LOYOLA UNIVERSITY NEW ORLEANS COLLEGE OF BUSINESS … · There will be a written case/company...

LOYOLA UNIVERSITY NEW ORLEANS

COLLEGE OF BUSINESS

MBA PROGRAM

BA750

GLOBAL STRATEGIC MANAGEMENT

Fall 2015 Section 051

M, 6:20–9:35 pm

Monroe Library - Multimedia I (ML 134)

Dr. Len J. Trevino

Gerald N. Gaston Chair in International Business

Professor of Management

College of Business

312 Miller Hall

Phone: (504) 864-7927

[email protected]

Office Hours: M & W, 2:00-3:30 p.m. and by appointment

mailto:[email protected]

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COURSE OVERVIEW

Strategic management focuses on the decision-making processes of the top management team as

they determine the portfolio of businesses in which they will compete, attempt to establish

strong, defensible competitive positions for each of their firm’s businesses, and enhance the

firm’s long-term performance. Important questions include:

In what businesses should the firm compete?

What products or services should the firm produce?

What customers should the firm serve?

In what geographical markets should the firm operate?

What strategies will enable the firm to establish sustainable competitive advantages?

The objective of strategy is to make strategic decisions that lead to above-average returns and

long-term performance. The firm enhances long-term performance by establishing competitive

advantages, relative to competitors, that are sustainable over time. Competitive advantages

are driven by executives’ effective analysis of the firm’s external competitive environment, and

the development of internal resources and capabilities that can respond to opportunities therein.

Managers make good strategic decisions about their business by developing an understanding of

both the firm’s industry and competitive environment (e.g., industry competitors, suppliers, and

customers) and the firm itself (e.g., the firm’s goals and values, resources and capabilities, and

organizational structure and management systems).

This course differs from others in that it takes a broad perspective of the general manager, rather

than a narrower perspective of the functional manager. It is a big picture course that cuts across

the entire spectrum of business and management activities. The course focuses on the total

enterprise – the firm’s industry and competitive environment, its long-term direction and strategy,

its resources and competitive capabilities, and its prospects for long-term success. Throughout the

course, the focus is running the business enterprise: “What must managers do, and do well, to

provide the company with an advantage in the game of business?” The answer that emerges, as

well as the theme of the course, is that good strategy formulation and good strategy execution are

the key ingredients of a company’s success.

Course Objectives

1. To understand the role and importance of strategy in determining long-term firm success and

performance.

2. To understand the process of strategic management, beginning with strategic analysis and extending

through strategy formulation and implementation.

3. To develop awareness that strategy is fundamentally about “preparing the firm to compete, and

requiring that the firm must continually create, react to, and manage change.

4. To recognize the role of leadership and leverage in the strategy process.

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5. To improve your overall understanding of how firms respond to industry forces, create internal

capabilities, formulate and implement strategy, establish a sustainable competitive advantage, and

increase long-term performance,

6. To understand how the functional strategies of the firm (e.g., accounting, economics, finance,

information systems, management, operations, and marketing) contribute to creating an effective

firm-level strategy.

7. To improve your analytical reasoning and problem solving skills. To improve your ability to think

critically and systematically about strategic issues. To develop effective solutions while remaining

sensitive to ethical implications. To present solutions effectively, both orally and in writing.

8. To develop your skills in analyzing complex business situations, evaluating historical trends and

current operational conditions, and developing recommendations on how firms can (1) establish a

unifying strategy, (2) develop integrated functional strategies, and (3) create a plan of action to

achieve strategic objectives.

9. To improve your communication, teamwork, and leadership skills.

Required Materials

Grant, Robert M. (2013). Contemporary Strategy Analysis, 8th

Edition. Chichester, West Sussex,

U.K.: John Wiley & Sons Ltd. (ISBN #978-111-994-1880).

Harvard Business School Cases (downloaded directly from Harvard web site:

www.hbsp.com):

1. Cola Wars Continue: Coke and Pepsi in 2010 (#711462).

2. Rayovac Corporation: The Rechargeable Battery Opportunity (#906A36).

4. Harley-Davidson: Chasing a New Generation of Customers (#KEL742)

3. Wal*Mart Stores: “Everyday Low Prices” in China (HKU590)

5. The Walt Disney Company and Pixar, Inc.: To Acquire or Not to Acquire (#709462).

6. Creating a Corporate Advantage: The Case of the Tata Group (#ISB005).

7. Jollibee Foods Corp. (A): International Expansion (#399007).

8. Philips versus Matsushita: The Competitive Battle Continues (#910410).

Harvard Business School Website:

https://cb.hbsp.harvard.edu/cbmp/access/27525652 Assigned Readings If there are any assigned or suggested readings, they are highlighted in the COURSE OUTLINE.

