UNIVERSITY OF MANITOBA

ASPER SCHOOL OF BUSINESS

GENERAL GUIDELINES FOR ANALYZING AND

WRITING CASE ANALYSIS IN STRATEGIC MANAGEMENT 1

The objective of the Administrative Policy, MBA Strategy, and other courses at the Asper School
of Business at the University of Manitoba is to facilitate students develop critical thinking.
According to Michael Scriven & Richard Paul (1987), “Critical thinking is the intellectually
disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing,
and/or evaluating information gathered from, or generated by, observation, experience, reflection,
reasoning, or communication, as a guide to belief and action. In its exemplary form, it is based on
universal intellectual values that transcend subject matter divisions: clarity, accuracy, precision,
consistency, relevance, sound evidence, good reasons, depth, breadth, and fairness.” 2 You may
also refer to Bloom’s taxonomy3 that has various levels of learning and development of skills:
knowledge, comprehension, application, analysis, synthesis, and evaluation (available on the
Internet on numerous websites).

The purpose of these guidelines is to develop critical thinking through examination of

organizational cases. The case analysis should have the following sections, which add to a total of
10 pages of text, plus exhibits (page lengths mentioned below in double space, 12 point font,
preferably in Times New Roman, with one inch of margins on all sides).

I. Executive Summary (not to exceed 1 page)

II. External Assessment (about 1 page)
III. Internal Assessment: Resources and Capabilities (about 1 page)
IV. Internal Assessment: Financial Performance and Future Financial Capacity
(about 0.5 page)
V. Current Strategies (about 1 page)
VI. Key Issues (about 1 page)
VII. Implementable Strategic Alternatives (about 1 page)
VIII. Criteria and Evaluation of Alternatives by Criteria (about 1.5 pages)
IX. Recommendation and its Implementation (about 1 page)

1
© Prepared by Professors Parshotam Dass, Michele Bowring, John Melnyk, Gary Mischke, Jijun Gao, Victor Cui,
Imran Khan, and Alok Dua. We are grateful to our colleagues and students who have provided thoughtful feedback
and have contributed to the evolution of this document over the years. We welcome your comments and suggestions
for enhancing it further.

2
Definition written for the National Council for Excellence in Critical Thinking. Cited in Elder, L. and Paul, R.
(2008), The Thinker’s Guide to Intellectual Standards, page 58. Foundation for Critical Thinking Press, Dillon
Beach, CA, USA. www.criticalthinking.org
3
Bloom, B.S. (ed.) (1956) Taxonomy of Educational Objectives, the classification of educational goals – Handbook
I: Cognitive Domain New York: McKay.

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X. Limitations and their Mitigation (about 1 page)
XI. Exhibits

Keep in mind that each section in the paper is important. However, coherence among various
sections is even more important. Therefore, writing a paper is an iterative process by which you
improve each section as well as coherence among various sections in subsequent steps. For
example, be sure to use the opportunities and threats you assess in the external section along with
the strengths, weaknesses, distinctive competencies and sustainable distinctive competencies you
propose in the internal assessment to suggest alternatives. These alternatives, of course, must
address the key issues of the case.

I. Executive Summary (Not to exceed 1 page)

Write the executive summary in the form of a consulting letter but do not write your name at the
end. The executive summary is a concise and persuasive summary of the report. It outlines the
recommendations that you make as well as the supporting evidence for your recommendations. It
must be concise enough to give the reader all the relevant information needed to assess your
recommendations, yet comprehensive enough to convince the reader of the thoroughness of your
analysis. It should stand on its own. If the executive summary were to become detached from the
rest of your report, it should still be able to get your message across to your reader.

An executive summary should contain, at minimum, the following:

o the strategy that you recommend;

o the implications of implementing your strategy, both financial and non-financial;
o how you will finance any costs associated with your recommended strategy; and
o the expected benefits of your recommended strategy.

Generally, more effective executive summaries are written in a persuasive tone that outlines the
context for the decision and develops a clear and coherent argument for accepting the
recommendations of the writer.

Executive summary must be one page. It must not exceed one page. Begin external assessment
with a new page.

II. External Assessment: Opportunities and Threats (about 1 page)

Strategy relates the organization to its environment. Therefore, we must understand the relevant
environment in order to determine which strategies have potential for success. Chapter Two of
Hill, Schilling, and Jones’ book provides you with concepts for this assessment.

