Industry Analysis (Case 1) Paper Instructions and Grade Sheet MAN 4720 Strate ic Mana e!ent Assi n!

ent "alue # $0 points possi%le (all tea! !e!%ers recei&e the sa!e rade) 'ue 'ate( See sylla%us Purpose: Each team will select an industry to study. You will conduct an industry analysis (also called a competitive analysis) of your assigned industry, and to collectively write a paper reporting your results. This paper will require that you apply the concepts that you have learned in the course. This assignment will enable you to learn how to research and analy e the e!ternal and competitive nature of an industry. "t is necessary to have a thorough understanding of an industry before a firm can develop strategic plans to obtain competitive advantages. )asic Attri%utes o* +our ,eport( The best reports are the result of a lot of research. There is a direct correlation between research and grades. To earn the highest grade possible, your report should demonstrate evidence of: #ignificant secondary research. "ntegration of course concepts. $ritten in plain English and demonstrating understanding that clarifies and distills the problems and opportunities competitors in the industry are facing. %recise business writing s&ills. (You will be penali ed for writing mista&es.) The best reports also summari e what you have learned from your research. ' great report demonstrates that the student has thoroughly researched the industry, and demonstrates the ability to: (omprehend )%araphrase or interpret the information in one*s own words. 'naly e ) +rea& down the information gathered during your research into parts, and show interrelationships. #ynthesi e ) +ring together parts of &nowledge from various sources to form the report. Evaluate ) ,a&e -udgments based on the information researched. ,esearch -&er&ie.: .o not procrastinate/ #tart your research as soon as you have chosen your industry. +egin by -ust learning as much about the industry as you can 00 avoid trying to fill in the information required for the report as long as you can. This may be frustrating for you as there is a tendency to loo& for specific information for one section of your report during your research, but you will rarely find such information in a single source. "nformation you are see&ing includes industry trends, past growth rate and future growth pro-ections, target mar&et wants and needs. 'lso loo& for typical products1services offered by competitors, client1customer demographic descriptions, pricing, location, promotional methods, distribution methods, customer service reputation, quality trac& record, etc. 2earn how industry competitors operate. Su ested Approach to ,esearch( 3ere is how you might start your research: 4. .etermine your 5'"(# code. This will increase the efficiency of your research. "f you cannot identify the 5'"(# code, then try using a #"( code instead. 6. 7ind maga ine1-ournal articles or boo&s about your type of business8 print the articles to insure that you have the source of the information. 2ist the articles and boo&s you researched and describe the pertinent information you found that will be included in your report. 9. :se the "nternet. There is a wide variety of "nternet sources of information available to you as a :(7 student. The :(7 2ibrary has licenses to many databases and online information sources8 either access them from an on0campus computer lab or install the %egasus (. on your home computer to access these sites for free. 1

