business strategy

Wednesday, August 30, 2017

MGMT 485: Directions for Report 2

1. Evaluation of the firm’s current strategies: In this section, you briefly summarize the contents of your first report. Identify and explain the firm’s current strategies. How are they working in the marketplace? Revisit and refine your examination of firm performance. Also use the materials in the textbook chapter “Strategy Review, Evaluation, and Control” to examine the firm’s current strategies. (5 points)

2. Identification of potential new strategies (matching stage): In this section, use SWOT matrix, SPACE matrix, and BCG matrix to generate a list of potential strategies and justify their appropriateness for the firm. (10 points)

3. Selection of the best strategy (decision stage): In this section, you essentially select the best strategy for the firm to pursue. Carefully justify your selection by: (1) revisiting the matching stage tools to evaluate the strategic environment that the firm faces and (2) developing a QSPM. Make a conclusion based on both strategic and financial considerations. (10 points)

4. Strategy implementation: Explain how the chosen strategy can be implemented in terms of management, operations, marketing, information systems, and so on. Estimate specific costs and potential revenues. The more specific you get, the better it is. Do a cost and benefit analysis (NPV analysis) of the chosen strategic option based on your implementation plan. (10 points)

5. Financial analysis: Based on the estimated costs and revenues, examine the financial impact of the chosen strategy. (10 points)

· EPS/EBIT analysis (at 5 varying debt-equity levels: 100-0, 75-25, 50-50, 25-75, 0-100)

· Projected income statement for year 1, and 2 (with comments and explanations of key estimated figures)

· Projected balance sheet for year 1 and 2 (with comments and explanations of key estimated figures)

· Projected financial ratios for year 1 and 2 (with comments on the changes in light of the past ratio patterns.)

6. Strategy evaluation and contingency plans: Discuss the assumptions you make in estimating the figures and explain what would you do if the assumptions are not met. (5 points)

* Report 2 does not have a target length and does not have a minimum number of references. However, you will need lots of space and a lot of references if you are to convince the reader of the merit of your chosen strategy.