Must have Management experience and be able to do extensive research.

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THE GUIDELINE FOR THE CASE ANALYSIS

A LL INFORMATION IN THIS CASE ANALYSIS MUST BE PRESENTED IN ASCENDING ORDER OF DATES FROM LEFT TO RIGHT.

Y OU MUST USE THE SAME ORDER AND COLOR TO REPRESENT THE SAME COMPANY IN ALL GRAPHS, CHARTS, AND DIGRAMS THROUGHOUT YOUR PRESENTATION.

I. Review & study of the past and present situations of the com pany

• A Brief Historical Review: The reason for the company’s success • Current Mission (s) or Purpose (s). The mission statement must include the following

two factors: (use a time line) 1. Product (s) and/or Service (s) 2. Target Market (s)

• Current Performance Objectives. An Objective must include the following two factors: (use a time line)

1. What 2. When

• Historical Corporate Strategy (s) (Please indicate which of the following corporate strategies have been utilized by the company and during what period of time): (use a time line)

o Growth § Concentration

1. Horizontal Integration (Internal vs. External) 2. Vertical Integration (Internal vs. External)

§ Diversification 1. Concentric (Internal vs. External) 2. Conglomerate (Internal vs. External)

o Stability § Pause § Proceed With Caution § No Change § Profit

o Retrenchment § Turn Around

§ Divestment § Captive § Bankruptcy (Chapter 11)

§ Liquidation • Historical Competitive Strategies for each strategic business unit (Business) within

the Corporation (Please indicate which of the following competitive strategies have been utilized by each business within the company and during what period of time):

o Cost Leadership (use a time line) § Narrow Market, or § Broad Market

o Differentiation (use a time line) § Narrow Market, or § Broad Market

• Historical Functional Strategies (the ones that apply to the case)

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o Nature of Market (use a time line) § Consumer, § Industrial, § Government, or § Combinations

o Geographic Coverage (use a time line) § Local, § Regional, § National, or § International

o Breadth of Product Lines (use a time line) § Single, § Partial, or § Full

o Degree of Customization (use a time line) § Standard, § Modified, or § Customized

o Number of Distribution Channels: (use a time line) § Single or § Multiple

o Nature of Multiple Distribution Channels: (use a time line) § Competitive or § Complimentary

o Distribution forms: (use a time line) § Direct Selling to Consumers (End-Users) § Direct Selling to Retailers § Whole Sellers

o Degree of Selectivity of Channels for (use a time line) § Low (not selective/ intensive distribution) § Medium (selective distribution) § High (exclusive distribution)

o Pricing Level (use a time line) § Undercut § Competitive § Overprice (premium pricing)

o Advertising media (use a time line) § Print (provide examples) § Radio TV (provide examples) § Movies (provide examples) § Billboards (provide examples)

o Promotion emphasis (use a time line) § Push (provide examples) § Pull (provide examples) § Both (provide examples)

o Source of funds (use a table and a column chart to compare each of the following sources of funds, as a percentage of total assets, with at least three competitors for last five years)

§ Short Term Liabilities § Long Term Liabilities § Retained Earnings § Other Equities

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o Dividend Payment (Use a table and a column chart to compare PAYOUT RATIOS for the company with at least three competitors for last five years)

§ None § Low § Medium § High

o Credit (as a percentage of the total assets) (use a table and column Cart to compare with at least three competitors for last five years)

§ Capital Lease § Owned

o Methods of Growth (use a time line) § Internal Development § External Acquisition § Both

o Operations Systems 1. Degree of Automation (in compare to the average f the industry)

§ Highly Automated § Medium Automation § No Automation

2. Degree of Integration (in compare to the average f the industry) § High § Medium § Low

3. Plant (Store, Ship, Plane) Size (in compare to the average f the industry) § Many Small Size § Few Medium Size § One Large Size

4. Plant (Store, Ship, Plane) Location (in compare to the average f the industry) § Near Raw Material § Near Market

5. Type Of Equipment (use a time line) § General Purpose § Special Purpose

o Production Scheduling (use a time line) § For Inventory § For Customer Orders

o Inventory Levels (Inventory turnover compared to at least three competitors for the last five years)

