Complete Strategic Analysis of a Company
20-25 Minute Presentation
Students are expected to use the course ideas and frameworks to analyze the company's profitability today. and its prospects for performance over the next five years. The deliverable is a 20-25 minute presentation to be presented in the final week of class.
The first section should be a financial analysis that divides the sources of the company's performance in the selected line of business into a component associated with the industry and a component associated with the company's competitive position within the industry. The second section is supporting detail to explain the company's competitive position. The third section is an analysis of the structure of the firm's industry. The fourth section deals with impending changes to the industry structure over the next five years. The fifth section deals with threats to the sustainability of the company's competitive position. The sixth section is a recommendation based on the analysis. The following outline provides more detail and a recommended outline.
Detailed Outline
1. Introduction and Analysis of Financial Performance
• Indicate the company's name and line of business. and define the industry in which it competes.
• Report the financial performance of the company within this business over the past three years.
• How does the firm's financial performance compare to its rivals over the past three years?
2. Analysis of the Company's Competitive Position
• Describe the company's financial performance relative to competitors over the past few years.
• Identify the company's strategy (VRIO will help the analysis).
o How do the company's products/services differ from those of rivals? Does the company achieve a premium price?
o What are the critical resources and capabilities that distinguish the company from its competitors?
o Does the company have unusual problems that put it at a competitive disadvantage?
3. Analysis of Industry Structure (Porter's Five Forces will help the analysis)
4. Analysis of Forthcoming Change in the Company's Industry (PEST will help the analysis)
• What major trends are likely to affect the profitability of the industry? Which are likely to improve profitability and which are likely to damage profitability of the industry as a whole?
• What is the timing of the trends? Will the industry likely go through a major punctuated change over the next five years?
• Are the trends likely to have particularly strong impact on the company?
5. Analysis of Threats to the Sustainability of the Company's Competitive Advantage (Applying the PEST and the VRIO will help the analysis)
• Are there trends that are likely to have particular impact on the company's competitive advantage or disadvantage?
• Are there major threats to the sustainability of the company's position?
6. Recommendations (SWOT will help the analysis)
• Are the company's industry structure and competitive position satisfactory?
• What options does the company face for improving its financial returns over the next five years?
• What strategic actions do you recommend given your analysis of the options available to the company?