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The Strategic Analysis The development of a strategic analysis guides all decisions made regarding your compensation systems throughout the project. The strategic analysis reveals firm-specific challenges, objectives, and initiatives that allow you to align the goals of a compensation system effectively with those of the company strategy. The strategic analysis allows you to better understand the external market challenges e-sonic faces in addition to its internal capabilities. As a consultant, a thorough understanding of e-sonic's business environment allows you to better align your competitive system design with e-sonic's goals, challenges, and objectives. Follow the outline below when completing this portion of the project. Strategic Analysis Outline: 1. Executive Summary (Concisely conveys the project objectives and main findings. The executive summary is completed last, but included first in the strategic analysis.) 2. Strategic Analysis a) Identification of e-sonic's industry based on the North American Industry Classification System (NAICS) b) Analysis of e-sonic's external market environment i. Industry Profile ii. Competition iii. Foreign Demand iv. Long-Term Industry Prospects v. Labor-Market Assessment c) Analysis of Internal Capabilities i. Functional Capabilities ii. Human Resource Capabilities The Strategic Analysis section is fully described in the MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the MyLab course menu.
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