BUS 499, Week 6 Acquisition and Restructuring StrategiesSlide #

BUS 499, Week 6: Acquisition and Restructuring Strategies
Slide #
Topic
Narration
1
Introduction
Welcome to Business Administration.
In this lesson we will discuss Acquisition and Restructuring
Strategies.
Please go to the next slide.
2
Objectives
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm.
3
Supporting Topics
In order to achieve this objective, the following supporting
topics will be covered:
The popularity of merger and acquisition strategies;
Reasons for acquisitions;
Problems in achieving acquisition success;
Effective acquisitions; and
Restructuring.
4

The Popularity of Merger and Acquisition Strategies
The acquisition strategy has been a popular strategy among U.S.
firms for many years. Some believe that this strategy played a
central role in an effective restructuring of U.S. business during
the 1980s and 1990s and into the twenty-first century.
An acquisition strategy is sometimes used because of the
uncertainty in the competitive landscape. A firm may make an
acquisition to increase its market power because of a
competitive threat, to enter a new market because of the
opportunity available in that market, or to spread the risk due to
the uncertain environment.
The strategic management process calls for an acquisition
strategy to increase a firm’s strategic competitiveness as well as
its returns to shareholders. Thus, an acquisition strategy should
be used only when the acquiring firm will be able to increase its
value through ownership of the acquired firm and the use of its
assets.
5
Mergers, Acquisitions, and Takeovers
A merger is a strategy through which two firms agree to
integrate their operations on a relatively coequal basis. Few true
mergers actually occur, because one party is usually dominant
in regard to market share or firm size.
An acquisition is a strategy through which one firm buys a
controlling, or one hundred percent, interest in another firm
with the intent of making the acquired firm a subsidiary
business within its portfolio. In this case, the management of
the acquired firm reports to the management of the acquiring
firm. Although most mergers are friendly transactions,
acquisitions can be friendly or unfriendly.

A takeover is a special type of an acquisition strategy wherein
the target firm does not solicit the acquiring firm’s bid. The
number of unsolicited takeover bids increased in the economic
downturn of 2001 to 2002, a common occurrence in economic
recessions; because the poorly managed firms that are
undervalued relative to their assets are more easily identified.
On a comparative basis, acquisitions are more common than
mergers and takeovers.
6
Reasons for Acquisitions
There are a number of reasons firms decide to acquire another
company. These are:
Increased market power;
Overcoming entry barriers;
Cost of new product development and increased speed to
market;
Lower risk compared to developing new products;
Increased diversification;
Reshaping the firm’s competitive scope; and
Learning and developing new capabilities.
Although each reason can provide a legitimate rationale,
acquisitions are not always as successful as the involved parties
want to be the case.
We will briefly look at each reason next.

7
Reasons for Acquisitions, continued
A primary reason for acquisitions is to achieve greater market
power. To increase their market power, firms often use
horizontal, vertical, and related acquisitions.
The acquisition of a company competing in the same industry as
the acquiring firm is referred to as a horizontal acquisition.
Horizontal acquisitions increase a firm’s market power by
exploiting cost-based and revenue-based synergies. Research
suggests that horizontal acquisitions result in higher
performance when the firms have similar characteristics.
A vertical acquisition refers to a firm acquiring a supplier or
distributor of one or more of its goods or services. A firm
becomes vertically integrated through this type of acquisition in
that it controls additional parts of the value chain.
The acquisition of a firm in a highly related industry is referred
to as a related acquisition.
Another commonly used reason for acquisitions is to overcome
barriers to enter markets. The barriers could be expenses,
pursuing relationship with new customers or entering
international markets. Acquisitions made between companies
with headquarters in different countries are called cross-border
acquisitions. Facing the entry barriers that economies of scale
and differentiated products create, a new entrant may find
acquiring an established company to be more effective than
entering.
8

