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MGT 4760 STRATEGIC MANAGEMENT (EBBM Semester 1, 2012/2013) CASE ANALYSIS REPORT Group Members

Name (Matric No) Name (Matric No) Name (Matric No) Name (Matric No) DATE OF SUBMISSION: DUE DATE:

Name of company:________________________
A. TWO KEY LESSONS LEARNT FROM THIS CASE
This case is about. From this case, we found two key lessons, namely (a) .., and (b) ... The first lesson is about . The lesson is important As for the second lesson, it enlightens us (about 200 words)

B.

Vision Statement

The current vision of the company is .. Criticize the current vision (what went wrong/not enough) to reflect the nature of the business/environment We think the current vision can be improved by .. State the improved version

C.

Mission Statement

The mission of the company is ..

Criticize the current mission (what went wrong/not enough) to reflect the nature of the business/environment WeI think the current mission can be improved by .. Show the nine elements on the improved version of the current mission statement
1. Customer 2. Products or services 3.Markets 4.Technology 5.Concern for survival, profitability, growth 6.Philosophy 7.Self-concept 8.Concern for public image 9.Concern for employees

D.

External Audit
Opportunities

List and explain them

Threats

CPM Competitive Profile Matrix


* Estimates for Starbucks focused on similar product lines with ABC, PQR and XYZ ABC (this case) PQR Critical Success Weight Rating Weighted Rating Weighted Factors Score Score
(identify from the case)

Rating

XYZ Weighted Score

Total

1.00

Write an observation of the CPM weighted score of ABC, PQR and XYZ. Look for the highest weighted scores, what are common among the firms. Do a cross examination.

See example:

External Factor Evaluation (EFE) Matrix


Key External Factors Opportunities 1. 2. 3. 4. 5. 6. 7. 8. 9. Sub-total for Opportunities Threats 1. 2. 3. 4. 5. 6. 7. 8. Sub-total for Threats TOTAL 1.00 Weight Rating Weighted Score

Write an observation; score for Opportunities vs score for Threats. The highest vs the lowest, which items score the highest; what implications for O>T or O<T..

E.

Internal Audit

Strengths List and explain them


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Weaknesses

Internal Factor Evaluation (IFE) Matrix


Key Internal Factors Strengths 1. 2. 3. 4. 5. 6. 7. 8. Subtotal for strengths Weaknesses 1. 2. 3. 4. 5. 6. 7. Sub total for weaknesses TOTAL 1.00 Weight Rating Weighted Score

Write an observation; score for S vs score for W. The highest vs the lowest, which items score the highest; what implications for S>W or SO<W.

Financial Ratio Analysis (year)


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Growth Rates % Sales (Qtr vs year ago qtr) Net Income (YTD vs YTD) Net Income (Qtr vs year ago qtr) Sales (5-Year Annual Avg.) Net Income (5-Year Annual Avg.) Dividends (5-Year Annual Avg.) Price Ratios Current P/E Ratio P/E Ratio 5-Year High P/E Ratio 5-Year Low Price/Sales Ratio Price/Book Value Price/Cash Flow Ratio Profit Margins Gross Margin Pre-Tax Margin Net Profit Margin 5Yr Gross Margin (5-Year Avg.) 5Yr PreTax Margin (5-Year Avg.) 5Yr Net Profit Margin (5-Year Avg.) Financial Condition Debt/Equity Ratio Current Ratio Quick Ratio Interest Coverage Leverage Ratio Book Value/Share Investment Returns % Return On Equity Return On Assets Return On Capital Return On Equity (5-Year Avg.) Return On Assets (5-Year Avg.) Return On Capital (5-Year Avg.) Management Efficiency Income/Employee Revenue/Employee Receivable Turnover Inventory Turnover Asset Turnover COMMENTS ON THE FINANCIAL RATIOS

Net Worth Analysis (year in millions)


(Please refer to the companys financial statements)

1. Stockholders Equity + Goodwill 2. Net income x 5 3. Share price 4. Number of Shares Outstanding x Share Price 5. Method Average

F.

SWOT Strategies
Opportunities 1. 2. 3. 4. n S-O strategies
S1-O1: what could be done? S2-O2 S3-O3 Cross S1-O2 S2-O4

Strengths 1. 2. 3. 4. n Weaknesses 1. 2. 3. 4. n

Threats 1. 2. 3. 4. n S-T strategies


S1-T1 S2-T2 S3-T3 Cross S1-T4 S2-T5

W-O strategies
W1-O1: what could be done? W2-O2 W3-O3 Cross W1-O2 W2-O4

W-T strategies
W1-T1 W2-T2 W3-T3 Cross W1-T4 W2-T5

Write an observation about differences in four categories of strategies.

G.

SPACE Matrix
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Conservative

FS 6 5 4 3 2 1

Aggressive

CA

-6

-5

-4

-3

-2

-1 -1 -2 -3 -4 -5 -6

IS

Defensive

ES

Competitive

Financial Strength (FS) Return on Assets (ROA) Leverage Net Income Income/Employee Inventory Turnover Financial Strength (FS) Average Competitive Advantage (CA) Market Share Product Quality Customer Loyalty Technological know-how Control over Suppliers and Distributors Competitive Advantage (CA) Average

Environmental Stability (ES) Rate of Inflation Technological Changes Price Elasticity of Demand Competitive Pressure Barriers to Entry into Market Environmental Stability (ES) Average Industry Strength (IS) Growth Potential Financial Stability Ease of Entry into Market Resource Utilization Profit Potential Industry Strength (IS) Average

x-axis: ___CA + ___IS = ___ y-axis: ___ FS+ ____ ES = __ Draw the direction with an arrow and then explain the possible strategies under the selected area.

H.

Grand Strategy Matrix


Rapid Market Growth

Quadrant II

Quadrant I

Weak Competitive Position

Strong Competitive Position

Quadrant III Slow Market Growth

Quadrant IV

Draw the direction with an arrow and then explain the possible strategies under the selected area.

I.

The Internal-External (IE) Matrix

From EFE and IFE total weighted scores, match them in the appropriate cell. The IFE Total Weighted Score Strong 3.0 to 4.0 I Average 2.0 to 2.99 II Weak 1.0 to 1.99 III

High 3.0 to 3.99

Medium The EFE Total 2.0 to 2.99 Weighted Score

IV

VI

Low 1.0 to 1.99

VII

VIII

IX

Write an interpretation of the IE matrix score.


Based on the interpretation, suggest two best alternatives that the company could pursuit, then perform QSPM matrix.

J.

QSPM
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Strategic Alternatives Key Internal Factors Strengths 1. 2. 3. 4. 5. 6. 7. 8. 9. Weaknesses 1. 2. 3. 4. 5. 6. 7. 8. SUBTOTAL Weight Alternative 1: Builder Smaller Plants in the US AS TAS Alternative 2: Focus on Smaller and Hybrid Vehicles AS TAS

1.00 Builder Smaller Plants in the US Focus on Smaller and Hybrid Vehicles AS TAS

Key External Factors Opportunities 1. 2. 3. 4. 5. 6. 7. 8. Threats 1. 2. 3. 4. 5. 6. 7. 8. SUBTOTAL SUM TOTAL ATTRACTIVENESS SCORE

Weight AS TAS

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K. Recommendations Based on QSPM, propose a recommendation for this company what is next to do

L. Projected financial statements based on the recommended strategies

M. Evaluation of the recommendations based on Islamic perspective

References (if any)

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