observations

Observations involve watching and recording the behavior and activities of individuals or groups relevant to the case study. Observations can be participant (where the researcher actively participates in the activities) or non-participant (where the researcher observes from a distance). Observations can be recorded using notes, audio or video recordings, or photographs.

Documents can be used as a source of information for case studies. Documents can include reports, memos, emails, letters, and other written materials related to the case study. Documents can be collected from the case study participants or from public sources.

Surveys involve asking a set of questions to a sample of individuals relevant to the case study. Surveys can be administered in person, over the phone, through mail or email, or online. Surveys can be used to gather information on attitudes, opinions, or behaviors related to the case study.

Artifacts are physical objects relevant to the case study. Artifacts can include tools, equipment, products, or other objects that provide insights into the case study phenomenon.

How to conduct Case Study Research

Conducting a case study research involves several steps that need to be followed to ensure the quality and rigor of the study. Here are the steps to conduct case study research:

• Define the research questions: The first step in conducting a case study research is to define the research questions. The research questions should be specific, measurable, and relevant to the case study phenomenon under investigation.
• Select the case: The next step is to select the case or cases to be studied. The case should be relevant to the research questions and should provide rich and diverse data that can be used to answer the research questions.
• Collect data: Data can be collected using various methods, such as interviews, observations, documents, surveys, and artifacts. The data collection method should be selected based on the research questions and the nature of the case study phenomenon.
• Analyze the data: The data collected from the case study should be analyzed using various techniques, such as content analysis, thematic analysis, or grounded theory. The analysis should be guided by the research questions and should aim to provide insights and conclusions relevant to the research questions.
• Draw conclusions: The conclusions drawn from the case study should be based on the data analysis and should be relevant to the research questions. The conclusions should be supported by evidence and should be clearly stated.
• Validate the findings: The findings of the case study should be validated by reviewing the data and the analysis with participants or other experts in the field. This helps to ensure the validity and reliability of the findings.
• Write the report: The final step is to write the report of the case study research. The report should provide a clear description of the case study phenomenon, the research questions, the data collection methods, the data analysis, the findings, and the conclusions. The report should be written in a clear and concise manner and should follow the guidelines for academic writing.

Examples of Case Study

Here are some examples of case study research:

• The Hawthorne Studies : Conducted between 1924 and 1932, the Hawthorne Studies were a series of case studies conducted by Elton Mayo and his colleagues to examine the impact of work environment on employee productivity. The studies were conducted at the Hawthorne Works plant of the Western Electric Company in Chicago and included interviews, observations, and experiments.
• The Stanford Prison Experiment: Conducted in 1971, the Stanford Prison Experiment was a case study conducted by Philip Zimbardo to examine the psychological effects of power and authority. The study involved simulating a prison environment and assigning participants to the role of guards or prisoners. The study was controversial due to the ethical issues it raised.
• The Challenger Disaster: The Challenger Disaster was a case study conducted to examine the causes of the Space Shuttle Challenger explosion in 1986. The study included interviews, observations, and analysis of data to identify the technical, organizational, and cultural factors that contributed to the disaster.
• The Enron Scandal: The Enron Scandal was a case study conducted to examine the causes of the Enron Corporation’s bankruptcy in 2001. The study included interviews, analysis of financial data, and review of documents to identify the accounting practices, corporate culture, and ethical issues that led to the company’s downfall.
• The Fukushima Nuclear Disaster : The Fukushima Nuclear Disaster was a case study conducted to examine the causes of the nuclear accident that occurred at the Fukushima Daiichi Nuclear Power Plant in Japan in 2011. The study included interviews, analysis of data, and review of documents to identify the technical, organizational, and cultural factors that contributed to the disaster.

Application of Case Study

Case studies have a wide range of applications across various fields and industries. Here are some examples:

Business and Management

Case studies are widely used in business and management to examine real-life situations and develop problem-solving skills. Case studies can help students and professionals to develop a deep understanding of business concepts, theories, and best practices.

Case studies are used in healthcare to examine patient care, treatment options, and outcomes. Case studies can help healthcare professionals to develop critical thinking skills, diagnose complex medical conditions, and develop effective treatment plans.

Case studies are used in education to examine teaching and learning practices. Case studies can help educators to develop effective teaching strategies, evaluate student progress, and identify areas for improvement.

Social Sciences

Case studies are widely used in social sciences to examine human behavior, social phenomena, and cultural practices. Case studies can help researchers to develop theories, test hypotheses, and gain insights into complex social issues.

Law and Ethics

Case studies are used in law and ethics to examine legal and ethical dilemmas. Case studies can help lawyers, policymakers, and ethical professionals to develop critical thinking skills, analyze complex cases, and make informed decisions.

Purpose of Case Study

The purpose of a case study is to provide a detailed analysis of a specific phenomenon, issue, or problem in its real-life context. A case study is a qualitative research method that involves the in-depth exploration and analysis of a particular case, which can be an individual, group, organization, event, or community.

The primary purpose of a case study is to generate a comprehensive and nuanced understanding of the case, including its history, context, and dynamics. Case studies can help researchers to identify and examine the underlying factors, processes, and mechanisms that contribute to the case and its outcomes. This can help to develop a more accurate and detailed understanding of the case, which can inform future research, practice, or policy.

