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1. Read all instructions on the Template for detailed advice and tips. 2. Never type in a red area unless otherwise noted. Save frequent backup copies of this Template in case you do this by mistake. 3. If you have a problem viewing any of your text on a long sentence, select the problem cell and use the text wrap feature. It can be found under the home tab on Excel 2007. You may have to click wrap text twice (just a bug in Excel). 4. To get your matrices and charts into Excel or Power Point, highlight them and then copy and paste special into Word or Power Point. If you dont use paste special then it will not work properly. 5. Paste special will give you several options, be sure to use the MS Excel Worksheet Object Option. You must also check paste or paste link 6. The advantages of using the paste link option are as you change the data in Excel it will change in your Word or Power Point file provide both are open. This is a nice feature as if you decide to change some data, you dont have to paste special everything back over into Power Point or Word. 7. The advantage of just using paste option is your file is not linked to Excel. If something where to happen with Excel or MS Office wants to be temperamental on the day of your presentation, and you had checked the paste link option, then your data will not show on Word or Power Point. 8. You may also use a program called Jing, found at http://www.techsmith.com/jing.html to copy the matrices and save as jpeg files for later entry into Power Point. The program is free.
S Excel Worksheet
e the data in Excel it will This is a nice feature as al everything back over
INSTRUCTIONS FOR EXTERNAL AUDIT <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1. To perform an External Audit, enter ten opportunities and ten threats. For purposes of this Template, it is vital you have ten of each, no more, no less.
2.
After entering ten opportunities and ten threats, enter the weight you want to assign to each factor. Be sure to check the bottom of the "Enter Weight Below" column, to make sure your entire column sums is equal to 1.00
3.
After entering in the weights, then enter in a corresponding rating in the "Enter Rating Below" column. The coding scheme is provided below. 1 = "company's response to the external factor is poor" 2 = "company's response to the external factor is average" 3 = "company's response to the external factor is above average"
Acquisitions Asset Leverage Emerging Markets Product / Service Expansion Historically Low Rates
7. 8. 9. 10.
Instructions for Competitive Profile Matrix (CPM) <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1.
To perform the CPM, enter in twelve critical success factors. You may use some of the ones listed below if you like but try to use ones that are more pertinent to your company. For example, if your case is Delta Airlines, having a) on time arrival b) extra fees c) frequent flyer points, etc may be better choices than the canned ones below. For purposes of this Template, it is vital you have twelve factors no more, no less. After entering in twelve critical success factors, enter in the weight you want to assign each one. Be sure to check the bottom of the "Enter Weight Below" column, to make sure your sum weight is equal to 1.00 After entering in your weights, type the name of your company and two other competitors in the corresponding boxes. After entering in the weights and identifying your company and two rival firms, then enter in a corresponding rating in the "Enter Rating Below" column for each organization. DO NOT ASSIGN THE COMPANIES THE SAME RATING, TAKE A STAND, MAKE A CHOICE. The coding scheme is provided below.
2.
3.
4.
CPM Matrix
Advertising Market Penetration Customer Service Store Locations R&D Employee Dedication Financial Profit Customer Loyalty Market Share Product Quality Top Management Price Competitiveness
INSTRUCTIONS FOR INTERNAL AUDIT <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1. To perform an Internal Audit, enter in ten strengths and ten weaknesses For purposes of this Template, it is vital you have ten of each, no more, no less. After entering in ten strengths and ten weaknesses scroll down the page and enter in the weight you want to assign each one. Be sure to check the bottom of the "Enter Weight Below" column, to make sure your sum weight is equal to 1.00 After entering in the weights, then enter in a corresponding rating in the "Enter Rating Below" column. The coding scheme is provided below. Reminder weaknesses must be 1 or 2 and strengths must be 3 or 4 1 = "major weaknesses" 2 = "minor weaknesses" 3 = "minor strength" 4 = "major strength"
2.
3.
Enter Ten Strengths Below 1. 2. Among the worlds most 50 respected companies in Barrons 2010 3. Ranked #1 Green bank in Newsweek, 2009 4. Asset Leverage 5. Market Share Leadership 6. Unique Products 7. Reputation Management 8. 9. 10.
1. Weak Asset Quality 2. Limited International Presence 3. Low Debit Card Market Hold 4. 5. 6. 7.
8. 9. 10.
INSTRUCTIONS FOR COMPANY WORTH <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1. To perform the company worth, enter in corresponding financial information you are prompted for in the boxes to the right and press enter. Everything is calculated automatically and posted into the matrix. Hints are provided below on where to find any particular information. If you wish to enter data for a competitor or a company you plan to acquire, scroll over. If acquiring a competitor, this value would constitute a large portion of your "amount needed" in the EPS/EBIT Analysis.
