Important: Each question of the case study assesses various aspects of the company; however, keep in mind that the underlying question is whether the company’s STRATEGY is EFFECTIVE.
Case Instructions:
Process: Each student is required to study the case, to analyze the facts, to prepare case analyses for each question. You may collaborate with other group members only.
Writing: The analysis should be written in a way of logical argument as demonstrated in class. Respond to each question using the following format:
1) State the summary finding
2) Provide proof of or why you believe the finding to be true
3) Then, restate the obvious: Your finding
4) You may need to quantify to your finding, such as ‘we score the industry attractiveness to be 7 out of a possible 10’.
The written analysis should read as an analysis, not as a ‘story’. The first paragraphs should provide a summary of the overall effectiveness of the company’s strategy in the assessment of each measure. The body of the paper will compile findings resulting from applying assessment models. Respond to each question by proving your findings. Summarize your findings to each question as an introduction to each response, then, prove your findings by citing the assessment model results with case study facts, and finally restate your findings for each question. The final question involves composing an executive summary and epilogue. The epilogue is to determine whether your assessments and recommendations bear any relevance since the case was written.
Omit: Do not incorporate information not asked. Focus on the question and answer it directly.
Include: Make a deliberate attempt to demonstrate and apply the principles you’ve studied and learned. Your analysis should include use of specific assessment models that correspond to each question, being able to relate the chapter of the text to the case facts
Case Study Guide: A guide to case analysis is provided at the end of the textbook (CA2 – CA11). Please use it.
Purpose and Scope: This assignment is intended to assess your understanding of Strategic Management course material, and to evaluate your ability to apply analytical tools in formulating strategic initiatives. The case study analysis is a vehicle with which to demonstrate what you have learned by applying and using concepts discussed in the text and in class sessions.
You are limited to the facts contained in the case study itself in order to answer questions. Case studies are included in the text. You may not use outside resources to complete your analysis except for question 8, and the submitted written analysis of the case study must be an expression of your own findings. If you feel that there is insufficient case information, please see me.
In-class instructions, together with this document will constitute complete instructions for this assignment. It will not be sufficient to merely take up this assignment without adhering to both forms of instructions.
This assignment will be due in parts or stages as indicated on the Class Schedule. Grades will be given for group submissions; then aggregated to yield the total score of the case study project. In the end, ensure that you have a cohesive analysis without conflicting findings.
The case study must be typed, spell-checked, grammar-checked, properly referenced, and concise. It should be double spaced with maximum 1” margins, a maximum 12-pt font, and stapled. Writing errors will reduce your grade. All facts to be considered are contained in the case studies themselves. Thus, there is no research is to be done without my prior review. Your written analysis is to be original. Please know that submissions are subject to testing against plagiarism. Correct simple mistakes, such as the following:
• Proper font case such as in company name: Apple rather than apple
• A required apostrophe: Apple’s rather than Apples
• Proper noun etiquette: Steve Jobs, rather than Steve
Case Study Analysis, Argument & Questions:
1. In what industry does the company in your case study compete? Industry Key Success Factors are competitive factors that most affect industry members’ ability to survive and prosper in the marketplace, i.e., particular strategy elements, operational approaches, resources and competitive capabilities that spell the difference between being a strong competitor and a weak competitor and between profit and loss. What are the Industry’s Key Success Factors of the industry in which the company competes? Explain why at least three industry key success factors (IKSFs) are required to succeed in that industry Reference Chapter 3, p 73-75 regarding resources and capabilities and for examples use tables 4.2 and 4.3.
2. Generic strategies are low cost, differentiation, best cost, focused low cost and focused differentiation. Referring to your assigned case study and to the description of the company activities and capabilities that formulate their strategy, what GENERIC strategy is closest to that which the company employs? What characteristics or actions help you to identify the company’s strategy? Identify each GENERIC strategy of two closest rivals.
3. How well a company’s strategy is working may be determined by its financial performance. Most prominent indications of success include increasing sales and profits, stock price, return on equity and earnings per share. The reasons for success or need for improvement might be detected by measuring operational performance such as operating profit, return on assets, liquidity and debt ratios, and activity ratios. Conduct a financial analysis sufficient to take a convincing position whether the company’s strategy is effective and working. Use the financial ratios on pages 81-86 of the text in doing your financial analysis of the company for the past three years. You may use additional financial measures to support your position. Note trends that support your position. Compare your findings to that of your assigned company’s #1 competitor (may need to conduct research for the same financial reporting periods if financials are not in the case study). Include your calculations of financial ratios. The task is to prove whether the company strategy is working and to take a firm position.
4. A SWOT analysis should answer the question whether the company is in a position to pursue attractive market opportunities and fend off external threats to its future well being. It should also provide the basis for cratfing a strategy that capitalizes on its strengths, overcomes weaknesses, captures opportunities and defends against competitive and external threats. Conduct a SWOT Analysis by comparing case study information against Tables 4.2 and 4.3. What resources and capabilities listed in the tables correspond to those in the case study? Answer the question posed in the first and second sentences, and whether a competitive advantage or deficiency exists. How well does the company measure up against the IKSFs identified in Question 1. Demonstrate an understanding of Figure 4.2 in your analysis. Considering your SWOT, where on a scale of 1 to 10 (1-weak, 10-strong) does the company’s overall competitiveness and future prospects rank? Reference Chapter 4, pages 86-97. (The SWOT will also be a basis possible strategic approaches to improving the company’s competitive capabilities.)
5. Complete a Competitive Strength Assessment (CSA) of the company and its closest rivals. Use the industry key success factors (KSF) identified in question 1 and also some value chain activities. Reference pages 86-92, 97-111 and use the methodology in Table 4.4 on page 110 (Table 4.4 is not a template – do not use its weights and IKSFs. Use the IKSFs identified in question 1, assign weights and rate each to complete the CSA). As a result of your CSA, state whether and why the company has/does not have a net competitive advantage and provide an analytical summary that includes alternatives such as 1) change strategy to _________ or do not change strategy, 2) using the CSA develop specific capabilities internally or acquire capabilities externally, 3) capitalize on opportunities now or wait, 4) defend threats or not.
6. This question is to be answered in collaboration with group members and with ONE submission per group. Based on all of the assessments that have been completed provide an executive summary of choosing the best alternatives developed in question 5 and provide specific recommendations you would propose to the company’s management. Include the following: whether the current strategy effective and why; whether the company should modify their current strategy and how, or whether they should change their strategy and to which, specific value chain activity improvements. You should have at least five substantive and numbered recommendations that exclude advertising, increasing market share, and price adjustments. Include the anticipated results if your recommendations are implemented.