Running head AUTOMOTIVE INDUSTRY ANALYSIS13.docx

Running head: AUTOMOTIVE INDUSTRY ANALYSIS 1
3
Automotive Industry Analysis
Team 5
Automotive Industry Analysis
Executive Summary
The following report is a strategic analysis of the Automotive
Industry. This report will use several resources to analyze the
industry and overall market. Additionally, including the
information gathered from strategic and analytical
recommendations are considered for the Automotive Industry
analysis which could help achieve a greater market share in this
industry.
The report analysis includes the external industry
environment which includes, …. Additionally, a PESTEL
analysis as well as Five Forces analysis has been conducted.
These are important to understand the market environment of
the industry needed by anyone trying grow or enter this market.
Introduction
The automotive industry is an industry that has been steadily
growing over the several decades due to rising demand for
vehicles. There is a considerable market share for the supply
which occurs although the industry faces immense challenges to

do with governance and political interests (Wells & Rawlinson,
2009). The consumers of the automotive sector mostly include
individuals, organizations, governments, and institutions. The
industry has been steadily marked by around five hundred
players who have been regularly producing cars over the last
few decades. The first boom that was related to the automobile
industry was in the nineteen-hundred where the demand for
vehicles shot up due to the change of governance and
industrialization.
Background
The first dominant players in the market were France and
closely followed by Germany. Eventually, Germany was the
most significant car producers. The needs for mass production
lead to the emergence of Japanese brands and the United States
as well (Winkelhake, 2018). Many companies that first started
as the most desirable brands are being phased out while others
are barely making enough profit due to factors associated with
the external environment of the industry. Strategic choices have
to be considered to ensure survival in a highly competitive
market. The industry has faced an immense shift in the external
environment that has led to the market players having to be
innovative to keep their competitive advantage.
Part 1: External Environmental Analysis
General Environmental Analysis
A PESTEL analysis was conducted to evaluate all relevant
external factors and evaluating macro-economic influences the
industry may have.
Political factors
The automobile industry has been having challenges of a
political nature due to the interests that the governments have
on the industry (Kaplan & Smolkin, 2009). The benefits are but
of a positive and negative environment. For instance, fuel
emissions from guzzlers are a significant issue of concern to the
politics in a country such a United States of America. It has led
to the imposition of tax on vehicles that have high emissions,
and this affects the production and supply of cars. Most

politicians do not like to be associated with the cars that are
harmful to the environment, and therefore laws are passed that
may undermine some industry players.
Also, the automobile industry is a high source of revenue to the
government. This means that the government has a role to play
in the production and distribution of cars by setting up
guidelines that are more favorable to the industry. This also
undermines the new entrants into the market because the cost of
production can be extremely high and small manufacturers are
unable to meet the targets that they require to break even or
even make a profit (Nieuwenhuis & Wells, 2015). Such is the
challenge of companies that try to provide innovative solutions
like to fuel efficiency. They may not be able to meet the cap set
for the production needs of the company.
Safety standards have also been a factor of production in the
industry. Currently, the safety rating of care has a significant
effect on how sellable the car is (Wells & Rawlinson, 2009).
Besides, brands that invest heavily in ensuring that the
standards are met tend to do better than those that only meet the
minimum requirements. This s as a result of consumer education
and awareness and has a massive impact on the preferred brands
in the market especially for vans that are considered family
cars. Most of the brands that have more accessories for safety
are getting a much more positive response from the market, for
example, the use of sensors.
Governments are also consumers and recognize certain specific
brands for the fleets of cars the purchase (Meyer, 2009). They
mostly factor durability and cheaper running costs for the
vehicles they purchase and mostly prefer certain particular
brands for the long hold. This means that these brands have the
upper hand because they provide a steady supply of cars to the
government institutions, a relationship that lasts over a long
period unless a vast change of governance occurs. The result is
that the small industry players never grow at such levels.
Economic factors
One of the biggest hit in the industry was the recession. The

