COMPANY: CINEMARK HOLDINGS INC.

Case Statement

Is a declarative statement of the strategic challenge or opportunity senior management now confronts. It isnota short summary,nordoes it suggest the strategy to take. This statement leaves management at a clear decision point.

Right: American Airlines faces bankruptcy due to.....

Wrong: American Airlines must retrench beginning with asset sales....

Financial Analysis

Use the Finance/Accounting Audit Checklist of Questions to guide your efforts in this section (the questions are reproduced in the bullet points below). First, review the raw data to get a sense of the financial health of the company. This includes all exhibits. Next, calculate all of the ratios discussed in class and in the text. Compare these ratios to industry standards found athttp://moneycentral.msn.com/detail/stock_quote(Links to an external site.),http://edgarscan.pwcglobal.com/servlets/edgarscan(Links to an external site.), or other such sources. Information for Anheuser-Busch can be found at:https://www.msn.com/en-us/money/stockdetails/fi-126.1.BUD.NYS?symbol=BUD&form=PRFIHQ.(Links to an external site.)The New York Stock Exchange (NYSE) is another stock market information resource - or simply google your company name and "stock information".

Answer the following questions (Explain the answers for each; Avoid "Yes/No" answers, and feel free to create a sub-section heading to address each question):

• Where is the firm financially strong and weak as indicated by financial ratio analyses?
• Can the firm raise needed short-term capital?
• Can the firm raise needed long-term capital through debt and/or equity?
• Does the firm have sufficient working capital?
• Are capital budgeting procedures effective?
• Are dividend-payout policies reasonable?
• Does the firm have good relations with its investors and stockholders?
• Are the firms financial managers experienced and well trained?

Strategy Selection(s)

Use the Quantitative Strategic Planning Matrix (QSPM) as well as The Markkula Center for Applied Ethics App(Links to an external site.)to arrive at your strategy selection(s). Be sure to include written paragraphs that explain the rationale behind what is depicted in your QSPM and your ethical considerations.

Recommendation (Strategy Selection)

1. Select specific long-term objectives for your firm (per David, Chapter 5).
2. Identify your corporate or business-level alternative strategies e.g., one of Porter's generic (such cost leadership, differentiation, focused) or among those in Table 5-3. This pulls from the alternatives in the Competitive Strategies section you developed in the matching technique in Case II.
3. Construct Quantitative Strategic Planning Matrix (QSPM) that evaluates three alternative competitive strategies. Evaluate the output of the QSPM and discuss the implications for the firm. Conclude with a justification of the strategy that you recommend the firm should select to implement. Clearly and succinctly explain how the course of action will address the case statement, which is the major opportunity or problem that the firm faces.

Conclude by summarizing how the case statement was addressed; how strengths and opportunities were maximized, threats and weaknesses were minimized.

References

David, F.R. (2016). Strategic management: Concepts and cases. Boston, MA: Pearson.