Mcom 320: Step 1 (P): Identify the Problem Skip to main content

Mcom 320: Step 1 (P): Identify the Problem

🎯 Objectives, Values, and Learning Outcomes

This learning module should take you about 1 hour to complete.
By the end of this lesson you will meet the

Lesson Objectives

  • Apply a recommendation business communication strategy
  • Use a decision matrix to quantify qualitative decision criteria
  • Craft executive summaries

Identifying Business Problems

The first step in the Harvard PACADI business case framework is identifying the business Problem.

What’s the key challenge the business is facing?

Your job is to clearly define the core issue at the heart of the case. Not just surface-level stuff, but the deeper business problem that needs solving.

Ask the following questions:

  • What decision does the company or manager need to make?
  • What are the stakes if they get it wrong?
  • Is this about profit, growth, competition, customers, or internal struggles?
  • Could the case problem actually be an opportunity?

Framing the problem as a question that needs answering helps you stay focused when you move to the next steps.

Example: “How should Company X respond to the new competitor to maintain market share?”

1. Read Case Background


This step usually introduces the main character (the decision-maker) and hints at a critical decision they need to make.

Pay attention to who is facing the issue. What are they being pressured to do?

2. Skim the entire case to get the big picture


Don’t get bogged down in early details. First, get a feel for the context:

What’s the industry?

What’s the company’s situation?

What are any immediate threats or opportunities?

3. Ask What Decision Needs to Be Made


The heart of most business problems is a decision.

Examples:

  • Should the company launch a new product?
  • Enter a new market?
  • Respond to a competitor?

4. Look for Symptoms and Root Causes


Symptoms = what’s going wrong (e.g., sales are down)

Root problem = why it’s going wrong (e.g., poor market fit)

Don’t mistake a symptom for the real issue.

5. Identify Constraints and Goals


What limits the decision (budget, timing, staffing)?

What is the company trying to achieve (growth, profitability, efficiency)?

6. Reframe the Problem as a Clear Question


“What should [Decision-maker] do about [specific issue], given [key constraints]?”


Example: Sourdough & Co.

Located in Provo, Utah, Sourdough & Co. is a small, artisan bakery known for its handcrafted sourdough loaves made from a century-old starter. Owned by Jacob, a BYU alum, the bakery has built a loyal local following, especially among health-conscious and foodie customers.

Now, Jacob faces a dilemma: a regional grocery chain is about to start carrying a line of “artisan-style” sourdough bread at a lower price point, directly targeting the same market. Jacob must decide how to respond before the new product launches next month.

1. Read Case Background

Decision-maker: Jacob (the bakery owner)

2. Skim the Entire Case to Get the Big Picture

Industry: Specialty food / Artisan baking

Company’s Situation: Well-established locally, strong word-of-mouth, but no major advertising or retail presence.

Threat/Opportunity: A bigger competitor is entering the artisan sourdough space in the same geographic area, posing a threat but also creating awareness around sourdough in general.

3. Ask What Decision Needs to Be Made

  • Should Jacob invest in a marketing push to reinforce the brand’s artisan quality?
  • Should he introduce a lower-priced product line to compete?
  • Or, should he double down on exclusivity and local partnerships to differentiate?

4. Look for Symptoms and Root Causes

Symptom: Jacob worries that foot traffic and repeat business may drop after the chain’s product becomes widely available.

Root Cause: Customers may perceive less of a difference between the truly artisan bread and the chain’s “artisan-style” branding if Sourdough & Co. doesn’t reinforce its unique value.

5. Identify Constraints and Goals

Constraints:

  • Limited marketing budget
  • Small-scale baking capacity (can’t mass produce)
  • Brand based on authenticity, not mass appeal

Goals:

  • Protect market share and customer loyalty
  • Maintain premium brand image
  • Possibly grow without compromising values

6. Reframe the Problem as a Clear Question

“How should Jacob position Sourdough & Co. to protect its brand and customer base in response to a regional grocery chain launching competing sourdough products?”