business

please follow the instructions.

I need powerpoint presention.

this assingment is about target company

the competitor company are:

1-sears

2-Jc Penny

3-kohl’s

STANDARD GRADING FORM

I. IDENTIFICATION OF ISSUES

INDUSTRY PERSPECTIVE

MARKET OVERVIEW SIZE of industry as measured by $, #, pounds, barrels, etc.

MARKET TRENDS Five year time line for INDUSTRY

COMPETITIVE ENVIRONMENT PIE CHART—show top 2 or 3 and then yourself and closest competitors

BUSINESS DESCRIPTION (Competitive Advantage)

PRODUCTS & TECHNOLOGY SCOPE General categories—level of tech used—state-of-the-art or something less

MARKETS AND DISTRIBUTION Who are the markets? Age? Gender? Life style? Where and method

MANUFACTURING &/OR PROCESSING Manufacturing capabilities (available slack) and broad geographic locations

INDUSTRY ATTRACTIVENESS & BUSINESS STRENGTH See p262—

MISSION STATEMENT THIS IS THE ONLY PLACE COMPLETE SENTENCES ARE REQUIRED! Four factors—product—market (who)—geographic area—profit position

CORPORATE PHILOSOPHY Bullet the list of STAKEholders

COMPETITIVE FINANCIAL POSITION (comparative) Comparison of ratios exhibiting differences & an ANALYSIS of the differences

STRENGTHS & WEAKNESSES Critical Success Factor INTERNAL factors over which you have control —ch 3 (discuss in class) CSFs those factors necessary to be a dominant player (or maybe just survive)

VALUE CHAIN (all positive factors) COMPETITIVE ADVANTAGE See ch 5 pp159 — 164 (we will discuss in class)

OPPORTUNITIES & THREATS (remote environment) EXTERNAL factors over which you have no real control—maybe ability to influence—see pp 89

PORTERS FIVE FORCE ANALYSIS (industry environment) Ch 3 p 91

GAP ANALYSIS (relative size and origin) Separate attachment

TOTAL

Factors Considered in Constructing an Industry Attractiveness-Business Strength Matrix
(Industry Attractiveness)
Nature of Competitive Rivalry Bargaining Power of Suppliers/Customers Threat of Substitutes/New Entrants
Number of competitors
Size of competitors
Strength of competitors’ corporate parents
Price wars
Competition on multiple dimensions Relative size of typical players
Numbers of each
Importance of purchases from or sales to
Ability to vertically integrate Technological maturity/stability
Diversity of the market
Barriers to entry
Flexibility of distribution system

(contd.)
Economic Factors Financial Norms Sociopolitical Considerations
Sales volatility
Cyclicality of demand
Market growth
Capital intensity Average profitability
Typical leverage
Credit practices Government regulation
Community support
Ethical standards

(Business Strength)
Cost Position Level of Differentiation Response Time
Economies of scale
Manufacturing costs
Overhead
Scrap/waste/rework
Experience effects
Labor rates
Proprietary processes Promotion effectiveness
Product quality
Company image
Patented products
Brand awareness Manufacturing flexibility
Time needed to introduce new products
Delivery times
Organizational flexibility

(contd.)
Financial Strength Human Assets Public Approval
Solvency
Liquidity
Break-even point
Cash flows
Profitability
Growth in revenues Turnover
Skill level
Relative wage/salary
Morale
Managerial commitment
Unionization Goodwill
Reputation
Image

The Industry Attractiveness-Business Strength Matrix
High
Medium
Low
Industry Attractiveness
High
Low
Business Strength
Medium
Invest
Selective
Growth
Grow or
Let Go
Harvest
Divest
Grow or
Let Go
Harvest
Selective
Growth
Grow or
Let Go
Description of Dimensions
Industry Attractiveness: Subjective assessment based on broadest possible range of external opportunities and threats beyond the strict control of management
Business Strength: Subjective assessment of how strong a competitive advantage is created by a broad range of the firm’s internal strengths and weaknesses

Advantages of the Industry Attractiveness-Business Strength Matrix Over the BCG Matrix
Terminology is less offensive and more understandable
Multiple measures associated with each dimension tap many factors relevant to business strength and market attractiveness
Allows for broader assessment during both strategy formulation and implementation for a multibusiness company

GAPS & THINGS

SITUATIONAL ANALYSIS
STRENGTHS & WEAKNESSES
This section covers all of, and only, the internal factors
These should be evaluated on a timely basis – weekly, monthly, quarterly, etc.
OPPORTUNITIES & THREATS
This section covers all of, and only the external factors
These should be monitored on a continuous basis

USE OF THE SWOT
After you perform the SWOT analysis you determine which of the OPPORTUNITIES, THREATS, &/or WEAKNESSES you can address which would prove beneficial to your organization
This is where the GAPS come from!

GAPS DERIVED FROM SWOT
OPPORTUNITY from the opportunities section of the external analysis

MORE GAPS
THREAT developed from the threats section of the external analysis

& EVEN MORE GAPS
PERFORMANCE derived from weaknesses section of the internal analysis

GAPS
The GAPS should be prioritized and depicted in relative size to their potential

OBJECTIVES
OBJECTIVES ARE USED TO CLOSE THE GAPS
THEY ARE:
SPECIFIC
TIMELY
MEASURABLE
OBTAINABLE
CHALLENGING

BROAD ACTION PLANS
THESE HELP US TO ACHIEVE THE OBJECTIVES
Broad action plans should take into consideration the financial, technological, personnel, spatial, time, etc., constraints and/or availabilities

SPECIFIC ACTION PLANS
THESE MUST INCLUDE ALL THE FUNCTIONAL AREAS
HR/CORP RESOURCES
FINANCE/ACCOUNTING
MARKETING/DISTRIBUTION
INFORMATION SYSTEMS
P/OM
ETC

PROGRESSION
SWOT
GAPS
OBJECTIVES
BROAD ACTION PLANS
SPECIFIC ACTION PLANS
Each one depending on the preceding one

THE END
HOW WELL CAN YOU SEE THE DIFFERENT COLORS?
THINK ABOUT THIS WHEN DESIGNING YOUR PRESENTATION & BACKGROUNDS