/en th o* the Paper: ' quality paper will li&ely be about 4; pages long. ,uch less, and you may not have invested sufficient effort in your research and1or your analysis. ,uch more, and you have probably not done enough analysis, synthesis, or evaluation of your material required to produce a concise well0written report. 'ocu!ent +our Sources: 's you conduct your research, carefully document the sources of the information. $e have a <ero Tolerance policy for plagiarism in this course. You ,:#T submit your paper to Turnitin.com, an online anti0plagiarism website. The instructions for submitting your paper to Turnitin.com can be found on my website. -utline: 7ollowing is an outline of the types of issues you will want to address in your paper. +e sure to go beyond -ust describing the industry. .iscuss the implications of your findings for firms competing in your industry. 5ote that not all issues contained within each section will apply to every industry. (hoose the most pertinent issues and discuss them according to the applicability to your assigned industry. 3owever, there are certain sections that are required for all papers and are mar&ed as such, so please ma&e sure to include them in your assignment. E!ecutive #ummary and "ntroduction: (up to one page 0 6 points) Research: 7ind the 5'"(# or #"( codes first, then determine generic descriptions of the industry and the general products that this industry produces. "f you were studying steel production, you would loo& up what steel production1manufacturing encompasses. 4. "ndustry*s .ominant Economic 7eatures (one to two pages 0 9 %oints) Research: $hile you are getting familiar with this industry through your research, ma&e note of information related to any dominant economic features such as mar&et si e8 scope of rivalry8 growth rate and what stage of the life cycle is the industry in8 number of rivals and their relative si e8 prevalence of forward1bac&wards integration8 channels of distribution8 pace of process and product technology change8 whether products are highly differentiated or very similar8 to what e!tent are economies of scale in purchasing, distribution, advertising, are important8 to what e!tent do learning curves e!ist8 are high rates of capacity utili ation important for profitability8 what are the historical levels of profitability8 are there segments within the industry, and if so, what are they, and how do their presence effect firms, strategies, competition, and levels of profitability within each segment= Report: #ummari e what you have learned about the economic factors in the industry that have the most impact on it. "n addition, if your industry is not a main industry, it might be a sub0industry within a main industry. 7or e!ample, if you were studying steel production companies, the main industry is called metals and mining8 within metals and mining there are two sub0industries dealing with steel, you would study steel production (also sometimes called steel manufacturing). +asically describe the purpose of your industry>what does it do, and what dominant economic features influence it the most. (hoose carefully what information belongs in this section of your report, and what information should be included in one of the other five sections of the report. 6. %orter?s 7ive 7orces (about two pages each ) ; points each, total of 6; points) #ee te!t and lecture notes for a discussion of %orter*s 7ive 7orces. "f you want a head start, this is widely available online as well. Threat of #ubstitute %roducts ("nclude as a sub0heading.) Research: "f you were studying steel production, you would loo& up information in your industry to see if there are many substitutes for steel and steel production. "f so, discuss what these are and how they act as substitutes. "f not, state that this is not an issue. 7or e!ample, is plastic (a different industry) a good substitute for steel= .on*t forget to state the overall level of strength of this force for your industry. "ntensity of (ompetitive @ivalry in the "ndustry ("nclude as a sub0heading.) Research: 2oo& up information in your industry to see if there is a lot of rivalry between and among the companies currently in the industry and describe that here. .on*t forget to state the overall level of strength of this force for your industry. +e sure to discuss the relevant criteria for this force. 2

Threat of 5ew Entrants ("nclude as a sub0heading.) Research: "f you were studying steel production, you would loo& up information in your industry to see if there is a high li&elihood for new firms to enter the steel production industry. .escribe reasons why there are ) or are not ) barriers to entry into this industry (e.g., is there a high capital requirement to enter this industry, is it difficult to obtain the resources to produce steel, etc.). .on*t forget to state the overall level of strength of this force for your industry. +e sure to discuss the relevant criteria for this force. The %ower of +uyers ("nclude as a sub0heading.) Research: "f you were studying steel production, you would loo& up information in your industry to see those people purchasing the steel that is produced have a high level of power over the steel producers such that they can control the prices and terms of contracts. .on*t forget to state the overall level of strength of this force for your industry. +e sure to discuss the relevant criteria for this force. The %ower of #uppliers ("nclude as a sub0heading.) Research: "f you were studying steel production, you would loo& up information in your industry to see if those supplying the steel manufacturers have a high level of power over the steel producers such that there are no other suppliers, they can charge high prices, they can control the terms of contracts, etc. .on*t forget to state the overall level of strength of this force for your industry. +e sure to discuss the relevant criteria for this force. Report: 7or each force, go through the issues that represent high or low power for each force. .etermine whether or not each individual force affects the attractiveness of the industry. Then, after you have gone through all five forces, summari e the collective attractiveness of the industry. +e sure to include a summary of your analysis and what it means for the industry. "f the industry is segmented, be sure to include a brief discussion of that fact and how the forces might differ across the different segments. The best way to approach this section is to use each of the forces as a secondary heading and discuss how each of the force*s corresponding criteria (or those that are relevant) impacts the strength of that force for the industry. +e sure to provide relevant (and cited) e!amples of how the suppliers, buyers, new entrants, rivals, and substitutes are impacted by these different criteria. Then, after discussing each force*s relevant criteria, conclude a final level of strength of impact of that force relative to the industry (e.g., you might include a concluding sentence that says something li&e A+ased on the analyses conducted above, the power of buyers is lowB. 'lternatively, begin the section with a sentence something li&e AThe power of buyers in this industry is low. This was determined by e!amining each of the criteria relevant to the power of buyers, as discussed below.B Then you would discuss each criterion that leads you to that conclusion). 9. .rivers for (hange in the +road Environment (one or two pages ) ; points) Research: #earch for information such as: #ociocultural, technological, political1legal, or economic trends8 long term growth rate8 who buys the product and how they use it8 significance of product innovation and technological change8 mar&eting innovation8 entry1e!its of ma-or firms8 diffusion of technological &now0how8 e!tent of globali ation8 changes in costs and efficiencies8 emerging buyer preferences (shift towards differentiation or commodity)8 regulatory influences8 changes in societal concerns, attitudes, or lifestyles8 reductions in uncertainty and ris& in the industry over time. Report: You do 5CT need to discuss all factors in the general environment, only those relevant to the industry under study. Thus, be sure to discuss C52Y the most relevant factors for your industry. The most common general environmental factors include political, economic, socio0cultural, technological, legal, and environmental forces. 'nd of course, these may span international boundaries. #imply discuss how the relevant trends in the general environment impact your industry. ' nice way to approach this section is to include cited e!amples of firms within the industry that have had to ad-ust their business practices (or who have responded to the trend) as a consequence of the trend. +e sure to also discuss the implications of the trends for the industry. 's such, you will not -ust state what the trend is, but you need to directly tie the trend to the implications that it will have (or is having) on the industry. The te!t and lecture notes will help with all of these. 3