Assigned readings should be completed prior to the assigned session. It is important that you

read assignments beforehand, so that you may refer to them during class. In addition to the

assigned readings, there may be suggested readings that are related to material covered in each

class.

http://www.hbsp.com/

https://cb.hbsp.harvard.edu/cbmp/access/27525652

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EXPECTED LEARNING OUTCOMES

1. Understand the role and importance of general management, strategy, and leadership in

determining long-term firm success and performance.

2. Develop skills in decision making and strategic thinking, beginning with strategic analysis

and extending through strategy formulation and implementation.

3. Recognize the role of leadership and ethics in the strategy process.

4. Increase your analytical skills for industry and strategy analysis.

5. Learn how to integrate the functional strategies of the firm to create a cohesive

organization.

6. Improve your communication, teamwork, and leadership skills.

7. Improve your marketability in the workplace

IMPORTANT DATES & INFORMATION

Course Prerequisites

This course is open to students enrolled in the degree program of Master of Business

Administration (MBA). Course prerequisites are FIN-B700, MGT-B715, and MKT-B700.

General Requirements and Evaluation

I. First Midterm Examination 200 points

II. Final Examination 200 points

III. Group Case Strategy Project (write-up) 200 points

IV. Group Case Strategy Project (presentation) 200 points

III. Participation, including individual case 200 points

write-up

Total Possible Points 1000 points

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ATTENDANCE AND PARTICIPATION

This is a participatory class where we will learn from each other as well as from the text and related

materials. Therefore, PARTICIPATION IS REQUIRED EVERY DAY, and each student must be

willing to contribute effectively. Your participation grade reflects your shared insights about the concepts

and ideas studied in class. This includes sharing outside experiences or perspectives about the readings.

Excessive absences will negatively and significantly affect your participation grade simply due to the

fact that you were not there enough to actively participate in discussions. If you are disruptive in class,

falling asleep, working on the computer or conducting any activities unrelated to class, you will be

asked to leave and your participation grade will be negatively impacted. In addition, absences on any

online discussions will significantly affect your participation grade. IF YOU ARE ABSENT 20 % OR

MORE OF CLASS MEETINGS, YOU WILL AUTOMATICALLY RECEIVE A FAILING GRADE

FOR THE COURSE. Arriving to class late will constitute a ½ class absence, so arrive on time.

ASSIGNMENTS IN DETAIL AND LEARNING GOALS

Participation* – Class Discussion - 20% of Grade

Points are based on your classroom participation and Blackboard discussion. You obtain

participation points for quality input into classroom discussion and for your thorough responses to

the discussion questions on Blackboard. I will drop your lowest participation score. If you come

to class every day of the semester (but one), and don’t say anything, then you will score a 60% on

participation. Participation is more than attendance! You will receive only 60% for participation

for simply showing up.

Because the course emphasizes active learning through case discussions, it is essential that students

prepare thoroughly and contribute regularly. It should go without saying that the quality of your class

contribution is more important than quantity. It will be important to limit your contributions to only

your best, well thought out and analyzed efforts. I cannot improve on Professor Gioia’s clarification

of what constitutes a high-quality contribution:

a) Relevance – Do your comments speak directly to the issues and concepts being addressed? Do they

extend our understanding of those issues or concepts?

b) Additivity – Do your comments reflect active listening to the comments of other class members? Have

they incorporated insights introduced earlier and built upon them?

c) Substance – Do your comments make a real contribution to the ideas being exchanged? Has anything

new been gained from your contribution to the discussion?

d) Persuasiveness – Have your points been well articulated, argued, and supported, such that others take

note of the convincing nature of your points?

e) Questioning – Have your comments reasonably questioned the comments of others or challenged their

assumptions without disparaging the person who offered them?

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* For the Rayovac Corporation and Harley Davidson cases, you will be responsible for turning in a

2 page case write-up for one of the cases of your choosing. This write-up should be in memo

format, and it should include an identification of the problem and/or opportunity, an analysis of the

situation, a recommendation and an implementation action plan. You may attach exhibits or

figures of up to two additional pages. You will upload this case write-up electronically to

Blackboard prior to the beginning of class on the day that the case you selected is to be discussed.

Although both of these classes will be taught virtually, you will be responsible for answering

questions related to the case on the discussion board and responding to other students comments.

In other words, an active discussion will take place. Before class you will be able to view a

prologue to the case on Blackboard. After the class is complete, you will be able to view a

prologue to the case, including how it fits into the course and learning outcomes.

Learning Goal 3 (Communication): Graduates will be able to communicate effectively in the

business world. Graduates will be able to articulate ideas clearly and concisely in a one-on-one

professional business setting.

