Overall Guidelines

1.Organization

Break the analysis into the following major headings:

1.Introduction& Strategic Issue 1-2 pages

2.External Analysis 3+ pages ONLY DO THIS SECTION

3.Company Situation 3+ pages

4.Recommendations 2-3 pages

5.Appendix Ratios, Industry Analysis, Five Forces Analysis, SWOT, SGM, etc.

In addition, use the subheadings described in this document to break up long sections.

2.Style& Late Case Assignments

Use APA style which means double spacethroughout—do not add any additional space between paragraphs. Be sure to indent the first wordof each new paragraph. Do not have long paragraphs containing a variety of related but different topics—break into smaller paragraphs for organization and ease of reading. Use a topic sentence to clarify the purpose of each paragraph. Number the pages starting with the Introduction , e.g., do not include the title page.

Proof! Check your work and correct the spelling and grammar errors. Write clearly with correctly structured complete sentences. The ability to present an effective case analysis depends on your critical thinking skills AND your ability to express your ideas in writing. Students who turn in a “first draft” may not earn a grade that is desired. When sections are returned to you, note all comments from the instructor and take notes in the class discussion to incorporate into your next case analysis.

Start each of the major sections with an introduction that briefly characterizes and sets the stage for the section. Also at the end of each significant section, summarize with a paragraph capturing the key strategic findings of your analysis for that section.Do not make comments like “The case did not provide information on . . .” You do not need to site the textbook or case. Eliminate personal pronouns such as I, we, etc.

Put your name and student id on the first page of the case.

Common Errors

3. Show Impact

Your job is not to “spill back” the facts from the case. Assume that the person who reads your write up will have read the case carefully. Support your statements of analysis with brief examples from the caseinformation. Your focus should be on the impact, effect, and strategic implications of your analysis. Do not overlook exhibits in the case with additional data.

4.Apply Tools and Vocabulary

Demonstrate that you understand and can effectively apply the tools of strategic analysis: macro environment, driving forces, key success factors, industry analysis, financial analysis, SWOT, strategic group map and the nine cell industry attractiveness, competitive strength matrix. An effective case analysis effectively incorporates the language of strategic analysis throughout. YOU WILL INCREASE YOUR GRADE A FULL LETTER BY PARAPHRASING THE APPROPRIATE SECTIONS OF THE TEXTBOOK AND CASE. Unless specifically requested, do not go to the internet to get information to write the case.

External Environment

Provide an introduction that characterizes the essence of the external environment and industry situation at the time of the case and sets the stage for the analysis that follows. ALL the discussion in this section relates to the INDUSTRY, not the focus company. You may use examples of the focus company or other competitors to justify your analysis.

Common Errors

Writing about historical events rather than the current state of the industry.

Identifying the topics you are about to discuss without discussing the state of the industry.

Not using the vocabulary and discussion in the textbook supported with facts from the case.

Porter’s 5 Forces Analysis. Use the Porter model to evaluate the strength of the five forces that affect the strategic choices of all firms in the industry. Discuss the balance of power in the industry. Relatively weak forces (low threats) place power in the hands of the firms that comprise the industry, and, therefore, broaden their freedom of choice of strategic actions. Relatively strong forces (high threats) reduce the power of the industry firms and limit their strategic choices. An industry with strong forces tends to be less attractive than an industry with weak forces.

Specifically state your assessment of the strength of each of the 5 forces—intense, strong, moderate or weak. Justify and show why you reached your conclusion. For example, it is not enough to write, “Competitive rivalry is strong because the number of competitors is high, barriers to entry are low and product differentiation is low.” A better explanation is, “The many competitors in this industry must aggressively battle for market share in this slow-growth market. They each have considerable investments in the physical plant, which makes it difficult to leave the industry. The products are difficult to distinguish from one another, so companies must focus on aggressive, marketing programs to win customers away from their competitors. All these factors contribute to a strong rivalry and continued downward pressure on profit margins.”

Put the actual diagram of the model in the APPENDIX and discuss each force in the body of this section. Include a closing paragraph on the implications of the analysis to the overall attractiveness of the industry and the potential for companies to be profitable.

Common Errors

Not identifying the strength of a force or the conditions that lead you to your finding of a force as being strong or weak.

Getting supplier, firm and buyer mixed up.

Overlooking key factors you previously identified in the external/industry analysis.

Not recognizing the strength of competitive rivalry.

Key Success Factors

Key success factors affect industry players’ ability to be competitive and successful. They are so important that firms must consider them in developing their strategy or risk significant loss of sales, profits, market standing, etc. Develop three key success factors for the focus industry and identify WHAT they are, WHY they are key success factors, and HOW they affect the industry. Finish each key success factor by discussing the strategic implication.

For example, it is not enough to say, “Distribution capabilities are essential for success in the online order fulfillment industry.” Go on to say why and present a convincing argument for your position. To illustrate, “A web site that is appealing and easy to navigate, coupled with fast order delivery is essential to customer satisfaction in internet selling. Today’s consumer, especially the younger consumer, is technically savvy and has a myriad of ways to access internet sales, e.g., ipads, computers, iphones. Brick and mortar retail stores provide buyers with a quick solution for their shopping needs but are not as convenient. In order to be competitive, companies must develop the ability to respond with fast delivery times or potentially lose sales to competitors who are able to provide high levels of customer service.”

Common Errors

Being too general.

Not specifically identifying why the factor force is important.

Failure to convince why the factor is important.

Industry Profile and Attractiveness. Summarize the characteristics of the industry. Draw together all of the key findings from each area of the external analysis. What conclusions can you draw about the nature of the industry? How attractive is it to its current incumbents? What are the future prospects for the industry? Why? What challenges does the industry face? Provide a summary statement about whether it is highly attractive, moderately attractive, etc., to current players re profits, sales and competitive intensity.