loss of disposable income during the recession meant that most
of the middle-income earners who are the biggest consumers for
cars were left with no disposable incomes (Okada, 2010). This
decline in revenue led to a decrease in the demand for cars
because cars were an unnecessary expenditure. As the economic
environment begins to stabilize once more, the need for cars has
increased. The emerging middle-class that prefer mobility and
convenience are not very comfortable using buses, and each
household owns at least two vehicles to ensure that they can
move comfortably.
Globalization has had both positive and negative effects on the
mass market supply of cars. On the one hand, the older brands
which were the sole providers of vehicles at the time have been
quickly overtaken by the open market (Nieuwenhuis & Wells,
2015). These brands are now declining because it is much
cheaper to import cars from certain countries like Japan which
have low production costs due to mass production. It has
resulted in introducing cars by individuals being made much
simpler even by the government because the taxes are still a
source of revenue for the institutions. The consumer is much
more sensitive to the prices due to the available options
worldwide.
Social factors
Cars have been a source of social degradation in terms of
pollution. Noise pollution especially is a major concern,
especially in big cities and towns. Cars keep making engine
noises and hooting that are a source of a sound (Wells &
Rawlinson, 2009). Besides, luxury cars are even noisier and are
a source of pollution in terms of emissions. Traffic jams are
another factor of vehicles that are incredibly time-consuming.
Most cities were not built to handle such an upsurge of car
owners as has been recently experienced. As a result, there are
always traffic jams as people travel into and out of the cities
where most people earn their living.
Cars are seen by many as a source of prestige, and many people
change vehicles according to their income which favors some

brands more than others (Meyer, 2009). An average home
spends around a thousand dollars each to acquire a, but as the
family gets wealthy, the cars they purchase increase and even
more prestigious brands are bought. This is mostly with the
middle-income earners where their pressure to conform to
society influences the types of cars they buy. This increases the
market share for some brands but also undermines other brands.
Legal factors
Gas emission laws have also influenced car production over the
past few decades. The major contributor to global warming has
been established to be greenhouse gases such as carbon dioxide
which is produced by engine combustion in cars (Okada, 2010.
There has had to be a legal framework to curb the climate
change which has led to laws that dictate the acceptable limits
of the gases that a car can emit. The cost of production is
always affected by such, and yet this increase in price is barely
compensated because the issue is a matter of law, not just
productivity.
Safety and standards is another factor that has changed how cars
are produced. The Federal Motor Vehicle Safety Standards
stipulates that specifically, some bare minimum needs of
security need to be met to allow the production and distribution
of cars and car parts (Kaplan & Smolkin, 2009). This s also
fuelled by consumer awareness, blogs, and media that
continually highlight the dangers associated with some car
brands who bypass safety regulations or do not pay attention to
safety needs. The effect is that production costs to adhere to
safety goes up and is not compensated which decreases the
profit margin o the company.
Technology factors
Technology has revolutionalized how cars function. There has
been an increase in the needs of consumers in terms of
technology. Innovative systems such as alternative energy, fuel
cell, hydrogen, solar and hybrid have to lead to the production
of cars that provide solutions to environmental degradation
(Hiraoka, 2009). Today’s consumer is very interested in factors

such as how the cars are made and the environmental friendly
brands are becoming increasingly acceptable and appealing to a
larger market share. Contemporary car producers are now
looking for more innovative ways to deal with these needs of
the consumer and technology is the ultimate solution.
Synthetic materials, car management systems and computer-
aided design software are also forms of technology that have
influenced the market preferences of individuals buying cars.
Most people prefer accessories or features that are more suited
to their needs and those that have a friendlier interface (Wells &
Rawlinson, 2009). These include touch screens, seat warmers,
seat massagers and other sensors that can make the driving
experience more natural and more appealing. The use of
navigation systems like satellite navigation makes it easier to
locate places without a struggle. Most users prefer cars that
even their children can quickly hop into and drive away easily
which has led to preferences like the automatic gear systems as
opposed to the manual.
Environmental
Cars are a source of environmental pollution which includes
climate change. Petrol engines emit a lot of greenhouse gases
that result in global warming, and therefore most regulations are
meant to control car emissions. The production of fuel-efficient
cars has increased and even electric vehicles that are eco-
friendly. The result is that slowly the traditional petrol engines
are being phased out especially in countries in Europe that have
tax-exempt laws on electric cars. This has affected the market
share of diesel engines and petrol engines.
Trends in the industry
Many of the car owners are individuals who prefer personal
freedom and therefore make the most significant market share
(Calabrese et al., 2012). There is an increase in disposable
income especially for developing countries that previously did
not have an effect in the automobile industry but have recently
been having a significant market for personal cars. Changes in
government policy have also affected car production by