2.
Stockholders' Equity - Can be found near bottom of Balance Sheet. It might be called total equity. Net Income - Can be found on the Income Statement. It might be called net earnings or net profits. Share Price - Can be found on Yahoo Finance. EPS - Can be found on Yahoo Finance. Shares Outstanding - www.money.msn.com.
INSTRUCTIONS FOR BCG and IE Matrix <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1. The Template allows for a two, three, or a four division company. (If the company has more than 4 divisions, combine the divisions with the least amount of revenue and mention the adjustment to the class during your presentation.) <You will have to read the Annual Report to find this information> It is quite okay to do a BCG/IE for BOTH geographic and by product revenues/profits. To develop BCG and IE matrices, Step 1: enter in the corresponding profits you are prompted for in the boxes (for the corresponding divisions) below. Also, change the division name to match your case (The 2 division example is for domestic and international.) Pie slices are automatically calculated and labeled. In the example profits were 500 million and 800 million. Do not put a M or B to signal million or billion. If you can not find profit information, estimate this and explain to the class during your presentation. At a bare minimum, have the appropriately sized circles (even if you do not use pie slices). However, an educated profit estimation is more prudent if divisional profits are not reported. 2. After finishing Step 1, click on the BCG hyperlink to the right (Step 2, once there click on the pie slices. Here you can adjust the size of the circles (which represent revenues). Move the "pies" into the quadrant you desire. Don't worry about the "light green warning" when adjusting the pies. After finishing Step 2, click on the IE matrix link to the right. Then perform the same tasks you performed for the BCG. Also, be sure to type in your company name in the appropriate quadrant according to your IFE and EFE scores. These may be found on the EFE-IFE tab at the bottom of your Excel Spreadsheet. Don't worry about the "light green warning" when adjusting the pies.
3.
Profits
INSTRUCTIONS FOR SPACE Matrix <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1. Use five (and only five) factors for each Financial Position (FP), Stability Position (SP), Competitive Position (CP), and Industry Position (IP). Enter the five factors you wish to use each for FP, SP, CP, and IP and the corresponding rating each factor should receive. You may use the factors provided here, but try to determine key factors related to your company and industry in the same manner you did with the CPM. The calculations are done automatically and the rating scale is provided below Next click the SPACE Link to your right. There move the box to the plot location derived from step two. These numbers will be located to the left of the SPACE Matrix on the SPACE page. After moving the box to the corresponding area, then click the arrow portion of the vector and move it so the arrow goes though the box. Don't worry about the "light green warning" when adjusting the box and vector
2.
3.
FP and IP Positive 1 (worst) to Positive 7 (best) CP and SP Negative 1 (best) to Negative 7 (worst)
Financial Position (FP) Return on Investment (ROI) Leverage Liquidity Working Capital Cash Flow Industry Position (IP) Growth Potential Financial Stability Ease of Entry into Market
Competitive Position (CP) Market Share Product Quality Customer Loyalty Technological know-how Control over Suppliers and Distributors Stability Position (SP) Rate of Inflation Technological Changes Price Elasticity of Demand Competitive Pressure Barriers to Entry into Market
INSTRUCTIONS FOR GRAND Matrix <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1. Type your company in the appropriate quadrant to the right. Click in the remaining quadrants and press the space bar to avoid Excel placing a 0 in those respective quadrants.
INSTRUCTIONS FOR QSPM Matrix <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1.
To perform a QSPM, enter two strategies in the corresponding green boxes below. These two strategies should be derived from your BCG, IE, SPACE, GRAND, and SWOT. You will need to provide a recommendations section on your own with the expected cost after performing the QSPM. These recommendations and costs lead into the "amount needed" for the EPS/EBIT Analysis. You may have multiple recommendations, including both the ones used in the QSPM. After entering in your strategies, then rate each strategy based on the strengths, weaknesses, opportunities, and threats (factors). Do not to rate each strategy the same for a particular strength, weakness, opportunity, or threat. (the exception is if you enter 0 you MUST enter 0 for the other. For example, if one strategy deserves a rating of 4 and the other factor has nothing to do with the strategy, just rate that factor a 1) 0 = Not applicable 1 = Not attractive 2 = Somewhat attractive 3 = Reasonably attractive 4 = Highly attractive Opportunities
2.
1. 2. 3. 4. 5. 6. 7. 8.
Acquisitions Asset Leverage Emerging Markets Product / Service Expansion Historically Low Rates 0 0 0
9. 10.
