Individual Strategic Analysis: Each student must select a company to individually analyze. This company may not be one that is listed on the Schedule before the due date or that a group is doing for the Strategic Analysis Project (see below) or that is a Strategic Analysis Project example from a previous semester. It may, however, be one that is covered in second half of the textbook. (It would be wise to select something that has a SWOT analysis in Business Source Complete.)
The assignment is a brief analysis and set of recommendations for your selected firm. It is strongly recommended that it exclusively and obviously employ strategy tools from the course. Doing so successfully is the key grading component. A possible general outline is as follows:
• Situational Analysis
• Strategic Agenda
• Strategic Alternatives (List 3, Select1)
• Recommendations
• Assessment
This must be severely abbreviated, no more than two 1.5 spaced pages (using Cambria, 12-point). I’d recommend following a bulleted format with brief explanations/justifications of every point, as well as making all points in terms of the strategy tools presented in the course. (A comprehensive list is available in the Strategy Tools Master List in Canvas.) Put your name at the top of the first page and list any sources on a third page. (Suggestion: save space and don’t separate major section with blank lines.)
The objective of this assignment is to see if you, as an individual, can think strategically and briefly and coherently encapsulate the strategic situation of a firm to make plausible recommendations to address issues you identify. The storyline should be obvious, and your application of course material (the Strategy Tools) should dominate the analysis.
BA 7080 Strategy Tool Acronym Key
Topic of Acronym (in Strategic Analysis Project order, more or less) – ACRONYM [Chapter Screencast Where It Is Found] (Description)
• Acronym Components: Component Description
• Strongly Recommended Strategy Tools in Bold
• Recommended Strategy Tools in Italics
Strategy Definitions – Ps [Ch. 00 – Problem Construction]
• Plan: about the future
• Ploy: acting with guile
• Pattern: in a stream of actions
• Position: in the product-marketplace
• Perspective: way of viewing the world
• Problem: clarity for action
Eight Parts of Strategy – PAVIN’ CAP [Ch. 01 – Problem Construction]
• Pronoun: assigning to a generic type
• Adjective: prioritizes different things
• Verb: actions firm actually does
• Interjection: results from/inspires emotion
• Noun: specific plan, pattern, position, etc.
• Conjunction: matches together
• Adverb: prioritizes different actions
• Preposition: hierarchical & sequential relationships
Problem Construction – CRIES [Ch. 00c – Problem Construction]
• Cause
• Recommended Solution
• Internal Frame
• External Context
• Symptom
Framing – ABET [Ch. 00c – Problem Construction]
• Amplify: idealize, clarify or embellish existing values and/or resources
• Bridge: connect seemingly disconnected values and/or resources
• Extend: encompass incidentals to primary objectives, values and/or resources
• Transform: change old understandings, create new ones
Company History – MRS [Ch. 01a – Strategy Agenda]
• Memorialize: tell a story of company’s past
• Revision: focus attention on elements related to current situation
• Sacralize: ennoble the new emphasis and diminish alternative themes
Situational Analysis – SWOT [Ch. 01 – Strategy Concept]
• Strengths (internal)
• Weaknesses (internal)
• Opportunities (external)
• Threats (external)
Situational Analysis – WOTS-UP [Ch. 01 – Strategy Concept]
• Weaknesses (internal)
• Opportunities (external)
• Strengths (internal)
• Threats (external)
• Underlying
• Planning
Elements of the Macro Environment – DEPMTS [Ch. 03 – External] (look for Opportunities & Threats within each)
• Demographics
• Economic
• Political-Legal
• Mother Nature
• Technology
• Socio-cultural
