Strategic Management Syllabus F93

STRATEGIC MANAGEMENT

BA 491

Second Individual Assignment: Internal Analysis

Company History 1. Provide a brief history of your company (be sure to include date of founding or incorporation, name changes, and major mergers/acquisitions).

2. Are there any recent organizational developments that may affect your company’s competitive advantage? If so, please describe these developments. Company Mission 1. Present your company’s mission statement. (If you are not able to find the company’s official mission statement, develop one that you think captures the company’s unique purpose.)

2. Does this mission statement need to be revised in any way? If so, why? What revisions, if any, would you recommend? Balanced Scorecard: Customer Perspective 1. In what way(s) does the firm provide the customer with superior value? Explain.

2. For each of the following categories, indicate whether and how well your firm provides customer value: a. Time:

b. Quality:

c. Performance and service:

d. Cost: Balanced Scorecard: Internal Business Perspective 1. Which core processes or systems are the most important sources of customer value (i.e., have the greatest impact on customer satisfaction)?

2. How efficient and effective are these core processes in satisfying customer needs?

3. Which core processes need to be improved to produce greater customer value? How should they be changed? Balanced Scorecard: Innovation and Learning Perspective 1. How innovative is the company (either in products or processes)?

2. How well does the organization adapt to changes in its environment?

3. How effective is the organization’s leadership?

4. How effective are the organization’s overall human resources? Balanced Scorecard: Financial Perspective (see pp. 35-44)

2007 2006 2005 2004 2003 2002 Ind. Avg. Competitor 1 Competitor 2

1. Liquidity ratios:

Current ratio

Quick ratio

Cash ratio

2. Leverage ratios:

Total debt ratio

Debt-equity ratio

Equity multiplier

Times interest earned ratio

Cash coverage ratio

3. Turnover ratios:

Inventory turnover

Days’ sales in inventory

Receivables turnover

Days’ sales in receivables

Total asset turnover

Capital intensity Balanced Scorecard: Financial Perspective (cont.)

2007 2006 2005 2004 2003 2002 Ind. Avg. Competitor 1 Competitor 2

4. Profitability ratios:

Profit margin

Return on assets (ROA)

Return on equity (ROE)

5. Market value ratios:

Price-earnings ratio

Market-to-book ratio

6. What conclusions can you draw from this financial analysis concerning your firm’s strengths and weaknesses? Present any additional analyses (e.g., Du Pont or cash flow) that are needed to identify strengths and weaknesses. Conclusions 1. Summarize your company’s major strengths.

2. Summarize your company’s major weaknesses.