(Explain what you think the problem is and why You think it is the problem. The Problem is NEVER FINANCIAL, financial problems are symptoms of the real problem!!) You must state the problem in terms of how the company’s current strategy has or will cause problems for the company in terms of the elements of the external environmental factors and the company’s structure/internal environment.

CRITICAL SUB‑PROBLEMS (Identify and give a plan to solve them here. Usually financial, or maybe structural, but remember that financial problems are usually symptoms of the major problem.)

ANY OTHER SUB‑PROBLEMS YOU FEEL NEED MENTIONING

Possible Corporate Strategies from which you may choose given your particular case. One of these must be the Major Problem for your case. They will also be those from which you choose your Alternative strategies to solve the major problem.

TABLE 5-4 Alternative Strategies Defined

Forward Integration: Gaining ownership or increased control over distributors or retailers

Backward Integration: Seeking ownership or increased control of a firm’s suppliers

Horizontal Integration: Seeking ownership or increased control over competitors

Market Penetration: Seeking increased market share for present products or services in present markets through greater

marketing efforts

Market Development: Introducing present products or services into new geographic area

Product Development: Seeking increased sales by improving present products or services or developing new ones

Related Diversification: Adding new but related products or services

Unrelated Diversification: Adding new, unrelated products or services

Retrenchment: Regrouping through cost and asset reduction to reverse declining sales and profit

Divestiture: Selling a division or part of an organization

Liquidation: Selling all of a company’s assets, in parts, for their tangible worth

II. ALTERNATIVE STRATEGIES. (At least 3. Relate only to the major problem. List and briefly explain at least three advantages and three disadvantages of this alternative. Give a brief statement of implementation for each alternative which tells what functional areas will be involved first in the implementation process of this strategy, and how.) ***** See Format for Alternatives Below

Use this Format for Alternative strategies:

Alternative Strategy 1: Give name and definition of Strategy and tell briefly how it should be used by the company.

Advantages:

1.

2.

3.

Disadvantages:

1.

2.

3.

Implementation Statement. Tell what functional areas will be involved first to implement that strategy and briefly how.

Follow this format for all 3 Alternative Strategies. Discuss them separately.

One of these Alternatives your discussed must be the Solution!

III. SOLUTION. (Give reasons for choosing this particular strategy as the solution. Your logic should be written in the alternatives. Could be a combination of alternatives, but choose the ONE you think is best.) Must be a solution to the major problem you stated above and must contain one of the alternative strategies that you previously discussed to repair it. Status quo may be an alternative strategy, but it is probably NOT the solution.

IV. STRATEGY IMPLEMENTATION. (How are you going to do what you want to do? Where will the company obtain the $$, the resources, the people, etc. This should be the major section of your paper. This should be logical, practical, and sound. Remember, some ideas may sound good, but if the company can't implement them they are worthless. Critical thinking is definitely required here!! Discuss each major department’s specific duties in implementation of this strategy (management, marketing, R&D/engineering, accounting, HRM, production, MIS, finance, legal).

(Section IV counts 50 points for each case.)

V. CONTROL SYSTEM/FEEDBACK/BACKUP SOLUTION. (How are you going to monitor the strategy implementation? How will you know if it is working? What will you do if it does not work?) You should follow the each step in the implementation process for each functional area and determine how each step will be controlled. If you have sold part of the company, it is impossible to go back to the status quo as a backup solution!

VII. Ratio Analysis.

Submit the finished ratio analysis. (Discussed on the next page)

For each ratio, the following Rubric is used:

9-10 Company ratio calculated correctly. Found correct industry ratio. Had excellent discussion from the text and/or CAR about the components of the ratio.

7-8 Company and Industry ratio correct. Good discussion from text and/or CAR about the components of the ratio, but lacked clarity in some areas.

5-6 Had correct company and industry ratios. Little discussion from text and/or CAR about the components of the ratio.

3-4 Calculations incorrect for company and/or corporate ratio incorrect. Very little discussion from text or CAR.

1-2 Calculations incorrect and/or corporate ratio incorrect or not listed. No discussion from text or CAR.

Ratio Analysis Format

Following the case analysis should be an appendix containing an analysis of ALL required ratios of the company. You should list the industry ratio amount and the company ratio amount, and give a comparison (in words about what this means to the company. See additional information in the Group Project Ratio assignment.

FOR EXAMPLE ......

QUICK RATIO INDUSTRY COMPANY

This company is below industry average. This company does not have enough quick cash to cover short-term debt. ..then tell what does this mean in this particular situation for the company. Will the company have to sell long-term assets to pay bills? Will it have to liquidate some old inventory?? Look at the special situations found in the case which have arisen to create these numbers for the firm.

You must determine what the company’s overall financial situation is by comparing each set of ratios to the industry and to themselves. Cross reference between categories of ratios: profitability, liquidity, and activity.