Elements of Industry Structure – FORCES [Ch. 03 – External] (except for Facilitators, Strong Force = Threat)
• Facilitators (Complements)
• Other Options (Substitutes)
• Rivalry between Competitors
• Customer Bargaining Power
• Entrants New to Industry
• Supplier Bargaining Power
Industry Life Cycle – LIFE [Ch. 08 – Industry Evolution] (consider competitive implications of the relevant stage)
• Launch (Introduction)
• Increase (Growth)
• Full-grown (Maturity)
• Ending (Decline)
Competitor Analysis – SOAR [Ch. 04 – Industry.Segments] (assess competitors along following dimensions)
• Strategy
• Objectives
• Assumptions
• Resources
Elements of Stakeholder Influence – PUL [Ch. 04 – Industry.Segments] (assess for each stakeholder group)
• Power: stakeholder’s ability to attain desired outcomes
• Urgency: stakeholder calling for immediate action
• Legitimacy: stakeholder’s claim seen as valid
Stakeholder Types – LED [Ch. 04 – Industry.Segments] (based on Stakeholder Influence)
• Latent
o Dormant: P only
o Demanding: U only
o Discretionary: L only
• Expectant
o Dominant: P & L
o Dependent: U & L
o Dangerous: P & U
• Definitive: P, U & L
National Competitive Advantage – CLIF [Ch. 11 – Multinational] (Porter’s Diamond)
• Competitiveness of Related & Supporting Industries
• Local Demand Conditions
• Intensity of Rivalry
• Factor Conditions
Multinational Pressures – CD [Ch. 11 – Multinational] (Pressures Facing Firms in Multinational Industries)
• Cost Reduction
• Differentiation
Pressure for Cost Reduction – CELLS [Ch. 11 – Multinational] (Based on the following market and product characteristics)
• Commodity Products
• Excess Capacity
• Low-cost Locations
• Liberalized Trade Environment
• Switching Costs
Distance and National Differences – CAGE [Ch. 11 – Multinational] (Ghemawat’s Distance Measures)
• Cultural
• Administrative
• Geographic
• Economic
Pressures for National Differentiation – PITCH [Ch. 11 – Multinational] (Based on Differences in . . .)
• Practices/social customs
• Infrastructure
• Tastes/preferences of customers
• Channels of distribution
• Host government demands
Different Functional Value Chain Elements – SLIPFORM [Ch. 05 – Internal] (look for Strengths & Weaknesses in each)
• Service
• Leadership
• Information Systems
• Personnel
• Finance
• Operations
• Research & Development
• Marketing & Sales
Sources of Organizational Inertia – COLICS [Ch. 08 – Industry Evolution & Strategic Change] (identify roadblocks to needed change)
• Complementarities: between strategy, structure, systems
• Operating Routines
• Limited Search
• Incremental Change
• Conformity
• Structures: social and political
Keys to Core Competency – VRIN [Ch. 05 – Internal] (assess several Strengths along each up to the point where it fails to possess characteristic)
• Valuable
• Rare
• Inimitable
• Nonsubstitutable
Barriers to Imitation – CUTTS [Ch. 05 – Internal] (use to assess several Strengths to see if inimitable)
• Causal Ambiguity: difficult to discern reasons for success
• Unique History: happening to one firm, not another
• Tacitness: difficult to articulate source of advantage
• Time Compression Diseconomies: takes as long to copy as develop
• Social Complexity: interactions of many people, units & technologies
Strategic Issue Factors – FUI [Ch. 01a – Agenda]
• Favorability: positive and/or gain
o External Opportunity (Positive/Gain)
o External Threat (Negative/Loss)
• Urgency: importance and time pressure
• Influence: controllable by the firm
o Internal Strength (Controllable)
o Internal Weakness (Uncontrollable)
Strategic Agenda Quadrants – MOVE [Ch. 01a – Agenda]
• Missed Opportunity: Weakness & Opportunity combination
• Ominous Threat: Weakness & Threat combination
• Vital Opportunity: Strength & Opportunity combination
• Enervated Threat: Strength & Threat combination
Strategic Issue Urgency Quadrants – DO-IT [Ch. 01a – Agenda]
• Developing Issue: High Importance & Low Time Pressure