Acquisitions are another means a firm can use to gain access to
new products and to current products that are new to the firm
with minimum investment of firm’s resources, including time,
making it easier to quickly earn a profitable return.
Acquisitions can also lower risk compared to developing new
products because the outcomes can be estimated more easily and
accurately than outcomes of an internal product development
process.
Increased diversification is another reason for acquisitions. It is
usually difficulty for companies to develop products that differ
from their current lines for markets in which they lack
experience. Therefore, acquisition strategies are used to support
both unrelated and related diversification strategies.
9
Firms sometimes use acquisition strategies to reduce the
negative effects of an intense rivalry on their financial
performance and to lessen their dependence on one or more
products or markets. Reducing a company’s dependence on
specific markets shape the firms competitive scope
Some acquisitions are made to gain capabilities that the firm
does not possess. For example, acquisitions may be used to
acquire a special technological capability. Research has shown
that firms can broaden their knowledge base and reduce inertia
through acquisitions.
Therefore, acquiring a firm with skills and capabilities that
differ from its own helps the acquiring firm to gain access to

new knowledge and remain agile. For example, research
suggests that firms increase the potential of their capabilities
when they acquire diverse talent through cross-border
acquisitions. This greater value is created through international
expansion versus a simple acquisition without such diversity
and resource creation potential.
Of course, firms are better able to learn these capabilities if
they share some similar properties with the firm’s current
capabilities. Thus, firms should seek to acquire compani es with
different but related and complementary capabilities in order to
build their own knowledge base.
10
Check Your Understanding
11
Problems in Achieving Acquisition Success
Research suggests that twenty percent of all mergers and
acquisitions are successful, approximately sixty percent produce
disappointing results, and the remaining twenty percent are
clear failures. Some of the potential problems include:
The difficulty of effectively integrating the firms involved;
Incorrectly evaluating the target;
Creating large or extraordinary debt;
Inability to achieve synergy;
Creating too much diversification;
Creating an internal environment where mangers become overly
focused on acquisitions; and

Developing a combined firm that is too large, necessitating
extensive use of bureaucratic, rather than strategic, controls.
12
Effective Acquisitions
Acquisition strategies do not always lead to above-average
returns; however the probability of success increases when the
firm’s actions are consistent with the attributes the following
attributes.
One. Acquired firm has assets or resources that are
complementary to the acquiring firm’s core business
Two. Acquisition is friendly;
Three. Acquiring firm conducts effective due diligence to select
target firms and evaluate the target firm’s health;
Four. Acquiring firm has financial slack.
Five. Merged firm maintains low to moderate debt position
Six. Acquiring firm has sustained and consistent emphasis on
R&D and innovation; and
Seven. Acquiring firm manages change well and is flexible and
adaptable.
13
Restructuring
Defined formally, restructuring is a strategy through which a
firm changes its set of businesses or its financial structure.
From the 1970s into the 2000s divesting businesses from
company portfolios and downsizing accounted for a large
percentage of firms’ restructuring strategies. Restructuring is a

global phenomenon. Three restructuring strategies are used:
downsizing, downscoping, and leveraged buyouts.
Once thought to be an indicator of organizational decline,
downsizing is now recognized as a legitimate restructuring
strategy. Downsizing is a reduction in the number of a firm’s
employees and, sometimes, in the number of its operating units,
but it may or may not change the composition of businesses in
the company’s portfolio.
Downscoping has a more positive effect on firm performance
than downsizing does. Downscoping refers to some means of
eliminating businesses that are unrelated to a firm’s core
businesses. Commonly, downscoping is described as a set of
actions that causes a firm to strategically refocus on its core
businesses.
Traditionally, leveraged buyouts were used as a restructuring
strategy to correct for managerial mistakes or because the firm’s
managers were making decisions that primarily served their own
interests rather than those of shareholders. A leveraged buyout,
or LBO, is a restructuring strategy whereby a party buys all of a
firm’s assets in order to take the firm private.
Downsizing does not commonly lead to higher firm
performance. Still, in free-market-based societies at large,
downsizing has generated an incentive for individuals who have
been laid off to start their own business. An unintentional
outcome of downsizing is that laid-off employees often start
new businesses in order to live through the disruption of their
lives. Downsizing also tends to result in a loss of human capital
in the long term.
11
Summary

We have reached the end of this lesson. Let’s take a look at
what we have covered.
First, we discussed mergers, acquisitions, and takeovers. A
merger is a strategy through which two firms agree to integrate
their operations on a relatively coequal basis. An acquisition is
a strategy through which one firm buys a controlling, or one
hundred percent, interest in another firm with the intent of
making the acquired firm a subsidiary business within its
portfolio. In this case, the management of the acquired firm
reports to the management of the acquiring firm. A takeover is a
special type of an acquisition strategy wherein the target firm
does not solicit the acquiring firm’s bid.
Next, we went over reasons for acquisitions. These include:
Increased market power;
Overcoming entry barriers;
Cost of new product development and increased speed to
market;
Lower risk compared to developing new products;
Increased diversification;
Reshaping the firm’s competitive scope; and
Learning and developing new capabilities.
.
We then discussed problems in achieving acquisition success
Some of the problems include
Integration difficulties;
Inadequate evaluation to target;

