What are the drivers of profitability

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Reference no: EM131406844

Assignment

PAPER #1:

Leveraging Jack's 5-Step Strategy Framework, conduct an analysis of the competitive landscape leading to the identification of a "game changing winning move" that will take your organization forward and beat the competition. As a reminder, those steps are organized into questions as follows:

1. What Does the Playing Field Look Like? a. Who are our competitors in this business, large and small, new and old? b. Who has what share globally, and in each market? Where do we fit in? c. What are the characteristics of this business? Is it a commodity, high value, or somewhere in between? Is it long cycle or short? Where is it on the growth curve? What are the drivers of profitability? d. What are the strengths and weaknesses of each competitor? How good are their products? How much does each one spend on R&D? How big is each sales force? How performance-driven is each culture? e. Who are this business's main customers, and how do they buy?

2. What has Competition Been Up To? a. What has each competitor done in the past year to change the playing field? b. Has anyone introduced game-changing products, new technologies, or distribution channels? c. Are there any new entrants, and what have they been up to in the past year?

3. What Have We Been Up To? a. What have we done in the past year to change the playing field? b. Have we bought a company, introduced a new product, stolen a competitor's key salesperson, or licensed a new technology from a startup? c. Have we lost any competitive advantages that we once had (such as a great salesperson, a special product, a proprietary technology, etc.)?

4. What Could be Coming Around the Corner that Could Upset Everything? a. What scares me most in the year ahead-what are one or two things a competitor could do to nail us? b. What new products or technologies could our competitors launch that might change the game? c. What M&A deals would knock us off our feet?

5. What's Our Winning Move? a. What can we do to change the playing field-is it an acquisition, a new product, globalization? b. What can we do to make customers stick to us more than ever before and be more loyal to us than to anyone else?

PAPER #2:

Perform a financial analysis of your selected organization in order to determine its current financial condition and identify opportunities and threats. This analysis should accomplish two things: (1) establish a baseline for current financial performance, and (2) provide a cost/benefit analysis for the strategy (your "winning move") you are proposing and the changes you will need to make to execute that strategy.

As a reminder, the purpose of this part of the Capstone Project is not for you to present an exhaustive analysis of all financial elements of the organization. The purpose is to focus on those elements which impact (and are impacted by) your plan. Approach this as a CEO, not a CFO. Where will you get the money you need to fund your initiative? What is the proposed payoff in terms of increased sales or decreased expenses? How do these stack up to key benchmarks (like IRR) against which your success will be measured? Which market related financial data impact your numbers, and strengthen your conclusions and help you defend your arguments?

As you analyze, derive meaning from, and present your recommendations, you will want to consider the following:

1. Asset Review: Cash Position, Working Capital (Current Assets vs Current Liabilities), Long Term Assets (including depreciation/condition) and Intangible Assets 2. Company Structure: Debt vs Equity, Liquidity, Dividend Payment, Debt Terms/Interest 3. Growth: Revenue Growth Trends, Net Income Growth Trends 4. Profit Margins: Gross Margin, Operating Margin, Net Income Margin 5. Cash Flow: Cash from Operations, Investing, Financing

Format In keeping with the purpose of this exercise, you should attempt to present your financial analysis in an efficient way which shows that you understand what really matters. The suggested guideline is 2 pages for your analysis/recommendation. Please place any supporting documents (spreadsheets, reports, etc.) in an Appendix.

Reference no: EM131406844

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