CASE STUDY ANALYSIS

Prepared by: Yehia Metwally (Psychiatry Line)

Objective

Supporting the experience we have by terminology needed A window on some strategic actions could be taken in our organization or other organizations Giving hint on the strategic fit needed between different functional areas A handbook for assessments

Outline

Financial analysis Segmental anaysis EFAS O&T IFAS S&W SWOT TOWS Corporate strategy Competitive business strategy Functional strategy BCG Matrix Conclusions and Recommendations

Financial Analysis
Liquidity Ratios: Quick Ratio = (Current Assets Inventory) / Current Liabilities N.B: Current Assets are like Cash, AR and others Leverage Ratios: Debt management Debt To Equity Ratio = Total Debt / Total Equity Activity Ratios: Assets management Total Assets Ratio = Total Sales / Total Assets Growth Ratios: Profit Margin = Net Income / Total Sales ROI = Net Income / Total Assets Earnings per share = Net Income / No. of common stocks

Segmental Analysis
A- Corporate: The main industry it serves in B- Sub business: Unit / Division C- Territory: Physical Place of the firm D- Regional Market E- Product Produced F- Customer Segments G- Sales Order: The way of receiving & Interacting with sales orders
Door To Door Sales Rep Online Sales Offices Wholesaler Retailers

External Factors Analysis (O&T)

A- PEST: 1- Political, governmental and Legal forces:
Political Stability
Changes in tax laws Size of governmental budget

Governmental Regulations
Changes in patency laws Facilities for entrance of foreign countries Unemployment GDP Price elasticity of demand

2- Economic forces:
Inflation Rate Interest Rates Monetary Policies

3- Social , Cultural, Demographic Forces:

Life Style Traffic congestion Distribution of population Level of education Cultural symbol Attributes

External Factors Analysis Cont

4- Technological forces:
E-commerce
Technological capabilities Substitutes available

Rate of development
Presence of skilled persons Internal availability

External Factors Analysis Cont

B- Porter`s Five Forces: C- O&T:
Opportunities O O O O O O O Threats T T T T T T T

Internal Factors Analysis (S&W)

Extracting Strengths and weaknesses on these dimensions:

Simple Structure:
Owner manager decisions Few coordination problems Little specialization of tasks Flexibility Few rules Rapid product introduction

a- Corporate Structure:
i.

ii.

Functional Structure:
Centralization Enhances operating efficiency Inter-functional Rivalry Low cross functional experience In-depth functional expertise Coordination problems Narrow view points Response to circumstances

Internal Factors Analysis (S&W) .. Cont

b- Corporate Culture c- Corporate Resources:
Marketing R&D HR Finance Operations Information System

d- S&W:
Strengths S S S S Weaknesses W W W W

SWOT
Strengths S1 S2 S3 S4 S5 S6 Opportunities O1 O2 O3 O4 O5 Weaknesses W1 W2 W3 W4 W5 W6 Threats T1 T2 T3 T4 T5

TOWS

Selecting Corporate strategy

A- Intensive strategies:
Type of strategy Market Penetration Issue Stability Strategy

Market development
Product development

Borderless Markets
Short PLC

B- Diversification Strategies:
Type of strategy Concentric Diversification Conglomerate Diversification Horizontal Diversification Issue New & Related Product New & Unrelated Product New Customers New & Unrelated Product Current Customers

Selecting Corporate strategy .. Cont

C- Defensive Strategies:
Types of strategies Retrenchment Issue Regrouping of resources

Divestiture
Liquidation

Selling a division of company

Selling tangible assets

Additive notes according to market position: Challenger Leader Follower Nicher

40% -Expand MS -Defend MS 30% -Attack leader -Status quo 20% Imitate 10% Specialize

Competitive Business Strategy

Porter`s Generic Strategies:

Differentiation Unique perception Low Price elasticity High Brand Loyalty Premium Pricing Strong R&D Creativity Focus Few target Markets Tailored Functions Low Price elasticity Effectiveness VS Efficiency Above average ROI Cost Differentiatio Leadersh n ip

Cost Leadership Efficiency :Output/Input Standardized product Economies of scale Cost Reductions Distribution: Extensive Promotion: Benefits of low cost

Marketing Strategy STP

A- Segmentation: Sub dividing the market into subsets of customers according to needs and buying habits Basis of segmentation: Geographic Demographic Psychographic Behavioral
Region Country size Density Climate Age Family size Income Education Social class Lifestyle personality Use occasion Loyalty status Usage rate Attitude towards product

Marketing Strategy STP

B- Targeting: 1. Evaluate attractiveness of each segment 2. Select the target segment C- Positioning: Schematic representation for the product relative to competition Choosing a specific positioning Best, Most.. etc

Marketing Mix
Product
Quality, features, style, brand name, packaging, product line, warranty, service level

Price
Penetration, skimming, competition, bundle, psychological, premium, product line

Place
Channels Coverage, Locations, Transportation carrier, Inventory levels, Intermediaries

Promotion

BCG Matrix

Modified Ansoff`s Model

Conclusions and Recommendations