Capstone Case Pointers

Remember the key attributes of strategic management

Should be directed toward overall goals and objectives

Includes multiple stakeholders (Owners, employees, customers, suppliers, community-at-large)

Needs to incorporate and integrate short-term and long-term perspectives (Profit measurement is short-term; Research and Development and Innovation is long-term)

Should recognize trade-offs between effectiveness and efficiency

Analyze Porter’s Five Forces Threat of new entrants (Capital investment,

technology, brand recognition, etc.) Buyer power (Few buyers-high, etc) Supplier power (Few suppliers-high, etc) Pressure from substitute products (Many

substitutes-high, etc.) Rivalry among existing firms (Number of

major players and intensity of rivalry)

Corporate Level Strategies (Directional)

Introduction and Growth (Promotion of potential)

Maturity (Brand recognition, continuing improvement)

Decline (Retrenchment): Selling off divisions or product lines

Business Unit Strategies

Overall low cost leadership Differentiation Focus Combination

Functional Strategies

Should follow up on business unit strategy

For example, in a low cost leadership business unit strategy, the production function would emphasize efficiency. On the other hand, with a differentiation strategy, a company might emphasize quality in the production function

Financial Analysis

Profitability and quality of earnings Efficiency and control Cash flows and liquidity Risk assessment Company value trend (stock prices

and book value equity growth or decline)

Recommendations