Final Exam Notes - Case Study

Powerful Essays
PROBLEM IDENTIFICATION
Provide short description of the problem, clear description of the company’s current situation (Don’t have to discuss the situation too much)
Identification of main problems in the case
Determine main issue to solve
What went wrong financially and strategically?

EXTERNAL ANALYSIS
Apply five forces model and evaluate the industry, analyze general environment if needed
Draw strategic implications of analysis result, so what?... Provide conclusion to the industry analysis to show what it all means
Five forces model (section 2)
Who are the buyers? Includes final consumers as well as other distribution channels (retail stores) * DRAW STRATEGIC IMPLICATIONS..SO WHAT?

INTERNAL ANALYSIS
Value chain (section 3)
Do not just summarize what they are doing, but also state their strengths and weaknesses accordingly
Talk about whether what they are doing is a strength or weakness * DRAW STRATEGIC IMPLICATIONS..SO WHAT? *

ALTERNATIVES
You need to develop your alternatives based on your assessment of both the internal and external environment
This is a logical bridge between your analyses and final recommendation. Do not jump into the recommendation.
Make a tight connection with your analysis results
Answer why these particular alternatives are worth while to consider

RECOMMENDATIONS
How did we get to this recommendation: Discuss your selection criteria and provide your reasoning process. *

Porter’s 5 Forces

Firms will have normal profits (enough profit to cover the cost of capital) if an industry has perfect competition:
Numerous sellers and buyers (No monopolies)
Perfect information
Relatively homogeneous products
NO barriers to entry or exit

Threat of new entrants
New entrance threaten market share
They bring additional capacity which decreases customers costs
Firms need to maintain HIGH ENTRY BARRIERS to avoid entrants * Sources of the entry barriers: * economies of scale

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