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Individual Assignment: Working Paper #1 Industry and Environmental Analysis

Assignment: Assume you are the owner of a business of your choosing in any locale you choose. (This could be a real business or a business you would like to start some day.) In order to demonstrate your understanding of this company’s industry, prepare an industry and environmental analysis as described below. Also identify and elaborate opportunities and threats facing a company in your chosen industry. This report must be in narrative form, i.e. not simply an outline. This assignment is worth 75 points.

Audience: This analysis should be addressed to other members of the class based upon the assumption that they know nothing about the industry or environment.

Content: Start with the local environment, then examine the regional, national, and if applicable international situation. At a minimum, your analysis must answer the following questions:

1. What is the industry? How do you define it? What is the main product or service of the industry? 4 points

2. What are the industry’s dominant economic features? (See Chapter 3, page 76) Answer as many of these questions as possible for your industry. 8 points

3. What is the competition like and how strong are each of the competitive forces? (See Chapter 3, page 78). Perform a “Porter’s Five Forces” analysis for a business in this industry. 8 points

4. What is causing the industry’s competitive structure and business environment to change? (See Chapter 3, page 92-98) Identify which of these forces is causing change in your industry. Be sure to read the last paragraph on page 98 about environmental factors. Include in this discussion social, political, economic, ecological and technological issues that could affect your industry. 8 points

5. Which companies are in the strongest/weakest positions? (See Chapter 3, page 99) Prepare a strategic group map for a company in your industry. 8 points

6. What strategic moves are rivals likely to make next? (See Chapter 3, page102-104). Using each of the categories in the chart on page 104, forecast what competitors in this industry would likely do next. 8 points

7. What are the key factors for competitive success? (See Chapter 3, page 105) List the “Key Success Factors” for your industry. 8 points

8. Is the industry attractive and what are the prospects for above-average profitability? What are the typical financial ratios for businesses in this industry? (See Chapter 3, page 107-108). Discuss each of the issues identified in this section of the chapter. (For financial ratio analysis, see Robt. Morris & Assoc). 8 points

9. Given the nature of the industry and the environment in which your business operates what opportunities and threats does a business in this industry face? This is your summary statement. It should be your analysis of all the information you have gathered. 8 points

10. Spelling, grammar, typos, formatting, references – 7 points.

See Chapter 3, page 108-109 for a sample form of an industry analysis.

For the best grade, discuss these issues in the order in which they are presented above. Be sure to use titles, restating the first sentence in the question, and then presenting your discussion.

Information: Information for this analysis will come from all appropriate sources such as the library, online data bases (such as Pro Quest and Lexus-Nexus), industry publications, statistical reports, chamber of commerce, competitors, similar businesses, customers or any other appropriate source.

Format of Report: Your report should be printed double spaced using a 12-point font. Do not bind the report. Simply staple the paper at the top left-hand corner. Margins for the paper must be one inch on top, bottom and left side, and 1.75 inches on the right. Length of the report should not exceed 25 pages. Be sure to list all references for the information you present. Points will be deducted for failure to follow the report format.

Evaluation: This written assignment is to be completed and turned in on the date indicated in class. It will be evaluated for thoroughness, thoughtfulness, organization and use of evidence. Style and grammar will be evaluated based upon the course evaluation criteria for written material. See your course syllabus for the number of points given this assignment

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