Managerial Economics for Decision Making
CASE ANALYSIS /REPORT GUIDELINES
Case:
Fairchild, G., Rourke, B. (Feb. 2020 revision). Johnson Lumber: Bet on the Upside or Avoid the
Downside? Darden Business Publishing, University of Virginia. Retrieved from
https://library.bu.edu/business-case-studies/open
THIS IS A GROUP PROJECT. ONLY ONE PAPER IS SUBMITTED FOR THE
ENTIRE GROUP. EACH SECTION IN THE TABLE OF CONTENTS MUST IDENTIFY
ALL CONTRIBUTORS.
GUIDELINES
The report must not exceed 2,000 words. Be clear and concise. Repeating ideas
unnecessarily can result in grade reduction.
All sections must be authored. If multiple persons contributed to a section, name all
contributors.
Use of Excel is highly recommended. (Do not write out the data in sentence format. Use a
table or chart and highlight the data you want the reader to focus on.)
Do NOT use the pronoun “I”.
Formatting and style guide is APA
Ensure that all external sources are properly cited within the text and is referenced
appropriately at the end of the paper, including course materials.
Learned Concepts: The assignment requires you to analyze the decision making process
based on you learning (decision wheel, marginal analysis fixed and variable costs, economic
profit/loss..)
THE GRADING RUBRIC IS PROVIDED BELOW. Refer to the grading rubric for building
your case report. The rubric states the grading weights and performance criteria for each
aspect of the report. Make sure you understand that rubric so that you know what is expected
and how you will be graded.
All members of the group MUST put in best efforts to create an excellent paper.
Recommend that each of you make the commitment to communicate, meet deadlines, and
complete all the readings, analysis and other required contributions so that the final paper
flows well in its arguments and in the writing.
All sections of the paper must be AUTHORED. If a section has multiple authors, make sure
that all are named. Not all team members receive the same group grade. Based on
individual contribution, the grades can vary.
Make sure all your ideas drawn from your learning, readings, research and the case are fully
documented, in text and in the work cited page.
In preparing for the case analysis, use the tools of active reading, case annotation and case
outline. These activities help you think, organize, apply, and write your report.
Note
The case analysis report is not a Q&A exercise. The case questions are a guide for you to
organize your analysis. You must construct a well-organized integrated report using the APA
style guide. Additional questions/thoughts/concerns included in the analysis will demonstrate
your analytical skills and knowledge. You will be rewarded for your efforts.
Please ignore all financial data in the case, especially, the 2nd paragraph on page 2 under
the title, “Sunday March 11, 2006”. Use the data provided in the excel sheet.
You are provided an additional Excel sheet with financial data relevant for the analysis.
Case Questions:
1) Articulate the core business problem, facing management following the fire
2) Based on the discussion and individual thoughts, process each alternative for the next year in
terms of the pros and cons
3) You are provided data on costs related to alternative of using neighboring factory off time
capacity to continue manufacturing during the rebuilding time. Classify the data into fixed
and variable costs.
4) Additionally, calculate economic profit or loss of focusing entirely on rebuilding in
comparison to alternative of focusing entirely on rebuilding.
5) How should the decision maker incorporate forecast error?
6) What is your recommendation for Johnson Lumber? Why?
ADDITIONAL DATA REQUIRED FOR THE CASE ANALYSIS IS IN THE ATTACHED
EXCEL FILE.
