1. SWOT Analysis (comes from researching the firm, industry, and competitors)
It is important to know the difference between causes and effects in the SWOT analysis.Causes are important, not effects. Once the SWOT Analysis is created, each group needs to construct the SWOT Bivariate Strategy Matrix.
Deliverables for this section include:
a. SWOT Analysis
b. Internal Factor Evaluation (IFE) Matrix
c. External Factor Evaluation (EFE) Matrix
d. SWOT Bivariate Strategy Matrix
2. Alternative strategies (giving advantages and alternatives for each)
3. Net Present Value analysis of proposed strategy's new cash flow and EPS/EBIT analysis
NOTE: To construct the first cash flow (cf1) at the very minimum, the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT and that figure will be your cfn for each year. cf0 (initial cost of your strategy), cf1 (discounted cash flow first year), r (opportunity cost of capital, the rate of the next best alternative use of cash/debt/equity resources).
NPV = - cf0+ cf1/(1+r)1 + cf2/(1+r)2 + cf3/(1+r)3 ... cfn/(1+r)n
4. Specific recommended strategy and long term objectives
Explain why you chose the strategy, and discuss how much the strategy will cost to implement andhow much new revenue your strategy will create. Include your action timetable agenda for accomplishing your strategy.
5. Case Study: Coke