Go to the Strategy Club website and review the "Sample Strategic Plan for Colgate-Palmolive" (2019) under the student resources section. This sample strategic plan is an example of what your completed strategic case analysis should look like at the end of the course.
Construct a strategic position and action evaluation (SPACE) matrix by doing the following.
- Step 1: Review your company’s business (Chick-Fil-A), its most recent Form 10K and quarterly report, and review industry and competitive information pertaining to your company to assist you.
- Step 2: Follow guidelines provided in Chapter 6 of Strategic Management: A Competitive Advantage Approach, Concepts, and Cases to learn how to create a SPACE matrix.
- Step 3: Use your Strategic-Planning Template to develop a SPACE matrix for your company.
- Step 4: In 150 words, explain what strategies you recommend, given your SPACE analysis. Avoid generic, vague terms such as market development.
PART I
| Welcome to the Free Excel Student Template Version 18.1 | |||||||||
| Dear Student, | |||||||||
| By using this Template, you hereby agree to the Copyright terms and conditions. This Template should save you considerable time and allow for your presentation to be more professional. Do not mistake this Template for doing all of the work. Your assignment is to analyze and present strategies for the next three years. You will still need to do the research and enter key internal and external information into the Template. The Template does not gather or prioritize information. It does however assimilate information you enter in a professional way and does many calculations for you once that critical information is entered. Refer to the David & David textbook for conceptual guidelines for developing all matrices and analyses included in this Template. Best of luck with your project. This Template is designed for Textbook editions 17ed and 18th. | |||||||||
| Instructions for Using the Template | |||||||||
| 1 | Please read all Template instructions below carefully before you start each new section of this Template. Only type in the green boxes. Refer to the David, David & David textbook for conceptual guidelines for every matrix and analysis in this Template. | ||||||||
| 2 | This Template is organized into three primary parts: Part I, Part II, and the respective data output pages for your respective matrices. All data entered will be entered into Part I or Part II. Part I consists of data entry in developing matrices, where Part II consists of data entry for your financial information, including ratios, financial statements, and projected financial statements. Blue buttons are provided for navigating within and to Part I, yellow buttons are for navigating within and to Part II, orange buttons are for navigating to the respective matrices and pink buttons are for navigating to your financial output tables. The navigation buttons along the top of Part I and Part II may not be visible for Apple users but all other features should work without any problems. | ||||||||
| Strengths and Weaknesses | |||||||||
| 1 | Enter into the Template exactly 10 strengths and 10 weaknesses, no more and no less. Your factors should be detailed and actionable rather than vague. For example, the strength: "Sales up nicely" is too vague and not actionable; "Sales were up 15% on women's apparel in China during 2018" is stated far better. Always be thinking in terms of divisions when writing strengths and weaknesses. Note women's apparel could be a division for Nike. All divisions do not need to be treated equally; allow more coverage for divisions with more revenue and those most pertinent to your strategic plan. | ||||||||
| 2 | Weights reveal how important a factor is to being successful in the industry. All weights are "industry-based." A factor of 0.10 for example is 5 times more important than a factor of 0.02 for being successful in the industry. Do not be afraid to include factors with lower weights though. To have a factor make your top 10 list (10 strengths for example out of the 100s the firm likely has), justifies its importance, yet it still may be relatively a lot less important to the industry than others factors you include. Also, be mindful with respect to what industry your firm operates. A moderate priced casual hamburger restaurant may have more in common with a moderate priced chicken restaurant than with McDonalds (cheaper fastfood). Automatically considering McDonalds, Burger King, and Wendy's as the "industry" just because they all sell hamburgers may not be appropriate. Here, casual moderated priced restaurants may serve better as the "industry." After entering in the weights, check to make sure the sum of your weights equals 1.0 for your internal factors. Also, arrange your strengths with highly weighted factors listed first; arrange your Weaknesses also with highest weighted factors listed first. | ||||||||