• Obligatory Issue: High Importance & High Time Pressure
• Insignificant Issue: Low Importance & Low Time Pressure
• Transient Issue: Low Importance & High Time Pressure
Large Agenda Problems – BED [Ch. 02 – Mission]
• Beginning Responses
• Executing Responses
• Data about Responses
Recommended Strategic Trajectory – MOST [Ch. 02 – Mission]
• Mission
• Objectives
• Strategy
• Tactics
Mission Statement Benefits – LEAD [Ch. 02 – Mission]
• Legitimacy from Society
• Employee Identification
• Accountability for Managers
• Direction for the Firm
Ideal Mission Statement Elements – COMPACTS [Ch. 02 – Mission]
• Customer Focused: customer groups and needs
• Overarching: role in society
• Moral: addressing various responsibilities
• Particular: specific to the firm
• Aspirational: stretches the firm
• Concise: relatively brief
• Transmitted: communicated to stakeholders
• Stable: relatively unchanging
Aspects of Ideal Objectives – TRAMS [Ch. 02 – Mission]
• Time Dead-Lined
• Realistic
• Ambitious
• Measurable
• Significant
Multinational Strategies – GLOBe [Ch. 11 – Multinational] (generally mutually exclusive: select one)
• Global: treat all markets the same
• Local: treat all markets different
• Overseas (International)
• Beyond-national (Transnational: both Global and Local)
Global Strategy Advantages – GRACES [Ch. 11 – Multinational]
• Global customers: may require it
• Replicate: copy what already works elsewhere
• Arbitrage: differences in resources
• Compete strategically: cross subsidizing & retaliating
• Education: learning applied across markets
• Scale advantages: larger volumes
Corporate Strategies – DIVURSE [Ch. 11 – Diversification] (in which industries to compete? Some are mutually exclusive: select one or few)
• Dominant (primarily on core industry)
• Integration/Vertical (Insourcing)
• Vendor-based (Outsourcing)
• Unrelated Diversification
• Related Diversification
• Side-stream Diversification (using by-products)
• Exclusive (entirely on original industry)
Exploiting Innovation – LOJIC [Ch. 09 – Technology]
• Licensing
• Outsourcing
• Joint Venture
• Internal Commercialization
• Compatriots (Strategic Alliance)
Diversification Test – ABC [Ch. 12 – Diversification]
• Attractiveness: toward favorable industries
• Better-Off: synergistic links
• Cost of Entry: doesn’t capitalize future profits
Managing Corporate Linkages – STRAP [Ch. 13 – Multibusiness]
• Social Media Utilization: leverage loyal social following corporate-wide
• Talent Transfer: skills and abilities across businesses
• Restructuring: acquire and revitalize poorly managed firms
• Activity Sharing: resources across businesses
• Portfolio Management: operate internal capital market
Motives for Mergers & Acquisitions – DREEM [Ch. 14 – Mergers, Acquisitions & Alliances] (reasons to buy another firm)
• Diversification
• Resource Access
• Expand Geographically
• Economize Costs
• Market Power
Benefits of Alliances – SECT [Ch. 14 – Mergers, Acquisitions & Alliances]
• Sharing Risk
• Education
• Combining Resources
• Time-to-Market Reduction
Distribution of Alliance Benefits – PAN [Ch. 14 – Mergers, Acquisitions & Alliances] (determinants of which alliance partner benefits most)
• Planned Strategic Intent
• Appropriability of Contribution
• Not Invented Here
Business Models – BASIC MAPS [Ch. 07 – Business Strategy] (revenue architecture)
• Brokerage: market maker bringing together buyer and sellers
• Advertiser: content mixed with ads
• Seller: merchant wholesalers and retailers
• Infomediary: collect data to help buyers and/or sellers
• Community: collaboratively engaged individuals with similar interests
• Manufacturer: direct sales to consumers
• Affiliate: purchase-point click-through for merchants
• Pay As You Go: metered services based on usage rates
• Subscription: periodic fees independent of usage rates
Business Strategy Options – COMPETES [Ch. 07 – Business Strategy] (ways to differentiate from competition; focus on one or a select few)
