GROUP CASE STUDY 1 INSTRUCTIONS
Complete a case study of ABC Corporation (your instructor
will assign the specific company for the case study at the beginning of
Module/Week 3) in the case section of the text (e.g., Case Number 1).
A formal, in-depth case study analysis requires you to
utilize the entire strategic management process. Assume your group is a
consulting team asked by the ABC Corporation to analyze its external/internal
environment and make strategic recommendations. You must include exhibits to
support your analysis and recommendations.
The case study must include these components:
A total
of 10–12 pages of text plus the exhibits
Cover
page (must include the company name, your group name, a list of the active team
members, the date of submission, and a references page; the document must
follow current APA guidelines.)
Matrices,
which must be exhibits/attachments in the appendix and not part of the body of
the analysis (The Strategy Club has excellent templates/examples for exhibits
and matrices: http://strategyclub.com/free-student-template/)
Case study deliverables (text must follow this order with
current APA-level headings for each component):
Executive
Summary
Existing
mission, objectives, and strategies
A new
mission statement (include the number of the component in parenthesis before
addressing that component)
Great mission statements address these 9 components:
Customers:
Who are the firm’s customers?
Products
or services: What are the firm’s major products or services?
Markets:
Geographically, where does the firm compete?
Technology:
Is the firm technologically current?
Concern
for survival, growth, and profitability: Is the firm committed to growth and
financial soundness?
Philosophy:
What are the basic beliefs, values, aspirations, and ethical priorities of the
firm?
Self-concept:
What is the firm’s distinctive competence or major competitive advantage?
Concern
for public image: Is the firm responsive to social, community, and
environmental concerns?
Concern
for employees: Are employees a valuable asset of the firm?
Analysis
of the firm’s existing business model
?
SWOT
Analysis (comes from researching the firm, industry, and competitors)
It is important to know the difference between causes and
effects in the SWOT analysis. Causes are important, not effects. Once the SWOT
Analysis is created, each group needs to construct the SWOT Bivariate Strategy
Matrix.
Deliverables for this section include:
SWOT
Analysis
Internal
Factor Evaluation (IFE) Matrix
External
Factor Evaluation (EFE) Matrix
SWOT
Bivariate Strategy Matrix
BCG
Matrix (follow the Strategy Club’s template, not the textbook’s format)
Competitive
forces, Competitive Profile Matrix (CPM), and competitor’s ratios
Deliverables for this section include:
Competitive
forces analysis
CPM and
analysis
Competitor’s
ratios and analyis
Current
and historical Financial Statements (Income Statement (I/S), Balance Sheet
(B/S) and Statement of Cash Flows) from the 3 most current years for the firm
The financial statements must include changes (deltas)
between years.
Ratios
from the most current and available 3 years with deltas and analysis
Alternative
strategies (giving advantages and alternatives for each)
Pro-Forma
Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3
years and analysis
Each year must have 2 columns: 1 with your strategy and 1
without your strategy.
Include
Pro-Forma ratios for the first year out with deltas contrasting from the most
current year’s ratios.
Net
Present Value analysis of proposed strategy’s new cash flow and EPS/EBIT
analysis
NOTE: To construct the first cash flow (cf1) at the very
minimum, the new revenue from your strategy(s) must be discounted back to the
present value by calculating EBIT and that figure will be your cfn for each
year. cf0 (initial cost of your strategy), cf1 (discounted cash flow first
year), r (opportunity cost of capital, the rate of the next best alternative
use of cash/debt/equity resources).
NPV=-?cf?_0+ ?cf?_1/(1+r)^1 +?cf?_2/(1+r)^2 +?cf?_3/(1+r)^3 …?cf?_n/(1+r)^n
Specific
recommended strategy and long term objectives
Explain why you chose the strategy, and discuss how much the
strategy will cost to implement and how much new revenue your strategy will
create. Include your action timetable agenda for accomplishing your strategy.
Proposed
new business model
Have your group leader place the results of the case study
analysis in a single document and post it to the Group Case Study 1 forum on
your Group Discussion Board Forum.
Submit this assignment by 11:59 pm (ET) on Sunday of
Module/Week 4.