| 3 | In contrast to weights that are industry-based, ratings are company-based and reveal how well your firm is performing. Use the coding scheme given below for ratings in an IFE Matrix: If your strengths are being cut off, simply drag your cursor between the two row numbers on the left to widen the row. | ||||||||
| 1 = "the response is poor" | |||||||||
| 2 = "the response is average | |||||||||
| 3 = "the response is above average" | |||||||||
| 4 = "the response is superior" | |||||||||
| Strengths | Weight | Rating | |||||||
| 1 | |||||||||
| 2 | |||||||||
| 3 | |||||||||
| 4 | |||||||||
| 5 | |||||||||
| 6 | |||||||||
| 7 | |||||||||
| 8 | |||||||||
| 9 | |||||||||
| 10 | |||||||||
| Weaknesses | Weight | Rating | |||||||
| 1 | |||||||||
| 2 | |||||||||
| 3 | |||||||||
| 4 | |||||||||
| 5 | |||||||||
| 6 | |||||||||
| 7 | |||||||||
| 8 | |||||||||
| 9 | |||||||||
| 10 | |||||||||
| Total Weight (Must Equal 1.00) | 0.00 | ||||||||
| Opportunities and Threats | |||||||||
| 1 | Enter into this Template exactly 10 opportunities and 10 threats, no more no less. Your factors should be detailed and actionable rather than vague. Keep in mind both opportunities and threats should be external in nature. Ask yourself "Does the firm have control over this factor?" If the answer is yes, then it cannot be an opportunity or threat. For example, as a clothing retailer you may have an opportunity to "start selling clothes in China." This is not an opportunity for two reasons: 1) the firm has internal control over doing business in China, and 2) the statement is a strategy. The underlying opportunity may be "Women in China spent 20% more on athletic apparel in 2018." Note how this opportunity is specific, actionable, divisional, and external (we cannot control the culture or demand for female athletic apparel). All divisions do not need to be treated equally, allow more coverage for divisions with more revenue and those most pertinent to your strategic plan. | ||||||||
| 2 | Weights reveal how important a factor is to being successful in the industry. Read over the #2 tip under strengths and weaknesses above since the same logic applies for the external factors. After entering in the weights, check to make sure your sum of weights equals 1.0 for all 20 external factors. List factors according with highest weight items first. | ||||||||
| 3 | Ratings again are company-based and reflect how well the firm is addressing the particular factor. Use the coding scheme given below for ratings in an EFE Matrix. If your opportunities are being cut off, simply drag your cursor between the two row numbers on the left to widen the row. | ||||||||
| 1 = the response is poor" | |||||||||
| 2 = "the response is average" | |||||||||
| 3 = "the response is above average" | |||||||||
| 4 = "the response is superior" | |||||||||
| Opportunities | Weight | Rating | |||||||
| 1 | |||||||||
| 2 | |||||||||
| 3 | |||||||||
| 4 | |||||||||
| 5 | |||||||||
| 6 | |||||||||
| 7 | |||||||||
| 8 | |||||||||
| 9 | |||||||||
| 10 | |||||||||
| Threats | Weight | Rating | |||||||
| 1 | |||||||||
| 2 | |||||||||
| 3 | |||||||||
| 4 | |||||||||
| 5 | |||||||||
| 6 | |||||||||
| 7 | |||||||||
| 8 | |||||||||
| 9 | |||||||||
| 10 | |||||||||
| Total Weight (Must Equal 1.00) | 0.00 | ||||||||
| Competitive Profile Matrix (CPM) | |||||||||
| 1 | To perform the CPM, enter up to 12 critical success factors. You may use some of the ones listed below if you like but try to use ones that are more pertinent to your company. For example, if your case is Delta Airlines, perhaps include on time arrival, extra fees, and frequent flyer points as factors, rather than the canned factors below. In a CPM, factors do not need to be overly specific, but they should be divisional in nature to the extent possible. If Pepsi Co. is your firm, your factors should be about the firm's soda business, Frito Lay business, bottling business, etc. (Pepsi Co competes in a lot more than just soda) rather than just general "advertising." Advertising for what division (business) are you referring to? Frito Lay's advertising, soda marketing, etc. All divisions do not need to be treated equally; allow more coverage for divisions with more revenue and those most pertinent to your strategic plan. | ||||||||
| 2 | After entering in your critical success factors, enter in a weight for each factor; weights are industry-based. Be sure to check the bottom of the "Enter Weight Below" column, to make sure your sum weight is equal to 1.00. It is okay for some factors to receive a low weight and a factor or two to receive a high weight of say 0.20. | ||||||||
| 3 | After entering in your weights, type the name of your company and two other competitors in the corresponding boxes. | ||||||||
| 4 | After entering in the weights and identifying your company and two rival firms, then enter in a Rating (company-based) in the "Enter Rating Below" column for each organization. DO NOT ASSIGN THE COMPANIES THE SAME RATING; TAKE A STAND; MAKE A CHOICE. In a CPM, use the coding scheme provided below for ratings. | ||||||||