§ High, § Medium, or § Low

o Quality Control (Common sized QC expenditure in compare to at least three competitors for the last five years)

§ Tight, § Moderate, or § Loose

o R&D (Common sized R&D expenditure in compare to at least three competitors for the last five years)

§ Follower or § Leader

o R&D Emphasis (use a time line)

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§ Applied, § Balance, or § Basic

o Engineering Emphasis (for manufactures) (use a time line) § Product, § Balanced, or § Process

o Nature of Product design (for manufactures) (use a time line) § Modular or § Non-Modular

o Design Stability (for manufactures) (use a time line) § Frozen or § Many Changes

II. Historical Review of the corporate Actual Performance (compare to at least with three competitors for the last five years for each of the following))

• Stock Performance (NOT just prices) (at least for the last 5 years) (also compare to S&P 500) • Market Share (at least for the last 5 years) (use 5 pie-charts and only one column chart) • Net Sales (at least for the last 5 years) (use a table and a column chart) • Net Income (at least for the last 5 years) (use just one column chart) • Number of the Stores for retail companies (at least for the last 5 years) (use a table and

a column chart) • Dollar-Profit-per-store for retail companies (at least for the last 5 years) (use a table and

a column chart) • Number of the Units produced for manufacturing companies (at least for the last 5

years) (use a table and a column chart) • Dollar-Profit-per-unit of produced for manufacturing companies (at least for the last 5

years) (use a table and a column chart) • Total square feet of retail floor area (at least for the last 5 years) (use a table and a

column chart) • Dollar-Profit-per-square-foot for retail companies (at least for the last 5 years) (use a

table and a column chart) • Number of employees (at least for the last 5 years) (use a table and one column chart) • Dollar-Profit-per-employee (at least for the last 5 years) (use a table and a column bar

chart) • Profitability Ratios (at least for last 5 years) (use a table for each ratio & a column chart for

each ratio) • Common sized income statements (at least for 5 years) (use 5 tables one for each year)

Is the company’s current performance satisfactory? Is the company achieving its performance objectives? (Is there any performance gap)?

III. Exam ination of the Corporate Top Decision M akers (strengths and w eaknesses)

The board of directors of the company:

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1. The ratio of the internal vs. external directors 2. Board committees & their membership (external vs. internal)

1) Executive Committee (members and the chairperson) 2) Audit Committee (members and the chairperson) 3) Compensation Committee (members and the chairperson) 4) Nomination Committee (members and the chairperson) 5) Others (members and the chairperson)

3. The degree of involvement of external directors as is indicated by factors such as (use a tables to summarize the information)

1) Board’s prior decisions 2) Board members’ compensation amounts & forms 3) Board members’ relevant experience 4) Board members' relevant education 5) Board members‘ stock ownership in the company 6) The personal profile of the board members (Sex, Age, Ethnicity, Religion, National

Origin, or Membership to any Group) if and when they are relevant to the company’s performance (use a table show averages and lowest and highest)

Top management 1. A historical review of management style (s) in the company 2. Top management team’s compensations (Amounts and forms) (use a table to compare with

competition) 3. The membership of the top management team in the board and the board’s committees 4. The profile of the top management team (Age, Sex, and Ethnicity, Religion, National Origin)

if and when they are relevant to the company’s performance. (use a table show averages and lowest and highest)

5. The relationship among the members of the top management team (family and other close relationships)

Management Productivity ratios (for the last 5 years) (compared to the competition & industry) (use a table and a Column chart for each ratio)

1. Dollar-Sales-per-square -foot for retail companies 2. Dollar-Sales-per-employee for retail stores and manufacturing 3. Production-per- unit for manufacturing 4. Dollar-Sales-per-store for retail companies 5. Please be creative and use productivity units such as per ship, per airplane, per bed/trip, per

seat/mile, per transaction, per purchase, per visitor, per ticket, and so forth. Management Efficiency Ratios/ Activity rations (for the last 5 years) (compared to the competition & industry) (use a table and a column chart for each ratio)

1. Receivables Turnover & Average Collection Period 2. Inventory Turnover & Days of inventory 3. Fixed Asset Turnover & Total Asset Turnover

Is the management effective?