0 0
Threats 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 0 0 0 0 0 Competition Economic Slowdown Product Substitution Government Regulations/Changes Rising Rates/Inflation
Strengths
1. 2. 3. 4.
19th on the Fortune 500 list in 2010 Among the worlds most 50 respected companies in Barrons 2010 Ranked #1 Green bank in Newsweek, 2009 Asset Leverage
5. 6. 7. 8. 9. 10. 0 0 0
Weaknesses 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 0 0 0 0 0 0 Weak Asset Quality Limited International Presence Low Debit Card Market Hold
EPS-EBIT Chart
Scroll down
INSTRUCTIONS FOR Financial Charts <ONLY ENTER DATA IN THE LIGHT GREEN BOXES>
1. Enter the data in the cells below. You need to use the same years for your company and competitor for the charts to be compared. If your company's year end is (for example) in July 2009, and the competitors is in December 2008. It is not the end of the world, just enter the most recent data and tell the class this when you present the charts. All data should be in millions. 2. Do not use the historical percent change method blindly for determining the respective proforma year. The respective proforma year information should be estimates based on the financial numbers from your recommendations. The template only performs proforma data for your company. Scan the financial charts (click the blue link below) and select graphs that reveal the most information. It is not expected nor a wise use of time to discuss every graph.
Click Here to View Financial Graphs Warning, do not change the information below, it will make all your charts wrong! Apple Revenue Net Income Assets Liabilities Cash Goodwill + Intangibles Inventory
3.
Long Term Debt Stockholders' Equity Cost of Goods Sold Current Assets Current Liabilities Accounts Receivable
IBM Revenue Net Income Assets Liabilities Cash Goodwill + Intangibles Inventory Long Term Debt Stockholders' Equity Cost of Goods Sold Current Assets Current Liabilities Accounts Receivable
The ratios below are calculated for you automatically using the equations given (there are slightly different ways to calculate the same ratio.) You may cut and paste special this into your power point or you may use the graphs that are also generated for you automatically. If you are getting a number different from one published online for a ratio, it is likely the online version used a different equation for the ratios, rounding, a different year was used, or maybe you just entered the data wrong (typo). The answers the template generates are 100% accurate because they come straight from the data you entered off the financial statements. Just make sure you are using the same equations for your company and the competitor. For example. Debt/Equity can be calculated Total Debt/Equity or Total Liabilities/Equity. They are both correct and both called Debt/Equity but will generate quite different numbers. If you are going to compare your company to a competitor, make sure you are using the same equation for both (obviously, the Template accomplishes this for you).
Long Term Debt to Equity Inventory Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Gross Profit Margin Net Profit Margin Return on Total Assets (ROA) Return on Equity (ROE) Click Here To View Financial Ratio Graphs Current Ratio Quick Ratio Long Term Debt to Equity Inventory Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Gross Profit Margin Net Profit Margin Return on Total Assets (ROA) Return on Equity (ROE) = = = = = = = = = = =
3 3 2 3 4 EFE Matrix
2 2 2 2 2
2.00
0.05 0.10 0.10 0.07 0.20 0.10 0.01 0.02 0.05 0.10 0.10 0.10
2 3 3 3 4 4 3 3 3 3 4 4
2 2 4 3 3 3 4 4 2 2 3 1
1.00
3 3 4 4 4 3 3
IFE Matrix
1 2 1
1.00
Stockholders' Equity
Net Income
$157,554,000,000
$18,897,000,000
WT Strategies.
BCG Matrix
IE Matrix
2 Division Company
3 Division Company
Space Matrix
Ratings 5 5 6 7 7
7 6 6
6 7
Ratings -1 -2 -2 -1 -2
-3 -1 -1 -2 -2
Quadrant 2
Quadrant 3
Quadrant 4
QSPM
Strategy Two
AS Ratings
AS Ratings
4 3 4 3 2 0 0 0
2 1 2 2 1 0 0 0
0 0
0 0
AS Ratings
AS Ratings
1 1 2 2 4 0 0 0 0 0
3 2 2 4 2 0 0 0 0 0
AS Ratings
AS Ratings
4 3 3 3
1 1 1 1
3 3 3 0 0 0
2 1 2 0 0 0
AS Ratings
AS Ratings
2 1 2 0 0 0 0 0 0 2
3 3 3 0 0 0 0 0 0 0
EBIT Recession $2,000 Normal $2,001 Boom Combination Financing (decimal form) $4,000 Debt Financing Percent Amounted Needed $500 Interest Rate (decimal form) 0.05 0.80 Stock Financing Percent 0.20
0.30
500
Share Price
New Shares Outstanding DO NOT ENTER DATA IN "NEW SHARES OUTSTANDING" BOX. THIS IS DONE FOR YOU.