| 1 = "the response is poor" | |||||||||
| 2 = "the response is average" | |||||||||
| 3 = "the response is above average" | |||||||||
| 4 = "the response is superior" | |||||||||
| Enter 12 Factors Below | Weight | Chick-Fil-A | McDonald's | Popeye's | |||||
| Enter Ratings Below | |||||||||
| Customer Service | 0.15 | 3 | 4 | 3 | |||||
| Customer Loyalty | 0.15 | 3 | 4 | 4 | |||||
| Organization Structure | 0.05 | 3 | 2 | 1 | |||||
| Advertising | 0.05 | 4 | 2 | 2 | |||||
| Delivery Time & Cost | 0.05 | 3 | 3 | 4 | |||||
| Global Expansion | 0.05 | 4 | 4 | 3 | |||||
| Sustainability | 0.05 | 3 | 4 | 4 | |||||
| Sales Growth | 0.10 | 3 | 4 | 4 | |||||
| Price Competitiveness | 0.10 | 3 | 4 | 4 | |||||
| Product Quality | 0.10 | 4 | 4 | 3 | |||||
| E-Commerce | 0.15 | 2 | 3 | 4 | |||||
| 1.00 | |||||||||
| Boston Consulting Group (BCG) Matrix | |||||||||
| 1 | This Template allows for up to 5 divisions. If your company has more than 5 divisions, combine the divisions with the least amount of revenue into division 5, and mention the adjustment to the class during your presentation, or simply focus on the 5 divisions your 3-year plan centers around; check with your professor. <See your firm's Form 10K or Annual Report to find divisional information, and those documents of your rivals> It is excellent to develop a BCG/IE by geographic region, and construct another one by product (if you have the data). | ||||||||
| 2 | In each division, enter a name, followed by the dollar amount in revenues for that division. Do not include M or B for millions or billions, but do drop off zeros. For example, for $100,000,000, you could enter $100,000 or $100, just be consistent. | ||||||||
| 3 | After completing Step 2 in developing a BCG, enter in the dollar amount in revenues for the top rival firm for each division. Note, the top rival may be you and in this situation enter in your company's revenue for that division. Also, note the top rival may be different for different divisions. For example, if your firm is Avon, Avon's top rival in its lipstick division may be Revlon, but for nail polish, the top rival in the industry may be L'Oréal, and in makeup, Avon may be the market leader. There is no need to label the top rival by name, but you could mention in class as part of your presentation. Be sure to enter in all numbers in the same $ format you used in Step 2 above. If you do not have a perfect apples to apples comparison, (possibly a rival firm combines lipstick and makeup, where your firm separates the two) then estimate as best you can and make note in your presentation. | ||||||||
| 4 | Finally, enter in the industry growth rate (IGR) for each division. Generally, taking the top 2 or 3 rivals for each division (along with your firm), adding their numbers together for the current year and the previous year and using the equation (Current Year – Previous Year) / Previous Year is sufficient to estimate guess of the industry growth rate. This is because generally the top 3 players dominate an industry. Note, using this process also weights larger firms more, which is exactly what you desire. Do not use total revenues; instead, use divisional revenues. Division industry growth rates (IGR) must be between -0.20 and 0.20. If outside these ranges, simply use -0.20 or 0.20 and mention during your presentation. | ||||||||
| 5 | Everything is calculated and positioned for you (Other than Industry Growth Rate in Step 4) including the Relative Market Share Position (RMSP). The BCG matrix in this Template does not produce pie slices to show profits. You may wish to discuss divisional profits in your presentation. | ||||||||
| Enter in division names below (If less than 5, leave the other spaces blank and no circles will appear) | Your Firm's Division Revenues | Top Firm in Industry Division Revenues | Division Market Growth Rate (Step 4) | Relative Market Share Position | |||||
| NA | |||||||||
| NA | |||||||||
| NA | |||||||||
| NA | |||||||||
| NA | |||||||||
| Internal – External (IE) Matrix | |||||||||
| 1 | This Template allows for up to 5 divisions. If the company has more than 5 divisions, combine the divisions with the least amount of revenue into division 5, and mention the adjustment to the class during your presentation, or simply focus on the 5 divisions that your 3-year plan centers around; check with your professor. | ||||||||
| 2 | Company wide EFE and IFE scores are automatically entered once you complete the EFE and IFE Matrices. | ||||||||
| 3 | Enter in estimated EFE and IFE Scores for your respective divisions. | ||||||||
| 4 | This Template's IE matrix does not produce pie slices to show profits. | ||||||||
| Enter The Name Of Your Firm | |||||||||
| Chick-Fil-A | |||||||||
| Enter in division names below. If less than 5, leave the other spaces blank and no circles will appear. Remember you could use divisions by geographic region for the BCG and by product/service type for the IE (or vice versa). | Your Firm's Division Revenues | Estimate |