Team Case Project – 40% of Grade

Written Portion – Half of 40% = 20% of Final Grade

There will be a written case/company analysis to assess your ability to critically assess a

company’s strategy and to communicate your findings and recommendations succinctly, logically,

and professionally. I have included an outline at the end of the syllabus to provide you with a

rough checklist of items that are often found in a case analysis. Please don’t follow the outline

verbatim, as some items may not need to be included in your report. This is a team project. All

written cases will be handed in on the date of your presentation. The written portion will account

for 20% of the final grade and the oral portion will account for 20% of the final grade. Each

student will be evaluated by fellow team members as to their contribution to the effort and output

of the complete written and oral case project (see the attached peer evaluation form). Each

student's individual grade will be based on the professor's assigned team grade, adjusted by peer

evaluations. Be advised that I will aggressively grade for punctuation, spelling, grammar,

tense agreement appearance, etc., in addition to content. Do your best work; prepare as though

this were a report being reviewed by the top management team of your future employer. A copy of

the grading checklist that I use is attached to this syllabus. You will lose points for not following

directions in the assignment or format. It is highly recommended that you take advantage of

writing assessment and skill development services on campus.

Format: The paper should be typed with 1.0-inch margins using double-spaced, 12-point

type. Use your word processor's spell checking and grammar options. Paginate with the first page

being the start of the executive summary. An executive summary is 2-3 pages and states

everything in the report in a highly condensed fashion. Charts, tables, graphs, and figures should

be placed throughout the document to illustrate material in the text portion of your paper. Add

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appendices that are appropriate at the end of the paper. A reference section (Endnotes or

Footnotes) is required, enabling the reader to review the sources of any information provided in the

paper. Cite your sources and quote where necessary. Plagiarism is unacceptable and will not be

tolerated. You will receive a ZERO on any assignment and or a grade of “F” for the class in the

presence of plagiarism. Better efforts in past classes have used many references from several

diverse sources. Maintain balance in your references, as there are many sources of information.

Do not go to the company’s website and regurgitate information therein. You need to make

an original contribution to the case. Please do not use your textbook as a reference source.

Search for what others (e.g., business commentators or analysts) have written about your company.

Length will be dependent on the complexity of your case and the depth of your analysis. YOUR

CASE SHOULD BE NO MORE THAN 33 PAGES LONG. The final written presentation should

be professionally bound (do not use 3-ring binders).

Learning Goals: (Business Disciplines), (Quantitative Reasoning), (Scientific Literacy),

(Information Literacy) (Critical and Creative Thinking) and (Communication). You will develop

the ability to seek out information on a company, its industry and its competitors. You will use

financial analysis to compare relevant performance on important metrics that you identify from

your critical examination of the industry environment. Your analysis of the performance metrics

will help you to pose arguments about the health of each organization (the focal company and its

competitors). You will develop the ability to diagnose critical problems and develop creative

solutions that the company could adopt to deal with those problems. Your development of

solutions will further expose you to the importance of incorporating and understanding the

diverse stakeholders who might be affected by your proposed solutions and implementation plan.

You will develop your written communication ability by developing a document that incorporates

concisely assembled information, relevant graphics, and clear writing. Lastly, you will utilize

professional technical writing to communicate your analysis, recommendations and

implementation action plan.

Oral Presentation of Case Analysis – Half of 40% = 20% of Final Grade

We will “draw straws” to determine the date for each team’s presentation. Presentations are

expected to last approximately 25 minutes with another 15 minutes allotted for questions and

discussion. At the 30 minute mark, I will cut you off. Class members earn participation points on

presentation days and should ask questions that indicate they have read the case. Presentations

should use PowerPoint. Practice. Practice. Practice. Know your material. Make your material fit

the time constraint. Both the professor and the audience will be evaluating your presentation.

There will be a penalty for exceeding the time limit (leave time for Q&A).

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Learning Goals: (Critical and Creative Thinking), (Communication), and (Diversity). You will

develop the ability to sell and live the vision that you have formulated for an organization. You

will develop a foundation of presentation skills that will enable you to advance in your chosen

career. Lastly, your oral (PowerPoint) presentation skills will develop your public speaking

ability.

Mid-Term Exam – 20% of Grade

You will be asked to write a consulting report in memo format in connection with a case that

will be assigned. Your report may be a maximum of five pages (memo format, 1 inch margins,

double spaced, 12 font), excluding any exhibits, figures, or references. You may not seek any

outside help in preparing this report. These constraints will be strictly adhered to.

Learning Goals: (Business Disciplines), (Critical and Creative Thinking), (Analytical), and

(Written Communication). You will develop the ability to integrate material from all of the

business disciplines as you learn to analyze the industry and competitive environment. You will

develop the analytical skills necessary to understand the resources and capabilities at a

company’s disposal. By combining the above, you will develop the ability to effectively formulate

a firm-level strategy that is in alignment with the external and internal environments.