$65.00
508
Top Competitor IBM Historical Year 2 Historical Year 3 Proforma Year 1 1991 $1 $2 $3 $4 $5 $6 $7 1992 $1 $2 $3 $4 $5 $6 $7 1993 $1 $2 $3 $4 $5 $6 $7 Proforma Year 2 1994 $1 $2 $3 $4 $5 $6 $7 Proforma Year 3 1995 $1 $2 $3 $4 $5 $6 $7
Historical Year 2 Historical Year 3 1991 $2 $3 $4 $5 $6 $7 $8 $9 $11 $22 $33 $44 $55 1992 $2 $3 $4 $5 $6 $7 $8 $9 $11 $22 $33 $44 $55
Apple 1990 0.7 0.5 1991 0.7 0.5 1992 0.7 0.5 1993 0.7 0.5 1994 0.7 0.5 1995 0.7 0.5
Current Assets / Current Liabilities (Current Assets - Inventory) / Current Liabilities Long Term Debt / Equity Sales / Inventory Sales / Total Assets Sales / Accounts Receivable Accounts Receivable / (Sales/365) (Sales - Cost of Goods Sold) / Sales Net Income / Sales Net Income / Total Assets Net Income / Stockholders Equity
Citygroup,Ink
3 1 2 2 2 2 2 2 1 1 2 3
Stockholders' Equity
Net Income
#############
$4,188,000,000
EPS $3.59
4 Division Compa
Women 70
Children 10
1.0
Wealth 4198
Totals
1.00
3.45
2.63
1.90
Return to Start
Do not enter any data on this page. If data is missing here, recheck the "START" page.. This page is not protected so be careful.
If your text is not showing highlight it (be careful not to click), use the text wrap option under the "home" Tab on Excel 2007. You may
External Factor Evaluation Matrix (EFE) Opportunities 1. Acquisitions 2. Asset Leverage 3. Emerging Markets 4. Product / Service Expansion 5. Historically Low Rates 6. 0 7. 0 8. 0 9. 0 10. 0 Threats Competition Economic Slowdown Product Substitution Government Regulations/Changes Rising Rates/Inflation 0 0 0 0 0 TOTALS
Weight Rating Weighted Score 0.20 3 0.60 0.20 3 0.60 0.20 2 0.40 0.20 3 0.60 0.20 4 0.80 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 Weight Rating Weighted Score 0.20 2 0.40 0.20 2 0.40 0.20 2 0.40 0.20 0.20 0.00 0.00 0.00 0.00 0.00 2.00 2 2 0 0 0 0 0 0.40 0.40 0.00 0.00 0.00 0.00 0.00 5.00
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
1. 2. 3.
Internal Factor Evaluation Matrix (IFE) Strengths 19th on the Fortune 500 list in 2010 Amongtheworldsmost50respectedcompaniesinBarrons 2010 Ranked #1 Green bank in Newsweek, 2009
Weight Rating Weighted Score 0.10 3 0.30 0.10 0.10 3 4 0.30 0.40
4. Asset Leverage 5. Market Share Leadership 6. Unique Products 7. Reputation Management 8. 0 9. 0 10. 0 Weaknesses Weak Asset Quality Limited International Presence Low Debit Card Market Hold 0 0 0 0 0 0 TOTALS
4 4 3 3 0 0 0
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Weight Rating Weighted Score 0.10 1 0.10 0.10 2 0.20 0.10 1 0.10 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 1.00 2.80
r the "home" Tab on Excel 2007. You may have to click it three times. Then expand the rows with your mouse if needed.
Return to Start
Return to Start
if needed.
Method Average
Competitor Information Below
Method Average
Don't worry about the axis spacing here. This will look perfect in Word and PowerPoint.
Cash Cow
Low
-20
Cash Cow
Low
-20
Cash Cow
Low
-20
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<Don't type in the red boxes below, this sheet is not protected so
Low 0.0 Question Mark Profits 0 0 0 500 800
0 0 0
800 500
Dog
Low 0.0
Low 0.0
WholesaleBanking
20 80
70 30
10 90
11546 24140
4198 31488
Don't worry about axis spacing here. This will look perfect in Word and PowerPoint. <This sheet is not protected so be careful>
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High
3.0
IV
VI
2.0
VII
VIII
IX
Low
1.0
High
3.0
IV
VI
2.0
VII
VIII
IX
Low
1.0
High
3.0
IV
VI
2.0
VII
VIII
IX
Low
1.0
<Do Not Type In The Red Boxes Below> IF they are Blank Click The Link Below. This page is not protected, so you can really mes Move the Arrow and the box with your mouse. FP 7 6 5 4 3 2 1 CP
Conservative
Aggressive
-7
-6
-5
-4
-3
-2
-1 -1 -2 -3 -4 -5 -6 -7
Defensive
SP
Competitive
Internal Analysis: Financial Position (FP) Return on Investment (ROI) Leverage Liquidity Working Capital Cash Flow Financial Position (FP) Average
5 5 6 7 7 6.0
External Analysis: Stability Position (SP) Rate of Inflation Technological Changes Price Elasticity of Demand Competitive Pressure Barriers to Entry into Market Stability Position (SP) Average
-1
protected, so you can really mess up the info in the red boxes. This page must be left unprotected so you can move the vector and box.
