STARTTHINKCompany AnalysisFinancial Analysis--This module is contained in separate files.SWOT AnalysisNote: This option will print all Strategic Group Maps (discard as needed)TOWS MatrixTHINKGeneral Company InformationGeneral Internal AnalysisCore Competence AssessmentIndustry and Competitive AnalysisData Matrix for Strategy CanvasNote: This option will print all Strategic Group Maps (discard as needed)Four-Action FrameworkIndustry AnalysisSPACE Chart / AnalysisCompetitive AnalysisPLANStrategic Analysis & ChoicePorter's Five ForcesStrategic Alternatives and AnalysisStrategic Group MapRecommendationsGE MatrixStrategy MapRecommendationsMarket AnalysisMission StatementsEnvironmental AnalysisVision StatementsACTRepresents the operational planning and implementation of the chosen bundle and recommendations (part III of the book).

SAM twStrategic Analysis Model - that worksThinkPlanActActFinancial Analysis is contained in separate modules as part of SAM-tw. There is a separate file for either 3, 4, or 5 years of financial data.There is a separate Strategic Group Map for either 4, 5, or 6 groups. Choose the appropriate sheet for your particular industry / company's situation.Print Cover PageGo To InputPrint All Industry and CompetitionPrint IndustryGo To InputPrint CompGo To InputPrint PorterGo To InputPrint MarketGo To InputPrint Env AnGo To InputPrint All Company Analysis OutputPrint SWOTGo To InputPrint InternalGo To InputPrint SPACEGo To InputPrint AlternativesGo To InputPrint RecommendationsGo To InputPrint MissionGo To InputGo To InputPrint Strat CanvasPrint SGM4Go To 5SGM5Print VisionGo To InputPrint ALL Strategy Output WorksheetsGo To 4 SGM4Go To SGM6Print All Recommendations OutputPrint SGM5Print SGM6Print TOWSGo To InputPrint Core CompGo To InputPrint GE MatrixGo To InputGo To InputPrint 4-ActionPrint Strategy MapGo To Input

Strategy ChecklistSAM tw = Strategic Analysis Model that worksStrategy Toolbox ChecklistIndicate which tools are appropriate for completing a Strategic Plan for this company. Indicate completion for tools used, and space is allowed to record comments regarding any of the tools.Appropriate?Description of ToolComplete?Comments?PHASE I: Situation AnalysisGeneral Company InformationIndustry and Competitive AnalysisIndustry AnalysisCompetitive AnalysisPorter's Five ForcesStrategic Group MapGE MatrixMarket AnalysisEnvironmental AnalysisCompany AnalysisFinancial AnalysisSWOT AnalysisTOWS MatrixGeneral Internal AnalysisCore Competence AssessmentStrategy CanvasFour-Action FrameworkSPACE Chart / AnalysisPHASE II: STRATEGIC ANALYSIS AND CHOICEPHASE II: Strategic Analysis & Choice and PHASE III: RecommendationsStrategic Alternatives and AnalysisPHASE III: RECOMMENDATIONSPHASE II: Strategic Analysis & Choice and PHASE III: RecommendationsStrategy MapRecommendationsMission StatementsVision Statements

SAM tw

InstructionsInstructions

SAM twWelcome to the Strategy portion of the SAMtw software (Strategic Analysis Modelthat works!).

Crafting a good strategy is hard work. It requires having to pay relentless attention to as much data about the company and its environment as can be gathered (it should be data-driven, not opinion-driven), understanding, analyzing, and making sense of changes in the environment and in the company itself. And because those data and analyses sometimes don't cover what is truly needed, one must rely also on forecasts, judgment, experience, and even educated guesses.

Strategy is how a company actually competes and, for the strategy to be successful, it must lift the company above its competitors and also position it for long-term success. It is as much about figuring out what to do as what not to doabout making difficult choices (see below). No easy task. And until a strategy is implemented, one wont know whether it has been successful.

SAMtw follows the process laid out in the strategic-planning book you now own. Because of the complex nature of deciding what to do and what not to do in a competitive, ambiguous, changing, and uncertain environment, this Strategy workbookand the companion financial workbooks for 3, 4, and 5 years worth of datawill help you immeasurably. Here are some pointers to help you get the most out of this software.

Before starting, be sure after downloading the workbook to save it to your hard drive. After that, each time you use it for a different company, save it under that companys name. Remember to save after completing every sheet.

The first thing to tell you is that the strategy workbook comprises work sheets, i.e., rough notes, a thinking pad, and even ruminations that no one else will see until your thinking has evolved and you can defend your analyses and recommendations. If youre ever in doubt as to whether your answer is correct or even belongs in a particular box, simply put it down; you can always go back and change it. Your first entries are not necessarily your final ones; its amazing how your thinking changes when you can actually see your ideas on the computer screen or in a printoutanother benefit of the strategy worksheets.