D. (ompanies in the #trongest1$ea&est %ositions (two or three pages ) ; points) Research: "dentify three individual companies in the industry that are either leaders or those that need to be put out of their misery. "dentify how each firm has positioned, or tried to position, themselves, in their industry. 7or e!ample, are there positions in the industry that are more attractive than others= $hat strategies does each of these rivals pursue= "dentify characteristics that differentiate the companies from each other based on quality1price, geographic coverage, vertical integration, product line breadth, distribution, or service. Report: "dentify at least T3@EE different firms in your industry and discuss how each has positioned, or tried to position, themselves, in their industry. 're there positions in the industry that are more attractive than others= Critical note( You are required to answer this question, using course concepts: A$hat strategy does each of these rivals pursue=B The criteria that you can use to determine the strategic positions of the firms include %orter*s generic strategies (e.g., low cost, differentiation, etc.). .o some generic strategies seem to wor& better in the industry than others= 're some firms more successful at e!ecuting the generic strategies then others= "f so, why (how do you &now)= Cther criteria that you can use to determine the strategic positions of the firms include how the firms position their products on a number of criteria li&e quality and price. .o some firms have high quality and highly priced products1services while others have adequate quality and low priced products1services= 're some firms competing on a large geographic scale than others (e.g., compete in more geographic mar&ets> internationally or in more domestic mar&ets than others)= .o some firms offer a broader product1service selection than others= .o some firms benefit from first0mover advantages= .o some firms possess resources and capabilities that allow them to gain a competitive advantage= ;. Eey #uccess 7actors 7or (ompetitive #uccess (E#7s) (one or two pages ) 9 points) Research: This section probably does not require additional research. "nstead you should reflect bac& on all that you have already learned about this industry. 'naly e, synthesi e, and evaluate what you have learned. Report: Critical note( You are required to answer all of these questions. $hat are the 90D &ey industry issues1factors that have the strongest relationship with success and profitability= .o these E#7s vary by segment= 3ow are these E#7s li&ely to vary over time= $hat are the implications of this evolution= F. 'nalysis and #ummary 0 "ndustry*s 'ttractiveness and %rospects for 2ong0Term %rofitability (up to two pages 0 G points) Research: 5o additional research should be needed to complete this section. $rite it last so that you can summari e information from the previously0written sections. Thus, you should use all of your analyses to determine how attractive the industry is and what the prospects for long0term profitability are. 7or e!ample, you should identify the level of attractiveness and prospects for long0term profitability based on what you*ve already learned. You might even find some forecasts in your research that might help to support your assertions regarding the industry*s prospects.

