Strategic Analysis of Fun Time Superstore: Unlocking Long-Term Performance

Abstract

MGMT 475.WB1 Fa 22CAPSTONE CASE PROJECT [Name] This capstone case project is your opportunity to demonstrate how well you understand and can apply the concepts and analytical tools covered in this course. Over the next few weeks, you will apply all that you have learned in MGMT 475 to analyze a company’s situation and make a recommendation about the one strategic change you conclude needs to be implemented to best improve long-term performance. This project will occur over several phases through which you will analyze, report, get feedback, and have opportunities to refine and improve your work. Each phase will provide instructions and a structure for what you are to do and report. This will simplify the task of writing and focus your time on good analysis. The final product, due on December 9th, is a final complete report on your analysis, conclusions, and recommendation. *NOTE ! - The feedback you will receive after the two interim reports will be brief and mostly about correcting where I see you are not on the right track. I will not be giving detailed explanations about concepts and methods again as we have been over each several times by this point. That is, it is too late at this point for me to re-teach what we’ve already been over. As needed, you will need to go back on your own to review lessons, prior feedback, etc. I will simply point out where you are making errors or skipping important parts of your analysis. It is the PROCESS and application that is most critical. I am not looking for you to arrive at any one specific analysis and conclusion…but you must demonstrate that you understand and can adequately apply all that we have covered in this course. Grading: This project is worth 110 points and will be based on the quality of two interim reports (5 pts each) and your final paper (100 pts). Quality will be assessed based on the degree you demonstrate an accurate understanding of the course’s key concepts and analysis processes, your ability to apply them, your ability to comprehend and apply improvements taken from discussion feedback, and of course, your ability to follow instructions and submit a complete, professional final report. -------------------------------- -------------------------------------------------------------- ------------------------------------- Assignment -- READ THIS CAREFULLY: Failure to follow instructions precisely will end up costing you points This last phase of the course involves THREE separate assignments: Interim Report #1 - due by 11pm 11/18 Interim Report #2 – due by 11pm 11/30 FINAL CASE ANALYSIS REPORT – due by 11 pm 12/9 Step 1 – review, carefully, this entire set of instructions. Know where you are going and what is expected and by when. (Begin with the end in mind!) Step 2- Read the Fun Time Superstore case in the Capstone Case folder Stick with just using the case materials; this is a FICTIONAL case so trying to do research or find case material to review will be a waste of your time Step 3- INTERIM REPORT #1 (5 points) Your first ASSIGNMENT is to produce and submit a short “INTERIM REPORT #1”. This is due in the appropriate Assignment Folder by 11 p.m. 11/18. Remember - this is NOT your final report. The interim reports are just quick notes to communicate your conclusions/analysis so that I can review and give you feedback. Write just enough so that I can assess if you are on the right track or not. But don’t write too light – be clear, be concise, be complete. For Interim Report #1: Submit a Word document answering each task below. Give the task #, then your answer. (e.g. #1. …answer…; #2 …answer…) KEEP YOUR REPORT SIMPLE – See the example following the instructions. 1. Using the process from the Performance Assessment Reading, assess the firm’s financial performance, that is their ability to create value and their ability to capture value. Just write up only your conclusion but include data to support your conclusion. 2. Using the process from the Strategy Reading, describe the firm’s competitive strategy. As on the mid-term exam, to write this up, just name each component element and then describe it (e.g. Product Focus is… ; Target customers are …. Etc. ) 3. Using the process from the Resources and Capabilities Reading, analyze the firm’s resources and capabilities to identify their primary sources of competitive advantage. (a) Develop an inventory of relevant resources and capabilities; (b) asses the comparative value of items on your list using the VRI criteria; (c) and make your conclusion about which are the three most valuable sources of the firm’s competitive advantage (or potential advantage). That is, identify the resources and capabilities that are most strategically valuable. Write up only your conclusions: Evaluate what you think are the FIVE most valuable resources or capabilities using the VRI rate/rank method covered in class. PROVIDE your VRI analysis table in your report. From the VRI analysis, list what you conclude are the three most valuable internal elements. 4. Apply the processes from the External Analysis module. That is, assess the five competitive forces to identify strong forces and the underlying factors that cause them to be strong; convert these into Key Success Factors; identify the most important drivers of change that you believe are critical changes that firms in the industry must adapt to. *** REMEMBER: A KEY PIECE OF THIS, two things you must get correct to do a good job: 1) Define who the industry actors: the “producers”, “buyers”, and “suppliers” that you analyze in the five forces work? 2) What are substitutes? For the Interim report: write up only your conclusions: Characterize the producers, buyers, suppliers, and substitutes for this industry Identify the strongest competitive force(s) For each strong force listed, explain the underlying reasons that this is a strong force. Describe at least 1 Key Success Factor you conclude from your analysis Identify and describe the three most critical Drivers of Change and explain/argue why it is prioritized as one of the top three EXAMPLE: INTERIM CAPSTONE REPORT #1 Note that the items are random EXAMPLES only meant to show how answers should be presented. Performance assessment: “Key Company’s ability to create value has been trending upward (growing 2%, 5%, and 6% each of the last three years) and is above industry average (3%). Their ability to capture value, however, has remained stable or declined a bit. Gross margin is consistently in the 29-30% range, which is about average for the industry, and operating profit margin has fallen from 7% in 2019 to 5.7% in 2021 which is now slightly below the industry average of 6%. Competitive Strategy: Product Focus = Frozen vegetables etc. for each element. Be concise, but complete. Sources of Competitive Advantage: Patents R&D Lab CEO Ability to Ship Quickly Ability...