BMGT 495

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PROJECT4.docx

BMGT 495 - Project 4: Strategy Selection, Implementation and Evaluation

Sembcorp Industries, Ltd.

NOTE:  All submitted work is to be your original work. You may not use any work from another student, the Internet or an online clearinghouse.  You are expected to understand the Academic Dishonesty and Plagiarism Policy, and know that it is your responsibility to learn about instructor and general academic expectations with regard to 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:  

This project is the last of four projects.  You will generate a pool of alternative strategies, evaluate these alternative strategies, and select the best strategy using the tools and concepts learned throughout the course.  You will develop implementation plans, evaluative plans to control the implementation process, and plan for post-evaluation measures. 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.  

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.   You will select optimal strategies, design how to implement and evaluate the implementation process of the optimal strategies.

Outcomes Met With This Project:

· Examine the impact of ethical decision making, social responsibility, stakeholder analysis, and corporate governance on organizations and society

· 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;

· Evaluate the outcomes of identified strategies to determine their success and impact on short-term and long-term objectives. 

Instructions: 

Step 1:  Course Material and Research

· You are required to research information about the focal company and the internal environment for this project, You are accountable for using the course materials to support the ideas, reasoning and conclusions made.  Course materials use goes beyond defining terms but is used to explain the 'why and how' of a situation.  Using one or two in-text citations from the course materials and then relying on Internet source material will not earn many points on the assignment.  A variety of source material is expected and what is presented must be relevant and applicable to the topic being discussed.   Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact.  In closing the loop, you will demonstrate the ability to think clearly and rationally showing an understanding of the logical connections between the ideas presented from the research, the course material and the question(s) being asked.

· Note:  Your report is based on the results of the research performed and not on any prepared documentation.  What this means is that you will research and draw your own conclusions that are supported by the research and the course material rather than the use any source material that puts together any of the tools or techniques whether from the Internet, for-pay websites or any pre-prepared document, video or source material.  A zero will be earned for not doing your own analysis.

· Success:  The analysis is based on research and not opinion.  You are not making recommendations and you will not attempt to position the focal company in a better or worse light than other companies within the industry merely because you are completing an analysis on this particular company.  The analysis must be based on factual information.  Any conclusions drawn have to be based on factual information rather than leaps of faith.  To ensure success, as stated above, you are expected to use the course materials and research on the focal company's global industry and the focal company.  Opinion does not earn credit nor does using external sources when course materials can be used.  It is necessary to provide explanations (the why and how) rather than making statements.   Avoid stringing one citation after another as doing so does not show detailed explanations.

Step 2:  Research 

In completing the report, you will use the chapters in the eBook as a guide and perform research on the same company as in Projects 1 and 2, answer the required elements below in narrative form following the steps. 

Note:  Your report is based on the results of the research performed and not on any prepared documentation.  What this means is that you will research and draw your own conclusions that are supported by the research and the course material rather than the use any source material that puts together any of the tools or techniques whether from the Internet, for-pay websites or any document, video or source material.  A zero will be earned for not doing your own analysis.

Library Resources

On the main navigation bar in the classroom select, Resources and then select Library.  Select Databases by Title (A - Z).  Select M from the alphabet list, and then select Mergent Online.   You may also use Market Line and should be looking at the focal company's Annual Report or 10K report.  You are not depending on any one resource to complete the analysis.  It is impossible to complete a Porter’s Five Forces, competitive analysis or OT by using only course material.

You should not be using obscure articles, GlassDoor, or Chron or similar articles.  

Research for Financial Analysis:  Financial Research

Research for Industry Analysis CSI Market

UMGC library is available for providing resources and services. Seek library support for excellence in your academic pursuit.  

Library Support

Extensive library resources and services are available online, 24 hours a day, seven days a week at https://www.umgc.edu/library/index.cfm to support you in your studies.  The UMGC Library provides research assistance in creating search strategies, selecting relevant databases, and evaluating and citing resources in a variety of formats via its Ask a Librarian service at https://www.umgc.edu/library/libask/index.cfm.

Scholarly Research in OneSearch

To search for only scholarly resources, you are expected to place a check mark in the space for “Scholarly journals only” before clicking search.  

