Chapter Three: The External Environment

1. 0 Case Chapter: Preparing an Effective Case Analysis Chapter Three: The External Environment Chapter Three: The External Environment Hitt, Ireland, Hoskission, Rowe & Sheppard Strategic Management N o t e s Competitiveness & Globalization

2. 0 Preparing an Effective Case Analysis Knowledge Objectives • Discuss why we use cases. • Describe the process of preparing a case. • Study the product of the analysis: the report. • Discuss, generally, what’s involved with the synopsis. • Note the requirements for the analysis paper. • Note the analysis presentation requirements.

3. Reasons: Why use Cases? 1. Results of Case Method Involvement:a • Preparing for case discussion, case analysis makes you practice important managerial skills: Diagnosing. Making decisions. Observing. Listening & persuading. • Cases require you to: • Relate analysis and action. • Develop realistic and concrete actions, despite the complexity & partial knowledge. • You develop a general managerial point of view… • Where responsibility is sensitive to action in a diverse environmental context. Why Use Cases

4. Reasons: Why use Cases? 1. Results of Case Method Involvement:b • You confront the intractability of reality: • The absence of needed information; • An imbalance between needs & resources; • Conflicts among competing objectives. • Communication skills will be honed by use of oral & written presentations of case analyses. • The primary responsibility for learning is yours. • The quality of case discussion requires, at least a mastery of case facts & some analysis. • The case method requires you read & think carefully about each case. Why Use Cases

5. The Process: Preparation Essential elements includepreparation • Careful reading & thinking about case facts, • Reasoned analyses, • Development of alternative solutions to case problems. Recommended alternatives should flow logically from core problems identified through study of the case. The Process: Preparation

6. The Process: Preparation 1. Gaining Familiarity • In general, determine who, what, how, where & when (the critical facts in a case). • I.D. situation’s places, persons, activities, & contexts. • Recognize informational certainties & uncertainties. 2. Recognizing Symptoms • List all indicators (including stated “problems”)that something is not as expected or as desired. • Ensure symptoms are not assumed to be a problem (symptoms lead to identifying problems): • You may want to correct symptoms not true problems. • True problems are states or situations requiring solution before firms’ or persons’ performance can improve. The Process: Preparation

7. The Process: Preparation 3. Identifying Goals • Identify critical statements by major parties. • List all goals of the major parties that exist or can be reasonably inferred. 4. Conducting the Analysis Decide what ideas, models, theories are useful. Apply these conceptual tools to the situation. As new info. is revealed, go recycle back to ‘a.’ The Process: Preparation

8. The Process: Preparation 5. Making the Diagnosis • Identify predicaments (goal inconsistencies). • Identify problems (goal, performance divergence). • Prioritize problems with timing, importance, etc. 6. Doing the Action Planning • Specify & prioritize criteria used for alternatives. • Discover or invent feasible action alternatives. • Examine likely consequences of alternatives. • Recommend a course of action. • Design an implementation plan / schedule. • Create a plan to assess implemented actions. The Process: Preparation

9. The Product: The Analysis 1. Mission, Objective, Goals & Stakeholders Updated Information Current Mission / Goals & Objectives Stakeholders & what they want FORM B O N U S If the case information needs updating, you should update it and bring the audience / reader up to speed. Provide what you think are the firm’s current Mission & some goals. CONTENT Provide a list of stakeholders & what you think they each desire from the firm. The Product: The Analysis

10. The Product: The Analysis 2. General, Industry & Competitive Environment Macro Environment: FORM Demographics, Economy, etc. Industry Environment: Porter’s 5 forces. Competitors. Detail the top three. Dynamics. Likelihood of attack & response. B O N U S Clearly detail the above elements. CONTENT The Product: The Analysis

11. The Product: The Analysis 3. Resources,Capabilities&Core Competencies Resources FORM Tangible Intangible Capabilities (by Functional Area). Core Competencies (VIRO). Financial Performance results. B O N U S Details will be needed. (You might say “Their physical plant is the most modern and efficient in the industry. It allows them to…” CONTENT rather than just listing “Physical Plant”under tangible resources). The Product: The Analysis

