company analysis
rt1911
Tool1.pptxStrategic Management Tool One
MGT 4810
Dr. Amye Melton
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Strategic Events
Strategic Events can be broken into 4 categories
1. major NEW product announcements
2. mergers, acquisitions, and announced alliances
3. people changes in TOP leadership team (CEO, COO, CFO, CMO)
4. corporate restructurings (positions and titles only)
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Step One
Step One
Develop a list of historical key chronological events that helped build the organization.
Include culture, structure and competitiveness of subject industry – ensure these are STRATEGIC events (previous slide)
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Step Two
Step Two
A measure of corporate performance must be chosen to plot strategic events against (over time, by year). This should be reflected in a graph.
The resulting graph will illustrate a clear pattern of the company’s strengths and weaknesses over the years.
This analysis goes directly to competitive advantages and industry deficiencies and comprises one component of what is known as ‘corporate DNA’.
Suitable measurements of performance are:
Gross Revenues (this is best)
Net Income
EPS
Total Market Capitalization
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Key Points
To effectively analyze corporate DNA, the analysis should go back no less than 10 years and no more than 25 years.
Where do you find this information?
Company website – annual reports
Books by former executives
Feature articles (published within last 5 years)
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