Step 3:  Specific Company for All Three Projects 

For this project, each student in this course has been specifically assigned by your instructor to write an independent report on one focal company.  The assigned company must be used for all three projects in this course.  You are not allowed to write the reports on any other company different from the company specifically assigned by your instructor.  Students who fail to use the specifically assigned companies from the list or use an unapproved company will receive a zero for the project. 

The company that your instructor has assigned to you will be used for this project.

Step 4Preparation for the Project

Before you begin writing the report, you will read the following requirements that will help you meet the writing and APA requirements.  

· You will be doing an analysis on the selected company.  When doing an analysis you are not merely making statements that may be cited.  Instead, you will be supporting the statements made.  “Support” is the process of explaining, discussing and analyzing “why” and “how,” which is a higher level critical analytical skill that is required for this class.  Support is needed to do well on this project.

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

Step 5:  How to Set Up the Project 

· 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, excluding the title page and reference page.  Those items identified in the implementation and action plans should appear under the appropriate heading in the paper.  Do no use an Appendix. 

· Create a title page with title, your name, the course number, the instructor's name.

Use the following template using the headings to separate elements.  Do not use bullets in your paper as the required format is in narrative format with indented paragraph and no extra space between paragraphs.

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.)

Alternative Strategy Generation

To generate a pool of strategies, you will look at the organization’s business level strategy, corporate level strategy and global strategy.   Using the information and data collected from your research, and the analytical outcomes from (a) external factor analysis in your Project 1 and (b) internal factor analysis in Project 2, you will generate a pool of strategies.

· Generate a minimum of three possible alternative strategies for the company.

· Identify and discuss cultural and organizational factors that should be considered in analyzing and choosing among the alternative strategies.

Strategy Prioritization

· Prioritize strategies and explain using the course material to support the reasoning – Use the tools learned in the course.

Strategy Selection

· Explain how to select the best strategy or strategies

· Recommend the best one or two strategies and long-term objectives among the alternative strategies and explain why these strategies and objectives are best

· Identify strategy recommendations using the following format for the formulation of strategies.   Make sure you are thorough in your presentation.

· View Strategy Content Guidelines.

· Goal (The desired outcomes to be achieved)

· Objective (Measurable milestone toward accomplishing the Goal)

· Strategy (The approach used to achieve the Goal)

· Tactic (A specific activity undertaken to implement the Strategy)

· Review this resource to differentiate between Strategy Versus Operations and Strategy Versus Tactics

Strategy Implementation

· Recommend procedures for strategy implementation.

· Discuss who, what and how to implement the selected strategy or strategies at the corporate level, business-unit level, and functional level.

Strategy Evaluation

Use frameworks and tools discussed throughout the course.  Support the reasoning and conclusions made.

· Discuss procedures for strategy review and evaluation

· Discuss the appropriate evaluative measures (including who, what, when and how at the corporate level, business-unit level, and functional level)

· Discuss a corrective action plan (including who, what, when and how) at the corporate level, business-unit level, and functional level.)

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

Step 6:  Review the Paper 

Read the paper to ensure all required elements are present.

The following are specific requirements that you will follow.  Use the checklist to mark off that you have followed each specific requirement.  

hecklist

Specific Project Requirements

 

Proofread your paper

 

Read and use the grading rubric while completing the paper 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).  If uncertain how to write in the third person, view this link:  http://www.quickanddirtytips.com/education/grammar/first-second-and-third-person

 

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

 

Paraphrase and do not use direct quotations.  Paraphrase means you do not use more than four consecutive words from a source document.  Removing quotation marks and citing is inappropriate.  Instead put a passage from a source document into your own words and attribute the passage to the source document.  There should be no passages with quotation marks.  Using more than four consecutive words from a source document would require direct quotation marks.  Changing words from a passage does not exclude the passage from having quotation marks.   If more than four consecutive words are used from source documents, this material will not be included in the grade.  

 

You are expected to use the research and weekly course materials to develop the analysis and support the reasoning.   There should be a robust use of the course material.  Material used from a source document must be cited and referenced.  A reference within a reference list cannot exist without an associated in-text citation and vice versa.  Changing words from a passage does not exclude the passage from having quotation marks.   