The process of developing an external assessment consists of at least three stages:

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 o stage one—the analysis that includes systematic identification and consideration of the key
aspects of the firm’s environment;

o stage two—the synthesis of the key aspects into an understanding of the strategic
opportunities and threats facing the firm; and

o stage three—the determination of the necessary key success factors (resources and
capabilities) for any firm to successfully address those unfolding opportunities and threats

It is the results of stages two and three that are detailed and discussed in this section of the paper.
More specifically, you will focus on the three key opportunities/threats and related key success
factors for the future. Key success factors are the resources and capabilities that will be
required for any organization to take advantage of the opportunity or neutralize the threat
in the future. They will provide a link to the internal analysis, where you would look for the
required resources and capabilities in the specific firm you are studying. Keep in mind that the
external assessment is more general so as to avoid tunnel vision.

Please note, strategic opportunities and threats result from changes and discontinuities in one or
more aspects of the firm’s external environment, and not from the firm’s internal strengths or
weaknesses. An opportunity is more than a general option – it is an actual change in the
environment that signals the possibility of success if the firm can develop a strategy to take
advantage of that change. Examples include an emerging market segment, an imminent change in
government regulation, and a new technological development. Similarly, a threat is a change in
the external environment that signals possible trouble for the firm. Examples include imminent
entry of a new, powerful competitor; changes in government regulations; and decreasing consumer
preferences for a product because of its effect on the environment. Sometimes changes in the
environment can be both opportunity and threat, depending on how the firm chooses to act.

Some opportunities and threats may emerge from continuing conditions in the environment rather
than changes because of market imperfections. Also, opportunities and threats may not have been
perceived earlier because of existing mental models and blind spots. New events may trigger new
thinking, which may help actors connect the dots and perceive new opportunities and threats.

The critical part of an external assessment is synthesis rather than identification. Thus, it is not
enough to simply list elements of the environment, for example, what comprises each of the five
forces in an industry. Rather it is important to draw out the strategic implications of each key part
of the external environment. Moreover, the assessment needs to be future-oriented because that
is the only way it can provide a strong foundation for the subsequent sections of the paper (e.g.,
for building alternatives and recommendations).

In your examination of the environment, you may use all models and concepts that are given in
Chapter 2 of the textbook such as five forces model, strategic group analysis, etc. However, the
synthesis is in the form of top three opportunities and threats.

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How to Write This Section?

In the first paragraph, define the industry succinctly. Be sure to keep the analysis at the industry
level, and do not mention the name of the company in the external assessment section.

Then, write one paragraph on each opportunity or threat. Within each paragraph:

a. Name the opportunity and identify whether it is an opportunity or threat. Frame it

accordingly so it reads like an opportunity (which is positive) or a threat (which is
negative). Keep in mind, they should both come from the external environment so if you
have written something that is not coming from the external environment, think again; it
may not belong in this section.

b. Give positive evidence of the existence of an opportunity or threat. Absence of threat is not
sufficient to be listed as an opportunity!

c. Finally, write at least two relevant key success factors for each opportunity/threat
discussed. It is possible that some key success factors (resources and capabilities) relevant
for various opportunities and threats may be the same. For example, a product development
capability may help address a threat of intense competition at home as well as facilitate
expansion to the Asian market (an opportunity). It is ok to repeat but it is better to think of
a variety of resources and capabilities that firms may need in the future. You should pay
particular attention to the new key success factors that may be emerging that could lead to
competitive advantage in the future. You may look at a value chain to figure out the
possible key success factors (resources and capabilities). Avoid using the words as follows:
The firms may need “ability to cater to the changing needs of the customers.” Avoid it
because a firm may need numerous resources and capabilities to do so. Instead, name the
specific resources and capabilities such as supply chain management, human resources
management, financial resources, etc.

Do not propose the same point as an opportunity and a threat.

Write three paragraphs for the external assessment, one on each opportunity or threat. Add an
exhibit to further strengthen your external assessment. The point of the exhibit is NOT to compress
as much text as possible but to clarify and support your external assessment given in the text.
Remember to refer to your exhibit in your external analysis write-up.

Note: You are expected to bring no more than three items in total for opportunities and threats. It
may mean two opportunities and one threat, or one opportunity and two threats, etc. We are NOT
asking for three opportunities and three threats—i.e., we are not asking for six items for this section
in total. We are asking for a total of three items for opportunities and threats!

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If this section is shorter than one page, you may start the next section where it ends.