Case studies can also serve other purposes, including:

• Illustrating a theory or concept: Case studies can be used to illustrate and explain theoretical concepts and frameworks, providing concrete examples of how they can be applied in real-life situations.
• Developing hypotheses: Case studies can help to generate hypotheses about the causal relationships between different factors and outcomes, which can be tested through further research.
• Providing insight into complex issues: Case studies can provide insights into complex and multifaceted issues, which may be difficult to understand through other research methods.
• Informing practice or policy: Case studies can be used to inform practice or policy by identifying best practices, lessons learned, or areas for improvement.

Advantages of Case Study Research

There are several advantages of case study research, including:

• In-depth exploration: Case study research allows for a detailed exploration and analysis of a specific phenomenon, issue, or problem in its real-life context. This can provide a comprehensive understanding of the case and its dynamics, which may not be possible through other research methods.
• Rich data: Case study research can generate rich and detailed data, including qualitative data such as interviews, observations, and documents. This can provide a nuanced understanding of the case and its complexity.
• Holistic perspective: Case study research allows for a holistic perspective of the case, taking into account the various factors, processes, and mechanisms that contribute to the case and its outcomes. This can help to develop a more accurate and comprehensive understanding of the case.
• Theory development: Case study research can help to develop and refine theories and concepts by providing empirical evidence and concrete examples of how they can be applied in real-life situations.
• Practical application: Case study research can inform practice or policy by identifying best practices, lessons learned, or areas for improvement.
• Contextualization: Case study research takes into account the specific context in which the case is situated, which can help to understand how the case is influenced by the social, cultural, and historical factors of its environment.

Limitations of Case Study Research

There are several limitations of case study research, including:

• Limited generalizability : Case studies are typically focused on a single case or a small number of cases, which limits the generalizability of the findings. The unique characteristics of the case may not be applicable to other contexts or populations, which may limit the external validity of the research.
• Biased sampling: Case studies may rely on purposive or convenience sampling, which can introduce bias into the sample selection process. This may limit the representativeness of the sample and the generalizability of the findings.
• Subjectivity: Case studies rely on the interpretation of the researcher, which can introduce subjectivity into the analysis. The researcher’s own biases, assumptions, and perspectives may influence the findings, which may limit the objectivity of the research.
• Limited control: Case studies are typically conducted in naturalistic settings, which limits the control that the researcher has over the environment and the variables being studied. This may limit the ability to establish causal relationships between variables.
• Time-consuming: Case studies can be time-consuming to conduct, as they typically involve a detailed exploration and analysis of a specific case. This may limit the feasibility of conducting multiple case studies or conducting case studies in a timely manner.
• Resource-intensive: Case studies may require significant resources, including time, funding, and expertise. This may limit the ability of researchers to conduct case studies in resource-constrained settings.

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer

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How to Analyse a Case Study

Last Updated: April 13, 2024 Fact Checked

This article was co-authored by Sarah Evans . Sarah Evans is a Public Relations & Social Media Expert based in Las Vegas, Nevada. With over 14 years of industry experience, Sarah is the Founder & CEO of Sevans PR. Her team offers strategic communications services to help clients across industries including tech, finance, medical, real estate, law, and startups. The agency is renowned for its development of the "reputation+" methodology, a data-driven and AI-powered approach designed to elevate brand credibility, trust, awareness, and authority in a competitive marketplace. Sarah’s thought leadership has led to regular appearances on The Doctors TV show, CBS Las Vegas Now, and as an Adobe influencer. She is a respected contributor at Entrepreneur magazine, Hackernoon, Grit Daily, and KLAS Las Vegas. Sarah has been featured in PR Daily and PR Newswire and is a member of the Forbes Agency Council. She received her B.A. in Communications and Public Relations from Millikin University. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 411,385 times.

Case studies are used in many professional education programs, primarily in business school, to present real-world situations to students and to assess their ability to parse out the important aspects of a given dilemma. In general, a case study should include, in order: background on the business environment, description of the given business, identification of a key problem or issue, steps taken to address the issue, your assessment of that response, and suggestions for better business strategy. The steps below will guide you through the process of analyzing a business case study in this way.

• Describe the nature of the organization under consideration and its competitors. Provide general information about the market and customer base. Indicate any significant changes in the business environment or any new endeavors upon which the business is embarking.

• Analyze its management structure, employee base, and financial history. Describe annual revenues and profit. Provide figures on employment. Include details about private ownership, public ownership, and investment holdings. Provide a brief overview of the business's leaders and command chain.

• In all likelihood, there will be several different factors at play. Decide which is the main concern of the case study by examining what most of the data talks about, the main problems facing the business, and the conclusions at the end of the study. Examples might include expansion into a new market, response to a competitor's marketing campaign, or a changing customer base. [3] X Research source

• Draw on the information you gathered and trace a chronological progression of steps taken (or not taken). Cite data included in the case study, such as increased marketing spending, purchasing of new property, changed revenue streams, etc.

• Indicate whether or not each aspect of the response met its goal and whether the response overall was well-crafted. Use numerical benchmarks, like a desired customer share, to show whether goals were met; analyze broader issues, like employee management policies, to talk about the response as a whole. [4] X Research source

• Suggest alternative or improved measures that could have been taken by the business, using specific examples and backing up your suggestions with data and calculations.