Final Exam – 20% of Grade

The exam will be a case examination. At the beginning of the final exam period you will be given

a case similar to those you have analyzed throughout the semester. Within the allotted time, you

will analyze the case, determine the problem and/or opportunity, evaluate options, recommend the

best solution among them, and present a viable implementation plan. The final will be

comprehensive. It will be open book and open notes.

Learning Goals: (Business Disciplines), (Critical and Creative Thinking), (Quantitative

Reasoning), (Scientific Literacy), (Information Literacy), and (Written Communication). You

will collectively analyze the case and identify problems facing the organization. You will develop

the ability to utilize the relevant information provided in a business situation, and translate it

into relevant performance data that can be used to compare performance of the focal company

to its competitors. You will also develop the ability to assemble creative recommendations to

address the problems that you have identified and to develop an action plan. Lastly, you will

utilize professional technical writing to communicate your analysis, recommendations and

implementation action plan.

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COURSE SCHEDULE

Date Topic Assignment

I. COMPETITIVE STRATEGY FORMULATION

8/24 No Class -- Immersion Week

8/31 The Case Method (Effective case analysis and implementation, handout

Write-up, In class discussion and presentation), Group formation

8/31 The Concept of Strategy Ch. 1

8/31 Goals, Values, and Performance Ch. 2

9/7 Labor Day Holiday

9/14 Industry Analysis Ch. 3

9/14 Case 1: Cola Wars Continue: Coke and Pepsi in 2010

HBSP Product #: 711462

Suggested Study Questions:

1. Why, historically, has the soft drink industry been so profitable?

2. Compare the economics of the concentrate business to that of the bottling

business. Why is the profitability so different?

3. How has the competition between Coke and Pepsi affected the industry’s

profits?

4. Can Coke and Pepsi sustain their profits in the wake of flattening demand and

the growing popularity of non-carbonated soft drinks?

9/21 Industry and Competitive Analysis Ch. 4

9/21 Analyzing Resources and Capabilities Ch. 5

Case 2: Rayovac Corporation: The Rechargeable Battery

Opportunity* HBSP Product #: 906A36


1. Assess the rechargeable market opportunity for Rayovac. Is this a viable growth

opportunity for the company to consider?

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2. What strategy should the company pursue if it chooses to enter this market? What are the

financial implications? What are the risks associated with the chosen strategy and how will

Rayovac mitigate against these risks?

3. If this is a go, create a marketing plan for the rechargeable launch. Important decisions to

consider include choosing a target market, positioning, gaining channel support, and

communications.

Reading: How Industries Change, HBSP Product #: R0410E

*This is an online class. You are responsible for answering the discussion

questions and responding to students’ and the professor’s observations on

blackboard. You will find 2 videos posted on blackboard. The prologue will

be available in advance of your preparing the case; the epilogue will be

available after you turn in your case write-up and/or answer discussion

questions.

9/28 The Sources and Dimensions of Competitive Advantage (Differentiation) Ch. 7

Case 3: Harley Davidson: Chasing a New Generation of Customers

HBSP Product #: KEL742


1. Historically, how did Harley-Davidson manage to dominate the U.S. market? How did it

do so and what were its sources of competitive advantage? And starting in the 1970s

Harley-Davidson got into trouble, what changed? Internally? Externally?

2. What were the major ingredients of Harley-Davidson’s transformation process? What

elements seemed to you to be the most important? What is your evaluation of the

transformation process?

3. What are Harley’s current sources of competitive advantage? Can these be sustained in

light of the latest competitor moves? If you are Honda, where do you think Harley-

Davidson is vulnerable? What is the Harley mystique?

4. What are challenges facing Harley-Davidson as it enters the 21st century? What is your

evaluation of their current strategy? What specific recommendations do you have for Jeff

Bluestein? Short-term? Long-term?

*This is an online class. You are responsible for answering the discussion

questions and responding to students’ and the professor’s observations on

blackboard. You will find 2 videos posted on blackboard. The prologue will be

available in advance of your preparing the case; the epilogue will be available

after you turn in your case write-up and/or answer discussion questions.

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10/5 The Sources and Dimensions of Competitive Advantage (Low Cost) Ch. 7

Case 4: Wal Mart Stores: “Everyday Low Prices in China”

HBSP Product #: HKU590


1. Why is Wal-Mart successful in the US? What are Wal-Mart’s competitive advantages

and its sources?

2. Should Wal-Mart replicate its domestic model in its original form in China? Why? Can it

build the same competitive advantage in China through its successful domestic model?

3. Provide suggestions on potential strategies that Wal-Mart China should consider in going

forward.