III. Internal Assessment: Resources & Capabilities (about 1 page)

Similar to the external assessment assignment, this part of the case write-up concentrates on the
nature of the internal environment of the company. Chapter three of Hill, Schilling, and Jones’
book and Barney’s VRIO framework (see readings on Looking Inside for Competitive Advantage
and Crown Cork and Seal example included in the course package) provides you with concepts
for this assessment.

What key strengths, weaknesses, distinctive competencies, or sustainable distinctive competencies

can it call upon and exploit for future benefit and growth? Can the firm sustain its competitive
advantage? How will the firm’s weaknesses affect its future performance? What role will
stakeholders’ preferences play in the future for this firm? How financially healthy is the firm?
These are all questions you should consider when examining the current health and strength of the
company.

You may begin with the key success factors that you identified in the external assessment to
evaluate whether the company has them, if they are rare, and hard to copy for other firms. You
should also think about the key success factors this company lacks so as to build the required
competencies.

Keep in mind that even though the facts given may be about the past or current state of the company
(as you know, facts about the future are usually not available to decision-makers!), your task is to
draw out the strategic implications of the elements mentioned above for the future. That is the
only way this assessment can provide a strong foundation for the subsequent sections of the paper
(e.g., for building alternatives and recommendations). Be sure to conduct a VRIO analysis and
Financial Analysis before writing this section.

How to Write This Section?

The objective of an internal assessment is to determine what the company can do in the future.

(a) Definition of Business.

First, provide a definition of the business of the company in the first paragraph succinctly. Be sure
to name the business of the company, major business segments, and geography.

(b) VRIO Analysis.

Second, use Barney’s VRIO framework to uncover a firm’s key weaknesses, strengths, distinctive
competencies, and sustainable distinctive competencies. Again the critical part is not to identify

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but to analyze and synthesize. As you write this section, think of top three key strengths,
weaknesses, distinctive competencies or sustainable distinctive competencies (S/W/DC/SDC).

Write one paragraph on each of them, clearly revealing whether the selected resource/capability
is valuable, rare, and inimitable and WHY? Be sure to give the rationale in the text (not in the
exhibit). Also, address whether the firm has the organization (structure) and complementary
resources to take advantage of the resource/capability being discussed in the paragraph. Also be
sure to mention whether the resource/capability is a weakness, strength, distinctive competence,
or sustainable distinctive competence.

In the past, we have seen some students name three S/W/DC/SDCs in one paragraph. Then, in the
second paragraph, they evaluate whether or not each of them is valuable. After that, in the third
paragraph, they go on to analyze whether they are rare. Over the years, we have found that the
“bunched up” format is more confusing for the reader. Therefore, it is better to focus on one
S/W/DC/SDC in each paragraph.

A special note about weaknesses. Students often ask whether they should bring up a weakness
or not. Our response is: Bring it up if it is a strategic weakness that you think is important for the
top management to address for their strategy to be successful in the next five years. If you do bring
it up, keep it mind that you should analyze whether or not it can become strength, distinctive
competency, or sustainable distinctive competency, if the company invests in it. Also, be sure to
come up with ways to make up the weakness as part of your strategy when you are building the
strategic alternatives!

In the text, you will raise the top three items for strengths, weaknesses, distinctive competencies,
and sustainable distinctive competencies. Therefore, look at an Appendix given in the course
package after the Barney’s article on Looking Inside for Competitive Advantage. Before writing
the text for internal assessment, prepare an exhibit (similar to the one given for the Crown Cork
and Seal Company) that shows all relevant areas (not just the top three items) of the value-
chain and whether or not they are valuable, rare, and inimitable (see a blank Exhibit A in this
document). We are not expecting you to provide rationale for each of the items in the exhibit.
When you are examining the value chain, you may add an activity that is relevant for the case
under study or delete an activity that is not relevant. For example, for a service firm, you may use
“Operations” rather than “Manufacturing” given in the value chain. Remember to refer to your
exhibit in your internal analysis write-up.

Note: In the text, you are expected to bring no more than three items in total for strengths,
weaknesses, distinctive competencies, and sustainable distinctive competencies. Keep in mind two
points: (1) We are NOT asking for three items for strengths, three item for weaknesses, three items
for distinctive competencies, and three items for sustainable distinctive competencies. That is, we
are not looking for a total of 12 items; we are only looking for a total of three items. (2) The three
items do not have to include one item from each category (categories being strengths, distinctive
competencies, and sustainable distinctive competencies). They could all be strengths, distinctive

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competencies, or sustainable distinctive competencies. As mentioned above, students may include
strategic weaknesses as well but the total number of items must not exceed three.

