When Analyzing A Case… Identify Opportunities & Threats Look at all aspects of the marketplace that are possibly beyond the control of the firm or even the industry BUT have a huge impact on the development, implementation and execution of a strategy How does the industry fair in relation to: the economies of the countries/regions/cities in which they operate? Government debt Growth in the economy Rates of inflation Unemployment rates Interest rates Fiscal policy Monetary policy Etc. demographics? Population size Income distribution Ethnic mix Geographic distribution Age structure Immigration Etc.

When Analyzing A Case… (Cont’d.) social and cultural trends? Percentage of women in the workforce Workforce diversity Attitudes about quality of work/life relationships Concerns about the environment Shifts in work/career preferences Shifts in preferences regarding product/service characteristics Etc. globalization? Important political events Critical global moments Newly industrialized countries Different cultural and institutional attributes Etc. technological trends? Impact of the internet and social networks Product innovation Process innovations Knowledge applications New communication technologies Etc.

When Analyzing A Case… (Cont’d.) the extent of government intervention? Regulation of the industry Anti-trust legislation Language legislation Safety issues Etc. the major legal battles/issues facing the environment? business trends? Diversification Mergers Acquisitions Joint ventures Etc. Some of these aspects of the environment may be threats to one industry and, at the same time, an opportunity to another industry

When Analyzing A Case… (Cont’d.) Then you want to look at the industry at a more micro level What are the keys to being a success in this industry? Where is the industry in its business cycle? How attractive is the industry? How easy is it to become a player in this industry? How many and how good are substitutes to this industry? How strong and how much control do suppliers have over the industry? How strong and how much control do buyers have over the industry? How much rivalry exists among key players? Fully understanding the key players we will be competing against Who are they? How strong are they? What strategies are they using? Attempt to build profiles of the key competitors Try to predict what they will do next We have attempted to determine how attractive the industry is – can we make any money??? And what do we have to do to succeed in this industry?

When Analyzing A Case… (Cont’d.) So far, we understand the playing field, we have determined if the industry is one we want to participate in and we have figured out what we need to do to be a success. The next step is to figure out if we have what it takes to do what needs to be done. Do a thorough review of Operations management Supplier relations Production process Cost control Distribution network Risk reduction techniques All the normal financial ratios (over time & compared to industry norms) Capital requirements Cash flows What are the company’s chances of survival? (Z Score) What is the company worth?

When Analyzing A Case… (Cont’d.) Look at Customer management Has the company figured out who they want as customers? Have they segmented the market properly? Have they figured out who they don’t want to attract? Does their marketing and sales operations accomplish what it should? Any loyalty programs? How are they building lasting relationships? Are they cross-selling? How are they attempting to get customers to buy more? Review Innovation Do they know what the next generation of products is like? Do they have great R&D partners? Review design and testing methods Analyze cost and time controls of innovation Are they successful at bringing new products on stream? Review their coordination efforts between innovation and operations Review Social and legal policies Environmental issues and solutions Health and safety Employment diversity Being a good social citizen Playing ethically

When Analyzing A Case… (Cont’d.) Analyze Overhead Hiring and training the right employees Effective IT systems Review how effective top management is Is the culture suitable? Does management work as a team and share ideas and help each other? Are all parts of the company working toward the same goal? Does the company have a true Competitive advantage? Does a firms resources and capabilities add VALUE by enabling it to exploit opportunities and/or neutralize threats? Even if the capabilities are valuable they must be RARE to give a firm a competitive advantage over rivals. How many rivals possess the same capabilities? Can these capabilities be IMITATED? Can rivals eventually catch up to us at a reasonable cost? If capabilities can be imitated, the competitive advantage may be short-lived Is the firm ORGANIZED to take full advantage of its capabilities and resources? We have advanced the analysis to the point of knowing what the firm is capable of doing

When Doing A Case… (Cont’d.) Identify the Issues or Problems Uncovered by the Analysis Look at everything in your analysis that does not seem to make sense You should separate major concerns from irritants You must highlight those issues that you feel must be addressed immediately and those that can wait This has to flow from the analysis Explain your rationale Come up with some possible solutions It is rare that there is only one solution that solves all the problems fully with no downside Therefore come up with a few possible solutions to address the major issues you have identified Discuss the pros and cons of each solution thoroughly From your alternative solutions, recommend one Develop the criteria you will use to review your options and select one Make a recommendation and explain your rationale Discuss how your recommendation adds value to shareholders and customers Show how your recommendation solves the issues and problems Explain why you think the firm has the capabilities to make your recommendation a success Be certain that your recommendation has few down-side implications

When Doing A Case… (Cont’d.) Propose an Implementation Plan of Action Consider what has to change in operations management Does customer management need to be altered? Does the firm need to come up with innovative products/processes etc.? Don’t forget about regulatory and social implications of your recommendation Then think through what human, IT and structural changes must be made Discuss how you will deal with resistance within the firm Think through how competitors will react to your new strategy and how the firm should deal with competitors’ counter-moves Develop a timeline for various major steps in your implementation plan Make Certain that Everything Fits Together That the issues or problems flow from the analysis That the alternatives address the issues or problems to some extent That the recommendation flows from the alternatives And that the firm is capable of implementing your recommendation