While the tools and analytical techniques in the workbook will give you more insight than you would have had without using any of them, your instructor might nevertheless choose to have you complete a subset of them (use the Checklist to note which ones not to complete).On every sheet, you will find comment boxes or call-outs attached to almost every entry to both explain the term used and guide you to making a relevant (not necessarily correct) response. When you have made all entries on a particular sheet, check them against your intuition and other relevant information you might have. For example, arriving at a high Industry-Attractiveness Index when other signs point to it being not very attractive should tell you to go over your analysis again. The same might apply to your entries in the Porters Five-Forces Analysis. While there are never any right answers (unlike the Financial workbooks that depend on inputting the data correctly), the ones you enter should be defensible, i.e., you should be able to tell someone else why your entries made sense.

Dont be afraid to leave an entry blank if you have no idea what should go in a box, or enter Unknown. Another idea is to put an entry in square parentheses (or some color) to denote a complete guess. Even the best strategists dont know the answers to everything. For example, one such category of information that managers have little information about is competitive information; some strategy cases also provide too little competitive information. Thus, after completing the Competitive Snapshot sheet, you might find you were able to complete very few boxes. One conclusion, which should be apparent even to you, is that you know very little about your competitorsa serious shortcoming when doing a strategic analysis. In another example, if you can come up with only one or two environmental trends, know that you are missing others.

The sheet that is the most important and most difficult to complete is the Alternatives Analysis and Choice. Reading Chapter 5 in the book before and during completing this sheet will help enormously. Another thing that will help is having done it 2-3 timesyou will begin to focus more on the strategic issues and being strategically creative than on what terms mean. Remember to phrase key strategic issues as questions (to which the answer is not known) and to address all of them in constructing your bundles (they will diverge as you go through this process, but will have a chance at the end to delete issues that werent addressed and add new ones that were). Your bundles should meet the six criteria given in the book and you must have a minimum of two bundles (otherwise there is no choice involved). You should take care when giving each bundle a name; doing so will not only help distinguish them from each other but crystallize the principal strategy it embodies. Finally, it is the relative scores in your Criteria Matrix that matter, not their absolute value. Construct your argument defending your winning bundle from your Criteria Matrix.

Strategy is about deciding what to do (your winning bundle) and what not to do (the bundles you reject) in order to compete better over the next three years. This workbook will allow you to examine your thinkingor have a group examine its thinkingand arm you with arguments to persuade others that your recommendations make the most sense under the circumstances. Yes, its hard work, but once you become familiar with the process, youll give more time to strategic considerations and less to the mechanics. And, youll be hooked.

Stan AbrahamSeptember 12, 2011Goto START

Gen InfoOnce input is complete for this screen, click here to print Cover Sheet which incorporates the data entered here.Input General Company InformationSporting Goods - RetailName of CompanyCompany NameSegmentIndustryNumber of EmployeesProducts/ServicesCEO NameCEO StyleNo. Years in BusinessNo. Locations1How Many States/Countries?Headquarters LocationPublic or Privately Held?Parent Corporation/CompanyStock Price Range (12 Mo)Ticker SymbolStrategy Designer

Write in the name of the company being analyzed here. This MUST be populated in order for it to appear on subsequent sheets.Industries are typically divided into segments that are highly related to one another. The entertainment industry, for example, is divided into segments of radio, TV, movies, movie-theaters, pro sports, concerts, theaters, cabarets, etc. Insurance has segments of auto, health, dental, whole/universal life, housing, commercial, marine, earthquake, etc.

The key is to label the segment in which the company competes accurately and precisely. Sometimes, you will have to label the segment yourself, i.e., there is no recognized label in existence.If a company does compete in a segment, it's OK later to refer to it as "the industry." Whatever it's ultimately called, it's the arena in which the company competes.This is the general name given to the category in which you and your rivals compete, for example, auto, health care, leisure products, entertainment, defense, aerospace, general manufacturing, etc. A more specific label usually connotes the segment in which the company competes.

An industry (or segment) is defined as the collection of competitors who produce similar or substitute products or services to a defined market.This is you. Write your name here.Stands for Chief Executive Officer. If there isn't one in the company, write in the name of the president.How would you characterize the CEO's style? Write in 3-5 adjectives that best describe it, e.g., aggressive, democratic, ambitious, knowledgeable, caretaker, charismatic, personable, etc.Write in how long the company has been in business, if you know it.How many locations does the company have? You might break this down by number of manufacturing plants, number of sales offices, number of warehouses, etc. For multidivisional companies, count the locations of all subsidiaries and divisions.Complete this only if the company in question is a division or subsidiary of a parent corporation.Complete this only for a public company.This is the trading symbol for publicly held companies.Print Cover PagePublicly HeldPrivately HeldGoto START

IndustryPrint after input is complete for this screenCompany NameIndustry SnapshotTotal Industry or Segment Sales ($M)Industry or Segment Growth Rate (%/yr)Lifecycle StageDegree of Vertical IntegrationDegree of Technological Innovation1Emerging1No vertical integration1None2Growth2Some vertical integration backwards2Slight1Purchasing3Shakeout3Some vertical integration forwards3Somewhat2ManufacturingScale EconomiesIndustry ProfitabilityDegree of Concentration4Mature4Most companies vertically integrated4Moderate3Distribution5Declining1Over 20%5Considerable4Advertising215 - 20%6Intense310 - 14.9%1Highly concentrated45 - 9.9%2Moderately concentrated50 - 4.9%3Neither concentrated nor fragmentedIndustry Driving Forces6Negative4Highly fragmented7UnknownIndustry Attractiveness MatrixFactorsWeightRatingProduct0.00.00.00.00.00.00.00.00IndustryAttractiveness Index0.0This index indicates that this is NOT an attractive industry to enter or remain in.