Community Q&A

• Always read a case study several times. At first, you should read just for the basic details. On each subsequent reading, look for details about a specific topic: competitors, business strategy, management structure, financial loss. Highlight phrases and sections relating to these topics and take notes. Thanks Helpful 0 Not Helpful 0
• In the preliminary stages of analyzing a case study, no detail is insignificant. The biggest numbers can often be misleading, and the point of an analysis is often to dig deeper and find otherwise unnoticed variables that drive a situation. Thanks Helpful 0 Not Helpful 0
• If you are analyzing a case study for a consulting company interview, be sure to direct your comments towards the matters handled by the company. For example, if the company deals with marketing strategy, focus on the business's successes and failures in marketing; if you are interviewing for a financial consulting job, analyze how well the business keeps their books and their investment strategy. Thanks Helpful 0 Not Helpful 0

• Do not use impassioned or emphatic language in your analysis. Business case studies are a tool for gauging your business acumen, not your personal beliefs. When assigning blame or identifying flaws in strategy, use a detached, disinterested tone. Thanks Helpful 15 Not Helpful 4

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Expert Interview

Thanks for reading our article! If you’d like to learn more about business writing, check out our in-depth interview with Sarah Evans .

• ↑ https://www.gvsu.edu/cms4/asset/CC3BFEEB-C364-E1A1-A5390F221AC0FD2D/business_case_analysis_gg_final.pdf
• ↑ https://bizfluent.com/12741914/how-to-analyze-a-business-case-study
• ↑ http://www.business-fundas.com/2009/how-to-analyze-business-case-studies/
• ↑ https://writingcenter.uagc.edu/writing-case-study-analysis
• http://college.cengage.com/business/resources/casestudies/students/analyzing.htm

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Artificial intelligence in strategy

Can machines automate strategy development? The short answer is no. However, there are numerous aspects of strategists’ work where AI and advanced analytics tools can already bring enormous value. Yuval Atsmon is a senior partner who leads the new McKinsey Center for Strategy Innovation, which studies ways new technologies can augment the timeless principles of strategy. In this episode of the Inside the Strategy Room podcast, he explains how artificial intelligence is already transforming strategy and what’s on the horizon. This is an edited transcript of the discussion. For more conversations on the strategy issues that matter, follow the series on your preferred podcast platform .

Joanna Pachner: What does artificial intelligence mean in the context of strategy?

Yuval Atsmon: When people talk about artificial intelligence, they include everything to do with analytics, automation, and data analysis. Marvin Minsky, the pioneer of artificial intelligence research in the 1960s, talked about AI as a “suitcase word”—a term into which you can stuff whatever you want—and that still seems to be the case. We are comfortable with that because we think companies should use all the capabilities of more traditional analysis while increasing automation in strategy that can free up management or analyst time and, gradually, introducing tools that can augment human thinking.

Joanna Pachner: AI has been embraced by many business functions, but strategy seems to be largely immune to its charms. Why do you think that is?

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Yuval Atsmon: You’re right about the limited adoption. Only 7 percent of respondents to our survey about the use of AI say they use it in strategy or even financial planning, whereas in areas like marketing, supply chain, and service operations, it’s 25 or 30 percent. One reason adoption is lagging is that strategy is one of the most integrative conceptual practices. When executives think about strategy automation, many are looking too far ahead—at AI capabilities that would decide, in place of the business leader, what the right strategy is. They are missing opportunities to use AI in the building blocks of strategy that could significantly improve outcomes.

I like to use the analogy to virtual assistants. Many of us use Alexa or Siri but very few people use these tools to do more than dictate a text message or shut off the lights. We don’t feel comfortable with the technology’s ability to understand the context in more sophisticated applications. AI in strategy is similar: it’s hard for AI to know everything an executive knows, but it can help executives with certain tasks.

When executives think about strategy automation, many are looking too far ahead—at AI deciding the right strategy. They are missing opportunities to use AI in the building blocks of strategy.

Joanna Pachner: What kind of tasks can AI help strategists execute today?

Yuval Atsmon: We talk about six stages of AI development. The earliest is simple analytics, which we refer to as descriptive intelligence. Companies use dashboards for competitive analysis or to study performance in different parts of the business that are automatically updated. Some have interactive capabilities for refinement and testing.

The second level is diagnostic intelligence, which is the ability to look backward at the business and understand root causes and drivers of performance. The level after that is predictive intelligence: being able to anticipate certain scenarios or options and the value of things in the future based on momentum from the past as well as signals picked in the market. Both diagnostics and prediction are areas that AI can greatly improve today. The tools can augment executives’ analysis and become areas where you develop capabilities. For example, on diagnostic intelligence, you can organize your portfolio into segments to understand granularly where performance is coming from and do it in a much more continuous way than analysts could. You can try 20 different ways in an hour versus deploying one hundred analysts to tackle the problem.

Predictive AI is both more difficult and more risky. Executives shouldn’t fully rely on predictive AI, but it provides another systematic viewpoint in the room. Because strategic decisions have significant consequences, a key consideration is to use AI transparently in the sense of understanding why it is making a certain prediction and what extrapolations it is making from which information. You can then assess if you trust the prediction or not. You can even use AI to track the evolution of the assumptions for that prediction.