10/12 No Class – Fall Break

10/19 No Class – Entrepreneurship Week

10/26 Midterm Exam (in class case exam)

II. STRATEGY IMPLEMENTATION

11/2 Organization Structure and Management Systems:

The Fundamentals of Strategy Implementation Ch. 6

Vertical Integration and the Scope of the Firm Ch. 11

Case 5: The Walt Disney Company and Pixar, Inc.: To Acquire or

Not to Acquire? HBSP Product #: 709462


1. Which is greater: the value of Pixar and Disney in an exclusive relationship, or the

sum of the value that each could create if they operated independently of one

another, thus allowing each to form relationships with other companies? Why?

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2. Assuming that Pixar and Disney are more valuable in an exclusive relationship, can

that value be realized through a new contract? Or is common ownership required

(i.e., must Disney acquire Pixar?)

3. If Disney acquires Pixar, how should Bob Iger and his team organize and manage

the combined entity? What challenges do you foresee and how would you deal with

them?

11/9 Diversification Strategy Ch. 13

Case 6: Creating a Corporate Advantage: The Case of the Tata Group

HBSP Product #: ISB005


1. Identify and describe the mechanisms by which Tata group added value to its group

companies.

2. What are the differences, if any, between the way the Tata group adds value and the

way a multi-business conglomerate, such as GE, adds value? Should the Tata group

make the subscription of its services by group companies mandatory?

3. Should the approach to the creation of a corporate advantage by a business group

differ based on:

a. The level of related/unrelated diversity of the mix of businesses in the group?

and

b. The relative development of the institutional environment in the country? If yes,

how?

11/16 Global Strategy and the Multinational Corporation Ch. 12

Case 7: Jollibee Foods Corp. (A): International Expansion



1. How was Jollibee able to build its dominant position in fast food in the

Philippines? What sources of competitive advantage was it able to develop

against McDonald’s in its home market?

2. How would you evaluate Tony Kitchner’s effectiveness as the first head of

Jollibee’s international division? Does his broad strategic thrust make sense?

How effectively did he develop the organization to implement his priorities?

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3. As Noli Tingzon, how would you deal with the three options described at the

end of the case? How would you implement your decision?

Reading: Going Global: Lessons from Late Movers (optional) R 1-3

11/23 Implementing Corporate Strategy” Managing the Multibusiness Firm Ch. 14

Case 8: Philips versus Matsushita: The Competitive Battle Continues



1. How did Philips become the leading consumer electronics company in the world in

the postwar era?

2. What distinctive competence did they build? What distinctive incompetences?

3. How did Matsushita succeed in displacing Philips as No. 1? What were its

distinctive competences and incompetences?

4. What do you think of the change each company has made to date--the objectives, the

Implementation, the impact? Why is the change so hard for both of them?

5. What recommendations would you make to Gerald Kleisterlee? To Kunio

Nakamura?

11/30 Team Presentation 1

Team Presentation 2

Team Presentation 3

12/7 Team 4 Presentation

Team 5 Presentation

Team 6 Presentation

12/14 Final Exam – 7:00- 9:00 p.m.

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Honor Code

Loyola University New Orleans recognizes that honesty, truth, and integrity are values central to

its mission as an institution of higher education. The Honor Code is built on the idea that a

person's honor is his or her most cherished attribute. You are responsible for understanding and

adhering to Loyola’s Honor Code. Cheating, plagiarism of another’s work, and dishonesty are

violations of the Honor Code and subject a student to failure or expulsion from the university.

Disability Services and Accommodations

If you have a disability and wish to receive accommodations, please contact Disability Services at 504-865-2990. If you wish to receive test accommodations (e.g., extended test time), you will need to give the course instructor an official Accommodation Form from Disability Services. The Office of Disability Services is located in Marquette Hall 112.

Inclement Weather and Emergency Preparedness

At times, ordinary university operations are interrupted as a result of tropical storms, hurricanes, or other emergencies that require evacuation or suspension of on-campus activities. To prepare for such emergencies, all students will do the following during the first week of classes:

1. Practice signing on for each course through Blackboard.

2. Provide regular and alternative e-mail address and phone contact information to each instructor.

In the event of an interruption to our course due to the result of an emergency requiring an evacuation or suspension of campus activities, students will:

3. Pack textbooks, assignments, syllabi and any other needed materials for each course ad

bring during an evacuation/suspension

4. Keep up with course work during the evacuation/suspension as specified on course syllabi and on-line Blackboard courses.

5. Complete any reading and/or writing assignments given by professors before emergency

began.

Assuming a power source is available....

6. Log on to the university Web site within 48 hours of an evacuation/suspension.

7. Monitor the main university site (www.loyno.edu) for general information.

8. Log on to each course through Blackboard or e-mail within 48 hours of an

evacuation/suspension to receive further information regarding contacting course

http://www.loyno.edu/

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instructors for assignments, etc.