Button 223Check Box 240Check Box 241Check Box 242Check Box 243Button 270Industries have lifecycle curves similar to products, divided into 5 major lifecycle stages. "Emerging" characterizes an industry before market acceptance of its product. Once a market is established, it enters a "growth" period when demand exceeds supply and other competitors enter the industry. Growth wanes when supply exceeds demand, customers are harder to find and prices drop. Weak competitors fail or are acquired by stronger ones during a period called "shakeout." When growth drops to 5% or less, the industry is said to be "mature." With negative growth rates year after year, the industry is said to be in "decline." In what lifecycle stage is this industry?Being vertically integrated means controlling at least one additional stage of the value chain. Vertical integration also means either making what you used to buy, or buying a supplier (backward vertical integration), or competing with or acquiring a customer (forward vertical integration). For this industry, state your perception of the extent of vertical integration in the industry by selecting one of the choices listed.Estimate the extent to which the industry depends on technological innovation for its growth, and the extent to which technological innvovation forms the basis of competition in the industry. Choose one of the descriptors here that best describes the situation in your industry.Some industries are able to achieve scale economies, i.e., to lower unit manufacturing, purchasing, and distribution costs as volume increases. Is this one of them? Enter all areas in which companies in the industry are achieving scale economies.This refers to the average profitability of the industry or segment, as measured by return on sales (NIAT/revenues) expressed as a percentage.

Industries with fairly high average profitability typically have bargaining power over their suppliers and customers, while those with low average profitability do not. The former contain companies with highly differentiated products, while the latter's products are more like commodities. Choose one of the listed ranges that best describes your industry.When a large proportion of an industry's sales are produced by a small number of companies, the industry is said to be concentrated, e.g., the Big Six accounting firms auditing over 95% of all U.S. public companies, or Boeing and Airbus Industrie being the only manufacturers of large commercial aircraft in the world. At the other extreme, a fragmented industry is one in which no competitor holds more than 0.5% market share. A moderately concentrated industry is somewhere in between, e.g., where ten competitors account for 50% of industry sales. Estimate how concentrated your industry is.Driving Forces are factors that cause the industry to change. Examples include:

Changes in the industry growth rateChanges in buyers or uses of the productProduct/marketing innovationsEntry or exit of major firmsIncreasing globalizationBuyer preferences for differentiationChanges in regulation or government policiesChanging societal concerns, attitudes, lifestylesReductions/increases in uncertainty and riskIndustry attractiveness depends on several factors. To help you identify these factors, imagine the ideal industry you would like to be in or enter, e.g., large market, high industry growth, no regulation, little competition, low or high entry barriers if outside or inside the industry, and high profitability. With such factors in place, one could then assess the attractiveness of a particular industry by weighting the factors (allocating 100 points among them--the weights will be automatically totaled), and rating them from your company's point of view (between 0-1.0, 1.0 being highest). The weights will be multiplied automatically by the ratings in the last column, and the last column totaled automatically to give an I.A. index (%).Button 223PurchasingManufacturingDistributionAdvertisingButton 270Print Industry SnapshotGoto START

CompetitionPrint after input is complete for this screenCompany NameCompetitive Analysis: Snapshot of the CompetitionType of CompetitionBasis of CompetitionEnter Market Share DataCompany Name0%Competitor 10%`Competitor 20%Competitor 30%Competitor 40%Competitor 50%Others0%0%Are Market Shares Stable or Changing?CRITICAL SUCCESS FACTORSName 5 Success FactorsWeight each item (sum should be 100)Total (should = 100)0Competitor Analysis for Critical Success FactorsScore companies on a scale of 1 to 10 for relative strength for each factor (10 indicates greatest/highest level)FactorCompany NameCompetitor 1Competitor 2Competitor 3Competitor 4Competitor 500000ADDITIONAL COMPETITIVE DATACompetitor 1Competitor 2Competitor 3Competitor 4Competitor 5Name up to 2 things each competitor does better than Company NameName up to 2 things that Company Name does better than each competitorStrategic FactorCompany NameCompetitor 1Competitor 2Competitor 3Competitor 4Competitor 5Competitive AdvantageStrategic IntentGeographic ScopePositioningGeneric Strategy

12345Make sure to input names of competitors here. They are used in numerous instances within the model.Choose from among:Monopoly--the only competitor in the business (true if first to market, or if granted an exclusive territory)

Duopoly--only two competitors in the industry

Oligopoly--a small number of independent rivals

Monopolistic Competition--a small number of rivals having strongly differentiated and branded products

Monopsony--a monopoly on the buyer's side, i.e., the whole industry serving one customer

Pure Competition--a large number of competitors.You may choose from the following, or indicate one that is more appropriate for your company:

Price--typical in commodity industries, or where people sacrifice quality or service for a lower price

Valuewhere people are willing to pay more for higher perceived value (benefits for a given price).

