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Format for Strategic Analysis Report

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Format for Strategic Analysis Report

Strategic analysis of: _______________________________________ (case or company)

EXTERNAL ENVIRONMENT

MACRO ENVIRONMENT

Political: • Regulation • Trade barriers • Change in tax laws/incentives • Other…
Summary

Legal: • Anti-trust • Equal pay/employment • Environmental protection • Health & Safety • Other…
Summary

Economic: • Interest Rate • Recession (aggregate demand) • Energy prices • Other…
Summary

MICRO ENVIRONMENT

Industry – Competitive Analysis: Define the (primary) industry in which this firm competes

Key segmentation variables: Identify the industry segment in which your firm competes

Power of suppliers: Factors affecting relative bargaining power (high or low threats?) • What proportion of the value of our product(s) is provided by suppliers? Cost of Goods Sold / Sales • Price sensitivity Cost of purchases relative to total costs Profitability of suppliers vs. buyers Importance of the product to the quality of buyer’s quality • Bargaining Power Size and concentration of buyers relative to suppliers Buyer’s switching costs Buyer’s information Buyer’s ability to backward vertically integrate Risk of owning obsolescent technology Related experience in making the supplies Is owning non-complementary assets required?

Summary

Power of buyers: (high or low threat?) • Factors affecting relative bargaining power Price sensitivity: Size of purchase(s) relative to total discretionary income of the buyer Profitability of buyers vs. suppliers Importance of the product to the buyer’s quality requirements • Bargaining power Size of the purchase relative to the supplier’s total

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