 

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 problem set unless part of the course material.  Also, do not use a dictionary, Wikipedia, Investopedia, Fern Fort University, Ibis World or any other for-free website.

 

Provide the page or paragraph number in every in-text citation presented.  Since the eBook does not have page numbers, include the chapter title and topic heading.  If using a video, provide the minutes and second of the cited material.

Step 7:  Submit the Report in the Assignment Folder 

Submitting the project to the Assignment Folder is considered the student's final product and therefore ready for grading by the instructor.  It is incumbent upon the student to verify the project is the correct submission.  No exceptions will be considered by the instructor. 

Self-Plagiarism: Self-plagiarism is the act of reusing significant, identical or nearly identical portions of one's own work.  You cannot re-use any portion of a paper or other graded work that was submitted to another class even if you are retaking this course.   You also will not reuse any portion of previously submitted work in this class.  A zero will be assigned to the assignment if self-plagiarized.  Faculty do not have the discretion to accept self-plagiarized work.

NOTE:  All submitted work is to be your original work. You may not use any work from another student, the Internet or an online clearinghouse.  You are expected to understand the Academic Dishonesty and Plagiarism Policy and know that it is your responsibility to learn about instructor and general academic expectations with regard to 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). 

 Rubric Name: Project #4 20%

Criteria

Equivalent to a A

Equivalent to a B

Introduction

0.4 points

Writes an introduction that captures the reader's attention, explains the purpose of the presentation clearly, correctly, and concisely.

 (0.36 - 0.4)

0.34 points

Writes an introduction that explains the purpose of the presentation correctly but needs minor clarity or development.  

(0.32 - 0.35)

Generate a minimum of five possible alternative strategies

1 point

Generates at least five alternative strategies that appropriately fits the information already presented from the research and course material to support by the course material.

 (0.9 - 1.0)

0.85 points

Generates at least four alternative strategies that fit what has been already presented from the research and course material to support the reasoning and conclusions made but needs clarity or some development.

(0.8 - 0.89)

Identify and discuss cultural and organizational factors that should be considered in analyzing and choosing among the alternative strategies.

1.4 points

Thoroughly and correctly identifies and discusses cultural and organizational factors that should be considered in analyzing and choosing among the alternative strategies using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Correctly identifies and discusses cultural and organizational factors that should be considered in analyzing and choosing among the alternative strategies using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

Prioritize strategies and explain

1 point

Prioritizes strategies and thoroughly and correctly explains using the research and course material to support by the course material.

(0.9 - 1.0)

0.85 points

Prioritizes strategies and explains using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(0.8 - 0.89)

Explain how to select the best strategy (or strategies);

1 point

Thoroughly and correctly explains how to select the best strategy(ies) using the research and course material to support by the course material.

(0.9 - 1.0)

0.85 points

Explains how to select the best strategy(ies) using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(0.8 - 0.89)

Recommend the best one or two strategies and long-term objectives among the alternative strategies and explain why these strategies and objectives are best

1.4 points

Thoroughly and correctly recommends the best one or two strategies and long-term objectives among alternative strategies explaining why these strategies and objectives are best using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Recommends the best one or two strategies and long-term objectives among alternative strategies explaining why these strategies and objectives are best using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

Identify strategy recommendations using goals, objectives, strategy and tactics .

1.4 points

Thoroughly and correctly identifies strategy recommendations using goals, objectives, strategy and tactics using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Identifies strategy recommendations using goals, objectives, strategy and tactics using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

Recommend procedures for strategy implementation

1.4 points

Thoroughly and correctly recommends procedures for strategy implementation using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Recommends procedures for strategy implementation using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

Discuss who, what and how to implement the selected strategy (or strategies) at the corporate level, business-unit level, and functional level.

1.4 points

Thoroughly and correctly discusses who, what and how to implement the selected strategy(ies) at the corporate, business-unit and functional levels using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Discusses who, what and how to implement the selected strategy(ies) at the corporate, business-unit and functional levels using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

Discuss procedure for strategy review and evaluation

1.4 points

Thoroughly and correctly discusses procedures for strategy review and evaluation using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Discusses procedures for strategy review and evaluation using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

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.

1 point

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)

0.85 points

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 but needs some development.