9. Complete Blackboard and/or other online assignments posted by professors (students are

required to turn in assignments on time during the evacuation/suspension period and once

the university campus has reopened.) 10. Contact professors during an

evacuation/suspension (or as soon as classes resume on campus) to explain any

emergency circumstances that may have prevented them from completing expected work.

10. Contact professors during an evacuation/suspension (or as soon as classes resume on

campus) to explain any emergency circumstances that may have prevented them from

completing expected work.

Further information about student responsibilities in emergencies is available on the Academic

Affairs web site: http://academicaffairs.loyno.edu/students-emergency-responsibilities.

http://academicaffairs.loyno.edu/students-emergency-responsibilities

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APPENDIX A

Peer Evaluation Form – complete this and turn it in on the date that your team presents the

PowerPoint presentation for the Team Case.

Outline that may be used as a guideline for Team Case.

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Team Peer Evaluation Form

1. Include in the rating your evaluation of your own performance (this introduces an amount of self-assessment). 2. Assign 100 percentage points based on how much each member (including yourself) contributed to various aspects of the team's performance. 3. Assign percentages for each category for each team member. If team members have varying skills (which is likely) they will have contributed at

different levels for various categories. e.g. one member might have done 30% of the research but only 10% of the writing. One member may have participated in all the meetings and write-ups but did not participate in research or the oral presentation. Assign effort rating accordingly.

4. Use whole numbers and make sure totals add up in each column before proceeding to the average. Each member’s scores in each category should be averaged and one overall score assigned for total average effort.

Team Member (alphabetical order) Amount of effort in each category:

Leadership Outside Due Dates Written Oral Average

/Team Player Research /Meetings Presentation Presentation

% % % % % %

% % % % % %

% % % % % %

% % % % % %

% % % % % %

% % % % % %

Total must equal: 100% 100% 100% 100% 100% 100%

YOUR SIGNATURE _____________________________________ Print Name _____________________________ ID # ________________ Comments if any

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OUTLINE FOR A MAJOR CASE REPORT ON A COMPANY

1) EXECUTIVE SUMMARY: Provide an overview of the entire case in two pages or less,

detailing the key problem and your recommendation.

2) INTRODUCTION OF COMPANY AND CURRENT SITUATION

3) EXTERNAL ENVIRONMENT ANALYSIS:

I. General Environment – How are these things going to affect the company in the near

future?

a. Economic

b. Sociocultural

c. Global

d. Technological

e. Political/legal

f. Demographics

II. Industry Environment 5-forces analysis

a. Bargaining power of suppliers

b. Bargaining power of buyers

c. Threat of substitute products

d. Rivalry among firms:

i. Numerous or equally balanced competitors?

ii. Slow industry growth?

iii. High fixed costs or high storage costs?

iv. Lack of differentiation or low switching costs?

v. High strategic stakes?

vi. High exit barriers?

e. Threat of new entrants:

i. Barriers to entry

1. Economies of scale?

2. Product differentiation?

3. Capital requirements?

4. Switching costs?

5. Access to distribution channels?

6. Cost disadvantages independent of scale?

7. Government policy?

ii. Expected retaliation from competitors

III. Competitor environment (DON’T FORGET TO SEE THE HANDOUT)

a. Identify primary competitors (top 3 or so)

i. What is their background/history? How is each performing financially?

ii. What is their business-level strategy?

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iii. What are the key success factors in this industry? How have they performed

over the last 3+ years compared to the focal company?

1. What key ratios or performance metrics would indicate how well

they have performed?

2. Why is their performance trending like it is?

iv. Future objectives – what are they seeking to do?

v. Capabilities - what are their strengths and weaknesses?

4) INTERNAL ANALYSIS:

I. What is the history of the company?

II. How is it run today? What does the business look like (for example, how many stores

does it run and how are those stores run, does it manufacture its own products and sell its

own products, does it sell to retail customers or industrial customers, etc.) Who is on the

top management team and what is the structure of its management?

III. What key resources and capabilities does it possess?

IV. How has it performed over the last 3+ years?

a. How does this performance compare to its competitors’ performance?

b. Is there a reason for this trend?

5) IDENTIFY KEY PROBLEM AREAS

I. What problem is facing the company that would hurt its performance significantly in the

near future (or lead to bankruptcy)?

a. Are competitors gaining strength?

b. Are costs going out of control?

c. Has there been foolish expansion?

d. Is the company being run efficiently?

II. Are there any areas of the business that, if improved, would greatly increase the

performance of the company vis-à-vis its rivals?

a. Does it operate cost efficiently?

b. Are there areas of the business which should be outsourced or sold off?

c. Is it able to maintain high margins with its suppliers?

