BUSM50682 Performance Management Case Study Instructions The purpose of the case study is to apply the concepts of strategic management when analyzing a specific company considering current events. The case study report must include the findings for the following activities: 1. Research and describe the history, development, and growth of the company 2. Assess the company's current situation. 3. Evaluate the external environment and industry in which the company operates (PESTLE and 5forces analysis) 4. Assess the company's internal strengths and weaknesses (Value chain and Resource-based view analysis) 5. Develop a SWOT analysis 6. Explain the company's business-level strategy and supporting strategies 7. Create recommendations for initiatives, projects, and action plans. Note: Your team must develop a 5W-2H framework covering four areas: finance, marketing and sales, operations, and human resources. General requirements • • • • • • • • The first part (Part 1 includes items 1 to 4) and the final submission must cover all items, from 1 to 7. Two presentations: Part 1 on week 6 and final on week 13 Must cite and provide full APA reference for any external source. Must cite any argument extracted from the internet and external help received. The assignment report and presentation must not have more than 10% direct quotes. The group mark will be based on your own group analyses and conclusions. Any citation of any source is not considered your own work. Explanation of the theory in the report and presentation will not be taken into account for marks. Just reports submitted in MS-Word files will be evaluated and eligible for marks. Companies assigned to each group #: COMPANY Chuck and Cheese https://www.chuckecheese.com/ (the analysis should focus on Canadian Market) GROUP # 1 LA Fitness https://www.lafitness.com/ (the analysis should focus on Canadian Market) 3 Dave and Buster https://www.daveandbusters.com/ (the analysis should focus on Canadian Market) 2, 4 Rad Power Bikes https://radpowerbikes.ca/ (the analysis should focus on Canadian Market) 5 APPENDIX 1 - CHECKLIST FOR ANALYZING COMPANY'S SITUATION (might be used as reference, optional) The external environment 1. 2. 3. 4. Are there any trends in the environment that could have an effect on the industry, firm, or management program? What is the state of the economy? Inflation? Stagflation? Depression? What is the cultural, social, and political atmosphere? Are there trends or changes in the environment that could be advantageous or disadvantageous to the industry, firm, or management program? Can the management program be restructured to take advantage of these trends or changes? The industry analysis 1. 2. 3. 4. 5. 6. What industry is the firm in? What class of industry? Are there other industries the firm is competing with? What is the size of the firm relative to the industry? How does the firm compare in terms of market share, sales, and profitability with the rest of the industry? How does the firm compare with other firms in the industry in terms of financial ratio analysis? What is the firm's major competition? Are there any trends in terms of government control, political, or public atmosphere that could affect the industry? The internal analysis. 1. 2. 3. 4. 5. 6. What are the objectives of the firm? Are they clearly stated? Attainable? What are the strengths of the firm? Managerial expertise? Financial? Copyrights or patents? What are the constraints and weaknesses of the firm? Are there any real or potential sources of dysfunctional conflict in the structure of the firm? How are the functional departments (e.g. marketing, financial services, controlling, HR…) structured in the firm? What is the corporate culture of the firm? What kind of management style is preferred? How do employees communicate? APPENDIX 2 - A SWOT Checklist (might be used as reference, optional) Potential internal strengths Many product lines? Broad market coverage? Manufacturing competence? Good marketing skills? Good materials management systems? R&D skills and leadership? Information system competencies? Human resource competencies? Brand name reputation? Portfolio management skills? Cost of differentiation advantage? New-venture management expertise? Appropriate management style? Appropriate organizational structure? Appropriate control systems? Ability to manage strategic change? Well-developed corporate strategy? Good financial management? Others? Potential internal weaknesses Obsolete, narrow product lines? Rising manufacturing costs? Decline in R&D innovations? Poor marketing plan? Poor material management systems? Loss of customer good will? Inadequate human resources? Inadequate information systems? Loss of brand name capital? Growth without direction? Bad portfolio management? Loss of corporate direction? Infighting among divisions? Loss of corporate control? Inappropriate organizational structure and control systems? High conflict and politics? Poor financial management? Others? Potential environmental opportunities Expand core business(es)? Exploit new market segments? Widen product range? Extend cost or differentiation advantage? Diversify into new growth businesses? Expand into foreign markets? Apply R&D skills in new areas? Enter new related businesses? Vertically integrate forward? Vertically integrate backward? Enlarge corporate portfolio? Overcome barriers to entry? Reduce rivalry among competitors? Make profitable new acquisitions? Apply brand name capital in new areas? Seek fast market growth? Others? Potential environmental threats Attacks on core business(es)? Increases in domestic competition? Increase in foreign competition? Change in consumer tastes? Fall in barriers to entry? Rise in new or substitute products? Increase in industry rivalry? New forms of industry competition? Potential for takeover? Existence of corporate raiders? Increase in regional competition? Changes in demographic factors? Changes in economic factors? Downturn in economy? Rising labor costs? Slower market growth? Others? APPENDIX 3 - CHECKLIST FOR FORMULATING PLANS OF ACTION AND EVALUATING STRATEGIC ALTERNATIVES (might be used as reference, optional) 1. 2. 3. 4. 5. 6. What possible alternatives exist for solving the firm's problems? What limits are there on the possible alternatives? Competence? Resources? Management preference? Social responsibility? Legal restrictions? What are major alternatives now available to the firm? What management concepts are involved that affect these alternatives? Are the listed alternatives reasonable given in the firm's situation? Are they logical? Are the alternatives consistent with the goals of the management program? Are they consistent with the firm's objectives? What are the costs of each alternative? What are the benefits? What are the advantages and disadvantages of each alternative? Which alternative best solves the problem and minimizes the creation of new problems given the above constraints?