(0.8 - 0.89)

Discuss the appropriate evaluation measures

1.4 points

Thoroughly and correctly discusses the appropriate evaluation measures using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Discusses the appropriate evaluation measures using the research and course material to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

Discuss a corrective action plan (including who, what, when and how) at the corporate level, business-unit level, and functional level.

1.4 points

Thoroughly and correctly discusses a corrective action plan (including who, what, when and how) at the corporate level, business-unit level, and functional level using the research and course material to support by the course material.

(1.26 - 1.4)

1.19 points

Discusses a corrective action plan (including who, what, when and how) at the corporate level, business-unit level, and functional level using the research and course material  to support the reasoning and conclusions made but needs clarity or some development.

(1.12 - 1.25)

Conclusion

0.4 points

In a clear and concise manner, comprehensively concludes the paper by restating/ summarizing the argument. Refer to the opening statements and main points made throughout the paper. Reflect on the importance of the arguments and conclude their development.

(0.36 - 0.4)

0.34 points

In a clear manner concludes the paper by restating/ summarizing the argument. Refer to the main points made throughout the paper. Attempts to reflect on the importance of the arguments but further development of the main points of the paper is needed.

(0.32 - 0.35)

Attention to Instructions

2 points

Demonstrates exceptional understanding of requirements responding completely to each aspect of assignment including minor aspects of the assignment such as using third person writing, required use of course readings, and assignment format.

(1.8 - 2.0)

1.7 points

Demonstrates excellent understanding of requirements; missed one minor aspect of assignment.

(1.6 - 1.79)

Writing Mechanics

2 points

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)

1.28 points

Excellently adheres to standard usage of mechanics: conventions of written English, including capitalization, punctuation, and spelling. One to four errors noted.

(1.2- 1.34)

1.7 points

Excellently adheres to standard usage of mechanics: conventions of written English, including capitalization, punctuation, and spelling. One to four errors found.

(1.6 - 1.79)

APA Style (6th ed.)

1 point

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)

0.85 points

Attempts in-text citations and reference list but one or two APA style errors noted or fails to use APA citations when appropriate 1-2 times.

 (0.8 - 0.89)

Sembcorp Industries, Ltd.

Competitor Profile Matrix

Keppel Corporation Ltd

Samsung Heavy Industries

Hyundai heavy industries

CSF

Weight

Rating

Score

Rating

Score

Rating

Score

Business model

0.10

3

0.30

4

0.37

1

0.37

Talent management

0.15

2

0.30

3

0.24

2

0.48

Global networks of shipyards

0.11

4

0.44

2

0.05

4

0.20

Solid waste management

0.14

3

0.42

3

0.14

3

0.42

Executive resources

0.14

1

0.14

2

0.21

3

0.63

Strong pipeline of leadership

0.13

3

0.39

1

0.08

1

0.08

Staff well being

0.15

2

0.30

3

0.13

3

0.39

Ownership ethos

0.08

1

0.08

1

0.10

1

0.10

Total

1

2.53

1.32

3.62

SWOT Analysis

Opportunities

Threats

· Has an opportunity of spreading more in Europe.

· The rise in demand for electricity.

· Gas demand is still attractive.

· Key M&As are always successful

· Advancements in technology

· China is taking a larger share of the market.

· High prices of steel

· The local currency that is not strong

· Rig orders still low

· Carbon tax introduction.

Rig orders still low

0.13

2

0.26

A local currency that is very strong

0.07

2

0.14

Total

1

2.24

SWOT Analysis showing the strengths and weaknesses of the organization.

Strengths

Weaknesses

Facilities and location: Multiple international locations for fabrication and manufacturing.

Small customer base: The majority of revenue is tied to a small group of customers.

Supply management: Supply control though limited vertical integration.

Reliance on suppliers: Some critical components have a single source.

Growth:

As a public sector corporation, there is no allowance for capital expenditure and expansion.

The existing attentiveness to other industries could lead to trailing shares in shipbuilding.

Asset acquisition: Strategic acquisition of rival businesses and technologies.

 

External factor evaluation

Weight

Rating

Weighted score

Opportunities

Has an opportunity of spreading more in Europe

0.11

3

0.33

Rise in demand for electricity

0.24

2

0.48

Gas demand is still attractive

0.10

1

0.10

Key M&As are always successful

0.04

2

0.08

Advancements in technology

0.03

4

0.12

Threats

China is taking a larger share of the market.

