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Using thesix-stepanalysisof evaluating the strategies of diversified companies found in Chapter 8 on pages 162-173 in the textbook:ESSENTIALS OF STRATEGIC MANAGEMENT: THE QUEST FOR COMPETITIVE

Using thesix-stepanalysisof evaluating the strategies of diversified companies found in Chapter 8 on pages 162-173in the textbook:ESSENTIALS OF STRATEGIC MANAGEMENT: THE QUEST FOR COMPETITIVE ADVANTAGE7e)

For thefirststep, evaluate the attractiveness of the Apple industry. For example, Disney might ask whether it is a good idea to get into the cruise line business. You are to pick5-8 measures that you will use to analyze your company (half of your measures may come from the book, the other half must come from you). Then you will need toshow the importance/weight of each measure (be sure that the summation of your weights adds up to 100%). Finally for each measure, you will have togive a rating (1-10) on each industry. Please base information off my example below.

Industry Attractiveness Measure Importance/Weight Computer & Electronics Rating/Score Cell Phone & Production Rating/Score Streaming Services Rating/Score
Market Size and Project Growth Rate 30 9 (9 * 0.30 = 2.70) 8 (8 * 0.30 = 2.40) 6 (6 * 0.30 = 1.80)
Market Share and Profitability 20 8 (8*0.20 = 1.60) 8 (8 * 0.20 = 1.60) 6 (6 * 0.20 = 1.20)
Technological Advancement and Innovation 15 9 (9*0.15 = 1.35) 9 (9 * 0.15 = 1.35) 5 (5 * 0.15 = 0.75)
Regulatory and Legal Environment 10 7 (7*0.10 = 0.70) 8 (8 * 0.10 = .80) 7 (7 * 0.10 = 0.70)
Customer Bargaining Power 10 6 (6*0.10 = 0.60) 6 (6 * 0.10 = 0.60) 6 (6 * 0.10 = 0.60)
Supplier Bargaining Power 15 7 (7*0.15 = 1.05) 7 (7 * 0.15 = 1.05) 5 (5 * 0.15 = 0.75)
Total 100% 8 7.8 5.8

For thesecondstep, evaluate the business-unit competitive strength. Here Disney would be determining how good of a job it is doing in the Cruise Line business. Again, you are to pick5-8 measures that you will use to analyze your company (half of your measures may come from the book, the other half must come from you). Then you will need toshow the importance/weight of each measure (be sure that the summation of your weights adds up to 100%). Finally for each measure, give a rating (1-10) on each business unit. Please base information offmy example below.

Industry Attractiveness Measure Importance/Weight iPhone Rating/Score iPad Rating/Score Mac Rating/Score App Store Rating Score iCloud Rating/Score
Product Quality 40 8 (8*0.40 = 3.20) 9 7 10 6
Price/Value Proposition 30 9 (9*0.30 = 2.70) 8 8 10 7
Distribution Channel Access 15 8 (8*0.15 = 1.20) 8 7 9 6
Technology Leadership 10 10 (10*0.10 = 1.00) 8 9 8 8
Marketing Reach 5 9 (9*0.05 = 0.45) 8 6 9 7
Total 100% 3.20 + 2.70 + 1.20 + 1.00 + 0.45 = 8.55 8.40 7.45 9.60 6.55

Next using a "Nine-Cell Industry Attractiveness-Competitive Strength Matrix" as seen in Figure 8-3.

For thethirdstep, determine the Competitive Value of Strategic Fit for the Apple company.

For thefourthstep, Evaluate the Resource Fit for the Apple company. In other words, is it feasible for the company to continue on its path? Do the individual businesses adequately contribute to achieving companywide performance targets? Does the corporation have adequate strength to fund its different businesses and maintain a healthy credit rating? Please show how you have reached your conclusions.

For thefifthstep, rank the business units and set a priority for resource allocation. For example, Disney might place a priority on maintaining the theme parks over the Cruise Lines if they have constricting budgetary constraints.

Finally for thesixthstep, craft a strategy that suggest moves to improve the overall corporate performance.

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