increasing the costs of delivery. Most government policies have
to do with fuel emissions and fuel efficiency. The market size
and growth rate are inconsistent due to a highly volatile
business environment.
Competition between brands is extremely stiff because the
brands produce very similar units that are hard to differentiate
and that meet the various needs of the market (Okada, 2010).
Also, many companies have come up that provide extra features
to standard cars, and this affects the choice of cars and the
resale value. Most of the industry innovators have provided
solutions to most of the issues such that vehicles are only
bought as standard accessories and then upgraded depending on
the needs of the consumer market. These cars are difficult to
compete with as brands within the market space.
Five force Analysis and Effectiveness
The threat of new entrants
The risks of new entrants are low because of the brand image
issues associated with the market. Most of the market brands are
established and easily meet production costs although lower
brands also struggle with the unknown brand image(Meyer,
2009). Besides, new brands have a difficult time adjusting to
the market requirements and regulatory needs of the law. This
poses a challenge because even the people that are already key
players in the industry sometimes have difficulties meeting their
profit margin. New entrants, therefore, are not a source of
competition to a large extent.
Threat of Substitutes
Substitutes to cars include buses, trains, boats, and trams. These
other forms of public transportation are becoming increasingly
efficient with some car owners preferring to use bikes and
different ways due to traffic, especially in large cities. On the
other hand, these alternatives are not used as a replacement but
in addition to cars because the convenience and freedom of
personal vehicles are still hard to match. These means that cars
still have the upper hand in the market share. The threat of
substitutes is therefore low.

Bargaining power of buyers
The bargaining power of buyers is significant because most of
the suppliers have diversified their brands to suit the needs of
the consumers. Many companies that manufacture cars now
offer a variety that can satisfy the needs of the consumer which
includes the cost that the consumer can afford. This diverse
market and globalization mean that the consumer has this fact
undermines a vast pool of choices to consider and some brands
because a select few have the brand image already. The options
favor renowned brands more than others.
Bargaining power of suppliers
Bargaining power of suppliers is also low because in most cases
the suppliers are small in size. They are influenced by the
existing brands that hold most of the market share already. Most
of lower brands have not been long enough in the market and
switching of suppliers for parts is effortless. This makes it easy
for the consumer to decide their preferences. The consumer
chooses to mostly based on the most recognized brands that own
a larger market share and therefore those brands always remain
relevant in the industry as compared to the smaller brands.
Competitive rivalry
Competitive rivalry is very high in the automobile industry. The
global market has a massive pool of cars that individuals or
institutions can prefer (Winkelhake, 2018). There is a lot of
very similar production especially in vehicles that have to lead
to a disadvantage to some brands that were the first to produce
certain engine types. Nowadays, there are the same engines on
different brands, and it is just a matter of choice although most
customers increasingly price sensitive. Most car owners prefer
the cheapest option for the specs of car they need emerging
markets to show that the preferences cut across car brands and
mostly depend on the price.
Other external factors
Critical success factors for the automotive industry include
factors such as fuel consumption. Fuel consumption of a car is
essential because most of the people prefer cars that are easy to

maintain (Dima, 2015). Most individual consumers are cautious
about their spending, and since they provide the mass market,
they have a considerable market share. Making fuel-efficient
cars has been the priority of most companies as they seek a
competitive edge over other brands. Cars that are expensive to
run are not a favorite of the consumer that is sensitive to
unnecessary spending.
Engine capacity is another factor that influences the choice of
cars. For example, a five-liter petrol engine is a car that is
expensive to run because the huge engine capacity translates to
higher fuel costs. Lower engine capacity means that buyers do
not have to dig deeper into their pockets just for everyday use
of their cars. Most of the cars that are preferred have low fuel
costs and are easy to manage and service. High capacity engines
also have the disadvantage of expensive spare parts.
Some of the differentiators include complicated music systems,
sensors and satellite navigation. In a highly competitive market,
such accessories that comes inbuilt in the car as standard
without additional costs make the vehicles more pocket-
friendly. Due to a rise in insecurity, the addition of tracker to
cars provides a competitive edge (Kaplan & Smolkin, 2009). In
the acquisition of the accessories means extra cost, most
consumers shy away. Buyers who want to upgrade their current
car want an upgrade of the fixtures and other functions like
GPS. The want heated seats and cruise control options. They
need cars better adaptable cars to harsh environments. This
dictates their preference for cars.
Durability is also a crucial factor when it comes to cars. Most
people own cars for years and prefer brands that stand the test
of time (Hiraoka, 2009). Consumers prefer cars that do not
break don’t often and are reliable even over long distances
without a struggle. Majority of the brands are those that have
been passed down over generations and prove that they do not
need to struggle to maintain these brands. Most cars are handed
down from father to son and classic cars gain their added
advantage.