Service--where customers go because of how well they're treated

Technology--where advantages accrue through superior technology or patents

Low-Cost Leadership--power through having the lowest costs in the industry.Market share is calculated typically using total dollar sales in the industry, taking into account not only number of units sold but also their price.

Sometimes, market share is calculated on a different basis, e.g., number of screens in the movie-theater industry, or installed base in the telecommunications-switching industry, or # beds in hospitals.

Enter top five competitors below your company and market share percentages.A critical success factor in an industry is something a company must do well in order to succeed in the industry. They attach to an industry and not to a company. Think of these as "rules of the game" for a particular industry. Every industry has its own rules, which a company must "play by" if it wants to succeed in the industry.A competitive advantage is an edge over your competitors that your company possesses. It could take the form of a proprietary product or process, a developmental lead-time, or a discipline or level of service that cannot easily be emulated. Companies that have a core competence usually have a sustainable competitive advantage. A competitive advantage can erode over time if the company does not work at sustaining it.This has to do with market shares and changing or defending your ranking in the industry. For example, if you are the market leader, you should maintain your leadership position; if not the leader, you might want to overtake the leader, or overtake #4 from #5, or maintain your #2 position, or defend against #8 who is creeping up to challenge you, etc. Note that maintaining ones market share means growing at the same rate as the industry (rather than not growing at all).Replace the words "Generic Strategy" with something that makes sense for your company. Generic strategies include differentiation, cost-leadership, and focus (differentiated or specialized for a narrow market segment), developed originally by Michael Porter in the early 1980sDoes the company compete very locally (1-2 mi. radius), locally (to include several zip codes), narrow-regionally (several counties within a state, e.g., Southern California), broad-regionally (e.g., West or East Coast of the U.S., Central America), nationally, or internationally?Is the company positioned at the high end of the market, typically highest prices and best products, the low end, typically lowest prices and mass produced, or somewhere in the middle, typically priced relatively low for the value offered? With which end does it want its brand identified?Is there a competitor rapidly gaining market share? Is the market-share gap between established competitors growing or shrinking? Is a rival making a concerted bid for market share?Print Competitive SnapshotGoto START

PorterPrint after input is complete for this screenCompany NameIndustry Analysis: Porter's Five-Forces ModelPorter's Five-Forces Model is typically represented in the form of a cross, shown in the small diagram to the left. The central box is Rivals, with others from top, clockwise, New Entrants, Buyers or Customers, Substitutes, and Suppliers. All five boxes are also sources of competitive threats. Its value as an industry analysis is assessing the power of each of these boxes, which are the additional corner boxes in the diagram. What is the intensity of rivalry? How high are entry barriers? What is the bargaining power of buyers and suppliers? What is the threat of substitutes? Your entries to the five boxes and four analysis boxes are done sequentially on this sheet, but will appear in the form of the small diagram on the output.Rivals/CompetitorsCompany NameTop 5 competitors of this company:Competitor 1Competitor 2Do not Input - These ComeCompetitor 3From Competition Input!Competitor 4Competitor 5Identify Buyers/CustomersIdentify Buyers/CustomersIdentify SuppliersIdentify SubstitutesIdentify Potential EntrantsIntensity of RivalryBargaining Power of BuyersBargaining Power of SuppliersThreat of SubstitutesBarriers to Entry

To help you identify substitutes in an industry, imagine being a customer and ask, "What are my alternatives to buying the industry's product?"Potential entrants include any company that may enter the industry at any time. Because this happens without warning, they are difficult to identify. However, don't worry about potential entrants if barriers to entering the industry are high.Is the intensity of competition among rivals low? Medium? High? Is it getting stronger? Weaker? Why?Who has bargaining power in the industry--the producers (rivals) or customers? Who dictates terms? Who needs the other more? Are buyers' switching costs high? Typically, in a commodity industry where all rivals produce identical products and buyers choose the lowest price, the buyer has bargaining power. When all rivals are differentiated, the industry has bargaining power.A similar logic exists for ascertaining who has the bargaining power between the industry and its suppliers. Typically, if suppliers are aplenty, the industry has bargaining power; if only one supplier can fulfill the company's needs, then the supplier has the bargaining power.The threat is high if there is a high likelihood the industry will adopt the substitute or if substitute sales are increasing, and low if opposite conditions exist.High barriers to enter an industry deter potential entrants from entering the industry. Barriers to entry include capital investment required, the need to set up a distribution system, the time it takes to develop a brand identity (especially if companies compete on the basis of brands) and loyal customers, technological know-how, and manufacturing expertise. A common mistake is to imagine barriers to entry to be very high, whereas certain companies deciding to enter would find the barriers much lower. For example, a company wanting to enter the U.S. motorcycle industry would find the barriers to entry very high, but a foreign motorcycle manufacturer would find the barriers to entry very low.Print Porter's 5 ForcesGoto STARTThese are suppliers of key inputs. These are difficult to identify, as some products have very large numbers and kinds of suppliers, like automobiles. It's permissible to list key suppliers if you know them, like copper wire for the electrical-contracting industry, or enter 'various'.Be careful to enter end-buyers or customers here, not intermediaries such as wholesalers, distributors, or retailers, even though any of them might pay you for the goods.