III. Are there any key opportunities that the company must pursue either to maintain an

advantage or as a hedge against potential changes in the environment?

a. What kinds of investment would be required for this?

b. Would it be wise to partner with other firms?

IV. DEFINE THE CRITICAL PROBLEM YOU WILL ADDRESS IN THE CASE.

6) RECOMMENDATIONS

I. Create 3 separate recommendations to deal with the critical problem that you identified

above.

20

II. Provide a justification for each recommendation, explaining why your recommendation

would ameliorate the problem.

III. Choose the best recommendation and explain why this recommendation is superior.

Provide an Implementation Plan to discuss how you would go about executing your

recommendation in the organization. The following are some questions to keep in mind as

to how other stakeholders will respond. Some of these stakeholders may have very little

bearing on the organization (and may have little reaction to your recommendation) so do

not include a discussion of each if they are really not relevant.

a. How will the management team react to your recommendation? Will there be

resistance?

b. How will employees react?

c. What kind of investment will your plan require?

d. How do you expect competitors to react?

e. How will customers react?

f. How will suppliers react?

7) WHERE TO FIND YOUR DATA:

www.sec.gov – Check the Edgar filings. You will want to get the 10K annual report for

each competitor and your company and read this. It has a discussion by management about

how the company is performing and where it is headed. This also has the Balance Sheet

and Income Statement provided. This will allow you to calculate and compare certain key

ratios.

a. You and your team must decide which ratios are most important for this industry

and company. Don’t include a bunch of ratios that don’t make sense or aren’t

relevant to the problem or opportunity.

Company website – This usually provides a history of the company and may provide more

information about the way the company operates. NOTE: DO NOT PLAGIARIZE THIS

INFORMATION AND DO NOT SIMPLY REGURGITATE THIS INFORMATION,

CHANGING A FEW WORDS HERE AND THERE. Do not use your textbook as a

reference; this is not an acceptable reference.

There are some excellent databases at the library. Also, check Fortune, Businessweek,

Wall Street Journal and the financial page at Yahoo.

Ask a librarian about getting additional information. Industry information is sometimes

difficult to find. Ask them, it’s their job. Here is the library website:

http://library.loyno.edu

http://www.sec.gov/

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WHERE YOU SHOULD NOT GET YOUR INFORMATION: IF YOU FIND A CASE

ANALYSIS ON THE COMPANY YOU ARE RESEARCHING, DO NOT USE THIS.

DO NOT SEEK OUT A CASE ANALYSIS ON THE INTERNET. DO NOT TRY TO

FIND A TEXT WITH THE COMPANY ANALYSIS. IF YOU HAVE ANALYZED THE

COMPANY FOR A DIFFERENT CLASS, THEN CHOOSE A DIFFERENT COMPANY.

8) CITING YOUR SOURCES:

Do not plagiarize; err on the side of caution. Cite anything and everything that you get from

another source. If you cite something from an article and it is a direct quote, you need to

provide quotation marks. If you use an article or anything else for information, you must cite it

with endnotes. If I find plagiarized material in your case, you get an F on the case project and I

will turn the evidence over to the Office of Student Affairs. If you have any questions, ask.

9) NOTES ON MAKING A BETTER CASE:

Please note that you do not have to follow the outline verbatim! Use only the parts of the

outline that you need. Better cases are those that are interesting to read and use evidence to

support arguments and conclusions. For example, if you claim that it is difficult to enter a

particular industry because of the amount of fixed assets needed, then you need to provide

insight into this amount. For example you could say something like: “the average size of fixed

assets among the top three firms in the industry is XXXX.” If you can find a subject matter

expert (such as a financial analyst who studies the industry and is quoted in the business press),

then this form of evidence would suffice as well. For example, if you are trying to justify

which ratios to use in analyzing the company and its competitors, you could say something

like: “David Jones, petroleum analyst for Goldman Sachs, argues that upstream refinery cost

containment is the most critical capability in the oil and gas industry.”

Make sure that you have edited your manuscript so that it reads well (correct all errors and

make sure that it has a consistent voice throughout). Make it look good. Don’t add a bunch of

filler material just because it happens to be in the outline. Be judicious and make it read like a

case from your textbook.

Lastly, and most importantly, you should begin with the key problem affecting the company in

mind and then develop the case to build up to this key problem (this will affect what ratios you

analyze and the evidence you present to support your case). Then your recommendations

should naturally flow so that they address this problem.

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Grading Rubric –Team Case (Written Portion)

Category High Level Moderate Level Low Level

External

Environment

Analysis: General

Environment

(10 points)

The elements of the external

environment are well

researched with good

evidence provided,

informative, and convincing.

Some elements are well

researched with some

evidence provided.