Conclusion
The automotive industry is full of challenges of having a
competitive edge over each other especially if the brands are
not recognized and are new to the market. Most of the
consumers to some extent are loyal to the key industry players
and rarely venture into other brands. Most of the other brands
then struggle to meet the needs of a diverse market that can
cater to the complex needs of consumers and consistently show
a response to their needs. The external environment is different
and consists of risks, and few companies are risk-averse.
It is imperative for a company to ensure competitive
sustainability. This translates to carrying out research on the
needs of the consumers of the mass market and understanding
what the consumers are sensitive to. The companies that provide
the most valuable addition and value for money are more risk
averse than those that remain rigid. Innovations in the
automobile industry have led to the emergence of new products
that are readily available to a global market and one that meets
the needs of the consumer adequately.
References
Calabrese, G., & Groupe d'études et de recherches permanent
sur l'industrie et les salariés de l'automobile. (2012). The
greening of the automotive industry. Basingstoke, Hampshire:
Palgrave Macmillan.
Dima, I. C. (2015). Systemic approaches to strategic
management: Examples from the automotive industry.
Gobetto, M. (2014). Operations management in automotive
industries: From industrial strategies to production resources
management, through the industrialization process and supply
chain to pursue value creation.
Hiraoka, C. (2009). Technology Acceptance of Connected
Services in the Automotive Industry.
Kaplan, L., & Smolkin, A. (2009). Is automotive industry dead--
or just stuck?: Future innovations for new leaders in car
transportation. United States: Lulu.

Meyer, G. (n.d.). Advanced microsystems for automotive
applications 2009 [electronic resource]: Smart systems for
safety, sustainability, and comfort. Springer.
Nieuwenhuis, P., & Wells, P. E. (2015). The global automotive
industry.
Okada, A. (2010). Innovative materials for automotive industry.
New York: Nova Science Publishers.
Wells, P., & Rawlinson, M. (2009). The new European
automobile industry.
Winkelhake, U. (2018). The digital transformation of the
automotive industry: Catalysts, roadmap, practice.
INSTRUCTIONS FOR Faith or Social Class
ANSWER DISCUSSION QUESTIONS ON FAITH
DEVELOPMENT
What are ways in which institutions of higher education, public
and private, can support the development of faith, disability
and/or social class in higher education?
How does your institution, or an institution you choose to
analyze, enhance one or more of these identity developments in
students?
How can this development help increase persistence, retention,
and completion?
· Your initial post (approximately 200-250 words) should
address each question in the discussion

MGMT 4309 – Part III (& Revised Parts I & II)
Page 1 of 5 pages
Grading Dimension Score Range Points
PART I: EXTERNAL
ENVIRONMENTAL ANALYSES
Poor Average Excellent
15
12
3.1. Analysis of the external
environment (P.E.S.T) and
driving forces (DFs)
The analysis does not
demonstrate clear understanding
of the DFs. The section may be
poorly written.
The analysis covers all segments of the
P.E.S.T. framework at a moderate level.
The write up consists of parts that are
analyzed well but some parts are not
completely analyzed.
The analysis completely covers all segments
of the P.E.S.T. framework and identifies DFs
that will cause the industry change with
adequate references and convincing
arguments.

