BMGT

BMGT - Project 3:  Internal Environment Analysis

NOTE: You are expected to use proper citation of sources as specified in the APA Publication Manual, 6th Ed. (Students are held accountable for in-text citations and an associated reference list only).  

Purpose: 

Students will perform an internal environmental analysis using the tools and concepts learned in the course to date.  You will also draw from previous business courses to develop an understanding of how organizations develop and manage strategies to establish, safeguard and sustain its position in a competitive market. 

Students also have the opportunity to review an organization's objectives and goals and the key functional areas within the organization.  Performing an internal environment analysis helps assess a firm's internal resources and capabilities and plays a critical role in formulating strategy by identifying a firm's strengths to capitalize on so that it can effectively overcome weaknesses.  

Skill Building:

In this project, you are building many different skills including research, critical thinking, writing and developing analytical skills related to various financial analysis tools and strategy tools used in business.  

Outcomes Met With This Project:

· utilize a set of useful analytical skills, tools, and techniques for analyzing a company strategically;

· integrate ideas, concepts, and theories from previously taken functional courses including, accounting, finance, market, business and human resource management;

· analyze and synthesize strengths, weaknesses, opportunities, and threats (SWOT) to generate, prioritize, and implement alternative strategies in order to revise a current plan or write a new plan and present a strategic plan.

Instructions:

Research for Financial Analysis:   Financial Research

Research for Industry Analysis  CSI Market

Step 3:  How to Set Up the Report

Use this template to complete the project:  Project 3 Template (SEE BELOW).  The document has to be written in Word or rtf.  No other format is acceptable.  No pdf files will be graded.  Use 12-point font for a double-spaced report.  The final product cannot be longer than 16 pages in length, which includes all tables and matrices but excludes the title page and reference page.  Do no use an Appendix.   Those items identified in the technical analysis should appear under the appropriate heading in the paper.  It is important to format the tables/matrices to fit the report and to present the analysis in a clear concise manner.

Title page with title, your name, the course number, the instructor's name;

Step 4: Strategic Role of Corporate Strengths/Weaknesses in the Internal Strategy Analysis

There are three levels of strategy:  corporate level strategy, business level strategy and functional level strategy.  Corporate level strategies are related to businesses or markets the focal company successfully can compete within.  Corporate level strategies affect the entire organization and are formulated by top management using input from middle and lower management.  Decision making about corporate level strategies are considered complex, affect the entire company and relate to an organization’s resource capabilities.  Corporate level strategies align with an organization’s mission statement and ideally are designed around goals and objectives. 

Perform an analysis on:

· Corporate-level strategies

· Create a partial SWOT table and performs a SW analysis and discuss the strategic inferences/implications (Discuss what strategies would allow the company to capitalize on its major strengths and what strategies would allow the company to improve upon its major weaknesses.)

· Create an IFE matrix analysis.  Make sure to explain how the matrix was developed and discuss the strategic inferences/implications

· Develop a Grand Strategy Matrix.  Make sure to explain how the matrix was developed and discuss the strategic inferences/implications at a corporate level and business-unit-level.

Step 5:  Strategic Role of Internal Resources/Departments/Processes

Perform an analysis on:

· Business-level strategies

· Evaluate the company's product line, target market 

· Identify and explain business-level strategies

· Functional-level strategies

· Assess the company's organizational structure, the organizational culture, marketing production, operations, finance and accounting, and R&D that can be accomplished by viewing the company's website, interviews, and surveys.

· Explain how these strategies align with the company's vision and mission statements.

 Step 6:  Strategic Financial Analysis for the Last Reported Fiscal Year 

· Use the company's income statement and balance sheet to calculate no less than a total of ten (10) key financial ratios to the business that are relevant to the focal company.  There must be a mix of four different key categories inclusive of the leverage, liquidity, profitability, and efficiency ratios so that the ratios do not all come from the same category. The specific ratios selection must come from the following categories.

· Leverage Ratios (Long term debt ratio, Total debt ratio, Debt-to-equity ratio, Times interest earned ratio, and Cash coverage ratio).

· Liquidity Ratios (Net working capital to total assets ratio, current ratio, quick ratio, and cash ratio)

· Efficiency Ratios (Asset turnover ratio, Average collection period, Inventory turnover ratio, and Days sales outstanding)

· Profitability Ratios (Net profit margin, Return on assets, and Return on equity) 

· The selection of the ratios has to be relevant to the focal company so it is important to choose wisely.

· Quote industry financial average ratios that correlate to the 10 financial ratios selected for the focal company.  You may find the industry averages by going to the library.  If you are unable to find on your own, reach out to the librarian as these resources are readily available.

· Discuss the corporate financial standing based on a financial ratio analysis.  Include whether the company's financial ratio is a strength, a weakness or a neutral factor.

