BUS 411

1. BUS 411 DAY 16

2. Agenda • Questions? • Assignment 5 Corrected • 3 A’s, 3 B’s, 3 C’s and 2 D’s • Assignment 6 posted (last one) • Due March 26 (29?) • Assignment 6.pdf • Midterm will Take Home, Available March 26 @ 12:30 PM  due March 29 @ 5 PM • Discussion on How to present a case study • Finalize Group and case assignments. • Group Work

3. Pre Break Timeline • March 19 • Chapter 11 Global Issues • March 22 • How to Prepare and Present a Case Study • Team Formation & Case Assignments • March 26 -> no class…midterm assigned • March 29 • Example Case Netflix presentation by Tony • After Break • Student case study presentations

4. Mid-term This is your midterm exam and it includes 20 short essays from the first 11 chapters of the text. You can use your book, notes, and class PowerPoint's to complete this exam. While you can use  the Internet and Google also, but I would caution about the quality of the answers you may find. The correct answers for these questions are straight from the textbook and the textbook will be the only reference used for grading the exam. You may not seek help from any other person to complete this exam. This exam will time out on Friday, March 29  @  5 PM. Any questions answered after that time will not count. You can work at this exam in several intervals if you save your questions and DO NOT submit the exam. Submit the exam only when you have completed the exam and checked to see that all questions are answered and saved.

5. Strategy management The real key to effective strategic management is to accept the premise that the planning process is more important than the written plan, that the manager is continuously planning and does stop planning when the written plan is finished. The written plan is only a snapshot as of the moment it is approved. If the manager is not planning on a continuous basis --- planning, measuring, and revising – the written plan can become obsolete the day it is finished. This obsolescence becomes more of a certainty as the increasingly rapid rate of change makes the business environment more uncertain. --- Dale McConkey

6. What is a case study? • Describes a firms situation at some point in time • All of these case studies are 2011 • Analysis must reflect the correct time period • End of fiscal year 2010 data • You have the benefit of hindsight • Contains mostly fact with some opinion • Puts the reader on the scene • Allows learning by doing • The job to create a 3-year strategic plan for 3 years after the case (2011-2014)

7. Preparing Cases Analysis • Need for Practicality • Cases are incomplete • Make reasonable assumptions and DOCUMENT your assumptions • Need for Justification • Support your decisions • Need for Realism • Be realistic • Need for Specificity • What, why, when, how, where and who • Business people (and business professors) dislike generalities and vagueness • Need for Originality • Be original…there is no perfect answer • If it were that easy everyone could do it! • Need to Contribute • teamwork

8. Case method • Student centered approach – discussion oriented • What would you do? • Why would you do it? • When would you do it? • How would you do it? • Role of professor and other students is to cross examine presenters

9. Class Discussion • Read the case • Take notes • SWOT Analysis • Make recommendations • Conduct Research • The better you are at research the easier the analysis goes • Prepare PowerPoint and presentation • Example PowerPoint Wendys.ppt • Get ready for Cross-Examination • Peers • Everyone should read all the cases! • Instructor

10. Some question you should be able to answer • What are the firm most important external opportunities and threats? • Strengths ands weakness? • How would you describe their financial condition? • What are the existing strategies and objectives? • Who are the competitors and what are their strategies? • What objectives and strategies do you recommend? • Explain your reasoning • How does this differ from what they are doing? • How do implement the recommendations? • What problems do you foresee in implementation? • How will you evaluate progress towards your recommendations?

11. Identify Mission, Vision, Objectives, Strategies Develop New Vision and Mission Most are poor Identify internal strengths and weaknesses IFE Financial ratios Product Positioning Org Chart Identify external opportunities and threats Industry trends CPM EFE Analyze SWOT Matrix SPACE BCG IE matrix Grand Strategy Matrix Matrix Analysis Summary Give advantage and disadvantages of alternative strategies QSPM Recommend Strategies and long range objectives Show cost Specify how strategies are to be implemented and what results to expect EPS/EBIT Projected financials & new ratios Timetable or agenda for actions Recommend specific annual objectives (goal) and polices Recommend procedures for evaluation Balanced scorecard Be Original – Take chances Remember business rewards risk taking Be ready for Cross-examination Steps in Preparing Oral Case studySee page 360-369

12. Making the presentation • Organize with PowerPoints and graphics • http://www.youtube.com/watch?v=lpvgfmEU2Ck • Give overview • Inform the audience if it is a team presentation • Who does what • Control your voice • Manage Body language • Do not read your notes or the power points-be fluid • Use lots of visuals • Be enthusiastic! • Answer questions at the end

13. Case study Scenario • You are a team of consultants presenting a Strategic plan to the board of directors of the company. 40-50 mins (you will be timed) ! • You need to convince that board that you know what you are doing • Whatever you recommend should be the preferred course of action for the company in question for the next 3 years • Expect tough questions…be ready with answers • Don’t propose something that has already been tried unless you know that it was a implementation problem and not a strategic one • Don’t BS.. you will get exposed

14. Tips for success • Content tips • http://www.strategyclub.com/ • Use S&P Industry survey • Process tips • Divide the work • Cover all bases • Attempt to uncover flaws in your analysis

15. Research Tips • Your best resources are the UMFK Digital Databases • Business Insights: Essentials • Business source Complete • Newspapers (proquest) • Value Line research center • Wall Street Journal • Academic Search Premier • Census gateway • Econlite • Fed in print • Other resources • http://www.sec.gov/edgar.shtml • http://finance.yahoo.com/ • http://money.cnn.com/ • http://moneycentral.msn.com/home.asp • Investor relations web site for the company associated with the case study • http://www.isc.hbs.edu/ • Bad resources • Web searches • Friends and colleagues • Tonyg.umfk.maine.edu

16. Case Presentation Analysis Students that are not presenting will also evaluate presenters, Case Score = 50%(avg student scores) + 50% (professor score)

17. Peer Review for Case studies In rating yourself and your team members, use a one- to five-point scale, where 5 = superior, 4 = above average, 3 = average, 2 = below average, and 1 = really weak. Add the scores to obtain a total score for yourself and the other group members. Put any comments you like on the bottom of this page.. If you receive a poor rating on this evaluation, your final case average will be lowered one letter grade. A superior rating may add points to the final case average.

18. Group And Case Assignments • Group 1 • David, Shawn, Zhongling, Yoshives • Group 2 • Emily, Megan, Carter, Olivia • Group 3 • Thomas, Allie, Brandon, Loren

19. Schedules for Cases • March 29 • Netflix – Tony Gauvin • Apr 9 • Southwest Airlines – Group ? • Apr 12 • United Continental Holdings – Group ? • Apr 16 • Ryanair Holdings – Group ? • Apr 19 • Dr. Pepper Snapple Group • Apr 23 • Coca-Cola • Apr 26 • Starbucks • Apr 30 • Student’s choice • May 3 • Scholars symposium • May 7 • Student’s choice • May 10 • Student’s choice