3
2.5
3.2. Analysis of the industry
economic characteristics
The section demonstrates a
superficial grasp of the industry
economic characteristics.
The economic characteristics of the
industry are identified but may not be
clearly described.
Complete description of the industry
economic characteristics demonstrating a
solid grasp of the context with adequate
references and convincing arguments.
3
2.5
3.3. Five‐force Analysis: An
industry profitability analysis
superficial application of the
model without exposition of its
nuances.
The analysis covers all segments of the
five‐force framework at a moderate
level. The write up consists of parts that
are analyzed well but some parts are not

completely analyzed.
The analysis completely covers all segments
of the five‐force framework with adequate
3
2.5
3.4. Competitors Analysis and
Analysis of their Anticipated
Strategic Moves
superficial analysis without
exposition of nuances in
anticipated strategic moves.
The analysis contains some sense of the
value propositions of most relevant
competitors. Relative strengths and
weaknesses of some competitors are
incomplete or missing.
The analysis contains insights into value
propositions of all relevant competitors and
their relative strengths and weaknesses.
Competitors’ anticipated strategic moves are
explained clearly with adequate references
and convincing arguments.
3
2.5

3.5. Identification of industry
key success factors (KSFs)
The KSFs are poorly defined. The
depth may be inappropriate or
the rationale for selection may be
weakly presented.
The KSFs may be properly identified and
defined but the clarity of linkages to
economic or competitive success may
be lacking.
The analysis thoroughly identifies and
describes the factors that are the major
determinants of financial & competitive
success in the industry and explains why this
is so. A list of KSFs was generated and the
top 3‐5 were properly identified with
arguments.
3
2
Page 2 of 5 pages

PART II: INTERNAL SITUATION
ANALYSES
Poor (1‐2) Average (3‐4) Excellent (5)
15
12
4.1. Organizational Strategy
Analysis
The analysis may oversimplify,
confuse or misidentify the
strategy or its efficacy. The
data used is insufficient to
warrant the evaluation made.
The analysis identifies the current
strategy at a moderate level. May include
some insights into sustainability,
competitive advantage, and position.
Each of the major factors related to the
quality of the firm’s structure, culture
and leadership may be properly identified
with limited linkages to the data.
The analysis decomposes and evaluates the
quality of the firm strategy in terms of
sustainability, competitive advantage,
position and distinctive competences with
arguments. The analysis clearly decomposes
and evaluates the quality of the firm
structure, culture and leadership in terms that
are applicable to the situation.

5
4
4.2. Financial Analysis
The financial analysis may be
incomplete, missing absolute or
relative measures of the firm
performance. It may report
only a historical perspective.
The financial analysis may evaluate the
key financial statements from a limited
point of view. It may take a limited
perspective or not clearly reflect all the
implications.
A complete financial analysis that includes the
implications of absolute and relative
measures of all firm financial statements.
Excellent analysis of financial ratios. The write
up reflects an excellent understanding of how
the various financial ratios impact business
with adequate references and convincing
arguments.
5
4
4.3. Value Chain Analysis
The quality of analysis is poor,
incomplete and may apply the
wrong models.

The quality of analysis is good, but one or
more unit of analysis may be incomplete.
The analysis clearly explains, decomposes and
evaluates the firm cost structure using value
chain approach in terms that are applicable to
the situation. Absolute and relative measures
are included with adequate references and
convincing arguments.
5
4
Page 3 of 5 pages
PART III: STRATEGIC FIT
(SWOT) ANALYSIS
60
48
5.1. Critical Strategic
Challenges

superficial or incomplete analysis
of factors. The analysis may be
poor.
The analysis contains some critical
strategic issues of the firm, but it may be
incomplete or lacking convincing
argument.
The analysis contains comparison of several
challenges and identification of the top two
strategic challenges with adequate
20
16
5.2. Core Competencies
/Capabilities
Internal capabilities and
weaknesses are poorly articulated
and not clearly linked to other
parts of the report.
Some internal capabilities and
weaknesses are defined; the core
competency descriptions are well
written, but not clearly linked to other
parts of the report.
Concise, complete and well written analysis
of the firm internal capabilities and

weaknesses. The core competency is clearly
defined and linked to other parts of the
report with adequate references and
convincing arguments.
20
16
5.3. Strategic Fit (SWOT)
Analysis
superficial or incomplete SWOT
analysis or the analysis does not
logically flow from the external
and internal analysis.
The SWOT analysis may be properly
demonstrated with limited linkages to
the challenges in the external
environment and internal resources and
capabilities.
Excellent SWOT analysis; The write up
reflects an excellent understanding of SWOT
analysis and the analysis is completely
based on the external and internal analysis
with adequate references and convincing
argument.
20
16