Those are the levels available today. The next three levels will take time to develop. There are some early examples of AI advising actions for executives’ consideration that would be value-creating based on the analysis. From there, you go to delegating certain decision authority to AI, with constraints and supervision. Eventually, there is the point where fully autonomous AI analyzes and decides with no human interaction.

Because strategic decisions have significant consequences, you need to understand why AI is making a certain prediction and what extrapolations it’s making from which information.

Joanna Pachner: What kind of businesses or industries could gain the greatest benefits from embracing AI at its current level of sophistication?

Yuval Atsmon: Every business probably has some opportunity to use AI more than it does today. The first thing to look at is the availability of data. Do you have performance data that can be organized in a systematic way? Companies that have deep data on their portfolios down to business line, SKU, inventory, and raw ingredients have the biggest opportunities to use machines to gain granular insights that humans could not.

Companies whose strategies rely on a few big decisions with limited data would get less from AI. Likewise, those facing a lot of volatility and vulnerability to external events would benefit less than companies with controlled and systematic portfolios, although they could deploy AI to better predict those external events and identify what they can and cannot control.

Third, the velocity of decisions matters. Most companies develop strategies every three to five years, which then become annual budgets. If you think about strategy in that way, the role of AI is relatively limited other than potentially accelerating analyses that are inputs into the strategy. However, some companies regularly revisit big decisions they made based on assumptions about the world that may have since changed, affecting the projected ROI of initiatives. Such shifts would affect how you deploy talent and executive time, how you spend money and focus sales efforts, and AI can be valuable in guiding that. The value of AI is even bigger when you can make decisions close to the time of deploying resources, because AI can signal that your previous assumptions have changed from when you made your plan.

Joanna Pachner: Can you provide any examples of companies employing AI to address specific strategic challenges?

Yuval Atsmon: Some of the most innovative users of AI, not coincidentally, are AI- and digital-native companies. Some of these companies have seen massive benefits from AI and have increased its usage in other areas of the business. One mobility player adjusts its financial planning based on pricing patterns it observes in the market. Its business has relatively high flexibility to demand but less so to supply, so the company uses AI to continuously signal back when pricing dynamics are trending in a way that would affect profitability or where demand is rising. This allows the company to quickly react to create more capacity because its profitability is highly sensitive to keeping demand and supply in equilibrium.

Joanna Pachner: Given how quickly things change today, doesn’t AI seem to be more a tactical than a strategic tool, providing time-sensitive input on isolated elements of strategy?

Yuval Atsmon: It’s interesting that you make the distinction between strategic and tactical. Of course, every decision can be broken down into smaller ones, and where AI can be affordably used in strategy today is for building blocks of the strategy. It might feel tactical, but it can make a massive difference. One of the world’s leading investment firms, for example, has started to use AI to scan for certain patterns rather than scanning individual companies directly. AI looks for consumer mobile usage that suggests a company’s technology is catching on quickly, giving the firm an opportunity to invest in that company before others do. That created a significant strategic edge for them, even though the tool itself may be relatively tactical.

Joanna Pachner: McKinsey has written a lot about cognitive biases  and social dynamics that can skew decision making. Can AI help with these challenges?

Yuval Atsmon: When we talk to executives about using AI in strategy development, the first reaction we get is, “Those are really big decisions; what if AI gets them wrong?” The first answer is that humans also get them wrong—a lot. [Amos] Tversky, [Daniel] Kahneman, and others have proven that some of those errors are systemic, observable, and predictable. The first thing AI can do is spot situations likely to give rise to biases. For example, imagine that AI is listening in on a strategy session where the CEO proposes something and everyone says “Aye” without debate and discussion. AI could inform the room, “We might have a sunflower bias here,” which could trigger more conversation and remind the CEO that it’s in their own interest to encourage some devil’s advocacy.

We also often see confirmation bias, where people focus their analysis on proving the wisdom of what they already want to do, as opposed to looking for a fact-based reality. Just having AI perform a default analysis that doesn’t aim to satisfy the boss is useful, and the team can then try to understand why that is different than the management hypothesis, triggering a much richer debate.

In terms of social dynamics, agency problems can create conflicts of interest. Every business unit [BU] leader thinks that their BU should get the most resources and will deliver the most value, or at least they feel they should advocate for their business. AI provides a neutral way based on systematic data to manage those debates. It’s also useful for executives with decision authority, since we all know that short-term pressures and the need to make the quarterly and annual numbers lead people to make different decisions on the 31st of December than they do on January 1st or October 1st. Like the story of Ulysses and the sirens, you can use AI to remind you that you wanted something different three months earlier. The CEO still decides; AI can just provide that extra nudge.

Joanna Pachner: It’s like you have Spock next to you, who is dispassionate and purely analytical.

Yuval Atsmon: That is not a bad analogy—for Star Trek fans anyway.

Joanna Pachner: Do you have a favorite application of AI in strategy?