0.17

2

0.34

Carbon tax introduction

0.03

1

0.03

High prices of steel

0.12

3

0.36

Internal Strengths

Weight

Rating

Weighted Score

Number and type of facilities

10%

3

0.3

International presence

10%

3

0.3

Control of supply

15%

4

0.6

Experienced management team

10%

3

0.3

Financial Ratios

5%

3

0.15

Internal Weaknesses

 

Sensitive to fluctuations in demand

15%

2

0.3

Sensitive to single-source suppliers

5%

2

0.1

Little diversification of products/customers

10%

2

0.2

Not currently profitable

15%

1

0.15

Financial Ratios

5%

1

0.5

poor (1), below average (2), above average (3), superior (4)

Total weighted score

100%

 

2.9

Internal Factor Evaluation (IFE) matrix

Financial Analysis

KEY FINANCIAL RATIOS

 

Formula

Calculation*

Industry Average**

Leverage Ratios

Long Term Debt Ratio

Long-term Debt / Total Assets

50,454 / 340,576 = 14.81

58.95

Debt-to-Equity Ratio

Total Liabilities / Total Shareholders' Equity

180,336 / 160,240 = 1.13

12.94

Liquidity

Cash Ratio

Cash and Cash Equivalents / Current Liabilities

58,185 / 116,383 = 0.5

1.06

Current Ratio

Current Assets/Current Liabilities

233,205 / 116,383 = 2.0

2.64

Quick/Acid Test

(Current Assets - Inventories)/Current Liabilities

(233,205 - 51647) / 116,383 = 1.56

1.6

Efficiency Ratios

Asset Turnover Ratio

Total Sales / (Beginning Assets + Ending Assets)/2

322,540 / (402,953+340,576)/2 = 0.87

0.68

Inventory Turnover Ratio

Cost of Goods Sold/Inventories

256,367 / 371,764.5 = 0.69

4.5

Profitability

Gross Profit Margin

(Net Sales - COGS) / Net Sales

(322,540 - 256,367) / 322,540 = 20.51

50.85

Net Profit Margin

Net Income/Sales

(43,637) / 322,540 = -13.53

23.52

Return on Equity (ROE)

Net Income/Average Shareholder's Equity

(43,637) / 160,240 = -27.23

25.86

*Financial data acquired from Sembcorp Industries Ltd 2018 Sembcorp Industries Ltd Annual Report Annual Report

**Industry Average data acquired from CSI Market

QSPM for NeoPhotonics

Key Factors

Improve the cost of operations

Acquire competitor

Weight

AS

TAS

Weight

AS

TAS

Strengths

 

 

 

 

 

 

Unique Product

0.15

4

0.6

0.15

2

0.3

Location of Business

0.15

2

0.3

0.13

2

0.26

Workers unique skillset

0.09

2

0.18

0.06

1

0.06

Quality of Product

0.11

3

0.33

0.15

2

0.3

Increasing work productivity

0.09

4

0.36

0.05

1

0.05

Weaknesses

 

 

 

 

 

 

Lack of quality and customer service

0.08

0

0

0.1

1

0.1

Poor marketing and sales

0.1

1

0.1

0.1

1

0.1

Undifferentiated product

0.15

2

0.3

0.2

3

0.6

Negatively sensitive to globalization

0.08

2

0.16

0.06

1

0.06

Sum Weights

100%

100%

Opportunities

 

 

 

 

 

 

A new developing market

0.09

2

0.18

0.15

3

0.45

The possible acquisition of a competitor

0.14

3

0.42

0.1

3

0.3

Membership in a trade alliance

0.16

0

0

0.05

0

0

Threats

 

 

 

 

 

 

Increasing competition in the market

0.08

3

0.24

0.15

3

0.45

Price war

0.1

2

0.2

0.12

1

0.12

Competitor oligopoly

0.18

3

0.54

0.1

0

0

Concerning talks of trade wars

0.09

2

0.18

0.18

2

0.32

Intellectual property being stolen

0.16

2

0.32

0.15

1

0.15

Sum Weights

100%

100%

Sum Total Attractiveness Score

4.41

>

3.62