Page 4 of 5 pages
WRITTEN
COMMUNICATION
10
6
Citations and sources (APA
Style)
Citations are not in APA style. A list
of sources if provided is not
complete.
A proper APA style has been used in some
but not all parts of the report.
A proper APA style has been used in all
parts of the report. The report includes a
list of sources.
4

1.5
Sentence structure,
grammar, etc.
There is a distracting number of
errors in sentence structure,
grammar, or spelling.
There is a small number of errors in
sentence structure, grammar, or spelling
Proper sentence structure, grammar, and
spelling have been used.
2
1.5
Graphics, tables, and
figures
Supporting graphics, tables, and
figures are not used.
Graphics, tables, and figures used are of
average quality and contribute somewhat
to the analysis.
High quality graphics, tables, and figures
are very well used which significantly
contribute to the overall understanding
of the report.
2

1.5
Report Appearance (cover
paper, table of contents,
executive summary, page
number, subheadings and
labels)
The report demonstrates a poor
appearance. Some parts such as
cover paper, table of contents, or
executive summary is missing.
Although well formatted, the report is
unremarkable.
Overall, the report is a professional‐
looking document that would make an
outstanding impression.
2
1.5
Page 5 of 5 pages
78

carefully follow the project instructions
The numbering format of the titles and subtitles need to be exac
tly followed.
All graphs and tables need to be placed at the end of the report i
n the appendix section
In any section of the report, please continue to provide example
s or citations to support your argument/ analysis. Several sectio
ns of you report needs improvements in
this regard.
Please continue to follow the instructions regarding the page li
mits (Minimum and maximum) for each section of the report.
Part III:
1.
In regards to section 5, please watch the “SWOT analysis video
” available on the blackboard in the project instructions area.
2.
In regards to section 5, please have a look at the sample report a
vailable on the blackboard. Although it is not perfect, but it has
a good format especially in regards to
section 5.3.
3.
You did a good job in Section 5.1; however, please remember th
at section 5.1 needs to be consistent with the conclusions reache
d in sections 3.1.7 and 3.3. Please

make sure this consistency is clear.
4.
You did a good job in Section 5.2; however, please remember th
at section 5.2 needs to be consistent with the conclusions reache
d in sections 4.1., 4.2, and more
importantly 4.3. Please make sure this consistency is clear.
5.
Regarding Section 5.3, Please remember that you need to be mo
re specific in your SWOT Matrix. Please provide more examples
or citations to support your argument/
analysis.
I am a bit worried for your team. Your project quality needs to i
mprove. Please plan to meet every week, and improve the previo
us parts and move forward with Part
IV.
Running head: GROUP 1 AUTOMOTIVE INC 1
GROUP 1 AUTOMOTIVE INC 2
Group 1 Automotive Inc.

Name
Institution
Group 1 Automotive Inc.
Part 3: STRATEGIC ANALYSIS
Strategic Challenges
Group 1 Automotive, Inc. is among the prominent and leading
companies in the given industry. The company has many years
maintained its position as a prominent firm through the
consistent review of the SWOT analysis.
Strategic opportunities
There are various strategic opportunities that the Group 1
Automotive, Inc. can exploit in its quest to increase its
profitability, sustainability and the consistent maintenance of its
position as one of the leading company in the industry. Firstly,
the emergence of some new environmental laws and policies
provides an excellent opportunity for the group 1 Automotive to
effectively take advantage of their new technology and propel it
in gaining some substantial market share in the given new
category of products (Rothaermel, 2013). The existence of low
rates of inflation also presents a strategic opportunity for the