Many elements are under-

researched and evidence is

either lacking or poorly

communicated

External

Environment

Analysis: Industry

Environment (5-

Forces Analysis)

(10 points)




evidence provided,




evidence provided.




communicated.

External

Environment

Analysis:

Competitor

Analysis

(20 points)




evidence provided,


Key success factors are

logical. Metrics are provided

and comparisons among the

competitors and the focal

organization are clear and

convincing.



evidence provided. Key

success factors are somewhat

logical. Metrics may not be

clear or comparisons are not

shown in a clear fashion.




communicated.

Internal Analysis

(20 points)

Information on the company

is clear and well researched.

Operations of the company

are clearly presented, and

performance is clearly

identified. Company’s key

resources and capabilities as

well as its business level

strategy are identified and

convincingly detailed.

Information on company is

not as clear or well

researched or is overly long.


are generally lacking and

performance is only partially


resources and capabilities

and business level strategy

are identified but there is

little convincing evidence for

this.


unclear and poorly

researched. Performance and

operations are generally

lacking. Company resources

and capabilities as well as its

business level strategy are

barely mentioned.

Identify Key

Problem Areas

(15 points)

Key problem areas are well

defined, and convincing

based on evidence provided.

Key problem areas are

defined but not too

convincing based on

evidence provided.

Key problem areas are not

defined or are not convincing

and do not incorporate any

evidence.

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Recommendations

(15 points) All three recommendations

were logical, specific,

feasible, addressed the key

problem, and sufficient detail

was given to explain how

they work.

One or more of the

recommendations were not

logical, too general, or failed

to address the key problem.

Detail was not given to

explain how they would

work.

Two or more of the


logical or too general or

failed to address the key

problem. Detail was

generally lacking about how

they would work.

Implementation

Plan (10 points) The implementation plan

was logical, sufficiently

detailed and took into

account other stakeholders.

The implementation plan was

logical but lacked detail and

did not take into account

other stakeholders.

The implementation plan

was not logical or lacked so

much detail that it was hard

to grasp how it would work.

Additionally other

stakeholders were not taken

into account at all.

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APPENDIX B – GRADING RUBRICS


External

Environment

Analysis: General

Environment

(10 points)




evidence provided,




evidence provided.




communicated

External

Environment

Analysis: Industry

Environment (5-

Forces Analysis)

(10 points)




evidence provided,




evidence provided.




communicated.

External

Environment

Analysis:

Competitor

Analysis

(10 points)




evidence provided,


Key success factors are

logical. Metrics are provided

and comparisons among the

competitors and the focal

organization are clear and

convincing.



evidence provided. Key

success factors are somewhat

logical. Metrics may not be

clear or comparisons are not

shown in a clear fashion.




communicated.

Internal Analysis

(10 points)

Information on the company

is clear and well researched.


are clearly presented, and

performance is clearly


resources and capabilities as

well as its business level

strategy are identified and

convincingly detailed.


not as clear or well

researched or is overly long.


are generally lacking and

performance is only partially


resources and capabilities

and business level strategy

are identified but there is

little convincing evidence for

this.


unclear and poorly

researched. Performance and

operations are generally

lacking. Company resources

and capabilities as well as its

business level strategy are

barely mentioned.

Identify Key

Problem Areas

(10 points)

Key problem areas are well

defined, and convincing

based on evidence provided.

Key problem areas are

defined but not too

convincing based on

evidence provided.

Key problem areas are not

defined or are not convincing

and do not incorporate any

evidence.

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Recommendations

(10 points) All three recommendations

were logical, specific,

feasible, addressed the key

problem, and sufficient detail

was given to explain how

they work.

One or more of the


logical, too general, or failed

to address the key problem.

Detail was not given to

explain how they would

work.

Two or more of the


logical or too general or

failed to address the key

problem. Detail was

generally lacking about how

they would work.

Implementation

Plan

(10 points) The implementation plan

was logical, sufficiently

detailed and took into

account other stakeholders.

The implementation plan was

logical but lacked detail and

did not take into account

other stakeholders.

The implementation plan

was not logical or lacked so

much detail that it was hard

to grasp how it would work.

Additionally other

stakeholders were not taken

into account at all.

Presentation

Delivery

(30 points)

Presentation was well done.

Graphics were easy to read

and interesting. The

presenters knew the material

and were convincing and

confident. Presentation was

length appropriate and was

visually interesting.

Presentation was marginal.

Graphics were overly busy or

difficult to read. The

presenters did not seem to

know some of the material.

The presentation was too

short or too long. The

presentation was rather dry

and visually uninteresting.

Presentation was poorly

done. Graphics were difficult

to read with many

grammatical/spelling errors.

The presenters did not know

the material very well. The

presentation was too short or

too long. The presentation

was visually boring.

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