Case Study Amazon
I need you help. Its a case suty along with worksheet you habe to fill the worksheet according to the case i have provided you. no outside material. Thanks
WORKSHEET 7
INDUSTRY ATTRACTIVENESS
EXTERNAL ENVIRONMENT
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What are the industry’s prospects for profitability and growth? Is the industry attractive? (Response based on Worksheets 1-6) |
Source: Adapted from Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2020) Crafting & Executing Strategy: The Quest for Competitive Advantage, 22e. McGraw-Hill (p 50-52).
WORKSHEET 9
KEY FINANCIAL RATIOS & TRENDS
INTERNAL ANALYSIS
Enter years below with most recent on the left
Top 5 Ratios
Apply to any business
Gross Profit Margin = gross profit /sales
Operating Profit Margin = op profit /sales
Net Profit Margin = net income /sales
Percentage of sales: expense (as available, eg SG&A, R&D) /sales
Current ratio = current assets/current liabilities
Quick ratio = current assets – inventory/ current liabilities
Other useful ratios
Debt to total assets ratio = Total debt/total assets
Debt to equity ratio = Total debt/total stockholders’ equity
Days of inventory = (inventory / cost of goods sold) X365
Return on assets (total capital) = Net income / total assets
Return on equity = Net income/ Total shareholder’s equity
Conclusions (from a minimum of four ratios):
Start by confirming total revenue and income in most recent year
Top Trends
Apply to any business
Enter most recent year
Growth rate (sales) = (present-past)/past
Growth rate (profit) = (present-past)/past
CAGR Sales (specify timeframe: )
CAGR Profit (specify timeframe: )
CAGR (enter another important value such as net income, operating income, total revenues, & timeframe)
Formula: CAGR = ((Ending Value/ Beginning Value)(1/Number of Years))-1
BA II Calculator – PV, FV , n solve for 1/yr (Set sign of PV to “-“)
Conclusions (from a minimum of two trends):
WORKSHEET 8
COMPETITIVE STRATEGIES
INTERNAL ENVIRONMENT
Type of Competitive Approach
Circle the Correct Generic Strategy
Market Target
Narrow Broad
Cost Differentiation
Type of Competitive Advantage
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Explain the Generic Strategy |
Source: Adapted from Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2020) Crafting & Executing Strategy: The Quest for Competitive Advantage, 22e. McGraw-Hill (p 116).
GOODNESS OF FIT TEST
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Elements of Strategy |
Which Industry KSFs are being met? |
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Conclusions (Are the company strategies a good fit for the industry?): |
COMPETITIVE ADVANTAGE TEST
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From the Competitive Strength Test (WS6) which KSFs were achieved better (or as well) as the competition? |
Identify the capabilities and resources that deliver this competitive advantage(s). (These are the respective elements of the strategy from the Goodness of Fit test) |
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Is this competitive advantage(s) easily substitutable or imitable? If yes, the competitive advantage is not sustainable. |
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Conclusions (describe the competitive advantage): |
OTHER STRATEGIC CONSIDERATIONS
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Other considerations |
If applicable, which element(s) addresses this? |
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Internal alignment: Completeness and coverage of all bases; Internal consistency among the pieces; Clarity; |
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Supplier forces Demand/Buyer forces Substitute forces New Entrants forces |
Best-Cost
Broad
Low-Cost
Broad Differentiation
Focused
Low-Cost
Focused Differentiation
WORKSHEET 10
FIRM’S STRATEGIC ISSUES/CHALLENGES
INTERNAL ENVIRONMENT
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What strategic issue or problem merit front burner attention? Please phrase your issues as questions: How can we… / What should we do to….? |
How do you best measure the strategic issue? Please select qualitative and quantitative decision criteria (see examples on back page). |
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Strategic issue 1: Which strategic analysis was this issue taken from? |
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Strategic issue 2: Which strategic analysis was this issue taken from? |
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Strategic issue 3: Which strategic analysis was this issue taken from? |
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Strategic issue 4: Which strategic analysis was this issue taken from? |
Example measures
These are some of the decision criteria that will help you determine your best strategic alternative.
