CASE STUDY SOLUTION
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SYNOPSIS
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In February 2007, Diego Papalia, founder and owner of Ottawa Pianos, was getting ready to meet with his
daughter, Carmen, to discuss the strategic future of the company. Five years prior, the father–daughter duo
had started separate projects within the business. Diego had launched the digital music centre (DMC) and
Carmen had started a piano school, with a plan to reassess which might be the more lucrative endeavour in
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five years’ time. The DMC sold guitars, amplifiers, drum kits, and various other electronic musical
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OBJECTIVES
• illustrate the concept of strategic thinking and its usefulness in organizations;
• identify the different strategic analysis criteria used by each protagonist;
• communicate the importance of organizational alignment as a foundation of strategic thinking; and
• demonstrate self-awareness of the impact of previous experiences on current perspectives.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
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1. Define strategic thinking.
2. Would you describe Diego as a strategic thinker? Explain your reasoning and describe some of his
strengths and weaknesses.
3. Would you define Carmen as a strategic thinker? Explain your reasoning and describe some of her
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strengths and weaknesses.
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4. Examine the pros and cons of the DMC and piano school. Which strategy aligns more closely with the
business? Which of the two projects should Diego pursue? Explain your rationale.
5. What role do past experiences play in current perspectives?
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6. How can someone become a more strategic thinker in their day-to-day life?
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,ANALYSIS
Background
One of the protagonists, Diego, is a cisgender male Italian immigrant without any formal business
education. Students might interpret this lack of education as a weakness; however, there is nothing in the
case to suggest that to be true. Diego’s reliance on successful past experiences is a cognitive bias known as
confirmation bias.
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1. Define strategic thinking.
Moon defined strategic thinking as “a way of solving strategic problems that combines a rational and
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convergent approach with a creative and divergent thought process to find alternative ways of competing
and providing customer value.”2 Students should demonstrate an understanding of strategic thinking as a
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method for achieving both short-term and long-term goals and objectives in an organization. For many
organizations, these goals and objectives may be increased market share or profit. Nevertheless, many
organizations, especially social enterprises, may have other strategic goals or objectives they are trying to
achieve (e.g., zero carbon footprint or reducing poverty). This last point plays an important role in
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understanding the decision point of this case.
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There are four components to strategic thinking: systematic, creative, vision-driven, and market-oriented
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• Market-oriented thinking is considered the foundation of strategic thinking and is defined by how well an
organization gathers information about its target client (i.e., market) and produces a product that satisfies
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clients’ needs and desires. As a result, market-oriented thinking is key to finding a competitive advantage.
• Systematic thinking occurs when the underlying systems that operate within an organization are viewed
holistically rather than individually. Moreover, these underlying systems are what shape norms and
drive behaviour within an organization.
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5. What role do past experiences play in current perspectives?
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Confirmation bias takes place when people seek out information that only confirms their beliefs or values,
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which is problematic because it limits their ability to gather new information and, therefore, their ability to
think strategically.
The case demonstrates that Diego struggled with confirmation bias, which was why he focused on the
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DMC. Throughout his life, Diego had pivoted from one area to another—selling organs, for example—due
to the market volatility he faced (e.g., Baldwin closed its doors and organ sales began to decline). As a
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result, Diego demonstrated confirmation bias by focusing on the next best thing, rather than recognizing
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The Case Solution Starts From page 5