capstone case study

Checklist and tips:

· Justify the need for a new mission statement using your findings from the Mission statement analysis earlier in your case analysis.

· The new mission statement must have:

· Characteristics (see textbook Table 2-3, page 47); and

· Nine components (see textbook, page 48) of a mission statement.

SWOT (TOWS) Analysis 

Checklist and tips:

· The SWOT Analysis is the first analysis completed, after the mission statement;

· You may use the downloadable template in strategyclub.com for your analysis.

· The SWOT Analysis is the basis for all of the subsequent analysis in the case study.  “First, SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. The matrix should be the starting point for a discussion on how proposed strategies could be implemented as well as cost-benefit considerations that ultimately could lead to competitive advantage. Second, SWOT is a static assessment (or snapshot) in time…Third, SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies” (David & David, 2017, pp. 172-174). 

· Complete the SWOT before completing the EFE Matrix and IFE Matrix:

· The EFE Matrix uses the SWOT opportunities and threats;

· The IFE Matrix uses the SWOT strengths and weaknesses

· Identify 40 factors: 10 strengths, 10 weaknesses, 10 opportunities, and 10 threats.

· Remember, that each factors must be quantified, specific and not vague, and "actionable"

· Each SWOT factor must be measurable (qualified),  specific, and actionable .  “Both internal and external factors should be stated in specific terms to the extent possible, using numbers, percentages, dollars, and ratios, as well as comparisons over time and to rival firms. Specificity is important because strategies will be formulated and resources allocated based on this information. the more specific the underlying external and internal factors, the more effectively strategies can be formulated and resources allocated. Determining the numbers takes more time, but survival of the firm often is at stake, so identifying and estimating numbers associated with key factors is essential” (David & David, 2017, p. 12).

· Internal Strengths and Weaknesses

· Controllable : “Internal strengths and internal weaknesses are an organization’s  controllable activities that are performed especially well or poorly. they arise in the management, marketing, finance/accounting, production/operations, research and development (R&D), and management information systems (MIS) activities of a business” (David & David, 2017, pp. 11).

· Functional areas:  “Identifying and evaluating organizational strengths and weaknesses  in the functional areas  [emphasis added] of a business is an essential strategic-management activity” (David & David, 2017, p. 11).

· Performance based:  “Strengths and weaknesses are determined relative to competitors. Relative deficiency or superiority is important information. also, strengths and weaknesses can be determined by elements of being rather than performance. For example, a strength may involve ownership of natural resources or a historic reputation for quality. Strengths and weaknesses may be determined relative to a firm’s own objectives. for example, high levels of inventory turnover may not be a strength for a firm that seeks never to stock-out” (David & David, 2017, p. 12).

· Use Figures.   “Internal factors can be determined in a number of ways, including computing ratios, measuring performance, and comparing to past periods and industry averages. various types of surveys also can be developed and administered to examine internal factors such as employee morale, production efficiency, advertising effectiveness, and customer loyalty” (David & David, 2017, p. 12).

· Opportunities and threats

· Uncontrollable:  Opportunities and threats are largely beyond the control of a single organization—thus the word external" (David & David, 2017, p. 11).

· External trends, events, facts:  "External opportunities and external threats refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trends and events that could significantly benefit or harm an organization in the future. Opportunities and threats are largely beyond the control of a single organization—thus the word external" (David & David, 2017, p. 11). 

· See examples of some opportunities and threats on page 10 of the textbook.  The examples of opportunities and threats on page 10 of the textbook are the “types of changes are creating a different type of consumer and consequently a need for different types of products, services, and strategies. Many companies in many industries face the severe external threat of online sales capturing increasing market share in their industry” (David & David, 2017, p. 11). 

· “Other opportunities and threats may include the passage of a law, the introduction of a new product by a competitor, a national catastrophe, or the declining value of the euro. a competitor’s strength could be a threat. a growing middle class in Africa, rising energy costs, or social media networking could represent an opportunity or a threat” (David & David, 2017, p. 11).