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STRATEGIC MANAGEMENT PAPER

(1st Term, 2015-2016)
MODULE I: INTRODUCTION
A.
B.
C.
D.

Table of Contents
Introduction
Executive Summary
Definition of Terms

MODULE II: ENVIRONMENTAL SCANNING: EXTERNAL ANALYSIS

A. Industry Analysis
1. Definition of the Industry
a) Definition of the MACRO-industry environment. Relevant details
pertaining to the macro is placed here.
b) Description of the industry sector where the firm being research on
belongs. Details of the sectors characteristics are described in Section 2
below.
2. Industry Sector Characteristics
a) Size:
Industry size
Number of Companies in the Industry
Industry Shares by Companies
b) Industry Profitability and Growth Rate
c) Industry Life Cycle
d) Scope of Competitive Rivalry
e) Market Structure
f) Product/Service Characteristics
g) Customers
h) Degree of Vertical Integration
i) Technology / Innovation
j) Learning and Experience Effects
k) Capacity Utilization
3. Key Success Factors in the Industry

B. Identification of External Environmental Factors

1. General Environment (Current Scenario)
a) Socio-Cultural
b) Technological
c) Economic
d) Environmental
e) Politico-Legal
f) Demographic
g) Global
2. Task Environment (Current Scenario):
a) Threat of New Entrants
b) Bargaining Power of Suppliers
c) Bargaining Power of Buyers
d) Threat of Substitute Products
e) Bargaining Power of complementors (if any)
f) Summary of the overall pressure exerted by the task environment
NB: The objective is to describe the industry dynamics by looking
at the effect of each of the forces on the industry. The end product
of Items a e is to determine the pressure the above-mentioned
forces exert on the industry.
3. Competitor Environment (Current Scenario):
a) Identification of Sector Competitors (Direct and Indirect)
b) Strategic Group Map
Illustration
Explanation of x-axis factor
Explanation of y-axis factor
ANALYSIS
c) Current Scenario in Competitor environment
The factors to consider may include relevant factors as
regards competitor environment, like:
Numerous and Equally Balanced Competitors
Industry Growth
Fixed / Storage Costs
Differentiation and Switching Costs
Capacity Augmented in Large Increments
Diversity of Competitors
Strategic Stakes
Exit Barriers

C. External Environment Analysis (Current Scenario)

D. Potential Changes in the General, Task, and Competitive Environments
1. Analysis of each potential change
a) Description of the potential change
b) Analysis against Porters 5 Forces Framework
c) Opportunity/threat assessment
2. Issues Priority Matrix
E. Summary of Opportunities and Threats
MODULE III: ENVIRONMENTAL SCANNING: INTERNAL ANALYSIS
A. Company Profile
1. Brief History of the Company
2. Board of Directors & Top Management
a) Corporate governance analysis (relate to SEC requirements for
Board of Directors)
3. Organizational Chart
4. Company Vision Mission
5. Current Strategies/Objectives
B. Functional Areas (where applicable)
1. Operations and Logistics
a) Description of Operations of Firm in terms of processes,
technology, automation, capacity, etc
b) Supply Chain
c) Comparison of Operations with closest rivals or benchmark
2. Marketing
a) General description of 4Ps
b) Current Marketing Objectives, Policies and Programs
c) Comparison of Marketing with closest rivals or benchmark
3. Human Resource
a) General description of Human resource programs and practices
b) Current HR objectives, policies
c) Comparison of HR practices with closest rivals or benchmark
4. Information Systems
a) Description of MIS or ERP system of company
b) Comparison of ERP system with closest rivals or benchmark

5. Research and Development

a) Description of general practice, policies, programs on R&D
b) Comparison of R&D practice with closest rivals or benchmark
6. Finance
a) Presentation of financial statements (I/S, B/S. CFS)
Vertical Analysis of Income Statement
Horizontal Analysis of Income Statement
Vertical Analysis of Balance Sheet
Horizontal Analysis of Balance Sheet
Financial Ratios Analysis
b) Summary of assessment of financial health of the firm
C. Value Chain Analysis
1. Value Chain analysis of company
2. Value Chain of closest or benchmarked rival
3. Summary of Functional and value chain resources and capabilities
4. Determination of strengths and weakness using VRIO/S (ASSIST)
framework
D. Summary of Strengths and Weaknesses
MODULE IV: STRATEGIC INPUT
A. External Factor Evaluation Matrix (EFE)
1. Matrix
2. Analysis
B. Internal Factor Evaluation Matrix (IFE)
1. Matrix
2. Analysis
C. Competitive Profile Matrix (CPM)
1. Matrix
2. Analysis
D. TOWS Matrix
1. Analysis of the key issues faced by the firm as it relates to the external
(Threats/Opportunities) and internal (Strengths/Weaknesses) environments.
This portion makes use of the outputs in A, B, and C of this section. This is
NOT merely a tabular listing of the TOWS, but an in-depth analysis of
potential key issues the firm faces.

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2. The key strategic issues must be defined in this portion of the paper. This is
the State of the Firm Analysis (SOFA) part of the paper.
MODULE V: STRATEGY FORMULATION
A. Possible Tools and Frameworks to Use in Formulating Strategy
1. Strategic Position and Action Evaluation (SPACE) Matrix
a) Matrix
b) Analysis
2. Boston Consultancy Group (BCG) Matrix
a) Matrix
b) Analysis
3. Internal-External (IE) Matrix
a) Matrix
b) Analysis
4. Grand Strategy Matrix
a) Matrix
b) Analysis
5. Quantitative Strategic Planning Matrix
a) Matrix
b) Analysis
6. Blue Ocean Strategy
a) Matrix
b) Analysis
B. Identification of Chosen Strategy Matrix
1. Strategic Choice
2. Justification of Chosen strategy (using nos. 1-6 above)
3. Capital budgeting (NPV, IRR, Discounted payback period)
MODULE VI: STRATEGY IMPLEMENTATION
A. Balanced Scorecard
1. Vision
2. Most Attractive Strategy

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3. Form 1: Objectives
a) Portfolio
4. Form 2: Themes
5. Form 3: Measures
6. Form 4: Perspectives
7. Form 5: Initiatives
8. Form 6: Milestones
9. Summary
10. Strategy Cause and Effect (Illustration)
B. GANTT Chart
MODULE VII: FINANCIAL PROJECTIONS
A. Assumptions to Projections
B. Financial Projections (without strategy, 3 years)
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
C. Financial Projections (with strategy, 3 years)
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement
D. Analysis of the Project Financial Statements:
1. Vertical Analysis
2. Horizontal Analysis
3. Financial Ratios