Individual Case Study Company: Tesla FORMAT FOR CASE The body of the case write-up should contain the following steps. Case Write-up: USE THESE HEADINGS!!! I. STATEMENT OF MAJOR PROBLEM. (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. 9-10 7-8 5-6 the 3-4 Identified Identified Identified Did not the the 1-2 Did not identify identify the but had problem problem problem problem, problem, the and gave but the a solid argument little or no and the and there argument lacked for your strength choice argument argument was no for it was argument. unaccept able 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 maior problem List and briefly explain at least three aduentence and three 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 strategie useable useable chosen s, to strategie strategie could not solve the s. Gave 9-10 7-8 5-6 3-4 1-2 Gave 3 Gave 3 Did not Did not The solid, solid, give 3 give 3 alternativ useable useable solid solid es strategies that could be used to solve the major problem. or 3 be used to solve the problem. Gave very good for sentence disadvan logical s. Did major phrases not give Gave meaningl advantag problem. phrases ess es or No advantages, advantages for tages of advantag disadvantage and advantageach es or es, and discussed disadvan es and alternativ disadvan tages, disadvan e. No tages. functional may not tages. impleme No areas have involved first given No ntation impleme functiona statemen ntation in implementat areas ion for impleme combinat these functional area ts. Or a statemen discussio combinatt... or a n.. or a son of combinat on of ntation on of factors. these these factors factors.. ***** 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. ***** 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. 9-10 Chose 7-8 Chose 5-6 Chose 3-4 1-2 Did not the best the best the best choose Chose the solution solution, and gave but a solid argument was no argumentalment &/or the incorrect solution and had very solution, the but there correct 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.) 9-10 7-8 5-6 3-4 1-2 Implemen Implemen Implemen Implemen Implemen ted the ted the best best ted a ted a ted the substand substand incorrect through all through strategy strategy strategy ard at least 5 and/or and/or functional functional discussed discussed 3 or less areas less than 3 or less functional ard strategy strategy and/or discussed areas using the using the 5 functional areas and key key functional areas and incorrectl each area. area duties of duties of areas and only each only functional functional some of the discussed functional area y used some of the duties. the functional area duties duties. 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 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! 9-10 7-8 5-6 Logically Logically Did not controlled controlled logically the at least 5 control 5 implemen of the functional functional area 3-4 1-2 Did not Control logically was control 3 basically or more non- tation functional existent process areas duties in area for IV through discusse IV. duties in all d in IV IV. functional areas discusse d in IV. Using the table of duties for each function you used above to implement the solution, build in controls using the SMART format. These controls must be Specific, Measurable, Attainable, Related to the strategy you are implementing, and Time based. VI. WHAT I THINK THE COMPANY REALLY DID? Find what the company actually did. Get the company's corporate annual report for the year following the case year to find what the company actually did. VI. WHAT I THINK THE COMPANY REALLY DID? Find what the company actually did. Get the company's corporate annual report for the year following the case year to find what the company actually did. 9-10 7-8 5-6 3-4 1-2 Evidence Evidence Evidence No No that the that the CAR was CAR was that the evidence CAR was that the evidence that the used to used but used but CAR was CAR was correctly did not poor used to used to determine correctly discussio determine determine current identify In of current current strategy current current strategy strategy strategy strategy &/or poor &/or no discussio discussio VII. Ratio Analysis. Submit the finished ratio analysis. (Discussed on the next page) For each ratio, the following Rubric is used: Company Company Had 9-10 7-8 5-6 3-4 1-2 Calculatio Calculatio ratio and correct ns ns calculate Industry d ratio and company incorrect incorrect for and/or correctly. correct. industry company corporate Found Good ratios. and/or ratio correct discussio Little corporate incorrect industry n from discussio ratio or not ratio. text n from Had and/or text incorrect. listed. No Very little discussio excellent CAR CAR discussio about the In from discussion from compone about the text or text or CAR and/or h from 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 COMPANY INDUSTRY 1.2 .8 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. (An explanation of key ratios and a sample ratio analysis from a previous case is in separate handout in Blackboard.) 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