No Outside sources at all. Only the documents I provided are your references because it is a case anamysis. Here are what you need to know:
This assignment will require an Appendix and a Report to the CEO.
The Appendix contains:
An External Analysis and
An Internal Analysis:
including a Financial Analysis that is a maximum of 4-pages
A maximum total of 14 single-spaced pages in 12 pt. font, with 1.25″ margins all around, in Word.
While most of the Appendix is expected to be in point-form,
certain sections such as summary statements or the Strategic Issue section may be formatted as
paragraphs.
Each section should have a summary statement that communicates the main findings
of the section.
When constructing the Appendix, please use a numbering system to identify the sections and the
related analysis for a particular strategic tool. For example, you might want to consider numbering
the Macro Environment analysis section as 1.0, and creating subheadings for each of the dimensions: 1.1 for Political factors, 1.2 for Economic conditions, 1.3 for Sociocultural
conditions, etc.
This way, if you were including data from Economic conditions in your Report to
the CEO, simply state (1.2) to reference it. Apply the same logic and referencing format for the
entire Appendix.
The Report to the CEO (excluding the title page) should not exceed 1500 words, using a 12 pt.
font. Anything written beyond the 1500 word limit will not be accepted.
For the case all data must come only from the case itself. Therefore,
the citations for this will be from four possible sources in the following formats: from the case use (Case, page number), and from your Appendix use (the numbered section, e.g. 1.2, as explained
above).
ALL OBSERVATIONS, FACTORS, FEATURES AND DATA USED IN THE
APPENDIX MUST BE SOURCED TO THE PAGE WHERE YOU FOUND THEM.
The Appendix should be organized into the following sections:
Company’s External Analysis: Your External Analysis should be completed from the perspective of the industry. Use point form. 1) The Macro Environment (PESTEL). Your answer should include all 6 categories, and should explain which
are relevant, which are not, and why. These categories are produced by long term,
structural elements in the external environment and are generally outside the control of firms in
the industry. Include what are the strategic opportunities and/or threats to the profitability of
the industry for each category analyzed.
Porter’s Five Forces analysis: Identify the power of each force as either Weak, Weak to Moderate, Moderate, Moderate to
Strong, or Strong with supporting point form evidence. You must state conclusions about the
effect of the four forces on rivalry and the overall attractiveness of the industry by identifying
which force(s) contribute the most to making it more attractive and which force(s) make it less
attractive.
Driving Forces: What forces are driving industry change, and what impact will these changes have on
competitive intensity and industry profitability? You should identify 3 – 5 drivers and the
strategic impact of the drivers.
Strategic Group Map: Create a strategic group map for the industry. You must identify two dimensions that drive the
relative positioning of all relevant firms to create the X and Y axis of the map. These factors are
usually criteria that customers use to make purchase decisions. Characterize the importance of
each competitor based on market share, or a similar, relevant metric. This is a total of three
factors that are used to create the strategic group map. Identify any barriers that might create
subgroups of competitors. Identify potential empty space opportunities for movement on either
axis, using arrows, and the resulting changes in competitive structure in the industry. Who is the
most favourably positioned in the industry and why and who is the least favourably positioned
in the industry and why?
Key Success Factors: What are the key factors of competitive success? Identify 3 to 5 key success factors. On what
basis do buyers of the industry’s product choose between the competing brands of sellers? What
resources and competitive capabilities must a company have to be competitively successful?
What shortcomings are almost certain to put a company at a significant competitive
disadvantage? What are the strategic impacts of the key success factors?
Innovation and the Industry Life Cycle: Identify the stage of the industry with respect to the S Curve, and
explain why you believe it is in this stage. Has the industry been subject to the forces of
innovation? Explain why or why not. If so, identify the type of innovation using categories.
Company Outlook for Profitability: Using the results of each of the analyses performed in the external environment analyses to
determine whether the industry presents the company with strong prospects for competitive
success and attractive profits. The important factors on which to base a conclusion include: 1) How the company is being impacted by the state of the macro environment. 2) Whether strong competitive forces are squeezing industry profitability to subpar levels. 3) Whether industry profitability will be favourably or unfavourably affected by the
prevailing driving forces. 4) Whether the company occupies a stronger market position than rivals. 5) How well the company’s strategy delivers on the industry key success factors.
Company’s Internal Analysis
Financial Analysis (4 pages max) Evaluate the current financial health of the company by presenting your findings of relevant
financial information based on a subset of the following:
Ratios: 1) liquidity 2) profitability, 3) leverage, 4) efficiency, 5) operating, and 6) market
value and investment ratios. Also, using trend analysis, and/or common size analysis, and/or longitudinal analysis based on
CAGR (Compound Annual Growth Rate – see CAGR in Investopedia.com ) to either
reinforce staying with the company’s status quo or to suggest changes in strategy in light of
the results.
If applicable, also include competitive financial analysis and/or other relevant financial
findings by investigating all quantitative information provided.
For each of your calculations or observations note whether a trend is up, down or flat (see
template) and note the strategic impact of each finding.
A concluding summary statement should address the strategic implications arising from your
analysis of the financial health of the company.
An excel template for your financial analysis will be provided in this attachment. You will need to export your analysis into a Table and insert it into your report, which should
be submitted as a word document. Financial analysis submitted as a separate Excel file will
not be graded.
Current and Generic Strategy: Identify the Mission of the company. Is the firm pursuing a cost or differentiation strategy?
