CASE ANALYSIS METHOD AND OUTLINE1. MethodStrat-tutor is a useful device the text's authors prepared to aid in the learning process. The case questions are to orient you to be alert for key issues, the sorts of analysis that may apply, and the overall tone for the case. The case questions are not substitutes for detailed case analysis.2. OutlineUse the following outline to analyze the assigned cases. Teams should begin their analysis using the questions listed below. These questions and their order parallel the chapters in the text. Although the questions are comprehensive, they cannot fully address every strategic situation. In all instances, begin with the facts pertinent to the criterion under analysis. Then analyze the factsusing the question "What are the strategic implications for the facts for the criterion". For diversified corporations, it may be necessary to analyze each industry or business in which the corporation operates before doing the portfolio analysis. In those instances, use the performance measures and appropriate strategies for diversified corporations. The CD ROM Multimedia "forms" section also provides additional analytical tools.A. Executive SummaryThe summary matrix at the end of this outline provides the information necessary to complete the executive summary. Begin your analysis starting with the next section, current performance. The Executive Summary section is the last section you should complete. Objectives (short and longterm; financialand strategic)External Opportunities and ThreatsInternal Strengths and WeaknessesRecommendations (include the pros and cons of each recommendation)Corporate Business Functional Departmental B. Current SituationThompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings. McGraw-Hill Irwin. NY. 12th EditionI. Current Performance What was the organization’s overall performance in recent year(s) in terms of EVA, MVA, return on investment, market share, and profitability? What important investments (e.g., acquisitions, divestitures) or capital changes occurred recently? What is the organization’s relative competitive position in the industry(s) in which it competes?II. Strategic Posture What are the corporation’s or company’s current mission, vision, objectives, strategies and policies? (You may insert the Chapter 2 worksheet in lieu of the strategic posture section.) 1. Are they clearly stated or the merely implied from performance? 2. Mission: What business(es) is the company in? Why? 3. Objectives: What are the corporate, company, business and functional objectives? Are they consistent with each other and with the external and internal environments? 4. Strategic: What strategy or mix of strategies is the corporation following? Are they consistent with each other, with the mission, vision and objectives, and with the internal and external environments? 5. Policies: What are they? Are they consistent with each other, with the mission, vision, objectives, and strategies, and with the internal and external environments? 6. Do the current mission, objectives, strategies and policies reflect the corporation’s international operations-whether global or multi-domestic? III. Corporate Governance1. Board of Directors - Who are they? Are they internal or external? - What do they contribute in terms of knowledge, skills, background, and connections? If the corporation has international operations, do board members have international experience? - How long have they served on the board? - What is their level of involvement in strategic management? Do they merely rubber stamp top management’s proposals or do they actively participate and suggest future directions? 2. Top Management - What person or group constitutes top management? - What are top management’s chief characteristics in terms of knowledge, skills, background, and style? If the corporation has international operations, does top management have international experience? Are executives from acquired companies considered part of top management? Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings. McGraw-Hill Irwin. NY. 12th Edition- Has top management been responsible for the corporation’s performance over the past few years? How many managers have been in their current position for less than 3 years? Were they internal promotions or external hires? - Has top management established a systematic approach to strategic management? - What is the level of involvement in the strategic management process? - How well does top management interact with lower level managers and with the board ofdirectors? - Are strategic decisions made ethically in a socially responsible manner? - Is top management sufficiently skilled to cope with likely future challenges? C. External Factors: (The OPPORTUNITIES AND THREATS in SWOT) (You may insert the Chapter 3 worksheet in lieu of Section C External Factors.)I. Societal, Political, Regulatory, and Community Citizenship Factors - What general environmental forces are currently affecting both the corporation and the industries in which it competes? Which present current or future threats? Opportunities? 1. Economic 2. Technological 3. Political-legal-regulatory 4. Socio-cultural - Are these forces different in other regions of the world? If so, how do they impact the organization?II. Industry and Competitive Analysis 1. Industry’s Dominant Economic Traits Economic trait Strategic implication of this trait (e.g., Is it an opportunity or threat for the company?)Market size Market growth stage Market growth rate Capability surplus or shortage Industry profitability Entry and exit barriers Thompson, Arthur and Strickland, A.J. Strategic Management: Concepts and Readings. McGraw-Hill Irwin. NY. 12th EditionProduct cost Standard product Rapid technological change Capital requirements Vertical integration Economies of scale Rapid product innovation 2. What is the relative strength of forces that drive industry competition? Are these forces the same globally or do they vary from country to country? What are the strategic implication of the force strength for the industry (e.g., key success factors) and company (e.g., opportunities or threat)? 3. What factors are causing the industry’s competitive structure and businessenvironment to change? Industry competitive Industry business Thompson, Arthur and