Internal Environmental Analysis

Project 3:  Internal Environmental Analysis  

NOTE: All submitted work is to be your original work (and   only yours). You may not use any work from another student, the Internet or   an online clearinghouse.  You are expected to understand the Academic   Dishonesty and Plagiarism Policy, and know that it is your responsibility to   learn about instructor and general academic expectations with regard to   proper citation of sources as specified in the APA Publication Manual,   7th Ed. (Students are held accountable for in-text citations and an   associated reference list only).  

Purpose 

This project is the third of four projects.  Students will   perform an internal environmental analysis using the tools and concepts   learned in the course to date.  You will also draw from previous   business courses to develop an understanding of how organizations develop and   manage strategies to establish, safeguard and sustain its position in a   competitive market. 

Students also have the opportunity to review an organization's   objectives and goals and the key functional areas within the   organization.  Performing an internal environment analysis helps assess   a firm's internal resources and capabilities and plays a critical role in   formulating strategy by identifying a firm's strengths to capitalize on so   that it can effectively overcome weaknesses.  

Outcomes Met With This Project

· utilize   a set of useful analytical skills, tools, and techniques for analyzing a   company strategically;

· integrate   ideas, concepts, and theories from previously taken functional courses   including, accounting, finance, market, business and human resource   management;

· analyze   and synthesize strengths, weaknesses, opportunities, and threats (SWOT) to   generate, prioritize, and implement alternative strategies in order to revise   a current plan or write a new plan and present a strategic plan.

Instructions

Step 1 Specific   Company for All Four Projects

The companies that your instructor has assigned to you for   Project 1 is the company you will use for this project.  The assigned   company must be used for this project and in subsequent projects in the   course.  Students must complete the project using the assigned   company.  Deviating from the assigned company will result in a zero for   the project.

After reading the course material, you will complete the steps   below.   

Step 2  Course Materials and Research

· You   are required to research information about the focal company and the internal   environment for this project, You are accountable for using the course   materials to support the ideas, reasoning and conclusions made.  Course   materials use goes beyond defining terms but is used to explain the 'why and   how' of a situation.  Using one or two in-text citations from the course   materials and then relying on Internet source material will not earn many   points on the assignment.  A variety of source material is expected and   what is presented must be relevant and applicable to the topic being   discussed.   Avoid merely making statements but close the loop of   the discussion by explaining how something happens or   why something happens, which focuses on importance and impact.    In closing the loop, you will demonstrate the ability to think clearly and   rationally showing an understanding of the logical connections between the   ideas presented from the research, the course material and the question(s)   being asked.

· Note:  Your report is based on the results of the   research performed and not on any prepared documentation.  What this   means is that you will research and draw your own conclusions that are   supported by the research and the course material rather than the use any   source material that puts together any of the tools or techniques whether   from the Internet, for-pay websites or any pre-prepared document, video or   source material.  A zero will be earned for not doing your own analysis.

· Success:  The analysis is based on research and not opinion.    You are not making recommendations and you will not attempt to position the   focal company in a better or worse light than other companies within the   industry merely because you are completing an analysis on this particular company.    The analysis must be based on factual information.  Any conclusions   drawn have to be based on factual information rather than leaps of   faith.  To ensure success, as stated above, you are expected to use   the course materials and research on the focal company's global industry and   the focal company.  Opinion does not earn credit nor does using external   sources when course materials can be used.  It is necessary to provide   explanations (the why and how) rather than making statements.   Avoid   stringing one citation after another as doing so does not show detailed   explanations.

Library Resources

On the main navigation bar in the classroom select, Resources   and then select Library.  Select Databases by Title (A - Z).    Select M from the alphabet list, and then select Mergent Online.     You may also use Market Line and should be looking at the focal company's   Annual Report or 10K report.  You are not depending on any one resource   to complete the analysis.  It is impossible to complete a Porter’s Five   Forces, competitive analysis or OT by using only course material.

You should not be using obscure articles, GlassDoor, or Chron or   similar articles.  

Research for Financial Analysis: Financial Research

Research for Industry Analysis CSI Market

UMGC library is available for providing resources and services.   Seek library support for excellence in your academic pursuit.  

Library Support

Extensive library resources and services are available online,   24 hours a day, seven days a week at https://www.umgc.edu/library/index.cfm to support you in your studies.  The UMGC Library   provides research assistance in creating search strategies, selecting   relevant databases, and evaluating and citing resources in a variety of   formats via its Ask a Librarian service at https://www.umgc.edu/library/libask/index.cfm.

Scholarly Research in OneSearch is allowed.

