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)

Globalization

(interdependence among industrialized countries, needs of developing countries, lower barriers for money, information, and technology flow)

(inflation, interest rates, GDP, trade and budget deficits, savings rates)

(products, processes, and materials)

(population’s size, age structure, geographic distribution, ethnic mix, and distribution of income)

(attitudes, culture)

(anti-trust, taxation, regulation , labor laws)

B. INDUSTRY ANALYSIS

PORTER’S 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)

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)

(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

Single-business: Over 95% of revenues come from a single business.

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 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 firm’s 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)

VALUE CHAIN

Inbound Logistics

Operations

Outbound Logistics

Marketing and Sales

Service

Infrastructure and Governance

HR

Technology

Procurement

 

 

SUSTAINABLE COMPETITIVE ADVANTAGE

(brief wrap-up of the key strengths and weaknesses in the firm’s internal environment

Note: This is different from the SWOT analysis)

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

III. SWOT (refer to SWOT handout)

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