Specific Guidelines for Industry Analysis and Firm Analysis (combined word limit of 6000 words)
Both substance (i.e., what you say) and style (i.e., how well you say it) are important. Thus, consider the following guidelines when developing your report:
Statement of Purpose – state the purpose of your project and define the industry. Let the reader know in advance the specific issue you will address as well as what issues you will not address and why? A little bit of the history of your firm and what path it has traveled to be where it is today.
- EXTERNAL ANALYSIS TO IDENTIFY OPPORTUNITIES & THREATS
See the book for relevant chapters and my note on a good SWOT to be applied to the firm report for industry report focus on chapter 3 from Rothaermel book 3rd ed.
Perform an audit of the trends in the industry from the focal Firm’s (firm that you have chosen) perspective. The trends are neutral until you label them positive or negative depending upon your focal firm. Thus, you must be specific to identify both opportunities and threats (this must include an analysis of essential external forces and trends, including the industry and competitors). Makes sure you also look at the general environment discussion (task environment and societal environment: – PESTEL framework). You may use Porter’s five force analysis if it is appropriate for your analysis. Eventually, you must inform what are the critical factors in this industry. What makes this industry either attractive or unattractive? What is the future of this industry? What about competitive analysis or Strategic Group analysis? Remember to use many of the data base sources that are provided in a separate document.
- STRATEGY ANALYSIS AND CHOICE
Identify and revise mission statement of the firm, if necessary. Establish Long Term Objectives, Generate alternative strategies, Choose courses of action and justify choices. You may use any other analytical tools, discussed in the classroom depending upon your needs for analysis. (Chapter 4 and chapter 6 minimum)
- STRATEGY IMPLEMENTATION (Revisit chapters on this issue, chapter 10 and 11)
The key issue is a fit between external factors and internal factors. This would create answers to the implementation questions such as; what should be done to foster successful implementation of your recommended strategies? Include a discussion of capital requirements and sources of capital. In addition, you must bring the human capital aspect in your strategy implementation process.
- EVALUATION & CONTROL
Develop a three (3) year PRO FORMA Income Statement with remarks column that provides assumptions about your strategy, cost of resources and future of the industry. (Chapter 5 minimum)
Please note: While your focus is on a single SBU of the firm, you will prepare a proforma income statement for the whole firm. The anticipated changes in the proforma for the next three years must reflect upon your strategic recommendations.
- Clearly, this is a research report; sources should be cited appropriately (citations, appendices, graphs, charts, tables, etc. are not part of the 6000 word limit for the combined report).
- The report must be well written with a unified and consistent style of writing and presentation. Even if you team divides the workload, it must come across as a one single unified document.
- The appropriate use of graphs, charts, and tables is strongly encouraged.