Large or extraordinary debt;
Inability to achieve synergy;
Too much diversification;
Mangers overly focused on acquisitions; and
Too large.
Then, we went over the attributes of successful acquisitions.
The attributes are
Acquired firms has complementary resources;
Acquisitions is friendly;
Effective due diligence is conducted;
Merged firm maintains low to moderate debt position; and
Acquiring firm has financial slack, consistent emphasis on R&D
and innovation, and is flexible and adaptable.
We concluded the lesson with a discussion on restructuring.
Restructuring is a strategy through which a firm changes its set
of businesses or its financial structure. Some of the strategies
used in restructuring are downsizing, downscoping, and
leveraged buyouts.
This completes this lesson.
1
Figures title: 11Week 6 External and Internal Environments
Assignment
Student’s Full Name
BUS499 Business Administration Capstone
Professor’s Name
Date

Template Instructions (delete this page before submitting)
This template is provided to help you meet the assignment
requirements.
This page should NOT be submitted with your assignment, as it
is not part of an academically written paper. Note the “Clarity,
writing mechanics, and formatting requirements” section of the
grading rubric.
HOW TO USE THIS TEMPLATE
· Read the explanations provided in the template for each
section of your paper.
· The explanations are in blue font below.
· You should have already read the assignment instructions in
Blackboard.
· Type your response to each of the assignment requirements
within the designated sections.
· Each assignment requirement is identified using a section
Heading that is in black font
· DO NOT add extra spaces between sections.
· DO NOT change the margins.
· You are required to have a heading for each of the sections in
your paper.
· The required headings have been provided for you.
· Follow the instructions below to customize the Headings as
directed.
· DO NOT type the assignment instructions into the sections.
· After typing your responses, change the font color to black
and make sure it is not in bold.
· Be sure to change the font color on the title page to black after
typing your name, professor’s name, and date.
· Everything in blue font below should be deleted and replaced
with your responses.
· DELETE this entire page before you submit your assignment
to avoid losing points. Do not leave a blank page here.

REMINDERS
· The assignment is due in week 6. Late submissions negatively
impact your grade.
· Use the same public corporation you used for the Week 3
assignment.
· Do not copy content from other assignments in this class or
others.
· Include at least 4 full and complete academically written
pages that address the requirements. The title page, this
instruction page, and the source page do not count.
· Use at least 3 quality sources, one of which MUST be the
course textbook.
· Strayer uses SafeAssign – an automated plagiarism checker. It
is advised that you do your own writing and use external
resources to support what you have written in your own words.
Week 6 External and Internal Environments Assignment
Write your introduction here. Include one paragraph (not more
than 6 lines of text) that explains what your paper will discuss.
Much of your introduction may be taken from the assignment
instructions (in your own words). Read all assignment resources
to understand what should be included in your paper. Be sure to
review the assignment instructions in Blackboard, the grading
rubric, and relevant course announcements to understand the
requirements. Do not exceed 6 lines of text in this introduction.
There should be no direct quotes in this section. After reading
these instructions, replace this blue text with your introduction
and change the font color to black.General Environment
In this section you will choose the two segments of the general
environment that would rank highest in their influence on the
public corporation you chose for assignment 1. You must select
from the segments discussed in the course. Hint: see table 2.1 in
the textbook. Do not assess all the segments—only assess the
two segments that rank highest in influencing your corporation.