IV. Internal Assessment: Financial Performance and Future Financial Capacity (about 0.5
page)

Make an overall assessment of the financial performance of the organization based on your
analysis and indicate the financial strength and future financial capacity of the firm to carrying out
possible future initiatives/strategies (Future financial capacity refers to the amount of capital
(money) the company can raise to invest in the next five years?) Can the company raise the money
that you will be using for your recommendation? If yes, how? (e.g., debt, equity). Keep in mind
the future orientation of the assessment rather than living in the past. Add an exhibit on ratio and
other financial analysis and be sure to refer to it in your text.

V. Current Strategies and their Implementation (about 1 page)

In this section, analyze and evaluate the current business (Chapters 5 and 6), corporate (Chapters
9 and 10), global (Chapter 8), and major functional strategies (Chapters 4, 6 and 7), as well as
important issues related to implementation: organizational structure, control systems, culture, and
processes (see Chapter 12 in the textbook). 4 You may have noticed, business strategy is key to
competitive advantage, therefore the most focus in the course and in this paper is on business
strategy. Keep the future orientation in your mind as you analyze them so your analysis and
synthesis are relevant for the next sections of this paper. These strategies represent status-quo in
the company. This section will clarify the current practice of strategic management in the company
so it is easier for the reader to understand how strategies will be changed when you present the
strategic alternatives in section VII. Be sure to complete Exhibit B before writing this section and
provide a succinct write up of the same in the text. Needless to say, both Exhibit B and this section
should be consistent with each other.

VI. Key Issue(s) of the Case (about 1 page)

In this section, you are to further zoom in on, synthesize, and clarify in a paragraph or two what
you think the firm’s key issues are in going forward successfully into the future.

There are likely three types of issues present: (1) the readily visible and pressing; (2) the more
underlying and long term; and (3) the future ones not yet impacting the firm, but identified in your
preceding sections. The visible issues are the challenges that you readily identify in reading the
case. For example, decreasing profitability in the face of increasing sales might be an issue in a
case. Other examples include diminishing market share, obsolescence of machinery, and need to

4
You are welcome to consult the chapters in the textbook in advance but the instructor’s expectation will be that
you will consider the chapters that have been covered up to the point of the case assignment, the midterm, or the
final exam.

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expand operations. The visible issues can often be seen as symptoms of more long term and
substantive underlying issues or problems facing the firm. For example, decreasing net margin
may be because of inefficient production, increased administrative spending, or falling market
interest in your product. The purpose of this section is to link these issues with your external and
internal observations and to summarize what it all means for the firm and its future. If there is any
ambiguity or inconsistency in the case, it is within this section that you clarify them in terms of
key issues, and set the launch point for the next section—strategic alternatives.

VII. Implementable Strategic Alternatives (about 1 page)

In this section, you should identify and develop two strategic alternatives that the firm could
pursue. They should take into account the internal and external assessment (feasibility), be
consistent with the organization’s mission (legitimacy) and should provide a way of dealing with
the underlying issue(s) of the case (relevance). The alternatives should also be representative of
the key feasible, legitimate, and relevant choices that management has at the time of the decision
making without gaining the advantage of hindsight. A good set of alternatives, therefore, must
involve major differences (and real choices) rather than different variations of the same strategy.

Your two alternatives should be mutually exclusive because strategy requires commitment and
risk-taking. It involves selecting some paths and rejecting others. However, if there is a compelling
case to follow two alternatives simultaneously then combine them into a separate “composite”
alternative and compare it to another composite alternative. Keep in mind that the alternatives need
to be comparable. If one alternative is clearly superior then it is not a fair comparison. Sometimes,
students tend to come up with a weak alternative to make their preferred alternative look better. It
is not a good practice and should be avoided. If there are things that you would like to do
irrespective of the alternatives, you may write them in this section in a separate paragraph before
describing your two alternatives.

Alternatives must be strategic (not operational) in nature and consider the usual planning horizon
for organizations, which is about five years. Any alternative that deals with the issues for the next
six months to one year and then asks the management to re-assess its situation is an operational
alternative and may be suitable for a functional-area case analysis but not for a strategic
management case analysis. For example, a marketing campaign by itself is a popular operational
(not strategic) alternative. A marketing campaign along with other functional areas such as starting
a new manufacturing plant, changes in supply chain management, introducing new products, etc.
can form the basis of a strategic alternative.

