Strategic Management

Assignment 1:Purpose: This assignment is the first of three assignments. Students will use the tools and apply concepts learned in this andprevious business courses to demonstrate an understanding of how organizations develop and manage strategies to establish, safeguardand sustain its position in a competitive market.Monitoring competitors’ performance is a key aspect of performing an external environment analysis. This assignment provides studentsthe opportunity to evaluate the competitive position of one of the organizations listed below and integrate that information in anExternal Factor Evaluation (EFE) matrix and Competitive Profile Matrices (CPM).Students also have the opportunity to review an organization’s objectives and goals and the key functional areas within theorganization. Performing an internal environment analysis helps assess a firm’s internal resources and capabilities and plays acritical role in formulating strategy by identifying a firm’s strengths to overcome weaknesses. In completing the internalenvironmental analysis students will construct an Internal Factor Evaluation (IFE) matrix and calculate financial ratios.Instructions:Part IStudents will perform an external analysis on a company from the list below or from a list of companies provided by the instructor.Priceline GroupDomino PizzaSpirit AirlinesIn completing the assignment, students will perform research on the company provided, answer the questions below in narrative form andfollow the steps below:Step 1: Create a double-spaced, 12-point font Word or Rich Text Format (RTF) document. The final product will be between 5-6 pages inlength excluding the title page, exhibits and reference page.Step 2: Review assignment grading rubric.Step 3: Follow this format:Title page with assignment title, your name, the course, the instructor’s name;Introduction;Comprehensive Written Analysis:External Environmental AnalysisInternal Environmental AnalysisStep 4: In writing the analysis, the writing is in the third person. What this means is that there are no words such as “I, me, my,we, or us” (first person writing), nor is there use of “you or your” (second person writing). If uncertain how to write in the thirdperson, view this link: http://www.quickanddirtytips.com/education/grammar/first-second-and-third-personStep 5: In writing this assignment, students are required to support the reasoning using in-text citations and a reference list. Areference within a reference list cannot exist without an associated in-text citation and vice versa. View the sample APA paper underWeek 1 content.Step 6: In writing this assignment, students are expected to paraphrase and not use direct quotes unless citing a company’s missionstatement and vision statement. Learn to paraphrase by reviewing this link: https://writing.wisc.edu/Handbook/QPA_paraphrase2.htmlStep 7: Read all course material for weeks 1 – 3 and perform independent research to provide a comprehensive external and internalenvironmental analysis.Step 8: Jot down or highlight key facts from the scenario. Consider making an outline to capture key points.Step 9: In your paper, respond to the following:Part 1: External Environmental AnalysisUse tools, concepts and information from your own research, perform an external analysis of the company’s environment.1) an industry analysis and2) a competitive analysis. Use the top two competitors plus the company selected from the list above or the list provided by theinstructor;Analyze the market environment and identify opportunities and threats that challenge the organization;Construct an EFE for selected company,Develop a CPM for selected company;Evaluate trends significant to the industry and company.Discuss key areas of uncertainty related to trends or events that potentially could impact the company’s strategy.Part 2 Internal Environmental AnalysisIdentify the company’s mission, vision and objectives;Provide a company background;Perform an internal analysis:o Corporate Level Strategyo Business Unit Level Strategyo Functional Level Strategyo Assess the company’s interactions with its stakeholders, the organizational structure, the organizational culture, andcommunication/decision making among managers within human resources, marketing production, operations, finance and accounting, R&D, andcomputer information systems, which can be accomplished by viewing the company’s website, interviews, and surveys.Identify company strengths and weaknesses. What must the company do to perform successfully in the industry?Construct an IFE Matrix for selected company;Perform a financial analysis for the last reported fiscal year:o Use the company’s income statement and balance sheet and calculate key (emphasis added), but no less than 10 key financial ratiosto the business;o Research the industry average financial ratios for the same ratios above and record in a second column;o In the third column, indicate whether the company’s ratio is a strength, a weakness or a neutral factor.Discuss what strategies would allow the company to capitalize on its major strengths;Discuss strategies that would allow the company to improve upon its major weaknesses.Step 10: Create an introductory paragraph. The Introduction should clearly and concisely convey the main points of the assignment’srequirements. Review the following website to learn how to write an introductory paragraph:http://www.writing.ucsb.edu/faculty/donelan/intro.htmlStep 11: Using the grading rubric as a comparison, read through the paper to ensure all required elements are presented.Step 12: Proofread the paper for spelling and grammatical issues, and third person writing.Use the spell and grammar check in Word as a first measure;Have someone who has excellent English skills to proof the paper;Consider submitting the paper to the Effective Writing Center (EWC). The EWC will provide 4-6 areas that may needimprovement.Step 13: Submit the paper in the Assignment Folder.