You will then assess how these segments affect the corporation
and the industry in which it operates. There are two subsections
below, each has a heading. The heading “Segment 1” should be
changed to the first segment of the general environment you
select. The heading “Segment 2” should be changed to the
second segment of the general environment you select. Replace
this paragraph with a very brief introduction that includes the
identification of the two segments of the general environment
you selected and change the font color to black.
Segment 1
This subsection is where you assess the first of the two
segments of the general environment you think ranks highest in
its influence on the public corporation you chose for the Week 3
assignment. Change the subheading for this section, which
currently says “Segment 1” to the name of the selected segment.
Assess how this segment affects the corporation and the
industry in which it operates. Remember that to assess a
concept, you will weigh all aspects to judge the importance or
relevance of that concept. Do not simply define the segment. Do
not copy from your Week 3 assignment submission.
Your assessment should demonstrate that you have read,
understand, and can apply the concepts covered in the course
resources regarding the segment. Your writing here should
thoroughly assess how the selected segment influences your
corporation. Do not write about the general environment in
general terms. Your assessment should be directly related to
your selected corporation. A thorough assessment is defined as
providing a complete response that is not superficial or partial
regarding the various details of the concepts as described in the
course. You will need to apply and incorporate key concepts
from the course material to your assessment. Do not Google
“segments of the general environment” or provide high-level
summaries. You must display, in specific detail, an
understanding based on what is studied in this course and
demonstrate your ability to apply the concepts in a real-world
assessment of a corporation. Read chapter 2 in the course

textbook. Review the Week 2 Learn Reading for supporting
content. Properly cite your sources and avoid the use of direct
quotes. After reading these instructions, replace this blue text
with your assessment and change the font color to black.
Segment 2
This subsection is where you assess the second of the two
segments of the general environment you selected. Change the
subheading for this section, which currently says “Segment 2”
to the name of the selected segment of the general environment
that would rank highest in its influence on the public
corporation you chose for the Week 2 assignment. Repeat the
evaluation instructions provided in the “Segment 1” subsection
above for this second segment of the general environment. Re-
read the instructions above to ensure you have covered all of the
requirements for this second segment of the general
environment. After completing this section, replace this blue
text with your evaluation and change the font color to
black.Five Forces of Competition
In this section you will consider the five forces of competition
and choose the two that you estimate are the most significant
for the corporation you chose in assignment 1. Hint: see figure
2.2 in the textbook. You will then, evaluate how well the
company has addressed each of these two forces in the recent
past. There are two subsections below, each has a heading. The
heading “Force 1” should be changed to the first of the two
forces of competition you select. The heading “Force 2” should
be changed to the second of the two forces of competition you
select. Replace this paragraph with a very brief introduction
that includes the identification of the two forces of competition
Force 1
This subsection is where you evaluate the first of two
forces of competition that you estimate to be the most
significant to the corporation you chose. Change the subheading
for this section, which currently says “Force 1” to the name of
your selected force. Provide a thorough assessment of why you

think the selected force is significant to your corporation. A
thorough assessment is defined as providing a complete
response that is not superficial or partial regarding the various
details of the concept as described in the course. Do not Google
“five forces of competition” or simply provide a definition. You
will need to apply and incorporate key concepts from the course
material in your assessment.
Evaluate how well the company addressed the selected force in
the recent past. This will require some research. Remember that
to evaluate a concept, you will break down all components to
determine or analyze facts, value, or views. Your evaluation
should demonstrate that you have read, understand, and can
apply the concepts covered in the textbook and course
resources. Do not write about the selected force in general
terms. Your evaluation should be directly related to your
selected corporation and include a thorough evaluation of how
the company has addressed the force recently. You must display
an understanding based on what is studied in this course and
demonstrate an ability to apply the concepts in a real-world
evaluation of a corporation. You will need to read the chapters
and listen to the lectures to understand the key concepts for
each force. Read chapter 2 in the course textbook and review
the Week 2 Learn Reading for supporting content. Cite all
sources and limit the use of direct quotes. After reading these
instructions, replace this blue text with your evaluation and
change the font color to black.
Force 2
Choose another one of the five forces of competition that you
estimate to be the most significant for the corporation you
chose. This should not be the same force assessed in the “Force
1” section above. Change the subheading for this section, which
currently says “Force 2” to the name of the selected force. This
subsection is where you evaluate the second of the two forces of
competition that you selected. Repeat the evaluation
instructions provided in the “Force 1” subsection above for this
second force of competition. Re-read the instructions above to