These alternatives may be framed in terms of business strategies and corporate strategy terms,
depending on the issues of the case. However, do not neglect consideration of other important
issues that may hinder implementation of your strategies. Therefore, consider issues of structure,
systems, processes, resources, culture, etc. when formulating alternatives, developing criteria,
evaluating alternatives, and making recommendation. For example, it is important to think of a
multilateral match of environment, strategy, structure, systems, technology, culture, etc. before
recommending a major strategic change. It is never easy to match several different elements so

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creativity with a solid foundation is important for the paper. It is essential that the paper flows
from one section to another and this section is an important linchpin in building that flow.

To help you think of the strategic alternatives, we have attached Exhibit C. You are required to
complete this form for each of the alternatives (two exhibits for the two alternatives) and attach
it with your paper and concisely describe the alternative in the text. Do not refer to the alternatives
by number. Use a short name (for example: the low-cost strategy) as an identifier. All exhibits
must also be typewritten or word-processed (not handwritten). It is a good practice to first complete
the exhibits and then summarize the alternatives in the text.

Keep in mind that the point is to strategically manage the company and thus simply selling the
company or the status quo are not acceptable alternatives. If you are recommending an alliance or
merger with a company, name the company with which to have an alliance or a merger. Also, be
sure to provide positive evidence that the target company will be interested in an alliance or a
merger.

VIII. Criteria and Evaluation of Alternatives by Criteria (about 1.5 pages)

In this section, first, you should outline and justify the three or four criteria (not more than five)
by which you will evaluate the strategic alternatives developed in the preceding section. These
criteria should be output-oriented rather than input-oriented. As noted in the alternatives section,
all alternatives should be feasible (take into account the internal and external assessment,
legitimate (be consistent with the organization’s mission), and relevant (provide a way of dealing
with the underlying issue(s) of the case). Thus, feasibility, legitimacy, and relevance cannot be
used as criteria for evaluating the alternatives.

There should be some financial and some non-financial criteria. Financial criteria often include
net present value and payback period. Other financial criteria may be dictated by the circumstances
of the case. For example, there may be the need to achieve a certain return on investment in order
to attract investors. Values and preferences of the managers or other stakeholders, as outlined in
internal assessment, may influence non-financial criteria. In addition to the effect on shareholders
(which may be captured in terms of profitability or net present value), another important criterion
is the effect of decisions on other stakeholders. These stakeholders may include customers,
employees, environment, government, community, etc.

Here are two criteria that are required for your case analysis: (1) Net Present Value (2) Effect
on Various Stakeholders (other than shareholders). Among the stakeholders, at least choose
customers, employees, and environment (sustainability) as stakeholders. You may also add other
stakeholders, depending on their relevance. In addition, you may choose one or two other
criteria that may be relevant to your case analysis.

Once you have chosen the criteria by which you will assess the alternatives, you must then evaluate
each of the alternatives using (all) these criteria. Besides financial and non-financial costs and
benefits, consider risks involved in the alternatives. What financial projections and computations

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need to be made will depend on your criteria (Keep in mind that you must have some financial and
some non-financial criteria).

Do not get misled by the apparent precision of the numbers in your forecasts. These numbers may
represent an average of a range of values from pessimistic to optimistic scenarios. In fact, the
numbers may change dramatically depending on your assumptions. All assumptions must be
realistic, defendable and clearly presented in the exhibits. You may comment on the sensitivity of
your findings with respect to your starting assumptions. Please remember that this is a strategy
assignment, and not an accounting one. You may thus adopt accounting procedures accordingly.
If you choose to use strictly accounting guidelines, however, feel free to do so.

There are two ways of writing this section. You may choose to write it either way:

a) Evaluate both alternatives by criterion one in the first paragraph, followed by evaluating both
alternatives by criterion two in the second paragraph and so on; or

b) Evaluating the first alternative by all the criteria in the first paragraph, followed by evaluating
the second alternative by all the criteria in the second paragraph, and so on.