Note:  If copied directly from the Internet, a zero will be assigned. When placing any table or figure in a table, it must be explained in detail.

Step 7:  Composite Analysis

A composite analysis is one in which you will bring in a combination of relevant factors from the various analyses (EFE Matrix, IFE matrix, CPM matrix, SWOT, Grand Strategy Matrix and QSPM).  The QSPM is a tool that helps determine the relative attractiveness of feasible alternative strategies based on the external and internal key success factors.

· Develop a Quantitative Strategic Planning Matrix (QSPM) analysis.   Make sure to discuss how the matrix was developed and discuss the strategic inferences/implications.

· Develop a composite analysis on internal factor strategy analysis based on the qualitative and quantitative analytical outcomes from those steps above.

Report Requirements to Follow

In writing the report,

· Use the grading rubric while completing the project to ensure all requirements are met that will lead to the highest possible grade. 

· Third person writing is required.  Third person means that there are no words such as "I, me, my, we, or us" (first person writing), nor is there use of "you or your" (second person writing).  

· Contractions are not used in business writing, so do not use them. 

· Use in-text citations and provide a reference list that contains the reference associated with each in-text citation.

· You may not use books in completing this project.

· Provide the page or paragraph number in every in-text citation presented.

Project 3 Template

Introduction

(The Introduction paragraph is the first paragraph of the paper and will be used to describe to the reader the intent of the paper explaining the main points covered in the paper.  This intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is being covered in the paper.  Write the introduction last to ensure all of the main points are covered.)

Strategic Role of Corporate Strengths/Weaknesses in the Internal Strategy Analysis

(1. Perform an analysis on the focal company’s corporate-level strategies.)

(2. Create a partial SWOT table and performs a SW analysis and discuss the strategic inferences/implications (Discuss what strategies would allow the company to capitalize on its major strengths and what strategies would allow the company to improve upon its major.) weaknesses.)

(3. Create an IFE matrix analysis.  Make sure to explain how the matrix was developed and discuss the strategic inferences/implications.)

(4. Develop a Grand Strategy Matrix.  Make sure to explain how the matrix was developed and discuss the strategic inferences/implications at a corporate level and business-unit-level.)

Strategic Role of Internal Resources/Departments/Processes

(1. Perform an analysis on the focal company’s business-level strategies)

a. Evaluate the company's product line and target market.)

b. Identify and explain business-level strategies.)

(2. Perform an analysis on the focal company’s functional-level strategies)

a. Assess the organizational structure, the organizational culture, marketing production, operations, finance and accounting, and R&D that can be accomplished by viewing the company's website, interviews, and surveys.)

b. Explain how these strategies align with the company's vision and mission statements.)

Strategic Financial Analysis for the Last Reported Fiscal Year 

(1, Use the company's income statement and balance sheet to calculate no less than a total of ten (10) key financial ratios to the business that are relevant to the focal company.  There must be a mix of four different key categories inclusive of the leverage, liquidity, profitability, and efficiency ratios so that the ratios do not all come from the same category. The specific ratios selection must come from the following categories.)

a. Leverage Ratios (Long term debt ratio, Total debt ratio, Debt-to-equity ratio, Times interest earned ratio, and Cash coverage ratio).

b. Liquidity Ratios (Net working capital to total assets ratio, current ratio, quick ratio, and cash ratio)

c. Efficiency Ratios (Asset turnover ratio, Average collection period, Inventory turnover ratio, and Days sales outstanding)

d. Profitability Ratios (Net profit margin, Return on assets, and Return on equity) 

(The selection of the ratios has to be relevant to the focal company so it is important to choose wisely.)

(2. Quote industry financial average ratios that correlate to the 10 financial ratios selected for the focal company.)

(3. Discuss the corporate financial standing based on a financial ratio analysis.  Include whether the company's financial ratio is a strength, a weakness or a neutral factor.

Note:  Use the library to find the industry averages. A librarian can assist if you have difficulty finding. If copied directly from the Internet, a zero will be assigned. When placing any table or figure in a table, it must be explained in detail.

Composite Analysis

A composite analysis is one in which you will bring in a combination of relevant factors from the various analyses (EFE Matrix, IFE matrix, CPM matrix, SWOT, BCG Matrix, Grand Strategy Matrix and QSPM).  The QSPM is a tool that helps determine the relative attractiveness of feasible alternative strategies based on the external and internal key success factors.

(1. Develop a Quantitative Strategic Planning Matrix (QSPM) analysis.   Make sure to discuss how the matrix was developed and discuss the strategic inferences/implications.)

(2. Develop a composite analysis on internal factor strategy analysis based on the qualitative and quantitative analytical outcomes from those steps above.