Yuval Atsmon: I have worked a lot on resource allocation, and one of the challenges, which we call the hockey stick phenomenon, is that executives are always overly optimistic about what will happen. They know that resource allocation will inevitably be defined by what you believe about the future, not necessarily by past performance. AI can provide an objective prediction of performance starting from a default momentum case: based on everything that happened in the past and some indicators about the future, what is the forecast of performance if we do nothing? This is before we say, “But I will hire these people and develop this new product and improve my marketing”— things that every executive thinks will help them overdeliver relative to the past. The neutral momentum case, which AI can calculate in a cold, Spock-like manner, can change the dynamics of the resource allocation discussion. It’s a form of predictive intelligence accessible today and while it’s not meant to be definitive, it provides a basis for better decisions.

Joanna Pachner: Do you see access to technology talent as one of the obstacles to the adoption of AI in strategy, especially at large companies?

Yuval Atsmon: I would make a distinction. If you mean machine-learning and data science talent or software engineers who build the digital tools, they are definitely not easy to get. However, companies can increasingly use platforms that provide access to AI tools and require less from individual companies. Also, this domain of strategy is exciting—it’s cutting-edge, so it’s probably easier to get technology talent for that than it might be for manufacturing work.

The bigger challenge, ironically, is finding strategists or people with business expertise to contribute to the effort. You will not solve strategy problems with AI without the involvement of people who understand the customer experience and what you are trying to achieve. Those who know best, like senior executives, don’t have time to be product managers for the AI team. An even bigger constraint is that, in some cases, you are asking people to get involved in an initiative that may make their jobs less important. There could be plenty of opportunities for incorpo­rating AI into existing jobs, but it’s something companies need to reflect on. The best approach may be to create a digital factory where a different team tests and builds AI applications, with oversight from senior stakeholders.

The big challenge is finding strategists to contribute to the AI effort. You are asking people to get involved in an initiative that may make their jobs less important.

Joanna Pachner: Do you think this worry about job security and the potential that AI will automate strategy is realistic?

Yuval Atsmon: The question of whether AI will replace human judgment and put humanity out of its job is a big one that I would leave for other experts.

The pertinent question is shorter-term automation. Because of its complexity, strategy would be one of the later domains to be affected by automation, but we are seeing it in many other domains. However, the trend for more than two hundred years has been that automation creates new jobs, although ones requiring different skills. That doesn’t take away the fear some people have of a machine exposing their mistakes or doing their job better than they do it.

Joanna Pachner: We recently published an article about strategic courage in an age of volatility  that talked about three types of edge business leaders need to develop. One of them is an edge in insights. Do you think AI has a role to play in furnishing a proprietary insight edge?

Yuval Atsmon: One of the challenges most strategists face is the overwhelming complexity of the world we operate in—the number of unknowns, the information overload. At one level, it may seem that AI will provide another layer of complexity. In reality, it can be a sharp knife that cuts through some of the clutter. The question to ask is, Can AI simplify my life by giving me sharper, more timely insights more easily?

Joanna Pachner: You have been working in strategy for a long time. What sparked your interest in exploring this intersection of strategy and new technology?

Yuval Atsmon: I have always been intrigued by things at the boundaries of what seems possible. Science fiction writer Arthur C. Clarke’s second law is that to discover the limits of the possible, you have to venture a little past them into the impossible, and I find that particularly alluring in this arena.

AI in strategy is in very nascent stages but could be very consequential for companies and for the profession. For a top executive, strategic decisions are the biggest way to influence the business, other than maybe building the top team, and it is amazing how little technology is leveraged in that process today. It’s conceivable that competitive advantage will increasingly rest in having executives who know how to apply AI well. In some domains, like investment, that is already happening, and the difference in returns can be staggering. I find helping companies be part of that evolution very exciting.

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Money blog: 'Extremely worrying' mortgage trend revealed in new report; a third of people make this mistake when booking their holiday - and how to avoid it

A third of travellers are making the same mistake when going on holiday, figures show. Read about this and all the latest consumer and personal finance news in the Money blog - and leave a comment or your money problem in the box below.

Thursday 16 May 2024 20:00, UK

• 'Extremely worrying' mortgage trend revealed by new government data
• Almost a third of travellers make this insurance mistake - here's what you need to know
• How much the price of packed lunches has soared - and the cheapest supermarkets to buy a healthy one
• Major firms release financial updates
• UK economy in safe hands 'whoever wins' election, top bank chief tells Sky News

Essential reads

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• Best of the Money blog - an archive

Ask a question or make a comment

Landlords selling properties "represent the single biggest threat to renters", according to the UK's landlord association.

Government data shows 5,790 households were threatened with homelessness between October to December last year due to receiving a notice to end an assured shorthold tenancy (this ends a person's tenancy).

And the National Residential Landlords Association (NRLA) has said 45% have been left needing help because their landlord planned to sell the property in the second half of 2023.

Separately, data from Rightmove found that 50,000 rental properties were needed to bring the supply of rental homes back to pre-pandemic levels.

Ben Beadle, chief executive of the NRLA, said the only answer was to "ensure responsible landlords have the confidence to stay in the market and sustain tenancies".

He said it was "vital" the Renters Reform Bill, which is currently being debated in the House of Lords, "worked for landlords as well as tenants".

"Landlords selling up is the single biggest challenge renters face," Mr Beadle said.

Around 16% of high net worth shoppers have cut spending on luxury goods, research shows - with Burberry among the companies seemingly taking a hit.