ensure you have covered all of the requirements for this second
force of competition. After completing this section, replace this
blue text with your evaluation and change the font color to
black.Future Improvements
With the same two forces assessed and evaluated in the previous
two sub-sections above, predict what the company might do to
improve its ability to address the forces in the near future. Your
writing here should provide a thorough prediction of what the
company should do to address impacts from the selected forces.
Do not simply discuss company information published by your
sources. This section should be your prediction of what the
corporation should do. Your prediction should be your own, not
predictions or recommendations from your sources or actions
your corporation has already taken or plans to take. Remember
that a thorough evaluation is defined as providing a complete
details of the concepts as described in the course. Your
prediction should be specific to your selected corporation,
relevant to the evaluation you conducted, and directly related to
improvements the corporation could make to address the two
forces you selected in the two sub-sections above. Read chapter
2 in the course textbook and review the Week 2 Learn Reading
for supporting content. Cite your sources and avoid the use of
direct quotes. After reading these instructions, replace this blue
text with your prediction and change the font color to
black.Greatest External Threat
Identify what you consider to be the greatest external threat to
the corporation you selected. The threat should be specific to
your corporation. Justify why you consider the threat to be the
greatest. Support your justification with an assessment of the
impact the threat has on the corporation. For example, your
justification could include a comparison of other threats or an
evaluation of facts that support the magnitude of the threat’s
impact. Follow this justification with a discussion on how the
corporation should address the threat. Specifically describe the
strategy and provide a justification that supports why you

believe the strategy will be successful in combating the threat.
This section must include both a clearly identified external
threat and a clearly articulated actionstrategy the corporation
should take to address the threat. Do not write in general terms.
Your writing here should be specific and incorporate the course
concepts relating to threats and the external environment. Read
chapter 2 in the course textbook. The textbook provides a solid
background for this section. Review the Week 2 Learn Reading
text with your response and change the font color to
black.Greatest Opportunity
Identify what you consider to be the greatest opportunity to the
corporation you selected. The opportunity should be specific to
your corporation. Justify why you consider the opportunity to
be the greatest. Support your justification with an assessment of
the impact the opportunity could have on the corporation. For
example, your justification could include a comparison of other
opportunities or an evaluation of facts that support the
magnitude of the opportunity’s impact. Follow this justification
with a discussion on how the corporation could best take
advantage of the opportunity. Specifically describe the strategy
and provide a justification that supports why you believe the
strategy will be successful in adding value to the corporation.
This section must include both a clearly identified opportunity
and a clearly articulated action the corporation should take to
take advantage of the opportunity. Do not write in general
terms. Your writing here should be specific and incorporate the
course concepts relating to opportunities and the external
environment. Read chapter 2 in the course textbook. The
textbook provides a solid background for this section. Review
the Week 2 Learn Reading for supporting content. Cite your
sources and avoid the use of direct quotes. After reading these
instructions, replace this blue text with your response and
change the font color to black.Strengths and Weaknesses
Give your opinion on the corporation's greatest strengths and

most significant weaknesses. Keep in mind that strengths and
weaknesses are internal to the organization (i.e. the internal
environment). You will need to address both the greatest
strengths and most significant weaknesses. Do not choose one
or the other. Both the greatest strengths and most significant
weaknesses must be addressed. Do not write in general terms.
The identified strengths and weaknesses should be specific to
your selected corporation. Include a justification that supports
your opinions. This section must include both clearly identified
strengths and clearly identified weaknesses. Read Chapter 2 and
3 in the course textbook. The textbook provides a solid
background for this section. Review the Week 2 and Week 3
Learn Reading for supporting content. Cite your sources and
avoid the use of direct quotes. After reading these instructions,
replace this blue text with your application and change the font
color to black.
Strategy or Tactic
Choose the strategies or tactics the corporation should select to
take maximum advantage of the strengths you identified in the
section above, and the strategies or tactics the corporation
should select to fix the most significant weaknesses you
identified. You will need to select strategies/tactics for both the
strengths and weaknesses. Do not choose one or the other.
Strategies/tactics for both the strengths and weaknesses must be
addressed. Justify your choices. Your justifications should be
sound and thoroughly explained. For example, do not simply
state that the corporation should choose a selected strategy, but
rather explain why the strategy is a good choice for your
corporations’ specific strengths or weaknesses. Read Chapter 2
and 3 in the course textbook. The textbook provides a solid
replace this blue text with your responses and change the font
color to black.Resources, Capabilities, and Core Competencies
Determine the company's resources, capabilities, and core

