TABLE OF CONTENTS

I. CASE PROFILE A.Time Frame of the case B.Industry (overview and brief history) C.Company (overview, size of the company, and brief history) D.Issues (identify the key strategic management issues in the case)

II. SITUATIONAL ANALYSIS A.EXTERNAL ENVIRONMENT Globalization (interdependence among industrialized countries, needs of developing countries, lower barriers for money, information, and technology flow) Economic (inflation, interest rates, GDP, trade and budget deficits, savings rates)

Technological (products, processes, and materials)

Demographic (populations size, age structure, geographic distribution, ethnic mix, and distribution of income)

Sociocultural (attitudes, culture) Political/Legal/Regulatory (anti-trust, taxation, regulation , labor laws)

B. INDUSTRY ANALYSIS

PORTERS FORCES Threat of New Entrants and Barriers to Entry (ADDRESS ALL) (economies of scale, product differentiation, capital requirements, switching costs, access to distribution channels, cost disadvantages independent of scale, government policy, expected retaliation)

Intensity of Rivalry Among Competitors (ADDRESS ALL) (size and strength of competitors, slow growth, high fixed or storage costs, low

differentiation, capacity added in large increments, diverse competition, high stakes, high exit barriers) Product Substitutes (low switching costs, lower price/performance) Suppliers (concentrated, few substitutes, not important to suppliers, suppliers differentiated product or switching costs, possible forward integration) Buyers (concentrated, purchase much of your product, significant portion of their costs, they buy undifferentiated products, few switching costs, earn low profits), possible backward integration, unimportant in their quality)

STRATEGIC GROUPS (ADDRESS THIS PLEASE) Who else is in their strategic group? Justify your response using the following dimensions:

Dimensions (technological leadership, degree of product quality, pricing policies, distribution channels, customer service) C. COMPETITIVE ENVIRONMENT ANALYSIS (general statement regarding the competitive environment)

Competitors Strategies and Core Competencies (customers, distribution, marketing, sales, advertising, financial- who are their competitors, and what are their core competencies)

Action/Response History

(What has happened in the industry/how has this particular firm responded) D. ENVIRONMENTAL TRENDS

Industry Life Cycle (Emerging, Growth, Shakeout, Maturity, Decline - Justify your response)

SUMMARY: ATTRACTIVENESS OF EXTERNAL ENVIRONMENT (brief wrap-up of the key threats and opportunities in the external environment Note: This is different from the SWOT analysis) E. STRATEGIC ANALYSIS 1. KEY SUCCESS FACTORS (important dimensions that define success in the industry refer to handout)

2. STRATEGIES Business Level (Cost leadership, Focused Low-Cost, Differentiation, Focused Differentiation, Integrated Low Cost/Differentiation) Competitive Strategy (first mover, fast second, slow second, late mover , a.k.a. pioneers vs. followers) Corporate Level (ALL THAT APPLY) Stable Growth Strategy

Growth Strategy Concentration Strategy Market Development Product Development Horizontal Integration Vertical Integration Diversification Concentric (related) diversification Conglomerate (unrelated) diversification Levels and types of Diversification
Source: Adapted from R. P. Rumelt, 1974, Strategy, Structure and Economic Performance (Boston: Harvard Business School).

Low levels of diversification

Single-business: Over 95% of revenues come from a single business. Dominant-business: Between 70% and 95% of revenues come from a single business.

Moderate to high levels of diversification

Related-contrained: Less than 70% of revenues comes from the dominant business, and all businesses share product, technological, and distribution linkages. Mixed related and Less than 70% of revenues comes from the dominant business, and there unrelated (related-linked): are only limited links between businesses.

Very high levels of diversification

Unrelated diversification: Less than 70% of revenues come from the dominant business, and there are no common links between businesses.

Harvesting Strategies

Defensive Strategies Turnaround Divestment Liquidation Filing for Bankruptcy Becoming a Captive Combination Strategies Simultaneous Combination

Modes of Entry (DOMESTIC AND INTERNATIONAL) (exporting, licensing, strategic alliances, acquisitions, internal venturing, joint venturing, establishment of new subsidiary) (what & with whom?)

3. CORE COMPETENCIES a. RESOURCES TANGIBLE

Financial (borrowing capacity, ability to generate internal funds) Physical (location and sophistication of a firms plant and equipment, access to raw materials) Human (training, experience, judgment, intelligence, insights, adaptability, commitment, loyalty of workers and managers) Organizational (planning, controlling, and coordinating systems) INTANGIBLE Technological (patents, trade marks, copyrights, trade secrets) Resources for Innovation (technical employees, research facilities) Reputation (brand name, perception of product quality, durability, and reliability, supplier relationships, culture)

b. CAPABILITIES VALUE CHAIN Inbound Logistics Operations Outbound Logistics

Marketing and Sales Service Infrastructure and Governance HR Technology Procurement

SUMMARY: SUSTAINABLE COMPETITIVE ADVANTAGE (brief wrap-up of the key strengths and weaknesses in the firms internal environment

Note: This is different from the SWOT analysis) F. PERFORMANCE APPRAISAL

FOR one (1) PROFITABILITY RATIO, one (1) LIQUIDITY RATIO, one (1) LEVERAGE RATIO, and one (1) ACTIVITY RATIO, PLEASE DISCUSS 1, 2, and 3:

1) Trend Analysis (Intra-Company comparison for at least three years)

2) Comparison to Industry Ratios (Inter-Company comparison for at least three years).

3) Discussion of WHAT is happening and WHY

NOTE : In this section, please identify the INDUSTRY used to calculate your ratios. Also, please include the NUMBERS for ALL RATIOS (Firm and Industry) and a DISCUSSION of one ratio per category (a total of four).

rofitability

atios

Year Firm/Industry Year Firm/Industry Year Firm/Industry

Return on Total Assets Return on Stockholders Equity (ROE) Return on Investment (ROI) Operating Profit Margin Net Profit Margin

iquidity

atios

Year Firm/Industry Year Firm/Industry Year Firm/Industry

Current Ratio Quick Ratio Inventory to Net Working Capital

everage

atios

Year Firm/Industry Year Firm/Industry Year Firm/Industry

Debt/Assets Debt/Equity Long-Term Debt/Equity Times- Interest- Earned (TIE) Fixed Charge Coverage

ctivity

atios

Year Firm/Industry Year Firm/Industry Year Firm/Industry

Inventory Turnover Fixed Assets Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period

III. SWOT (refer to SWOT handout)

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

IV. STRATEGY FORMULATION (Given the information in your case analysis, what strategy would you recommend to this company i.e., Where are we now? Where do we want to go.) V. STRATEGIC ALTERNATIVE IMPLEMENTATION (How should your recommended strategy be implemented? i.e., How will we get there?) VI. EPILOGUE (Case UPDATE from the time that the case ended in the text)

PLEASE INCLUDE ONE (1) ORIGINAL TABLE/CHART/GRAPH/DECISION SUPPORT TOOL

This model should incorporate concepts from the text. Please explain and discuss your model.

NOTE: NAs are NOT an acceptable response. Please answer ALL sections and all sub-sections of the case analysis handout. Most, but not all of the requisite information is contained within the case write-up. However, you will need to use other sources to supplement the case as it is written in the text, i.e. the library, the Internet, and your mind.

NOTE: This is a general framework for most cases. See me if you have any questions about your particular case.