Explain what factors enable it to achieve a low cost or product differentiation strategy. How
well is the company’s present strategy working, based on the data in the case?
SWOT: Identify the company’s internal strengths, internal weaknesses, market opportunities and
external threats. What are the attractive and unattractive aspects of the company’s situation?
What are the strategic implications for improving the company’s strategy?
Competitive Advantage and VRIN: (Use a table, point forms) Identify a minimum of 4 resources and 4 capabilities of the case company. Assess the potential
of each to create sustainable competitive advantage based on the criteria found in the Four
Tests of a Resource’s Competitive Power from the text. Your assessment should identify
dynamic capabilities and whether the firm can achieve sustainable competitive advantage with
any of these factors. Be sure to identify the strategic implications. You should lay out the
information in a table which will be shared in class.
Strategic Issue: Identify one strategic issue you think merits front-burner managerial attention.
The issue should be framed as a question (How to…? What to do about …? and Whether to
…?). Identify one strategic issue only. While there may be more issues that deserve managerial
attention, the focus of your report will be based on supporting only the one issue you identified.
Make sure your issue is not too general; for example, to improve profits is a generalized
statement. The issue you identify must be actionable. Provide a minimum of 5 supporting and
relevant observations based on various conclusions up to now from the External and Internal
Analysis. Do not include any observations not discussed and analyzed previously (issues out
of nowhere = 0). You should be able to identify all the relevant facts from your Appendix that
led you to conclude that the issue you identified deserves managerial attention. Every fact that
you think supports your main issue should be identified as they will ultimately become an
outline for the analysis section of your report, referencing each of the facts identified from the
Appendix.
Your answer should include a short and succinct paragraph identifying the key issue facing the
company that has emerged from your work.
The Report to the CEO:
The Report to CEO is your recommendation to top management.
Be sure the Report to CEO is a
useful decision-making tool, based on facts. It should persuade top management to act on the
recommendation.
The use of headings and sub-headings will help organize your discussion and focus the reader’s
attention. Headings should have a consistent style.
The Report to the CEO should include the
following sections and headings:
Report Body
Introduction—5 marks
• Introduce the industry, the company, its current strategy and the issue you identified at the
end of the Appendix. Establish the scope of the Report. Don’t include a lot of background
material. An introduction of no more than 150 words is sufficient.
Analysis– 15 marks
• This is the heart of the Report where the issue is analysed.
• Identify the issue more fully. Demonstrate its importance by examining the factors that
contributed to the issue and how they relate to strategy.
• Include only relevant and significant background information that supports the issue
identified.
• Be sure to support your analysis by referencing specific data from your Appendix. This
can be accomplished by inserting the number from the appendix identifying the section
referred to (your Appendix will use numbered headings, and the numbered heading will
be sufficient for your reference). For example, if you reference something from section
2.1 of your Appendix, then you place (2.1) immediately after the fact you are referencing
from the Appendix. Do not reference case material directly; if there is an important fact
from the case you would like to include in your analysis, that fact should be included in
your Appendix. If you want to include facts from the case in your analysis, they must be
added to the Appendix.
• Using facts referenced from the Appendix, convince the reader that the issue you
identified needs to be dealt with by management.
Alternatives– 15 marks
• Identify three alternatives for management’s consideration to address the issue identified.
• Include a brief discussion of each alternative, clearly identifying each alternative with
sufficient detail that it is clearly specific to the case.
• Identify the pros and cons for each alternative. Refer to relevant material from the analysis
and the Appendix (remember to reference the Appendix if you use facts from the Appendix), including the financial feasibility or implications for each alternative. Use
point form for you Pro/Con analysis.
• Be critical in the Cons section of your discussion. Management needs to assess both the
pros and the cons of the alternative.
• A clear and convincing rationale for your recommendation should emerge from your
analysis of the alternatives.
• Don’t use trivial alternatives; each alternative should be strategic and executable.
Recommendation– 20 marks
Make a recommendation. Your recommendation must be actionable, realistic, and in line with
company resources. It must be strategic and have a reasonable chance of leading the company to
success. Please include the following:
• Summarize the support for your recommendation. Illustrate how your recommendation
will address the issue identified as the major issue facing the company.
• Discuss how your selected strategy fits with the external/internal variables, especially with
the financial resources.
• Discuss how your strategy will achieve a competitive advantage and enhanced
profitability over time.
• Discuss why you did not pursue the other alternatives keeping in mind the pros and cons
you identified for each.
• Discuss why the con you identified for your recommended alternative can be mitigated.
REMEMBER TO KEEP MOST OF THE PART IN POINT FORMS PLEASE. EVERYTHING SHOULD BE FROM THE CASE I PROVIDED TO YOU, AND YOU ALSO HAVE ALL THE FINANCIAL REPORTS.
ALSO I WILL PROVIDE YOU WITH AN CASE ANALYSIS EXAMPLE, SO YOU CAN HAVE AN IDEA HOW TO ANALYZE IT,=. DON’T USE MUCH PARAGRAPHS BECAUSE THE PROFESSOR DOESN’T LIKE GIVING MANY EXPLANATIONS. INSTEAD OF THAT KEEP IT SHORT AND CONSISTENT.
THE EXAMPLE IS FOR ANOTHER INDUSTRY, BUT THE FORMAT IS EXACTLY WHAT I ASSKED YOU TO DO FOR THE EBAY CASE.