Conclusion

(Create a concluding paragraph.  The Conclusion is intended to emphasize the purpose/significance of the analysis, emphasize the significance/consequence of findings, and indicate the wider applications that are derived from the main points of the project’s requirements.  You will draw conclusions about the findings of the external environment analysis.)

References

(The reference page is on a separate page from the report. The reference page is completed according to APA with each reference left-justified with hanging indentation for subsequent lines. References are completed in alphabetical order. Please see the module, Learn to Use APA to ensure references are in APA format.)

RESOURCES

Criteria

Equivalent to an A

Corporate-level strategy analysis

Thoroughly and correctly analyzes corporate level strategies using BOTH research and course material to support reasoning.

(1.08 - 1.20)

Create a partial SWOT table

Thoroughly and correctly creates a partial SWOT - SW citing the sources from the research.

(0.9 - 1.0)

SW Analysis:

Thoroughly and correctly performs a SW analysis and discusses the strategic inferences/implications/strategies that would allow the company to capitalize on its strengths and strategies that would allow company to improve upon its major weaknesses using BOTH research AND course material to support reasoning.

(1.08 - 1.20)

Create an IFE matrix analysis and address the strategic inferences/implications

Thoroughly and correctly presents an IFE matrix analysis and address the strategic inferences/implications using BOTH research AND course material to support reasoning. 

 (0.9 - 1.0)

Develop a Grand Strategy Matrix with an analysis that discusses the strategic inferences/implications at a corporate level and business-unit-level

Thoroughly and correctly develops a Grand Strategy Matrix with an analysis that discusses the strategic inferences/implications at a corporate level and business-unit-level using BOTH research AND course material to support reasoning and conclusions.

 (0.9 - 1.0)

Evaluate the company's product line and target market

Thoroughly and correctly evaluates company's product line and target market  using BOTH research AND course material to support reasoning.

(1.08 - 1.20)

Identify and explain business-level strategies

Thoroughly and correctly identifies and explain business-level strategies using BOTH research AND course material to support reasoning. 

(1.08 - 1.20)

Assess the company's org structure, org culture marketing production, operations, finance/accounting, R&D

Explain how functional-level strategies align with the company's vision and mission statements

Thoroughly and correctly assesses the company's  org structure, org culture,   marketing production, operations, finance/accounting, and R&D,  using both research AND course material to support reasoning and conclusions. (0.9 - 1.0)

Thoroughly and correctly explains how the functional-level strategies align with the company's vision and mission statements using BOTH research AND course material to support reasoning and conclusions.

(0.90 - 1.0)

Ratio calculation and presentation of industry averages.

Correctly calculates no less than a total of ten (10) key financial ratios for the company using only relevant ratios for the company and presents same industry averages across the four categories.

(0.90 - 1.0)

Financial analysis: Discuss the corporate financial standing based on a financial ratio analysis. Include whether the company's financial ratio is a strength, a weakness or a neutral factor.

Thoroughly and correctly performs a financial analysis and discusses corporate financial standing and determines whether a strength, weakness or neutral factor using BOTH calculations AND course material to support reasoning and conclusions.

 (0.9 - 1.0)

Develop a Quantitative Strategic Planning Matrix (QSPM) analysis and address the strategic inferences/implications.

Thoroughly and correctly develops a QSPM  and addresses the strategic inferences/implications using BOTH the course material AND the Tools & Techniques developed throughout the course to support reasoning.  

 (0.9 - 1.0)

Develop a composite and consistent view on internal factor strategy analysis based on the qualitative and quantitative analytical outcomes

Develop a composite analysis on internal factor strategy analysis based on the qualitative and quantitative analytical outcomes from those steps above.

Thoroughly and correctly develops a composite and consistent view on internal factor strategy analysis based on the qualitative and quantitative analytical outcomes using BOTH research AND course material to support reasoning.

(1.08 - 1.20)

Thoroughly and correctly develops composite analysis on internal factor strategy analysis based on the qualitative and quantitative analytical outcomes using BOTH the course material AND the Tools & Techniques developed throughout the course to support reasoning.  

 (0.9 - 1.0)

Attention to Instructions

The paper contains completion of all major assignment tasks including writing the report.  The paper also includes completion of all minor aspects of the assignment such as third person writing, required use of course readings, outside sources if needed, and assignment format.

(1.8 - 2.0)

Writing Mechanics

Strictly adheres to standard usage rules of written English, including but not limited to capitalization, punctuation, run-on sentences, missing or extra words, stylistic errors, spelling and grammatical errors. No errors found. No contractions or jargon used.

(1.8 - 2.0)

APA Style (6th ed.)

No APA style or usage errors; Proper citation of source material is used throughout paper; Reference titles follow APA with only the first word, the first word after a colon and proper nouns capitalized.

(0.9 - 1.0)