• Customer Support: something accompanying product
• Original Representation: unique image
• Mediocrity: no distinct advantage in product
• Price: usually means lowest
• Excellence: quality of good or experience
• Type of Design: unique product features
• Expedience: timeliest
• Sustainability: people and planet
Customer Perceived Sources of Uniqueness – STIMP [Ch. 07 – Business Strategy] (the unique value that a producer provides)
• Services that complement
• Technology in design and manufacture
• Input quality (components, supplies, ingredients)
• Marketing intensity
• Product features and performance
Producer Sources of Uniqueness – PILE [Ch. 07 – Business Strategy] (ways in which a producer provides unique value)
• Procedures of the firm
• Integration of the production chain
• Location advantages
• Employee skill and experience
Cost Drivers – DRIVERS [Ch. 07 – Business Strategy] (ways in which to lower expenses)
• Design of Product
• Replacing Production Techniques
• Input Costs
• Volume Utilization
• Experience Curve
• Residual Efficiency
• Scale Economies
Segmentation Strategies – SING [Ch. 07 – Business Strategy] (ways to divide up the market into customer groups)
• Segmented
o Comprehensive
o Selective
• Individualized
o Pure
o Tailored
o Standardized
• Niche
• Generic
Dimensions of Segmentation – GUUDS [Ch. 07 – Business Strategy] (use to describe segments)
• Geographic
• Utility (benefit)
• Usage (amount)
• Demographic
• Self Image (psychographic)
Maturity Key Success Factors – DISC [Ch. X – Mature Industries] (options for advantage in the Full Grown LIFE cycle stage)
• Differentiation: Peripheral attributes
• Innovation: New Strategic approaches
• Selection: Attractive Customer segments
• Cost Reduction
Decline Options – CRAFT [Ch. X – Mature Industries] (strategy options for firms in the Ending LIFE cycle stage)
• Create (Blue Ocean)
• Reduce (Harvest)
• All In (Leadership)
• Focus (Niche)
• Take Off (Divest)
Fighting Standards Wars – NAPES [Ch. 09 – Technology-based Industries] (steps to imposing a technical standard)
• Network Externalities
• Allies
• Pre-empt the market
• Expectations
• Sustain
Stimulating Innovation – BOCCI [Ch. 09 – Technology-based Industries] (tactics for improving R&D)
• Buying innovation
• Open innovation
• Cross-functional teams
• Champions
• Incubators
Functional Strategies – SLIPFORM [Ch. 10 – Functional.Integration] (recommend strategies in each to support business strategy)
• Service
• Leadership
• Information Systems
• Personnel
• Finance
• Operations
• Research & Development
• Marketing & Sales
Strategic Change Management – CARTS [Ch. 08 – Industry Evolution & Strategic Change] (overcoming organizational inertia)
• Crisis Perception
• Ambidexterity
• Reorganization
• Targets
• Scenario Analysis
Ladder of Cogency – Ps [Ch. 00d – Plausibility]
• Puerile: flawed and fallacious
• Possible: not fallacious but still unlikely
• Plausible: seemingly reasonable
• Probable: somewhat compelling
• Persuasive: supported by converging lines of evidence
• Proven: assertions undeniable, rebuttals unaffirmable
Test for Plausibility – FAUCETS [Ch. 00d – Plausibility]
• Feasibility: can we do it?
• Advantage: should we want to do it?
• Unintended Consequences: what else happens if we do it?
• Consistency: across level and function
• Environmental Fit: match S&W with O&T/address Strategic Agenda
• Transitional Steps: how do we do it?
• Storyline: integrated sequence of ideas
Environmental Fit Guidelines – BETR [Ch. 00d – Plausibility]
• Bolster/Build On Strengths
• Extinguish/Evade Weaknesses
• Take Opportunities
• Reduce Threats
Storyline Elements – FACTS [Ch. 00d – Plausibility]
• Firm: Actors in the Story
• Agenda: Context of the Story
• Competencies: Instruments Actors Use in the Story
• Task: (Mission) Quest of the Actors
• Strategy: Actions of the Story Actors