Why should you begin a case analysis with a financial analysis? When are other approaches appropriate?

What will be an ideal response?

Starting with a financial analysis of a case is a good way to assess the seriousness of the situation. Since one of the key objectives of any business corporation is to earn a profit, a lot can be learned by considering how it is doing financially. If the firm is doing badly financially, the student will need to consider short term problems ("How does it avoid bankruptcy?" as well as long term problems ("How can it position itself in the market to take advantage of its strengths?". If the firm is doing well financially, the student has free reign to take a long range viewpoint and consider how a good firm can do better. Nevertheless, the best place to begin a case is to assess the firm's current performance. This may be quickly done by using financial data usually given in the case from annual reports. If not available, a logical starting point is whatever problems are given in the case. This would be especially appropriate when the case under consideration focuses on only one aspect of a corporation's functioning, such as conflict between a board of directors and top management. The basic rule of thumb for beginning a case analysis is to look for problem areas - wherever they may be.