Strat Grp Map4Print after input is complete for this screenUse this Strategic Group Map when you have four or fewer strategic groups.Company NameCompetive Analysis: Strategic Group MapCriteria BCriteria AUser Defined Criteria for X & Y AxesRelative Indication of SizeStrategic Group Map DataCriteria ACriteria BGroup SizeUser Defined Titles of Groups(X)(Y)(Diameter)Group 1Group 2Group 3Group 4

Strat Grp Map4

Group 1Group 2Group 3Group 4Strategic Group Map

Strat Grp Map5Print after input is complete for this screenUse this Strategic Group Map when you have five strategic groups.Company NameCompetive Analysis: Strategic Group MapCriteria BCriteria AUser Defined Criteria for X & Y AxesRelative Indication of SizeStrategic Group Map DataCriteria ACriteria BGroup SizeUser Defined Titles of Groups(X)(Y)(Diameter)Group 1Group 2Group 3Group 4Group 5

Firms in same strategic group have one or more competitive characteristics in common . . .

Sell in same price/quality range Cover same geographic areas Be vertically integrated to same degree Have comparable product line breadth Emphasize same types of distribution channels Offer buyers similar services Use identical technological approachesVariables selected as axes should NOT be highly correlatedVariables chosen as axes should expose BIG differences in how rivals compete. Variables do NOT have to be either quantitative or continuousIndicating sizes of circles proportional to combined sales of firms in eachstrategic group allows map to reflect relative sizes of each strategicgroup.

Indicate circle sizes for each strategic group, making circles proportional to size of group's respective share of total industry sales.

An example would be to have the total add to 10 or 100, indicating the relative share for each group.STEP 1: Identify competitive characteristics that differentiate firms in an industry from one anotherSTEP 2: Plot firms on a two-variable map using pairs of these differentiating characteristicsSTEP 3: Assign firms that fall in about the same strategy space to same strategic groupSTEP 4: Indicate circle sizes for each strategic group, making circles proportional to size of group's respective share of total industry sales

INTERPRETING STRATEGIC GROUP MAPS

Driving forces & competitive pressures often favor some strategic groups & hurt others.

Profit potential of different strategic groups varies due tostrengths & weaknesses in each group's market position.

The closer strategic groups are on map, the stronger the competitive rivalry among member firms tends to be.Print Strategic Group Map4Goto START

Strat Grp Map5

Group 1Group 2Group 3Group 4Group 5Strategic Group Map

Strat Grp Map6Print after input is complete for this screenUse this Strategic Group Map when you have six strategic groups.Company NameCompetive Analysis: Strategic Group MapCriteria BCriteria AUser Defined Criteria for X & Y AxesRelative Indication of SizeStrategic Group Map DataCriteria ACriteria BGroup SizeUser Defined Titles of Groups(X)(Y)(Diameter)Group 1Group 2Group 3Group 4Group 5Group 6

Firms in same strategic group have one or more competitive characteristics in common . . .

Sell in same price/quality range Cover same geographic areas Be vertically integrated to same degree Have comparable product line breadth Emphasize same types of distribution channels Offer buyers similar services Use identical technological approachesVariables selected as axes should NOT be highly correlatedVariables chosen as axes should expose BIG differences in how rivals compete. Variables do NOT have to be either quantitative or continuousIndicating sizes of circles proportional to combined sales of firms in eachstrategic group allows map to reflect relative sizes of each strategicgroup.

Indicate circle sizes for each strategic group, making circles proportional to size of group's respective share of total industry sales.

An example would be to have the total add to 10 or 100, indicating the relative share for each group.STEP 1: Identify competitive characteristics that differentiate firms in an industry from one anotherSTEP 2: Plot firms on a two-variable map using pairs of these differentiating characteristicsSTEP 3: Assign firms that fall in about the same strategy space to same strategic groupSTEP 4: Indicate circle sizes for each strategic group, making circles proportional to size of group's respective share of total industry sales

INTERPRETING STRATEGIC GROUP MAPS

Driving forces & competitive pressures often favor some strategic groups & hurt others.

Profit potential of different strategic groups varies due tostrengths & weaknesses in each group's market position.

The closer strategic groups are on map, the stronger the competitive rivalry among member firms tends to be.Print Strategic Group Map5Goto START

Strat Grp Map6

Group 1Group 2Group 3Group 4Group 5Group 6Strategic Group Map

GE MatrixPrint after input is complete for this screenCompany NameG.E. MatrixThe G.E. Matrix was named after the corporation that first developed and used it as a guide to strategic choice. The G.E. Matrix plots Industry Attractiveness (0) against Competitive Strength (0).Industry Attractiveness Matrix (I. A.)FactorsWeightRatingProduct0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00IndustryAttractiveness (I.A.) Index0.0This index indicates that this is NOT an attractive industry to enter or remain in.Competitive Strength Matrix (C. S.)Success FactorsWeightRatingProduct0.00.00.00.00.00.00.00.00Comp Strength (C.S.) Index0.0This index indicates that this company is NOT competitive.If the company plots in the top three boxes (shaded light green), the GE Matrix indicates a possible strategy of 'Grow, Invest, and Build." If it ends up in the bottom three squares (shaded light red), the matrix indicates a 'Harvest' or 'Exit' strategy. The grey shaded boxes require a strategy on a case-by-case basis.G. E. Matrix ChartData for chartC.S.I.A.0.00.0

