A. Introduction and Purpose of Case Project Audit Paper (important)
B. Background of the Organization (concise but thorough)
C. Definitions of: 1) Strategy, and 2) Competitive Advantage… and their implications for strategic planning (find sources here other than our textbook; remember to cite properly using APA)
D. General, Macro, or PEST External Analysis of the Industry Your Firm Competes in…
1. Economic trends / what effect on the firm?
2. Political, Legal, and Regulatory conditions / what effect on the firm?
3. Natural Resource trends / what effect on firm or its suppliers?
4. Technology – innovation – what’s new, what’s changing? / what is the effect on the firm? How does technology affect customers?
5. Socio-cultural trends (include demographic changes) / what’s the effect on your firm, including the target market(s)?
E. The Micro/Competitive or Industry Environment (Intra-Industry Analysis)
1. Porter’s Five Forces Framework for Analysis (explain first why 5 Forces analysis is used – what does it tell the focal firm about the industry it operates in, why is this tool used?)
a. Bargaining power of suppliers (low, moderate, or high and WHY)
b. Bargaining power of buyers (low, moderate, or high and WHY?)
c. Threat of new entrants / rivals (low, moderate, or high and WHY?)
d. Threat of substitutes (low, moderate, or high and WHY?)
e. Intensity of rivalry among competitors (low, moderate, or high and WHY?
f. Construct your answers to support your arguments for each force
F. Assessment of the Focal Firm’s Internal Environment
1. Analyze by using the V.R.I.O. Framework (RBV, or resource-based view) of the firm (create a matrix examining each resource or capability of the firm and whether or not it is Valuable, Rare, Imitable, Organized).
2. Analyze the firm’s Value – Chain (where does it create efficiencies?)
3. Conduct a thorough S.W.O.T. analysis, combining external and internal analyses (if using Data Monitor as a source DO NOT simply cut and paste the information or you will receive an automatic “F”!! Cite the source and rewrite the important sections in YOUR OWN WORDS.
G. Financial Analysis and Implications (include the firm’s most recent annual figures, and then compare to industry averages)
1. Profitability ratios (ROA, ROE, gross profit margin)
2. Liquidity ratios (current and quick)
3. Leverage ratios (debt to assets, debt to equity)
4. Graph of the firm’s past 5 year stock performance (compare to at least two rivals)
H. The Firm’s Sources of Competitive Advantage
1. Are these sources capable of leading to a sustainable competitive advantage?
2. What generic business-level strategy is the firm following?
Is it: a) cost leadership, b) differentiation, c) focused differentiation, or d) focused low-cost? Or, is it a combination of any of these? Explain.
3. What generic business – level strategy do you recommend they follow in the future? Why?
J. Discuss the Life-Cycle of the industry in which your firm operates in (embryonic, growth, mature, or declining ). Is the industry fragmented, consolidated, or contracting? How will your firm plan on succeeding in this industry?
K. Assessment of the Firm’s Corporate Level Strategy
1. What corporate-level strategies are being used to grow (or contract if downsizing)? Why?
2. Diversification (related or unrelated / conglomerate)? Vertical integration? Horizontal integration through industry acquisitions? Strategic Alliances? Spin-offs to get back to profitability? E-commerce transition? What?
3. What important acquisitions or divestitures has this firm made to strengthen its competition position in the industry?
4. What corporate – level strategy do you recommend they follow in the future? Why?
L. Final Recommendations as to Strategy (may include developing, adding, pursuing, or strengthening any of the following):
1. E-commerce or online business-level strategy
2. The firm’s “human” and “intellectual capital”
3. New ventures or innovation strategies
4. Any changes in organizational design or structure
5. International strategies (growth through geographic expansion for example)
6. Strategic alliances, acquisitions, mergers, divestitures, retrenching, etc.
M. References (APA format – NOT MLA or others, see the folks in the ACC Reading and Writing Center for help here)
N. Appendices – graphs, charts, etc.