competencies. Your determination should include an
explanation of the relevance of each resource, capability, and
core competency. Do not simply list the resources, capabilities,
and core competencies. Remember that a thorough
determination will provide a complete response that is not
superficial or partial regarding the various details of the
concepts as described in the course. Use your course materials
to demonstrate your understanding of the key course concepts
regarding resources, capabilities, and core competencies. Do not
write in general terms. Your determination should display that
you can apply the course concepts to your selected corporation.
Read Chapter 3 in the course textbook. The textbook provides a
solid background to this section. Review the Week 3 Learn
Reading for supporting content. Cite your sources and avoid the
use of direct quotes. After reading these instructions, replace
this blue text with your determination and change the font color
to black.
Sources
1. Michael A. Hitt. 2020. Strategic Management: Concepts and
Cases: Competitiveness and Globalization 13th ed. Cengage
Learning.
2. Author. Publication Date. Title. Page # (written as p. #). How
to Find (e.g. web address)
1
Figures title: 11Week 6 External and Internal Environments
Assignment
Student’s Full Name
BUS499 Business Administration Capstone
Professor’s Name
Date
Template Instructions (delete this page before submitting)

This template is provided to help you meet the assignment
requirements.
This page should NOT be submitted with your assignment, as it
is not part of an academically written paper. Note the “Clarity,
writing mechanics, and formatting requirements” section of the
grading rubric.
HOW TO USE THIS TEMPLATE
· Read the explanations provided in the template for each
section of your paper.
· The explanations are in blue font below.
· You should have already read the assignment instructions in
Blackboard.
· Type your response to each of the assignment requirements
within the designated sections.
· Each assignment requirement is identified using a section
Heading that is in black font
· DO NOT add extra spaces between sections.
· DO NOT change the margins.
· You are required to have a heading for each of the sections in
your paper.
· The required headings have been provided for you.
· Follow the instructions below to customize the Headings as
directed.
· DO NOT type the assignment instructions into the sections.
· After typing your responses, change the font color to black
and make sure it is not in bold.
· Be sure to change the font color on the title page to black after
typing your name, professor’s name, and date.
· Everything in blue font below should be deleted and replaced
with your responses.
· DELETE this entire page before you submit your assignment
to avoid losing points. Do not leave a blank page here.
REMINDERS
· The assignment is due in week 6. Late submissions negatively

impact your grade.
· Use the same public corporation you used for the Week 3
assignment.
· Do not copy content from other assignments in this class or
others.
· Include at least 4 full and complete academically written
pages that address the requirements. The title page, this
instruction page, and the source page do not count.
· Use at least 3 quality sources, one of which MUST be the
course textbook.
· Strayer uses SafeAssign – an automated plagiarism checker. It
is advised that you do your own writing and use external
resources to support what you have written in your own words.
Week 6 External and Internal Environments Assignment
Write your introduction here. Include one paragraph (not more
than 6 lines of text) that explains what your paper will discuss.
Much of your introduction may be taken from the assignment
instructions (in your own words). Read all assignment resources
to understand what should be included in your paper. Be sure to
review the assignment instructions in Blackboard, the grading
rubric, and relevant course announcements to understand the
requirements. Do not exceed 6 lines of text in this introduction.
There should be no direct quotes in this section. After reading
these instructions, replace this blue text with your introduction
and change the font color to black.General Environment
In this section you will choose the two segments of the general
environment that would rank highest in their influence on the
public corporation you chose for assignment 1. You must select
from the segments discussed in the course. Hint: see table 2.1 in
the textbook. Do not assess all the segments—only assess the
two segments that rank highest in influencing your corporation.
You will then assess how these segments affect the corporation
and the industry in which it operates. There are two subsections

below, each has a heading. The heading “Segment 1” should be
changed to the first segment of the general environment you
select. The heading “Segment 2” should be changed to the
second segment of the general environment you select. Replace
this paragraph with a very brief introduction that includes the
identification of the two segments of the general environment
Segment 1
This subsection is where you assess the first of the two
segments of the general environment you think ranks highest in
its influence on the public corporation you chose for the Week 3
assignment. Change the subheading for this section, which
currently says “Segment 1” to the name of the selected segment.
Assess how this segment affects the corporation and the
industry in which it operates. Remember that to assess a
concept, you will weigh all aspects to judge the importance or
relevance of that concept. Do not simply define the segment. Do
not copy from your Week 3 assignment submission.
Your assessment should demonstrate that you have read,
understand, and can apply the concepts covered in the course
resources regarding the segment. Your writing here should
thoroughly assess how the selected segment influences your
corporation. Do not write about the general environment in
general terms. Your assessment should be directly related to
your selected corporation. A thorough assessment is defined as
providing a complete response that is not superficial or partial
regarding the various details of the concepts as described in the
course. You will need to apply and incorporate key concepts
from the course material to your assessment. Do not Google
“segments of the general environment” or provide high-level
summaries. You must display, in specific detail, an
understanding based on what is studied in this course and
demonstrate your ability to apply the concepts in a real -world
assessment of a corporation. Read chapter 2 in the course
textbook. Review the Week 2 Learn Reading for supporting
content. Properly cite your sources and avoid the use of direct