STEP 1: Identify competitive characteristics that differentiate firms in an industry from one anotherSTEP 2: Plot firms on a two-variable map using pairs of these differentiating characteristicsSTEP 3: Assign firms that fall in about the same strategy space to same strategic groupSTEP 4: Indicate circle sizes for each strategic group, making circles proportional to size of group's respective share of total industry sales

INTERPRETING STRATEGIC GROUP MAPS

Driving forces & competitive pressures often favor some strategic groups & hurt others.

Profit potential of different strategic groups varies due tostrengths & weaknesses in each group's market position.

The closer strategic groups are on map, the stronger the competitive rivalry among member firms tends to be.Firms in same strategic group have one or more competitive characteristics in common . . .

Sell in same price/quality range Cover same geographic areas Be vertically integrated to same degree Have comparable product line breadth Emphasize same types of distribution channels Offer buyers similar services Use identical technological approachesIndicating sizes of circles proportional to combined sales of firms in eachstrategic group allows map to reflect relative sizes of each strategicgroup.

Indicate circle sizes for each strategic group, making circles proportional to size of group's respective share of total industry sales.

An example would be to have the total add to 10 or 100, indicating the relative share for each group.Variables selected as axes should NOT be highly correlatedVariables chosen as axes should expose BIG differences in how rivals compete. Variables do NOT have to be either quantitative or continuousPrint Strategic Group Map6Goto START

GE Matrix

I.A.C.S. IndexI.A. Index

MarketPrint after input is complete for this screenCompany NameMarket Analysis: Snapshot of the MarketWho is the market?Who is the target market?Who is the served market?What is the size of the target market?How fast is the market growing (%/yr)?How far is the market penetrated (%)?WhatWhat are customers' current needs?What are customers' future needs?What are current distribution channels?What are channel markups at each stage?How price-sensitive are customers?What is the current pricing strategy?What are some market/customer trends?1

NO DATA ENTRY REQUIRED HERE!! This table is duplicated from the "Industry" Worksheet

Industry attractiveness depends on several factors. To help you identify these factors, imagine the ideal industry you would like to be in or enter, e.g., large market, high industry growth, no regulation, little competition, low or high entry barriers if outside or inside the industry, and high profitability. With such factors in place, one could then assess the attractiveness of a particular industry by weighting the factors (allocating 100 points among them--the weights will be automatically totaled), and rating them from your company's point of view (between 0-1.0, 1.0 being highest). The weights will be multiplied automatically by the ratings in the last column, and the last column totaled automatically to give an I.A. index (%).Just as you did for Industry Attractiveness in the Industry Analysis, do a similar analysis here, only the factors involved are different. Here, the factors are similar to critical success factors. Think of 5-8 factors that account for a company's competitive strength in the industry, enter them in the table, assign weights as before (they will be automatically totaled--just make sure they add to 100), and rate your company on each one (on a scale of 0-1.0, 1.0 being best). The weights will be automatically multiplied by the ratings and the products shown in the last column, which is also totaled automatically to yield a C.S. index (%). The CS Index is plotted automatically below against the IA Index in the G.E. Matrix.Print GE MatrixGoto STARTWho are the firm's customers? Describe them precisely and concisely, including their geographic scope, e.g., not just banks, but banks worldwide.This is a subset of the total market that the firm wants to reach or target over the next three years (e.g., if your market is banks, your target market could be California banks, instead of a total market of U.S. banks).Using the same example of California banks as the target market, how many such banks are there? In other words, how many customers in your target market?Don't confuse this with industry growth. E.g., if your market is California banks, how fast are they growing in numbers of banks/yr or in the total dollar sales of California banks? In a consumer market, how fast are your target consumers growing per year?A brand new market for an industry is 0% penetrated, while a saturated market is 100% penetrated. How far is your target market penetrated, not by you but by your industry? If your product is unique, then answer this question for your company.Distribution channels are how your product reaches your market. Choices typically include sales people, sales reps, distributors, wholesalers, retailers (independents, chains, boutiques, mass merchandisers).What is your price out of the factory, what is the retail (final) price, and what are the various in-between prices to wholesalers and distributors, if applicable?Customers are extremely price-sensitive if they view the industry's products as commodities (i.e., all products are alike), hence go for the lowest price. However, if the industry's products are differentiated, customers will seek the products they want without regard to price. Another test to apply is: If you lowered your price a little, how many more customers would buy your product? If a lot, they are price-sensitive; if very few, they aren't.Pricing strategy is complex. For now, consider one of the following options: Low-price leader, pricing to allow for a reasonable profit, pricing to position the company in the marketplace (esp. high end), pricing to force competitors out of business, monopoly pricing (esp. for introducing a first-time product), or pricing what the market will bear.What changes are occurring with your customers or your market? Do they now buy differently? Do they use the product differently? Are their needs changing? Write down here any changes you're aware of.This is a subset of the target market that can be realistically served. For example: California banks with not more than 20 branches or $1B in deposits. Another example: a company targeting young adults with high-end fashion products (target market) would consider as the served market only the more wealthy among them that could afford the product.Print Market AnalysisGoto START