IX. Recommendation and its Implementation (about 1 page)

Drawn from the previous sections of the report, state your strategy recommendation, followed by
an implementation discussion. You should include a brief reiteration of the recommended strategy
and a discussion of how it meets the selected criteria. If it has not been explicitly stated before, the
recommendation should cover all relevant aspects of strategy, structure, control, resources, culture,
etc. as applicable in the case. Never recommend a combination (of two or more alternatives) that
was not proposed as a single alternative in the strategic alternatives section and was not evaluated
in comparison with the other alternative in the previous section.

The implementation discussion will describe how the recommended strategy will be translated or
made into reality. Discuss the relevant action steps, their timing, and implementation budget.
Remember that corporate and business strategies can be implemented in two ways: (a) Through
functional strategies (e.g., human resource management strategy, marketing strategy, supply chain
management strategy, etc.); (b) Through organizational architecture (organizational structure,
process, control systems (and incentive systems), culture, and people). Be sure to address how you
will finance any costs/investments associated with your recommended strategy as well as its
expected benefits.

Please do not suggest that the company should study the issues further and then decide about its
strategies. You have been selected as a consulting company to analyze, synthesize, and make
recommendations for the company’s strategy for the next five years.

Add an exhibit on action steps, their timings, and implementation budget to support your
implementation discussion.

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X. Limitations and their Mitigation (about 1 page)

In this section, you should discuss the implications of your recommendation, its limitations, and
how to mitigate them. For example, are there any negative consequences to your recommended
strategy? What are other costs or risks that were not considered at the time of evaluation of
alternatives? How can they be minimized? Is your recommended solution able to address all the
underlying issues, or does it have limitations? Do you foresee changes that will impact on your
recommendations? This section can help strengthen your strategic alternatives. For example, if
you are writing limitations that you may have control over, you may prefer to incorporate ways of
dealing with them in your alternatives. In other words, this section should represent things that you
may not have control over.

XI. Exhibits

Keep in mind that all important points need to be brought into the text. The exhibits should be used
to support the points in the text. Do not skip any section (For example, a student who thought of
saving space referred the reader to the exhibits and did not summarize the alternatives in the body
of the text. This resulted in a huge loss for the student).

Other than the required exhibits listed below, you may not attach any more exhibits to your paper.
All attachments must be relevant, and they must be referred to in your write-up. The conclusion
and key figures (if applicable) from each exhibit should be referenced and drawn into the text
at the appropriate point; the reader should not have to flip from the text to the exhibit in order
to understand your point.

Analogously, each exhibit should include one or two lines of text at the bottom, stating its
conclusion, and demonstrating its relevance to your argument. The reader should never be left
wondering why a particular exhibit was included. The point of the exhibits is NOT to compress as
much text as possible but to clarify and support your assessments given in the main body of the
paper. Please make sure that the font in the exhibits is as mentioned below. Here are further details
regarding each of the exhibits:

o Exhibit 1: External Analysis (one-half page; double space, 12 point font; basically mention
top 3-5 major points in bullet form in not more 10 lines. In this exhibit, you may: (a)
further clarify the three opportunities/threats you raised in the External Assessment section;
(b) provide further evidence for the three opportunities/threats you raised in the External
Assessment section; c) provide three additional opportunities/threats, their evidence, or key
success factors; and/or d) analyze five forces model, strategic group analysis, macro-
environmental forces, etc. None of the items mentioned above are required. However, this
exhibit is required so simply use your judgment to provide further information about
external assessment on any aspect. You may avoid running text, except 2-3 lines the
conclusion of the exhibit).

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 Please note the conclusion for this exhibit and other exhibits (as noted below) is expected
to be 2-3 lines, not 2-3 sentences because sometimes a sentence can be very long!

o Exhibit 2: Internal (VRIO) Analysis (one page, follow the format given in Exhibit A, 12
point font; no running text, except 2-3 lines of conclusions)

o Exhibit 3: Financial Analysis: Ratio Analysis of the current (and historical situation) (one
page; double space, 12 point font). The objective is to give the numbers, not the running
text, but be sure to include 2-3 lines of conclusion of the exhibit. The numbers should
enable you to diagnose the current situation and estimate the future financial capacity of
the firm (to be given in the last paragraph of Internal Assessment section of the paper).

