60 likes | 158 Views
Capstone Case Pointers. Remember the key attributes of strategic management Should be directed toward overall goals and objectives Includes multiple stakeholders (Owners, employees, customers, suppliers, community-at-large)
E N D
Capstone Case Pointers • Remember the key attributes of strategic management • Should be directed toward overall goals and objectives • Includes multiple stakeholders (Owners, employees, customers, suppliers, community-at-large) • Needs to incorporate and integrate short-term and long-term perspectives (Profit measurement is short-term; Research and Development and Innovation is long-term) • Should recognize trade-offs between effectiveness and efficiency
Analyze Porter’s Five Forces • Threat of new entrants (Capital investment, technology, brand recognition, etc.) • Buyer power (Few buyers-high, etc) • Supplier power (Few suppliers-high, etc) • Pressure from substitute products (Many substitutes-high, etc.) • Rivalry among existing firms (Number of major players and intensity of rivalry)
Corporate Level Strategies (Directional) • Introduction and Growth (Promotion of potential) • Maturity (Brand recognition, continuing improvement) • Decline (Retrenchment): Selling off divisions or product lines
Business Unit Strategies • Overall low cost leadership • Differentiation • Focus • Combination
Functional Strategies • Should follow up on business unit strategy • For example, in a low cost leadership business unit strategy, the production function would emphasize efficiency. On the other hand, with a differentiation strategy, a company might emphasize quality in the production function
Financial Analysis • Profitability and quality of earnings • Efficiency and control • Cash flows and liquidity • Risk assessment • Company value trend (stock prices and book value equity growth or decline) • Recommendations