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Quantitative Decision Criteria |
Qualitative Decision Criteria |
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Revenue (can be specific to a product line) Profit (gross, operating or net) Growth Rate (of a specific value) Market share (can be specific to a region) Inventory turnover Cashflow Staff turnover Time to complete Number of new products, patents, customers, etc Risk (Cost) Etc |
Competitive advantage Employee morale Customer satisfaction Safety Synergy Trust Brand equity Cultural sensitivity Goodwill Visual appeal Ethics Flexibility Etc |
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Are there additional decision criteria that need to be considered to measure the big problem? |
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WORKSHEET 11
SWOT ANALYSIS
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STRENGTHS |
WEAKNESSES |
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OPPORTUNITIES |
THREATS |
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Conclusions – What strategic approach is most appropriate? See diagram on second page. Justify: |
Source: Adapted from Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2020) Crafting & Executing Strategy: The Quest for Competitive Advantage, 22e. McGraw-Hill (p 92-95).
WORKSHEET 11 cont.
SWOT ANALYSIS
Adapted from Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2020) Crafting & Executing Strategy: The Quest for Competitive Advantage, 22e. Prepared by Dr Svan Lembke (2018).
WORKSHEET 3
STRATEGIC GROUP MAP OF KEY COMPETITORS
EXTERNAL ENVIRONMENT
High
Y-Variable: ____________________________
Low
High
Low
X-Variable: ____________________________
Procedures:
1. Identify competitive characteristics that differentiate firms in the industry.
2. Plot the firms on the two-variable map using the differentiating characteristics.
3. Assign firms with similar characteristics to the same strategic group.
4. Draw circles around each strategic group, making circles proportional to group’s share of industry sales revenue.
ASSESSMENT OF RIVALS’ COMPETITIVE MARKET POSITIONS:
Source: Adapted from Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2020) Crafting & Executing Strategy: The Quest for Competitive Advantage, 22e. McGraw-Hill (p 74-77).
WORKSHEET 5
INDUSTRY KEY SUCCESS FACTORS
EXTERNAL ENVIRONMENT
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KSF |
JUSTIFICATION |
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Assessment of Key Success Factors |
Source: Adapted from Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2020) Crafting & Executing Strategy: The Quest for Competitive Advantage, 22e. McGraw-Hill (p 79-80).
WORKSHEET 4
DRIVING FORCES OF CHANGE
EXTERNAL ENVIRONMENT
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COMMON DRIVING FORCES |
ANALYSIS OF DRIVING FORCES OF CHANGE Be specific in your analysis |
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Growing internet applications |
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Increasing globalization |
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Changing LT growth rate |
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Changing buyers |
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Ongoing product innovation |
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Changing tech/mfg processes |
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Marketing innovations |
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Threatening entry/exit of firms |
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Diffusing technical knowhow |
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Changing cost/efficiency |
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Growing buyer preferences |
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Reducing uncertainty/risk |
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Influencing gov’t policy/regs |
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Changing societal concerns |
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ASSESSMENT OF DRIVING FORCES OF CHANGE Select top 5 Driving Forces of Change. Explain how each Driving Force of Change will influence the industry moving forward. |
Source: Adapted from Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2020) Crafting & Executing Strategy: The Quest for Competitive Advantage, 22e. McGraw-Hill (p 50-52).
WORKSHEET 2
ANALYZING COMPETITIVE FORCES IN AN INDUSTRY
EXTERNAL ENVIRONMENT
Source: Grant,R.M., Jordan,J., & Walsh,P.R. (2015). Foundations of Strategy (Canadian Edition). Wiley
PORTER’S FIVE FORCES MODEL
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The Force |
Step 1: Who? |
Step 2; Strength (VW, W, M, S, VS) |
Step 3:
Justification & Impact |
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Threat of Competitive Rivalry |
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Threat of New Entrants |
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Threat of Substitute Products/ Services |
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Threat of Supplier Bargaining Power |
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Threat of Buyers Bargaining Power and Price Sensitivity |
Source: Adapted from Porter, M.E. (1979). ‘How competitive forces shape strategy’. Harvard Business Review, 57(2), 137-45; and the course text Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2018) Crafting & Executing Strategy: The Quest for Competitive Advantage, 21e. McGraw-Hill
CONCLUSION ABOUT THE LIKELY IMPACT OF THE COMPETITIVE FORCES ON THE INDUSTRY (from the perspective of an incumbent firm)