Case Analysis in Management

In addition to the requirements for two person teams, three person teams will also complete the following:

• For the first case, complete a financial analysis – comprehensive – see the instructions in blackboard. (about 2 pages)  This is a major part of the analysis.  Each team member should take turns completing the financial analysis.
• Section 1b: Identify the potential pitfalls of the company’s strategy in some detail and how the company should consider avoiding or reducing. (about ¾ page)
• Section 6b: Identify potential strategic moves that key rivals and “substitute” companies are likely to make, the potential impact on the industry and on the company that is featured in your analysis (for the first case this is COSTCO). (approximately 1-1/2 pages – reference the end of chapter 3)
• Section 6c: Identify the key resources and capabilities that the featured company should enhance or build in a dynamic approach to stay ahead of competition or fight off substitutes (dynamic capabilities from chapter 4); explain the importance and some ways to implement the changes. (about ¾ page)

1. What is the overall strategy of this company? Explain why you selected the specific generic type (differentiation, low cost, etc.), and fully support your answer.  (approximately ½ page)
2. Analyze the strategically relevant components of the global and U.S. macro-environment for the industry segment in which this company operates.Are there any macro-environmental threats or opportunities that the companies in this industry should be especially concerned about? Explain in detail. This analysis is focused more on the industry and industry segment than the company.  (approximately 1 to 1 ½ pages)
3. Review each of the five competitive forces (“Five Forces Analysis”)addressingall factors in each of the forces that determine whether that force is strong (increased competition) or weak (less competitive) —The only exception to this is when you are analyzing a retail industry (e.g., COSTCO, Whole Foods, etc.), where you do not analyze the customer power force.For example, note that rivalry has more than 10 factors to analyze – make sure your review each of these and each factor in the other forces. Based on your analysis, rate each of the forces (fierce, strong, moderate, or weak) and support your rating in a brief paragraph at the end of each.  Provide a summary paragraph or two explaining the overall competitiveness of this industry and the potential for profitability.  Are there any opportunities or threats that your analysis suggests – document them?  This question is worth 25% of the grade for this assignment, and requires about 3 pages of analysis.  If the case addresses a retail industry (e.g., Whole Foods, COSTCO, Walmart), there is no need to evaluate Customer Bargaining Power, because the Five Forces Model addresses only large/corporate customers in the factors noted in the text.  (Potential length of this section is approximately 2 ½ to 3 pages.)
4. Complete a Value Chain analysis for the company with the objective of identifying valuable resources and capabilities.Organize the value chain analysis into primary and support activities, then for each value chain activity (e.g., supplier management, logistics, operations, etc.), identify valuable resources/capabilities that are important to the company’s success. Then use the 4 tests to determine competitive advantage and sustainability (core competence, distinctive competence, sustainable competitive advantage). The 4 tests of competitive advantage (“Four Ways to Test the Competitive Power of a Resource Strength or Capability”) are covered in detail in the text.This part of your analysis is worth 25% of the full grade for the case.  (Suggested length about 2 1/2-3 pages.)
5. Use the value chain to identify resource or capability weaknesses compared to the other companies in this industry. Explain how important it is for the company. Because most companies you will study in a case are successful, there may be only a few weaknesses.  (approximately ½ page)
6. How are the markets in this industry segment and the broader discount retail industry changing? What are the underlying drivers of change (Industry Driving Forces as noted in the text),  and how might these drivers  individually or collectively make the industry, and specific market segments more or less attractive in the future?  There are usually around 4-8 important driving forces, depending on the industry studied.  The text provides quite a few examples of different types of driving forces for you to think about.  Remember to focus on the industry, addressing any particularly important issues for the company being studied.  (approximately 2/3 – 1 page)
7. What are the Key Success Factors (KSFs) for this industry specifically applicable to the company you are analyzing? Most KSFs will be derived from the Industry Driving Forces analysis, the Five Forces analysisand/or the Resources/Capabilities analysis.  Explain why each KSF is strategically important in charting the future of the company being analyzed. Typically, there are 3-5 KSFs.  (approximately 2/3 to 1 page).
8. Complete a comprehensive financial analysis of the company including 5 year trends and a comparison to the other companies where possible. At the end assess whether you have any concern for the financial stability of the business.  Are there any weaknesses to consider?  Does your analysis indicate that this company is prospering – support your answer. Note that you will not complete this for the first case of the semester, but will analyze the financial condition and trends for all other cases.
9. Looking back at all of your answers, identify and explain potential threats or opportunities that are absolutely critical and should be addressed by the company you selected in #5. This can be a quick list – bullet points and brief. (about ½ page)
10. What strategic recommendations would you make for the company?Pick two ideas and explain them in detail and why they are the best recommendations (for team submissions, each team member will complete a full recommendation). These recommendations should address the KSFs you identified earlier in the analysis.  State your recommendation in a sentence or two, explain why the recommendation is strategically critical, explain the key elements involved in implementing the strategy (think!!!!!), identify potential issues that could disrupt implementation, and identify expected positive outcomes from implementing the recommendation.  This will require about ½ page for more for EACH recommendation.  Each person on the team should complete one recommendation.