o Exhibit 4. Current Strategies and their Implementation (See Exhibit B, one page, 12 point
font, use bullet points rather than sentences here, single or double space, no need of
conclusion of exhibit)

o Exhibits 5-6: Strategic Alternative Descriptions (See Exhibit C, one page each; 12 point
font, use bullet points rather than sentences here; single or double space; no need of
conclusion of exhibit)

o Exhibit 7: Assumptions and Justifications (One page; 12 point font, double space). Provide
assumptions (for NPV projections as well as other decisions) and their justifications. These
assumptions may include, but are not limited to: realistic growth rates (for revenues, costs,
and expenses incurred by the firm), interest rates, income taxation rate, exchange rates, and
many others that you need to make useful projections and make other decisions in the case.
See page 24 of the Westover Inn (A) Case also. No need of conclusion of exhibit.

o Exhibits 8-9: Strategic Alternative Net Present Value (NPV) Analysis (not more than one
page for each exhibit, i.e., maximum two pages for Exhibits 8-9; single or double space,
12 point font). Avoid running text, except 2-3 lines of conclusion. For the numbers, you
may avoid the use of decimals and/or represent the numbers in 000’s or millions to save
space. See page 24 of the Case: Westover Inn (A) in the course package for an example to
use for team assignment and team exams. For individual assignment or exam, you may use
the same format or a summary format to show the financial revenues and costs of each
alternative.

o Exhibit 10: Evaluation of Alternatives by Criteria (see Exhibit D). Please indicate your
assessment of how the alternatives will impact each part of the criterion. Be sure to discuss
your assessments (along with the NPV numbers) as well as their rationales in the “Criteria
and Evaluation of Alternatives by Criteria” section of the paper. The exhibit should not
exceed one table/one-half page. Avoid running text, except 2-3 lines of conclusion. Use 12
point font, single or double space.

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 o Exhibit 11: Implementation Schedule / Action Plan (one page, double space, 12 point font);
Use bullet form and avoid running text, except 2-3 lines of conclusion. Be sure to show
the timeline and actions for the normal planning horizon of strategies, which is about 5
years.

This document includes Exhibits A (page 12-13), B (page 14), C (page 15), and D (page 16).

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 EXHIBIT A
VRIO ANALYSIS OF THE COMPANY
(Example: Crown Cork and Seal, from Jay Barney (Gaining and Sustaining Competitive Advantage, 1997))
(Use any value chain depending on its suitability to the company you are studying. Add value chain activities and attributes that are
relevant to the case and delete those that are not. Be sure to mention in this exhibit if something is a strategic weakness and how you
plan to overcome that weakness.). Your particular company will demand special and unique treatment, but the following is intended to
serve as an illustration of the format for a fictitious company expected within the Internal Assessment Exhibit.

EXHIBIT # (INTERNAL ASSESSMENT)

Value Chain Specific Attributes Along V R In W/S/DC/SDC O Competitive Implication:

Activities the Value Chain Likely to have
Purchasing high quality inputs Yes No - Strength Yes Competitive Parity
Inventory reliable supply Yes No - Strength Yes Competitive Parity
Holding
able to meet unexpected Yes Yes Yes Sustainable Distinctive Yes Sustainable Competitive
orders on short notice Competence Advantage
Design & speciality containers for Yes Yes Yes Sustainable Distinctive Yes Sustainable Competitive
Engineering multiple purposes Competence Advantage
Manufacturing inconsistent product quality No - - Weakness - Competitive
Disadvantage*
Distribution speedy & flexible delivery Yes Yes No Distinctive Competence Yes Temporary Competitive
Advantage
Sales fast, reliable order Yes Yes Yes Sustainable Distinctive No Unrealized Sustainable
processing Competence Competitive Advantage
Service & Tech speedy & competent Yes Yes Yes Sustainable Distinctive Sustainable Competitive
Support maintenance and quality Competence Yes Advantage
technical advice
Use the following space for two or three lines of CONCLUSIONS concerning the company’s value chain competencies and how you
will overcome the weakness(es)*.

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 EXHIBIT B
CURRENT STRATEGIES AND THEIR IMPLEMENTATION
(Use bullet points rather than complete sentences. Fill in the answers using wordprocessor in the
space provided. The exhibit should not exceed one page)

Name(s) of the Business Strategy(ies)______________________________________________

Customer Needs_______________________________________________________________
(If fulfilling multiple needs, be sure to specify which needs in what markets; see Chapters 3, 5 & 6)

Customer Groups______________________________________________________________
(may involve geographic, demographic or other market segmentation parameters; Chapters 3, 5 & 6)

Basis for Competition __________________________________________________________

(Be sure to be specific in non-generic terms. For example, for Low Cost, is it superior efficiency due to
low cost production or something else? For Differentiation, is it based on superior quality, innovation,
and/or customer responsiveness; for Focus, what parameters, e.g., is it customer segment, product
segment, market segment, etc.; Chapters 3, 5 & 6)

Corporate Strategies ___________________________________________________________

(Single business, vertical integration, horizontal integration, related diversification, unrelated
diversification, strategic alliances, outsourcing, etc. Chapters 9 & 10).