quotes. After reading these instructions, replace this blue text
with your assessment and change the font color to black.
Segment 2
This subsection is where you assess the second of the two
segments of the general environment you selected. Change the
subheading for this section, which currently says “Segment 2”
to the name of the selected segment of the general environment
that would rank highest in its influence on the public
corporation you chose for the Week 2 assignment. Repeat the
evaluation instructions provided in the “Segment 1” subsection
above for this second segment of the general environment. Re-
read the instructions above to ensure you have covered all of the
requirements for this second segment of the general
environment. After completing this section, replace this blue
text with your evaluation and change the font color to
black.Five Forces of Competition
In this section you will consider the five forces of competition
and choose the two that you estimate are the most significant
for the corporation you chose in assignment 1. Hint: see figure
2.2 in the textbook. You will then, evaluate how well the
company has addressed each of these two forces in the r ecent
past. There are two subsections below, each has a heading. The
heading “Force 1” should be changed to the first of the two
forces of competition you select. The heading “Force 2” should
be changed to the second of the two forces of competition you
select. Replace this paragraph with a very brief introduction
that includes the identification of the two forces of competition
Force 1
This subsection is where you evaluate the first of two
forces of competition that you estimate to be the most
significant to the corporation you chose. Change the subheading
for this section, which currently says “Force 1” to the name of
your selected force. Provide a thorough assessment of why you
think the selected force is significant to your corporation. A
thorough assessment is defined as providing a complete

details of the concept as described in the course. Do not Google
“five forces of competition” or simply provide a definition. You
will need to apply and incorporate key concepts from the course
material in your assessment.
Evaluate how well the company addressed the selected force in
the recent past. This will require some research. Remember that
to evaluate a concept, you will break down all components to
determine or analyze facts, value, or views. Your evaluation
should demonstrate that you have read, understand, and can
apply the concepts covered in the textbook and course
resources. Do not write about the selected force in general
terms. Your evaluation should be directly related to your
selected corporation and include a thorough evaluation of how
the company has addressed the force recently. You must display
an understanding based on what is studied in this course and
demonstrate an ability to apply the concepts in a real-world
evaluation of a corporation. You will need to read the chapters
and listen to the lectures to understand the key concepts for
each force. Read chapter 2 in the course textbook and review
the Week 2 Learn Reading for supporting content. Cite all
sources and limit the use of direct quotes. After reading these
instructions, replace this blue text with your evaluation and
change the font color to black.
Force 2
Choose another one of the five forces of competition that you
estimate to be the most significant for the corporation you
chose. This should not be the same force assessed in the “Force
1” section above. Change the subheading for this section, which
currently says “Force 2” to the name of the selected force. This
subsection is where you evaluate the second of the two forces of
competition that you selected. Repeat the evaluation
instructions provided in the “Force 1” subsection above for this
second force of competition. Re-read the instructions above to
ensure you have covered all of the requirements for this second
force of competition. After completing this section, replace this

blue text with your evaluation and change the font color to
black.Future Improvements
With the same two forces assessed and evaluated in the previous
two sub-sections above, predict what the company might do to
improve its ability to address the forces in the near future. Your
writing here should provide a thorough prediction of what the
company should do to address impacts from the selected forces.
Do not simply discuss company information published by your
sources. This section should be your prediction of what the
corporation should do. Your prediction should be your own, not
predictions or recommendations from your sources or actions
your corporation has already taken or plans to take. Remember
that a thorough evaluation is defined as providing a complete
details of the concepts as described in the course. Your
prediction should be specific to your selected corporation,
relevant to the evaluation you conducted, and directly related to
improvements the corporation could make to address the two
forces you selected in the two sub-sections above. Read chapter
2 in the course textbook and review the Week 2 Learn Reading
text with your prediction and change the font color to
black.Greatest External Threat
Identify what you consider to be the greatest external threat to
the corporation you selected. The threat should be specific to
your corporation. Justify why you consider the threat to be the
greatest. Support your justification with an assessment of the
impact the threat has on the corporation. For example, your
justification could include a comparison of other threats or an
evaluation of facts that support the magnitude of the threat’s
impact. Follow this justification with a discussion on how the
corporation should address the threat. Specifically describe the
strategy and provide a justification that supports why you
believe the strategy will be successful in combating the threat.
This section must include both a clearly identified external