IV. Examination of the Internal Environment of the company (strengths and weaknesses)

• Corporate culture 1. Depth (intensity)

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2. Breadth (integration) • Corporate structure (chain of command)

1. Simple 2. Functional 3. Divisional 4. Conglomerate 5. Matrix 6. Hybrid

• Corporate resources (physical resources, human skills, & organizational capital, both tangible & intangible in nature):

o Study the firm’s resources o Identify its strengths or weaknesses as compare to that of its competitors,

determine the firms capabilities o List the firm’s core competencies (Capabilities that improve the firms competitive

position in a relatively sustainable manner). § Financial resources (Compare to at least with 3 Competitors)

§ Common size balance sheets (for the last 5 years) (compared to at least three competitions) (use 5 tables one for each year)

§ Leverage ratios (for the last 5 years) (compared to at least three competitions) (use a table and a column chart for each ratio)

§ Liquidity ratios (for the last 5 years) (compared to at least three competitions) (use a table and a column chart for each ratio)

§ Manufacturing/ Operations resources § Computerization § Automation § Integration § Intermittent/continuous § Overall capacity § Rate of capacity utilization)

Research & Development resources § R&D mix: process, product, & mix § The degree of R& D intensity § The degree of technological competence in use of new innovations § The degree of proficiency in technology transfer

§ Marketing resources (marketing mix) § Product § Place § Promotion § Price

§ Human resources § Diversity § Quality of work life § Utilization of autonomous work teams

§ Information technology resources § Internet § Intranet § Extranet § EDI § E- commerce § E-business)

What are the major Strength & Weaknesses of the Company?

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V. Examination of the External Environment of the company

• Task Environment/ Industry analysis (Short Term Threats & Opportunities), (for each strategic business unit)

o Competitors (the level of Competition) o Potential Entrants (barriers to entry) o Substitute Product/Services (the degree of availability & proximity) o Customers (Buyers) (bargaining power) o Suppliers (bargaining power) o Other Interest groups such as Unions, Communities, Environmentalist, and so forth (if

applicable) (bargaining power) • Societal Environment (Long Term Threat & Opportunities) (please do this section of the preparations as a group)

o Socio-cultural Forces (Forecasts for next 10 years) o Political/Legal Forces (Forecasts for next 10 years) o Technological Forces (Forecasts for next 10 years) o Economic Forces (Forecasts for next 10 years)

In this section: first identify which societal forces are critical to the company’s performance then explain how and through which industry factor (s) each of those forces effect the performance of the company, finally find the future forecasts about each of those critical forces. SWOT Analysis (Summary of most important strength, weaknesses, Opportunities, & threats)

Is the company’s short- term & long-term performance

satisfactory (optimal)?

VI. Prepare and recommend new plan (s) to deal with the above environmental opportunities and threats based on the companies strengths and weaknesses. The new plans may involve revisions in any of the following factors if based on the above analysis it became clear that revision (s) would

improve the long-term performance of the company’s: • Mission

• Objectives • Strategies (1. Corporate, 2. Competitive, & 3. Functional) • Policies

VII. Develop Programs, Budgets, and procedures to implement each single plan VIII. Develop Control Procedure, Standards & Feedback, to detect deviation from plans.

METHOD OF PRESENTATION • All presentations must be computer presentations. • All presentations must use power-point presentation software.

REQUIRED HANDOUTS 1. Presenters must provide a color printed copy of their slides to the instructor prior to their

presentation (one slide per page) 2. Presenters must provide each of their classmates with a copy of the following material to

each of the other students in the class prior to presentation: 1) A fifty multiple-choice questions test. The questions should be in the same order as

the presentation. All test shall be collected by the presenting team at the conclusion of their presentation, graded then returned to the instructor at Last class meeting with a worksheet containing names and grades.

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2) A detail outline of the presentation including the names of the presenters and the detail topics of presentation;

3) Three to five pages of important facts about the case (in bullet format); 3. Presenters are encouraged to use as many forms of visual aids such as posters, videos,

and computer animations.