EnvironmentPrint after input is complete for this screenCompany NameEnvironmental Analysis: Impact of Environmental TrendsStatement of TrendSeverity of Impact on CompanyNegative PositiveCategoryH M L DEFAULT L M HEconomicRegulatory/LegislativeDemographicAttitude/ LifestyleSocio-CulturalPolitical/ LegalTechnologicalOther Trends

For each category of trend below, write down the trends, i.e., something must be getting smaller or larger, slower or faster, higher or lower. Describe the trends and HOW it is changing. Finally, estimate the severity of the impact on the company by choosing either a positive (H, M, or L) or negative (H, M, or L) impact. The larger the potential impact, either positive or negative, the more data may need to be collected about the trend or change. Do not leave the "default" option selected.Print Environmental AnalysisGoto START

SWOTPrint after input is complete for this screenCompany NameCompany Analysis: SWOT AnalysisSTRENGTHSList up to eight strengths specific to this company:12345678WEAKNESSESList up to eight weaknesses specific to this company:12345678OPPORTUNITIESList up to eight opportunities specific to this company:12345678THREATSList up to eight threats specific to this company:12345678

Strengths are special capabilities or expertise, things a company does well that has enabled it to be successful to this point, and how it has prepared itself to compete in the future.Weaknesses are internal. They include problems that need to be corrected, deficiencies recognized only through a comparison with competitors, or deficiencies relative to proposed strategies (e.g., not enough resources to grow)Opportunities are product-market issues, i.e., current, improved, or new product (or service) for an existing, expanded, or new market.A threat is an external force or impending event that may slow or prevent you from achieving your objectives.Print SWOT OutputGoto START

TOWS MatrixPrint after input is complete for this screenNOTE: In order to complete the TOWS Matrix, the SWOT input must be completed. SWOT input will automatically carry forward. Enter up to four strategies each in the boxes labeled "SO, WO, ST & WT Strategies".Company NameCompany Analysis: TOWS Matrix1.1.2.2.3.3.4.4.5.5.6.6.7.7.8.8.SO StrategiesWO Strategies1.2.3.4.5.6.7.8.ST StrategiesWT Strategies1.2.3.4.5.6.7.8.

INTERNALFACTORSEXTERNALFACTORSStrengths (S)Weaknesses (W)Opportunities (O)Threats (T)Strategies that use strengths to take advantage of opportunitiesStrategies that take advantage of opportunities by overcoming or mitigating weaknesses.Strategies that use strengths to avoid or mitigate threatsStrategies that minimize weaknesses and avoid or mitigate threatsPrint TOWS MatrixGoto START

InternalPrint after input is complete for this screenCompany NameGeneral Internal AnalysisCurrent strategyWhen was it last changed?Does a written strategic plan exist? Is the plan declared or articulated by senior management?Corporate cultureIs the Company involved in a planned change program?WhatAny constraints?Describe any IT initiatives with strategic implications1

Strategy can always be inferred from what a company is doing. Sometimes it's very clear, e.g., acquisition, market expansion, or new product development. Sometimes, it's less clear, e.g., differentiation, low-cost leadership, or strategic alliances. Other strategies include vertical integration (forwards or backwards), retrenchment (or downsizing), turnaround, joint venture (a form of strategic alliance), diversification (entering another industry), focus (being specialized and serving a narrow market), and liquidation. Enter all strategies the company is currently pursuing (often more than one).What's worth noting is whether the company's strategies have been changing a lot or steadfast over a period of time. If changed recently, what was it before? Why did it change?Companies that record and review their strategic-planning process and decisions every year tend to improve the quality of those decisions. If a written strategic plan does not exist, it may be time to put one in writing.What is it like to "do business in this company?" What is the atmosphere like? Are people innovative, approachable, competitive, cost-conscious, or customer-focused? What adjectives would you use? How would you characterize the company's culture?"Planned change programs include producing products based on a new technology, using radically different manufacturing processes, installing highly integrated IT systems, changing the culture to one that is innovative, or customer-focused, or market-driven, or cost-conscious, etc. Such programs typically take more than a year to implement, are costly, and involve outside consultants using a planned, phased approach.Constraints include anything the board or CEO imposes on the company. When Edwin Land was CEO of Polaroid Corp., he would not let the company borrow any money or acquire any other company. Rand Corp., the Santa Monica, CA "think tank," for many years refused to take on nongovernmental clients (and turned away millions of dollars in business by so doing). These are examples of constraints. Does this company have any constraints around which planning must take place?"The quality of control and decision-making in a company depends almost entirely on the right information getting into the hands of those that most need it when they need it. How good is the company's management information system and use of IT.Print General Internal AnalysisGoto START