Data from wealth management firm Saltus , which surveyed 2,000 Britons who had assets of more than £250,000, found 16.29% of respondents had cut down on their personal spending in response to the current high interest rate environment and/or the impact of the rising cost of living.

And 15.78%, said they had cut down on luxury items and designer clothes. 

Meanwhile, just 9.42% of respondents said the current environment had not impacted their lifestyle.

The figures follow data this week from designer store Burberry - which reported a 34% drop in annual operating profit.

Mike Stimpson, partner at Saltus, said high net worth individuals were having to "prioritise spending on essential costs including mortgages and supporting their families". 

"While this reduction is not limited entirely to personal spending on luxury items, it is inevitable that brands like Burberry feel the impact, although different businesses will clearly respond differently to these pressures," he said.

The Department for Work and Pensions (DWP) is hiring 2,500 "external agents" to crackdown on "benefit cheats".

The extra staff will check millions of Universal Credit claims for accuracy as part of the government's new fraud plan.

Combined with the DWP's own internal agents tackling fraud, this will take the headcount to nearly 6,000 people.

In addition to this, the DWP is introducing a new civil penalty to punish fraudsters, and investing £70m into advanced data analytics to catch those who "exploit the natural compassion and generosity of the British people".

Work and pensions secretary Mel Stride, said: "We are scaling up the fight against those stealing from the taxpayer, building on our success in stopping £18bn going into the wrong hands in 2022-23.

"With new legal powers, better data and thousands of additional staff, our comprehensive plan ensures we have the necessary tools to tackle the scourge of benefit fraud."

With the new 15 hours a week free childcare funding coming into effect this week for children aged between 9-23 months, research shows grandparents still play a key role in helping with costs.

In April, all two-year-olds from eligible working families became entitled to 15 hours free childcare each week. 

And as of this week, eligible working parents of children aged between 9-23 months are also able to apply to claim the same from September.

The government plans to increase this to 30 hours a week from September 2025.

However, grandparents still play a key role and therefore are still likely to be called upon for help from parents, according to data from the finance firm SunLife .

Data shows that half of the UK's 14 million grandparents provide childcare for their grandchildren during the working week and this rises to 55% of those with grandchildren under the age of one.

On average, the UK's grandparents spend between 22-24 hours a week providing free childcare for grandchildren under three-years-old.

So how much are grandparents saving their families and what if they were paid?

Research suggests grandparents are saving parents around £250 a week in childcare costs on average - this means that collectively, grandparents are saving their families £96bn in equivalent childcare costs every year. 

SunLife's grandparent salary calculator, which uses the average pay for the many roles grandparents are taking to calculate what their "grandparent salary" would be, has also found that if grandparents were paid for the 22 hours a week they would receive an annual salary of £13,188.

Victoria Heath, chief marketing officer at SunLife, said it was   "no wonder" one in five grandparents felt their children would struggle financially without their help.

She said research showed that 13% of grandparents felt they were relied on too much for childcare, and 14% loved doing it but felt it was too much at their age.

"Having said that, most (59%) grandparents who do provide childcare say they love helping out, so it is likely they will still play a key role, because whether they are still 'needed' or not, they are certainly still wanted, and most are more than happy to do it," Ms Heath added.

How can you apply for the 15 hours free childcare?

To apply for the funding you'll need the following: 

• National Insurance number;
• Unique Taxpayer Reference (UTR), if you're self-employed;
• the UK birth certificate reference number of any children you're applying for;
• the date you started or are due to start work.

Then, you'll need to go onto the gov.uk website and start an application.

It usually takes 20 minutes to apply and once your application has been approved, you'll get a code for free childcare to give to your childcare provider.

Mortgage possession actions have continued to rise and are currently above the previous year's levels, according to data from the Ministry of Justice .

The latest data shows mortgage claims, orders, warrants and repossessions have continued their gradual upward trend and claims are at their highest since 2019.

When compared to the same quarter in 2023, mortgage possession claims increased from 4,035 to 5,182 - this is a rise of 28%.

Meanwhile, mortgage orders increased from 2,532 to 3,019, warrants from 2,636 to 2,881 and repossessions by county court bailiffs from 729 to 759.

Landlord possession claims also increased from 23,389 to 24,874 when compared to the same quarter last year.

Craig Fish, director at Lodestone mortgages and protection, told Newspage things "need to change and quickly before it's too late".

"Though this data makes hard reading and is extremely worrying, it's not unexpected due to the significantly higher interest rate environment in which borrowers now find themselves," he said.

And Ben Perks, managing director at Orchard Financial Advisers, said he was "concerned these figures will continue to rise". 

He told Newspage: "The Bank of England seems totally oblivious to the plight of the average mortgage borrower, but hopefully this data will kick their hesitancy to drop the base rate firmly into touch. The time to act is now."

Tesco has recalled its sandwich pickle over fears it may contain glass.

The supermarket has pulled its 295g jars of Tesco Sandwich Pickle with the batch code 3254 and best before date of 11 September 2025 due to the concerns of glass traces.

The Food Standards Agency has said on its website: "This product may contain pieces of glass which makes it unsafe to eat."

Last year, the supermarket chain had to recall pastry products, including sausage rolls and steak and ale pies, over fears they contained pieces of metal and plastic.