Report: Critical note( You are required to discuss all of these issues:
7uture growth potential $ill competitive forces get stronger= $ill driving forces increase1decrease profitability= $hich company*s strategic position will improve1decline= 3ow can firms insulate themselves from the unattractive forces in the industry= .egree of uncertainty and severity of problems confronting industry= $hich types of firms1strategies seem to be most lucrative= 'nd to conclude: "s this an attractive industry in which to participate= 4

'ppendi! +ibliography or $or&s (ited 'ny other related documents, in the order in which they are mentioned in your report. Paper 0or!at The paper must be double0spaced. :se 460point Times 5ew @oman font only. %rovide 40inch margins on all sides. $rite in paragraphs using dialog. 'void using bullets unless you include short lists of similar issues. "t will ta&e about 4; pages of te!t to do a thorough -ob on this analysis. (6H page ma!imum.) You can provide appendices (charts, graphs, etc.), but these should not be considered part of the 6H page ma!imum of te!t. %ut items in the 'ppendi! in the same order they are discussed in the paper. :se headings for each of the si! main sections of the paper, and number each page. :se sub0 heading when appropriate, such as for %orter*s 7ive 7orces. .o not include a table of contents. %apers must follow '%' or ,2' citation guidelines (including in0te!t citations). #taple your paper in the upper left0hand corner. .o not use a binder, noteboo&, folder, etc. You will not receive e!tra points for Apac&agingB your report beyond the basics outlined here. You will li&ely need to use a heavy duty stapler for this. ,ultiple attempts with a typical stapler will be ineffective, create an unprofessional appearance, and result in pages getting lost. You may lose points for this, so plan ahead to staple your paper with a heavy duty stapler. "nclude a cover sheet with your team name and all team members* names clearly presented. ('lternatively, your instructor may request that you attach and use the Irade #heet found at the end of this document instead of a cover sheet. "f so, complete the information required on the grade sheet (name, team, etc.) for both the team level and the individual level portions.) Cautions1 7ailure to properly cite your sources will be assumed to be plagiarism and will result in a H on the assignment. $riting s&ills count. @eview the Business Writers Companion or the Cornerstone Writing Handbook to insure your writing s&ills meet requirements. Your writing s&ills must be precise and professional. %roof read your paper (and as& another person to proof read your paper) to insure there are no problems with your writing s&ills. You could lose 3 points for each error. Cnce the content of your paper is assessed and graded, additional points will be deducted if you have failed to follow these instructions or if your writing s&ills are not e!emplary. Your paper will be graded from the perspective of an e!ecutive (your employer) reviewing a report, not -ust as an instructor reviewing a student*s paper. "t must be professional in all respects. ' late paper will receive a ten percent penalty for each 6D hours it is late, including wee&ends and holidays. (ompare your content and format with these instructions. You will lose points if you have not followed directions. .on*t forget to submit this report to Turnitin.com. You will get a H if you forget.

MAN 4720( Industry Analysis Grade Sheet 2 3ea! /e&el (3ea! /eader # Attach to the paper)
Na!e( 44444444444444444444444444 Section( 44444444 Industry 44444444444444444444444444444444444444 3ea!( 4444444444444444444444444444444444444444

3ea! !e!%ers( 444444444444444444444444444444444444444444444444444444444444444444444444444444 Section 56ecuti&e Su!!ary and Introduction7 Instructor Feedback: 17 3he Industry8s 'o!inant 5cono!ic 0eatures7 27 Porter8s 0i&e 0orces7 Instructor Feedback: 6; Instructor Feedback: 9 Possi%le Points 6 +our Points

97 3he 'ri&ers o* Chan e in the )road 5n&iron!ent : I!pact 3hey ;ill <a&e7 Instructor Feedback:

47 Co!panies in the Stron est=;ea>est Positions7 Instructor Feedback: ;

$7 ?ey Success 0actors *or Co!petiti&e Success7 Instructor Feedback: 9

F. Analysis and Su!!ary( Industry@s Attracti&eness and Prospects *or /on #3er! Pro*ita%ility7 Instructor Feedback:

Points deducted *or *ailure to *ollo. instructions or *or poor .ritin s>ills7 Instructor Feedback:

3otal Points

;H