Return to Start
Aggressive
IP
X-axis Y-axis
4.8 4.2
ompetitive
rket Average
-3 -1 -1 -2 -2 -1.8
Wells FargoCorporation
0 0
Quadrant IV
Return to Start
Quadrant I
Corporation
Quadrant IV
If your text is not showing highlight it (be careful not to click), use the text wrap option under the "home" Tab on Excel 20
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Opportunities Acquisitions Asset Leverage Emerging Markets Product / Service Expansion Historically Low Rates 0 0 0 0 0 Threats Competition Economic Slowdown Product Substitution Government Regulations/Changes Rising Rates/Inflation 0 0 0 0 0
Weight 0.20 0.20 0.20 0.20 0.20 0.00 0.00 0.00 0.00 0.00 Weight 0.20 0.20 0.20 0.20 0.20 0.00 0.00 0.00 0.00 0.00
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
scroll down
1.
Weight 0.10
2.
Amongtheworldsmost50respectedcompaniesinBarrons 2010 3. Ranked #1 Green bank in Newsweek, 2009 4. Asset Leverage 5. Market Share Leadership 6. Unique Products 7. Reputation Management 8. 0 9. 0 10. 0 Weaknesses Weak Asset Quality Limited International Presence Low Debit Card Market Hold 0 0 0 0 0 0
0.10 0.10 0.10 0.10 0.10 0.10 0.00 0.00 0.00 Weight 0.10 0.10 0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3 3 3 3 3 3 0 0 0 AS 2 1 2 0 0 0 0 0 0 2
0.30 0.30 0.30 0.30 0.30 0.30 0.00 0.00 0.00 TAS 0.20 0.10 0.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1 1 1 2 1 2 0 0 0 AS 3 3 3 0 0 0 0 0 0 0
0.10 0.10 0.10 0.20 0.10 0.20 0.00 0.00 0.00 TAS 0.30 0.30 0.30 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
TOTALS
7.90
6.00
der the "home" Tab on Excel 2007. You may have to click it three times. Then expand the rows with your mouse if needed.
This pag
Common Stock Financing Recession Normal $2,000 $2,001 0 0 2,000 2,001 600 600 1,400 1,401 508 508 2.76 2.76 20 Percent Stock Normal $2,001 20 1,981 594 1,387 502 2.76
Debt Financing Normal $2,001 25 1,976 593 1,383 500 2.77 80 Percent Stock Normal $2,001 5 1,996 599 1,397 506 2.76
EPS-EBIT Graph
6.00 5.00 4.00 3.00 2.00 1.00 0.00 $2,000 $2,001 $4,000 Debt Financing Common Stock Financing
1990
1991
1992 Apple
1993 IBM
1994
1995
$6 $6 $5
$30 $20 $10 $0 1990 1991 1992 Apple 1993 IBM 1994 1995
1990
1991
1992 Apple
1993 IBM
1994
1995
$30 $20 $10 $0 1990 1991 1992 Apple 1993 IBM 1994 1995
Current Ratio
0.8 0.7 0.7 0.7 0.7 0.7 0.6 0.6 1990 1991 1992 Apple 1993 IBM 1994 1995 0.6 0.5 0.4 0.3 0.2 0.1 0.0
0.0 0.1 0.0 1990 1991 1992 Apple 1993 IBM 1994 1995 0.0 0.0
-10.0 -12.0
ROE
0.3 0.3 0.2
0.2 0.2 0.1 0.1 0.0 1990 1991 1992 Apple 1993 IBM 1994 1995
Quick Ratio
0.6 0.5 0.4 0.3 0.2 0.1 0.0 1990 1991 1992 Apple 1993 IBM 1994 1995
0.0 0.0 0.0 1990 1991 1992 Apple 1993 IBM 1994 1995
ROA
0.8 0.7 0.7 0.7 0.7 0.7 0.6 0.6 1990 1991 1992 Apple 1993 IBM 1994 1995