A Tesco spokesperson told Sky News: "We've been made aware that a specific date/batch code of Tesco Sandwich Pickle may contain small pieces of glass. Therefore, this product could pose a safety risk if consumed.

"Please do not consume this product and instead return any affected product to store where a full refund will be given. No receipt is required.

"Tesco apologises to our customers for any inconvenience caused."

By Ed Clowes, news reporter

The FTSE 100 has remained stable out of the gate this morning after hitting a record high on Wednesday as better-than-expected inflation data in the US raised hopes of an interest rate cut in September.

It's been a busy start to the day with financial updates from BT Group, Premier Foods, Sage Group, and easyJet.

We'll start with easyJet, after the airline announced that its chief executive officer, Johan Lundgren, would step down in January 2025.

Mr Lundgren, who has served as CEO since 2017, will be replaced by the carrier's finance boss Kenton Jarvis.

In a financial update on its performance throughout the first half of the year, easyJet reported slightly higher revenues than anticipated, while cutting its losses compared to the same period last year.

The airline's share price fell by 6% in early trading this morning.

Elsewhere, telecoms giant BT said it had completed a £3bn cost-cutting programme ahead of schedule, and announced a further £3bn in planned savings by 2029.

The company told Sky News that the planned reductions in spending would not lead to more job losses, after BT announced last year that it would eliminate 55,000 roles.

Incoming boss Allison Kirkby said she wanted the business to prioritise the UK, with some analysts expecting BT to look at the futures of its Italian, Irish, and American divisions.

And last but not least, one of Europe's largest sellers of Rolex watches has said that sales in the UK are still down because some tourists don't want to buy here "due to the lack of VAT free shopping".

Nice for some.

The price of a healthy packed lunch has soared by around 45%, according to new research.

A lunch of wholemeal bread and fruit is more expensive for parents to put together than less nutritious versions with chocolate spread and crisps, The Food Foundation charity has found.

Unhealthy lunches for the research were made up of white bread with chocolate spread instead of wholemeal with cheese, flavoured yoghurt rather than a plain, unsweetened version and snacks such as crisps as opposed to the four portions of fruit and vegetables incorporated into the healthy lunch.

And when it came to the cheapest supermarket to buy a healthy packed lunch, Tesco topped the list with a weekly cost of £8.56 as of this month.

Morrisons was the most expensive retailer, with the price of a healthy packed lunch per week coming in at £11.72, although this was down slightly from £11.80 in October.

The equivalent cost at Sainsbury's was £10.47, Aldi was £10.08 and Asda was £9.18.

Research also showed the largest price rise in recent months was at Sainsbury's, where customers have to spend 9% more than they did at the start of the academic year in September (£9.61) for the same packed lunch.

Shona Goudie, policy and advocacy manager at The Food Foundation, said, the government's stringent eligibility criteria to qualify for free school meals was "leaving hundreds of thousands of children" who are living in poverty "at risk of malnutrition".

"No one should be priced out of being able to provide healthy food for their children and retailers need to do more to support families to afford the food they need," she said.

By Bhvishya Patel , Money team

We spoke to three buskers to find out what it's like performing on the street in the UK.

Amir, 29, came to UK from Pakistan with passion for music

Amir Hashmi moved to the UK in 2022 to study, said he began busking in central London 10 months ago because "music was his passion".

"In Pakistan there are many problems so I decided to leave and move to London. I feel I can do better in London than my country," he said.

He said busking was now his primary income but at times he did jobs at warehouses to get by.

"I never started this for money, I started because it is my passion but now this is my main job as well," he said.

Amir, who often performs in the capital's Piccadilly Circus or along Oxford Street, said often he returned home with just £10-15 in his pocket after a day's busking.

He said: "Many times I sleep without food and sometimes I sleep on the floor of the road when I have no shelter.

"I don't have my own place to live but I have friends who often let me stay with them. They don't charge me any rent - they look after me.

"Sometimes I do private shows for income but it's very hard because the cost of living is increasing. If I go somewhere then most of the time I prefer to walk. I walk with my speakers and carry my gear."

Despite his financial struggles, Amir said he wanted to continue performing on the street as his "goal was to make people happy".

He said: "With busking, there is no stage and you can just start performing. Whenever I am performing, I connect with the people who have come to listen. If I feel people are not enjoying it, I change the song and try and make them happy."

Earlier this year, Amir recorded a song with Neha Nazneen Shakil, a Malayalam actress from India, who approached the singer three months ago in Oxford Street.

"I wrote that song 12 years ago and after all these years my song has been recorded now in London," he added.

Jade, 24, quit retail to busk

Jade Thornton, from Amersham, started busking in 2017 with a friend after leaving college at the age of 17 and quickly realised it was something she enjoyed doing and could make a living from.

She began doing it full-time at the end of 2018 but when the pandemic hit she described becoming "unemployed overnight" and having to take up retail jobs to support herself.

"I chose not to go to university - I just thought it wasn't for me so I went straight into some part-time retail jobs," she said.

"I take my cap off to anyone who does retail - it is one of the most gruelling jobs. People who do retail don't get nearly as much respect as they deserve. 

"Some of the customers I was facing were not that kind and I thought this is making me miserable, so I just thought 'if I don't leave now then when?'"