To search for only scholarly resources, you are expected to   place a check mark in the space for "Scholarly journals only"   before clicking search. 

You should not be using obscure articles, GlassDoor, or Chron or   similar articles.  

Research for Financial Analysis: Financial Research

Research for Industry Analysis CSI Market

Step 3    How to Set Up the Report

· The   document has to be written in Word or rtf.  No other format is   acceptable.  No pdf files will be graded.  Use 12-point font for a   double-spaced report.  The final product cannot be longer than 10 pages   in length, which includes all tables and matrices but excludes the title page   and reference page.  Do no use an Appendix.   Those items   identified in the technical analysis should appear under the appropriate   heading in the paper.  It is important to format the tables/matrices to   fit the report and to present the analysis in a clear concise manner.

· Create   a title page with title, your name, the course number, the instructor's name;

· Use   this template to complete the project: Project 3 Template. 

Step 4 Strategic   Role of Corporate Strengths/Weaknesses in the Internal Strategy Analysis

There are three levels of strategy:  corporate level   strategy, business level strategy and functional level strategy.    Corporate level strategies are related to businesses or markets the focal   company successfully can compete within.  Corporate level strategies   affect the entire organization and are formulated by top management using   input from middle and lower management.  Decision making about corporate   level strategies are considered complex, affect the entire company and relate   to an organization’s resource capabilities.  Corporate level strategies   align with an organization’s mission statement and ideally are designed   around goals and objectives. 

Perform an analysis on:

· Corporate-level   strategies

· Create   a partial SWOT table and performs a SW analysis and discuss the strategic   inferences/implications (Discuss what strategies would allow the company to   capitalize on its major strengths and what strategies would allow the company   to improve upon its major weaknesses.)

· Create   an IFE matrix analysis.  Make sure to explain how the matrix was   developed and discuss the strategic inferences/implications

· Develop   a Grand Strategy Matrix.  Make sure to explain how the matrix was   developed and discuss the strategic inferences/implications at a corporate   level and business-unit-level.

Step 5  Strategic Role of   Internal Resources/Departments/Processes

Perform an analysis on:

· Business-level   strategies

o Evaluate   the company's product line, target market 

o Identify   and explain business-level strategies

· Functional-level   strategies

o Assess   the company's organizational structure, the organizational culture, marketing   production, operations, finance and accounting, and R&D that can be   accomplished by viewing the company's website, interviews, and surveys.

o Explain   how these strategies align with the company's vision and mission statements.

Step 6  Strategic Financial Analysis for the Last Reported Fiscal   Year 

· Use   the company's income statement and balance sheet to calculate no   less than a total of ten (10) key financial   ratios to the business that are relevant to the focal company.  There   must be a mix of four different key categories inclusive of the leverage,   liquidity, profitability, and efficiency ratios so that the ratios do not all   come from the same category. The specific ratios selection must come from the   following categories.

o Leverage   Ratios (Long term debt ratio, Total debt ratio,   Debt-to-equity ratio, Times interest earned ratio, and Cash coverage ratio).

o Liquidity   Ratios (Net working capital to total assets ratio,   current ratio, quick ratio, and cash ratio)

o Efficiency   Ratios (Asset   turnover ratio, Average collection period, Inventory turnover ratio, and Days   sales outstanding)

o Profitability   Ratios (Net profit margin, Return on assets, and   Return on equity) 

· The   selection of the ratios has to be relevant to the focal company so it is   important to choose wisely.

· Quote   industry financial average ratios that correlate to the 10 financial ratios   selected for the focal company.  You may find the industry averages by   going to the library.  If you are unable to find on your own, reach out   to the librarian as these resources are readily available.

· Discuss   the corporate financial standing based on a financial ratio analysis.    Include whether the company's financial ratio is a strength, a weakness or a   neutral factor.

Note:  If copied   directly from the Internet, a zero will be assigned. When placing any table   or figure in a table, it must be explained in detail.

Step 7  Composite Analysis

A composite analysis is one in which you will bring in a   combination of relevant factors from the various analyses (EFE Matrix, IFE   matrix, CPM matrix, SWOT, Grand Strategy Matrix and QSPM).  The QSPM is   a tool that helps determine the relative attractiveness of feasible   alternative strategies based on the external and internal key success factors.

· Develop   a Quantitative Strategic Planning Matrix (QSPM) analysis.   Make   sure to discuss how the matrix was developed and discuss the strategic   inferences/implications.

· Develop   a composite analysis on internal factor strategy analysis based on the qualitative   and quantitative analytical outcomes from those steps above.

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