12. The Product: The Analysis 4. Strategy Business Level Strategy. Corporate Level Strategy. International Strategy. Cooperative Strategy. FORM State the firm’s Generic Bus. level strategy (Cost Leadership, Differentiation, Focus) B O N U S State the firm’s Corp. level strategy (Conglomerate, Vert. Integration, Single bus.) State the firm’s International Strategy (Global, Transnational, Multidomestic) CONTENT Say with whom they have cooperative arrangements & how they benefit the firm. The Product: The Analysis

13. Strengths Weaknesses Opportunities Threats The Product: The Analysis 5. SWOT & Synthesis SWOT Synthesis (with SWOT Matrix) FORM CONTENT What strengths allow the firm to uniquely take advantage of opportunities What weaknesses prevent the firm from taking advantage of opportunities B O N U S What strengths allow the firm to defend against threats. What weaknesses exacerbate threats to the firm. How does all that you have said so far fit together. The Product: The Analysis

14. The Product: The Analysis 6. Criteria, Evaluations & Recommendationsa Possible Alternatives. FORM Criteria for Evaluation of Alternatives. Evaluation of Alternatives. Recommendation. B O N U S Generate possible alternatives. Tell what a good recommendation would address given the firm’s mission, SWOT & strategy. Evaluate possible courses of action. CONTENT Recommend a unique alternative. The Product: The Analysis

15. The Product: The Analysis 6. Criteria, Evaluations & Recommendationsb Name Your Alternatives & Criteria FORM Alternatives B O N U S Criteria The Product: The Analysis

16. The Product: The Analysis 7. Implementation Plan of Action (What needs doing 1st?). FORM Are new Organizational Structures & Controls needed (If so, What types?). Criteria by which we Evaluate Changes. B O N U S Generate a list actions needed for change and explain your logic for them. Evaluate whether new Organizational Controls are needed & if so what types. CONTENT Discuss how we will know whether the change has been effective. The Product: The Analysis

17. The Product: The Paper Both the Individual & Group Paper: • Page limit is 18 pages, sans cover & cites (like a speed limit, you get busted if you’re way over, like 20+ pages). • NO Table of Contents or Exec. Summary is needed. • Double spaced ( I will check) Times or Times New Roman. • Real Minimum type is 11 point with .3 compression. • Margins of 1 inch or 2.5 cm. (that’s really the minimum). • Cite in any consistent format; only for quotes & odd facts (not from text, case, or common knowledge). • Rule of 7 + or – 2 for lists. • No incompressible misspelled sentences. • Tables will save you space (I do not like cut & paste). • Web Page has a blank analysis with very useful advice. B O N U S : The Paper

18. The Product: The Synopsis Groups will write a 5-8 page synopsis. • This is basically a mini-case to familiarize the rest of the class with the firm your group will analyze (it’ll be posted on-line for everyone else to read). • Your synopsis should cover cover: B O N U S Firm history. Current situation. Environment. Main strategic challenges. • I will need a Word™ & a pdf version of your groups’ synopsis e-mailed to me in good form (without student ID numbers on the cover). • There are links to previous terms synopses on the Groups page of the Bus. 478 Webpage. : The Synopsis

19. Section of reportGrade range is 0.0 –4.3 Form Content Mission, Objectives, Goals, Stakeholders Resources, Capabilities / Core Competencies General & Industry Environment Bus., Corp., Interna-tional & Co-op. Strat.s Synthesis Implementation Criteria, Evaluation & Recommendation Average The Product: The Presentation Over the Last Two or Three Classes • A presentation should include all parts of the analysis. • Presentations should be about 30 minutes, then 10 min.s for ?s. • It helps if copies of slides are provided before a presentation. • All members must present, but the group receives a joint grade. • The Word™ version is due by e-mail 3 days after presenting. B O N U S : The Presentation

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