threat and a clearly articulated actionstrategy the corporation
should take to address the threat. Do not write in general terms.
Your writing here should be specific and incorporate the course
concepts relating to threats and the external environment. Read
chapter 2 in the course textbook. The textbook provides a solid
background for this section. Review the Week 2 Learn Reading
text with your response and change the font color to
black.Greatest Opportunity
Identify what you consider to be the greatest opportunity to the
corporation you selected. The opportunity should be specific to
your corporation. Justify why you consider the opportunity to
be the greatest. Support your justification with an assessment of
the impact the opportunity could have on the corporation. For
example, your justification could include a comparison of other
opportunities or an evaluation of facts that support the
magnitude of the opportunity’s impact. Follow this justification
with a discussion on how the corporation could best take
advantage of the opportunity. Specifically describe the strategy
and provide a justification that supports why you believe the
strategy will be successful in adding value to the corporation.
This section must include both a clearly identified opportunity
and a clearly articulated action the corporation should take to
take advantage of the opportuni ty. Do not write in general
terms. Your writing here should be specific and incorporate the
course concepts relating to opportunities and the external
environment. Read chapter 2 in the course textbook. The
textbook provides a solid background for this section. Review
the Week 2 Learn Reading for supporting content. Cite your
sources and avoid the use of direct quotes. After reading these
instructions, replace this blue text with your response and
change the font color to black.Strengths and Weaknesses
Give your opinion on the corporation's greatest strengths and
most significant weaknesses. Keep in mind that strengths and
weaknesses are internal to the organization (i.e. the internal

environment). You will need to address both the greatest
strengths and most significant weaknesses. Do not choose one
or the other. Both the greatest strengths and most significant
weaknesses must be addressed. Do not write in general terms.
The identified strengths and weaknesses should be specific to
your selected corporation. Include a justification that supports
your opinions. This section must include both clearly identified
strengths and clearly identified weaknesses. Read Chapter 2 and
3 in the course textbook. The textbook provides a solid
replace this blue text with your application and change the font
color to black.
Strategy or Tactic
Choose the strategies or tactics the corporation should select to
take maximum advantage of the strengths you identified in the
section above, and the strategies or tactics the corporation
should select to fix the most significant weaknesses you
identified. You will need to select strategies/tactics for both the
strengths and weaknesses. Do not choose one or the other.
Strategies/tactics for both the strengths and weaknesses must be
addressed. Justify your choices. Your justifications should be
sound and thoroughly explained. For example, do not simply
state that the corporation should choose a selected strategy, but
rather explain why the strategy is a good choice for your
corporations’ specific strengths or weaknesses. Read Chapter 2
and 3 in the course textbook. The textbook provides a solid
replace this blue text with your responses and change the font
color to black.Resources, Capabilities, and Core Competencies
Determine the company's resources, capabilities, and core
competencies. Your determination should include an
explanation of the relevance of each resource, capability, and

core competency. Do not simply list the resources, capabilities,
and core competencies. Remember that a thorough
determination will provide a complete response that is not
superficial or partial regarding the various details of the
concepts as described in the course. Use your course materials
to demonstrate your understanding of the key course concepts
regarding resources, capabilities, and core competencies. Do not
write in general terms. Your determination should display that
you can apply the course concepts to your selected corporation.
Read Chapter 3 in the course textbook. The textbook provides a
solid background to this section. Review the Week 3 Learn
Reading for supporting content. Cite your sources and avoid the
use of direct quotes. After reading these instructions, replace
this blue text with your determination and change the font color
to black.
Sources
1. Michael A. Hitt. 2020. Strategic Management: Concepts and
Cases: Competitiveness and Globalization 13th ed. Cengage
Learning.

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