STRATEGIC MANAGEMENT PAPER

TABLE OF CONTENTS

Pages
EXECUTIVE SUMMARY 1
I. INTRODUCTION 5
A. Company Background 5
B. Related Literature 6

II. EXTERNAL ANALYSIS 7

A. Economic Forces 7
1. Past performance of the Economy 7
2. Economic Forecast 7
B. Social & Cultural Forces 8
D. Demographic Forces 11
E. Environmental Forces 13
F. Political, Legal & Governmental Forces 13

III. INDUSTRY ANALYSIS 16

A. Definition of the Industry 16
B. Market Analysis 17
1. Products/Services 17
2. Price 17
3. Promotion 18
4. Channels of Distribution 18
5. Customers 18
6. Target Market 19
7. 5 Porters 20
C. Operations/Production Analysis 28
1. Process 28
2. Capacity 28
3. Quality 29
4. Technology 30
5. Research and Development 30
D. Financial Analysis 31
1. Growth 31
a. Assets 31
b. Sales 32
c. Net Income 32
2. Profitability 33
a. Vertical Analysis 33
1. Gross Profit Margin Ratio 33
2. Operating Profit Margin Ratio 33
3. Net Profit Margin Ratio 33
 b. Returns 34
1. Return on Assets (ROA) 34
2. Return on Sales (ROS) 34
3. Return on Equity (ROE) 34
3. Liquidity 35
a. Current Ratio 35
b. Quick Ratio 35
4. Leverage 35
a. Debt to Equity Ratio 35
b. Debt to Total Assets Ratio 36
c. Long Term Debt to Equity Ratio 36
d. Times Interest Earned Ratio 36
5. Efficiency Ratios 37
a. Inventory Turnover Ratio 37
b. Fixed Assets Turnover Ratio 37
c. Total Assets Turnover Ratio 37
E. Trends in the Industry 37
F. Problems in the Industry 38

IV. COMPANY ANALYSIS 39

A. History 39
B. Ownership 42
C. Management 42
D. Culture 43
E. Organization Structure 43
F. Human Resource 44
G. Mission Statement and Philosophy 45
H. Vision Statement 47
I. Objectives 48
J. Code of Ethics 48
K. Strategies
L. Company Findings 49

V. STRATEGY FORMULATION 66
A. Input Tools 66
1. External Factor Evaluation (EFE) Matrix 66
2. Internal Factor Evaluation (IFE) Matrix 70
B. Matching Tools 71
1. Strengths-Weaknesses-Opportunities –Threats (SWOT)
Matrix
2. BCG Matrix
3. Competitive Analysis 71

VI. STRATEGY IMPLEMENTATION 86

 A. Recommended Revised Mission Statement 86
B. Recommended Revised Vision Statement 87
C. Recommended Revised Objectives 87
D. Recommended Revised Code of Ethics 88
E. Recommended Revised Organization Structure 88
F. Recommended Strategies 88
G. Recommended Departmental Plans
H. Company Findings-Recommended Solutions 90

VII. Conclusion 94

VIII. APPENDICES 95
1. Letters
2. Survey
3. Interview
4. References
5. Documentation
6. Resume