Placement in the Value System __________________________________________________

(e.g., retailer, wholesaler/distributor, manufacturer, importer, or combination thereof; for details, you may
see Chapters 9 & 10)

Global Strategies_______________________________________________________________
(you may see Chapter 8 for details)

Major Functional Strategies (Chapters 4, 6 & 7)_____________________________________

______________________________________________________________________________

______________________________________________________________________________

Implementation: Structure, Process, Controls, and Culture (you may see Chapter 12 for
details).
______________________________________________________________________________

______________________________________________________________________________

Others________________________________________________________________________

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 EXHIBIT C
COMPREHENSIVE STRUCTURE OF A STRATEGIC ALTERNATIVE
(Use bullet points rather than complete sentences. Fill in the answers using wordprocessor in the
space provided. The exhibit should not exceed one page)

Name of the Alternative or Strategic Goal Identifier _________________________________

(Write the name of the strategy here with any special characteristics, e.g., Focused low cost with
expansion to Mexico)

Customer Needs _______________________________________________________________

(If fulfilling multiple needs, be sure to specify which needs in what markets; see Chapters 3, 5, & 6)

Customer Groups______________________________________________________________
(may involve geographic, demographic or other market segmentation parameters; Chapters 3, 5 & 6)

Basis for Competition __________________________________________________________

(Be sure to be specific in non-generic terms. For example, for Low Cost, is it superior efficiency due to
low cost production or something else? For Differentiation, is it based on superior quality, innovation,
and/or customer responsiveness; for Focus, what parameters, e.g., is it customer segment, product
segment, market segment, etc.; see Chapters 3, 5 & 6)

Corporate Strategies ___________________________________________________________

(Single business, vertical integration, horizontal integration, related diversification, unrelated
diversification, strategic alliances, outsourcing, etc. see Chapters 9 & 10).

Placement in the Value System __________________________________________________

(e.g., retailer, wholesaler/distributor, manufacturer, importer, or combination thereof; Chapters 9 & 10)

Other ________________________________________________________________________
(could include points related to functional strategies (chap. 4, 6 & 7), global strategies (Chapter 8),
implementation (Chapter 12), or anything else that is important for the alternative)

Key Issue(s) Addressed by this Alternative _________________________________________

FEASIBILITY JUSTIFICATION FOR THIS STRATEGIC ALTERNATIVE

Environmental Opportunity(ies)__________________________________________________
(evidence, independent of the organization, which suggests that this alternative could meet with success)
Environmental Threats, Risks___________________________________________________
(that could limit success of this alternative. Be sure to address how these can be overcome)
Present Corporate Attributes relevant and sufficient to this alternative (Strengths,
Distinctive Competencies, or Sustainable Distinctive Competencies):
_____________________________________________________________________________
Missing and/or insufficient Corporate Attributes (Weaknesses)
_____________________________________________________________________________
(Attributes that would have to be acquired and/or improved in order to implement this alternative. Be
sure to address how these can be overcome)

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 EXHIBIT D
EVALUATION OF ALTERNATIVES BY CRITERIA
(Please indicate your assessment of how the alternative will impact each part of the criterion. Be
sure to discuss your assessments (along with the NPV numbers) as well as their rationales in the
“Criteria and Evaluation of Alternatives by Criteria” section of the paper. Fill in the answers
using wordprocessor in the space provided. The exhibit should not exceed
one table/one-half page)

Criteria Name of Name of

Alternative 1 Alternative 2
Shareholders Net Present Provide NPV or Provide NPV or
Value ROI number ROI number
here here
Stakeholders Customers High/ High/
Moderate/ Moderate/
Low Low
Employees High/ High/
Moderate/ Moderate/
Low Low
Environment High/ High/
(Sustainability) Moderate/ Moderate/
Low Low
Other High/ High/
stakeholder(s) Moderate/ Moderate/
(Optional): Low Low
Please specify
Other Please specify High/ High/
(required) Moderate/ Moderate/
Low Low
Other Please specify High/ High/
(optional) Moderate/ Moderate/
Low Low

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