company since it enables access to credit to the company and its
customers at some more moderate rates. This has an impact on
the volume of company products sold and the entire
productivity hence increasing its profitability and competitive
advantage in the high competitive automotive industry.
Additionally, development and adoption of the new policy on
taxation present a new strategic opportunity for the Group 1
Automotive since it significantly impacts on the nature of doing
business and has the potential of opening and giving a
competitive advantage to some established firms like Group 1
Automotive thus contributing to the profitability. The green
drive by the government also presents an excellent opportunity
for the purchase of the products of the company by the states
and even contractors of the Federal Government (Jones, & Hill,
2010). The company has also integrated some new technology
that presents an opportunity for the given firm to undertake the
strategy of differentiated pricing in some new markets. This
will help the company to maintain loyal clients and at the same
time achieve in luring some new customers through some other
propositions that are value oriented. The highlighted green drive
and integration of some new technology is a strategic
opportunity since it gives it a competitive advantage against
established and new entrants in the highly competitive industry.
Strategic Threats
The company also faces various strategic threats that if not
addresses can derail the achievement of the strategic goals and
mission of the given firm. The company is faced with a severe
risk of the imitation of low quality and counterfeit products
specifically in the low income and emerging markets. The low
quality and counterfeit products have an impact on the
profitability of the company since it reduces the sales revenue
generated (Johnson,Whittington, Scholes,Angwin& Regnér,
2011). The ever-changing buying behaviors and preferences
from the online channel by the consumers is also a threat to the
firm's physical infrastructure that supports their supply chain
model. The changing consumer preferences and behavior if not

checked could derail the profitability of the company due to the
reduction in the sales volume.
Additionally, the adoption of the new Paris agreement
environmental regulations could also be a threat to some
existing products of the company that still have not met the
requirements for new environmental laws. The existence of
liability laws in different countries presents a potential threat to
the Group 1 Automotive since it may expose the company to
multiple liability claims due to the change or differences in the
policies of the given markets. Additionally, the increased trend
towards the isolationism in American Economy might lead to
some similar reactions from other countries such as the UK and
China which may hurt the company's international sales
(Rothaermel, 2013). The rise in the raw materials and the
shortage of the skilled workforce in some given global markets
may pose a severe threat to the consistent growth of the
profitability of the firm in the given markets. All these threats if
not carefully addressed may have severe consequences or
implications on the sustainability, and profitability of the Group
1 Automotive Inc.
Core Competencies
Strengths
Group 1 Automotive, Inc. enjoys various strengths that boost its
sustainability and profitability. Among the key strengths is the
presence of a stronger brand portfolio. The company has
strongly invested in its brand reputation by having a stronger
brand portfolio. The presence of a stronger brand portfolio is
essential since the company can leverage on it whenever they
are introducing any new product in the market
(Johnson,Whittington, Scholes,Angwin& Regnér, 2011).Another
key strength is the availability of highly skilled labor that
drives the operations of the company. The company has heavily
invested in its labor force through consistent learning programs
and training. The presence of a highly skilled labor force
presents an advantage to the company since the employees
become more motivated hence impacting on the rate of

production (Johnson,Whittington, Scholes,Angwin& Regnér,
2011). The company also has a reliable supplier base and an
integrated supply chain which has for many years helped in
propelling its accessibility to raw materials and the selling of
their products. The presence of a reliable supplier base helps the
Group 1 Automotive in avoiding some supply chain bottlenecks
that can derail the adequate supply and distribution of the
products and raw materials. The given firm also a key strength
in the successful integration of some complimentary companies
through acquisition and mergers. The company integrated some
technology firms which have contributed to the streamlining of
the operations and building of a highly reliable supply chain
network (Rothaermel, 2013). The integration of the new
technology companies has also facilitated the company to have
a critical competency in the product innovation through the
application of some new technology. The consistent product
innovation is a crucial strength since it has enabled the
company to have diverse products in the market hence
increasing their competitive advantage against the other
industry rivals.
Weaknesses
Group 1 Automotive Inc. has some core weaknesses that
threatens to derail the success of the company if not well
addressed or checked. Among the fundamental weaknesses in
the presence of a weak or underdeveloped marketing strategy
for the products. The product positing and selling proposition is
still underdeveloped due to the unclear definition of the
objectives that might lead to the reduction in the sales volume
as a result of the marketing aggressiveness of the other
competitors in the industry. The company also has a weakness
in the demand forecasting which is critical in the maintenance
of a sustainable day inventory (Jones, & Hill, 2010). The poor
demand forecasting of the products results in missed
opportunities hence leading to the presence of a higher day
inventory as compared to the industry competitors. The inability
of good projection concerning demand forecasting makes the