As the global economy slowly began to recover, she decided to leave retail and pursue music full-time in 2022.

"It is hard to switch off - I do busking but I am constantly messaging clients, writing set lists and learning songs," she said.

When it came to finances, Jade said there was no average to how much she could earn but it could fluctuate from £15-100 day-to-day depending on a number of factors.

"It relies on the time of month, whether the sun is out, if people have been paid, if Christmas is on the way or if Christmas has just passed," she explained.

The musician said she did struggle initially when she began busking but her parents were always supportive.

She said: "You obviously get a few questions from people asking 'are you sure you want to quit your job and sing on the street?'

"I lived at home for a long time and I'm grateful my parents could support me in that way because I know not everyone has that opportunity."

While performing outdoors is now Jade's full-time job, she said some months were more difficult to make money than others.

"If I'm being brutally honest in months like January and February it would be super difficult. This year I had enough gigs in December to cover me for January," she said.

"Last year from June-July and December I did not have to go busking because I got so many gigs through busking. I'm part of a lot of online agencies and I also do lots of pub gigs, weddings, birthdays and other events."

Jade noted though that the cost of living crisis had made things harder.

She said: "A few pub gigs I've had have been cancelled because they've had to rethink their strategies but if somebody cancels then I can just go out busking. There has been a slight dent when it comes to finances but that's from COVID as well - with COVID I was unemployed overnight."

The young musician went on to say she was "very grateful" when somebody did tip her and even small gestures like sitting, listening or just a smile were "currencies in themselves".

"It's escapism for me as a singer and then it's escapism for the audience as well," she added.

"Children also have such a great time listening to buskers and some may not have an opportunity for many reasons to go and see live music so if they can come across it in the street and that can spark something that's a wonderful thing to think I'm a little part of that."

Charlotte, 34, long-time busker

Charlotte Campbell, 34, who usually busks along the Southbank or in the London Underground, said she started busking during the 2012 London Olympics and while "busking used to be enough", more recently she has had to take on more gigs in the evening.

"A typical day is usually busking until around 6pm and then a gig in the evening - 8pm onwards," she said.

"I could still probably make a living from busking but I've taken on more paid gigs since the pandemic because everything became so uncertain. I think that uncertainty has just carried through now - that seems to be the way of life now."

The musician said tips for her CDs, which she puts on display during her performances, ranged between £5-10 and in the current cashless climate a card reader was "essential".

She said she pre-sets her card reader to £3 when playing on the Southbank and £2 when busking inside the London Underground "because people are rushing".

While she described her earnings as a "trade secret", she said the busker income had "definitely gone down" but this was due to a few factors - the pandemic, people carrying less cash and the cost of living crisis.

"Also, a lots of pitches have closed which means there are a lot more buskers trying to compete for one spot so all of those things have impacted my living as a busker," she said.

"I would say even though my income is primarily from busking I have had to subsidise it with more paid gigs than before. I just haven't felt as secure in my living from busking in the last couple of years.

"Most of the gigs I have are booked by people who have seen me busking so indirectly busking is my entire career- if I don't busk I wouldn't get the gigs I play in the evening. So directly and indirectly busking is my entire income."

In spite of uncertainty, she said it was freeing to be able to go out and perform for people in an intimate way.

"You are not up on a stage and there is no separation between you and them.  It's a really great connection you can make - I want to be able to hold onto that," she added.

Every Thursday  Savings Champion founder Anna Bowes  gives us an insight into the savings market and how to make the most of your money. Today she's focusing on children's accounts...

While the rates on adult savings accounts have risen and fallen over the course of 2024, the top rates on accounts for children have remained stable - but are pretty competitive once again, as other account rates have started to fall. 

And there are plenty of different types of savings accounts to choose from, from the tax free Junior ISA, to children's regular savings accounts, fixed term bonds and easy access accounts.

Those who are able to start saving for their children early, could significantly improve their financial health in the future – especially when taking compounding interest into consideration.

If you were to save £50 a month from birth, you could give them a gift of more than £17,250 at age 18, assuming a tax-free interest rate of 4.95% - which is currently the top Junior ISA rate available.

If you, your friends and family were able to gift a total of £9,000 a year to a child (the current Junior ISA allowance), at the same rate, you could give them almost £265,000 when they reach 18. 

Now that's a gift worth having!

Children have their own personal allowance, so for the majority there will be no tax to pay on their savings interest. 

However, parents should be aware that there may be a tax liability to themselves on the interest earned on any money they gift to their children, until they reach the age of 18. 

If the gross interest earned is less than £100 for each parent's gift, it will be treated as the child’s under a 'de minimis' rule. 

This means that provided the interest earned does not make the child a taxpayer, they will be able to offset this against their personal tax allowance, so it will often be free of tax. 

But if the interest is more than £100 for each parent's gift, then it will be treated as that parent’s interest for tax purposes and therefore they may need to pay tax at their marginal rate - if it takes them above their Personal Allowance and/or Personal Savings Allowance.

Gifts from any other family members or friends will not be viewed in the same way. Instead, any interest earned will be treated as belonging to the child themselves and therefore can be earned tax free if they are non-taxpayers.

The exception to this rule is on funds deposited into a JISA, Child Trust Fund or NS&I Premium Bonds.  The returns from these are tax free for all.

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