Core CompPrint after input is complete for this screenCompany NameCore Competence AssessmentThe four criteria that distinguish capabilities from core competencies are related to competitive advantage and firm performance. Valuable capabilities are those that create value for a firm and help it deliver customer value by exploiting opportunities or neutralizing threats in its external environment. Rare capabilities are those possessed by almost no current or potential competitor. Costly-to-imitate capabilities are those that other firms cannot develop easily, quickly, or inexpensively. And nonsubstitutable capabilities are those that do not have strategic equivalents.Criteria for Core Competence(A capability that meets all 4 criteria is a core competence)CapabilityIs the capability valuable?Is the capability rare?Is the capability costly to imitate?Is the capability nonsubsti-tutable?Competitive ConsequencesPerformance Implications

Alternative entries for this column: Competitive disadvantageCompetitive parityTemporary competitive disadvantageSustainable competitive advantageAlternative entries for this column: Below-average returnsAverage returnsAverage to above-average returnsAbove-average returnsPrint Core Comp AssessmentGoto START

Strategy CanvasPrint after input is complete for this screenCompany NameStrategy CanvasAnalysis and DiscussionThis takes the form of a graphical two-dimensional representation: The x-axis comprises a list of the factors the industry currently competes on, such as price, features, promotion, distribution, service, etc., and the y-axis represents the offering level that buyers receive across all these competing factors (no scale is possible since the levels pertain to many factors, but the range is from low to high). Insofar as the company under analysis scores high on factors that other companies and the industry don't, it points to the existence of a Blue Ocean.This will not print. Enter data that creates the desired graphical depiction of the Strategy Canvas.DataIndicate metric to use for x-axis (Factors in the example provided)FactorsCompanyPriceFeaturesPromotionDistributionServiceStatusApple1020152040100Dell122530323540Others112323262822Enter values that will create the relative distinction between companies for the items being campared.

Strategy Canvas

AppleDellOthers

Four-Action FrameworkPrint after input is complete for this screenCompany NameFour-Action FrameworkA first attempt at plotting a companys value curve might disappoint if the curve is too similar to that of the industry. This means, of course, that the company is not at all or sufficiently differentiated. The Four-Action Framework is designed to stimulate thinking to find ways to differentiate the company and even ways of competing that have not been contemplated by the industry (a Blue Ocean). What is attractive about it is its simplicity and ease of use. Think of it as "focused brainstorming.List up to seven factors for each (keep responses brief):ReduceRaiseWhich factors should be reduced well below the industrys standard?Which factors should be raised well above the industrys standard?1test 11test 82test 22test 93test 33test 104test 44test 115test 55test 126test 66test 137test 77test 14EliminateCreateWhich of the factors that the industry takes for granted should be eliminated?Which factors should be created that the industry has never offered?1test 151test 222test 162test 233test 173test 244test 184test 255test 195test 266test 206test 277test 217test 28Summary of Differentiation / Blue Ocean0.00.00.00.0

Print Strategy CanvasGoto STARTPrint Four-Action FrameworkGoto START

SPACEPrint after input is complete for this screenCompany NameSPACE AnalysisStrategic Position and ACtion Evaluation (SPACE) is used to determine the appropriate strategic posture for acompany. Financial Strength (FS) and Competitive Advantage (CA) are the two primary determinants of a firm'sstrategic position. Industry Strength (IS) and Environmental Stability (ES) characterize the entire industry. You are toassign scores (below) for each of the 4 dimensions. Each factor contains a comment to assist in scoring. Averages(or average minus 6 as indicated) for each dimension are plotted on the chart. The result is a four-sided polygondisplaying the weight and direction (the "thrust") of the strategic assessment. By adding the results of the two X-axisdimensions (CA & IS) and the two Y-axis dimensions (FS& ES), an (X,Y) coordinate is obtained and plotted on the chartto determine the appropriate strategic posture. Keep in mind that the SPACE Chart is a summary device and eachdimension should be analyzed individually as well, especially if any dimension results in a high or low score.Strategic Dimensions and ScoringFactors Determining Financial Strength (FS)Factors Determining Industry Strength (IS)Indicate a score for each of the following criteria.Indicate a score for each of the following criteria.Return on InvestmentGrowth PotentialLeverageProfit PotentialLiquidityTechnological Know-HowCapital Required Versus Capital AvailableResource UtilizationCash FlowCapital IntensityRisk Involved in BusinessEase of Entry into MarketInventory TurnoverProductivity, Capacity UtilizationEconomies of Scale and ExperienceOther:Other:Average0.0Average0.0Factors Determining Environmental Stability (ES)Factors Determining Competitive Advantage (CA)Indicate a score for each of the following criteria.Indicate a score for each of the following criteria.Technological ChangesMarket ShareRate of InflationProduct QualityDemand VariabilityProduct Life CyclePrice Range of Competing ProductsProduct Replacement CycleBarriers to Entry into MarketCustomer LoyaltyCompetitive Pressure/RivalryCompetition's Capacity UtilizationPrice Elasticity of DemandTechnological Know-HowPressure from Substitute ProductsVertical IntegrationOther:Differentiation, UniquenessOther:Average - 60.0Average - 60.0Strategic Position and ACtion Evaluation (SPACE)00000Thrust coordinates:X0.0Y0.0