Group 1 Automotive keep some high inventory both in the
channel and in house. Additionally, the company has some
limited success pertaining to the products of products outside
its core or primary business. The company has faced numerous
challenges regarding the diversification of its activities outside
the core business due to the present culture.
Strategic Fit Analysis
External opportunity and Internal Strength Strategic Fit
Internal Strength: Product Development and Innovation
External Opportunity: Emergence of new environmental laws
and policies
Creation of environmentally friendly car models for some new
product segment
From the analysis of the internal and external competencies of
the Group 1 Automotive, Inc. there is an opportunity from the
emergence of the new environmental laws and policies like the
green drive that underpins all the car manufacturing companies
to ensure the car models are environmentally friendly. This
company should leverage on its advanced technology through
product development and innovation to start producing some
new car models with lower rates of emissions hence compiling
with new environmental laws and regulations and tapping into
the market of environmental enthusiasts (Jones, & Hill, 2010).
The production of car models with low gas emissions will help
in avoiding fines and breaching of regulations like that
witnessed by Volkswagen that may significant damage its
reputation. The company can also venture into the new product
segment of the electric cars since it will be a big drive in the
diversification of their products and increase their revenue base
since the given segment is still underexploited by the industry
players. Only a few larger manufacturing companies like Tesla
have started venturing into the given segment thus presenting a
good avenue for the company to develop their brand reputation
as one of the few electric car manufacturers. The electric cars
will be targeting environmentally sensitive consumers who may

have an issue with the existing company products.
Internal Strength to External Threat Strategic Fit
Recommendation
Internal Threat; Product Development and Innovation
External Threat: Ever-changing consumer taste and preferences
Development of high-end car models or other products in
anticipation of the migration to high-end car products
Group 1 Automotive Company enjoys an internal competency of
being highly innovative hence being able to develop new
products that meet the needs and preferences of the consumers.
The company can leverage this strength to consistently develop
some new innovative car models in readiness for the changing
consumer taste and preferences towards high-end car models
thus giving them a competitive advantage against its main
rivals. The diversification into the high-end car models like the
likes of Bugatti will help the company in tapping into the ever-
growing market by the rising increase in the middle-class and
super rich people in the country and the rest of the world. The
company can also start producing some customized products in
some specific market segment such as those manufactured by
Porsche and other premium car companies. (Rothaermel,
2013). The customized products can be undertaken after
undertaking extensive market research that helps in the
identification of the trends of the customer preferences in some
given segments which facilitates in the forecasting of the rate of
demand and preferences of the consumers.
Internal weakness to External Threat Strategic Fit
Internal Weakness: Underdeveloped marketing strategy for
products
External Threat: Availability of low quality and counterfeit
products
Production of diversified Car Models that target different
market segments
Group 1 Automotive can ensure the improvement of its value by
working on its marketing strategy. An opportunity can be
developed through the innovation of some new car models that

are attractive and affordable to different market segments
depending on their level of income. The development of some
new car models that target different social classes provides an
avenue for competition with the low quality and counterfeit
products that have flooded the market (Abraham, 2013). This
opportunity should be supported through the use of a highly
advanced marketing strategy that has some customized strategy
and message for every market segment. This will be
instrumental in ensuring the new products meets the intended
customers thus proving profitable. Big manufacturers such as
Toyota Company develops many car models that suits different
potential buyers hence increasing their sales and profitability
are applying an example of such strategy.
SWOT TABLE SUMMARY
Strengths(Internal)
Product development and innovation
Strong brand portfolio
Highly skilled labor
Presence of reliable supplier
Opportunities(External)
Emergence of environmental laws and policies
Low rates of inflation
Integration of new technology
Adoption of new taxation laws
Weaknesses(Internal)
Underdeveloped marketing strategy
Poor demand forecasting
Threats(External)
Changing consumer preferences
Availability of low quality and counterfeit products
Liability laws

References
Abraham, S. (2013). Will business model innovation replace
strategic analysis? Strategy & Leadership, 41(2), 31-38.
Jones, G. R., & Hill, C. W. (2010). Theory of strategic
management: With cases. South-Western Cengage
Learning.
Johnson, G., Whittington, R., Scholes, K., Angwin, D., &
Regnér, P. (2011). Exploring strategy. Financial Times
Prentice Hall.
Rothaermel, F. T. (2013). Strategic management: concepts. New
York, NY: McGraw-Hill Irwin.
1
School of Business Administration
University of Houston‐ Victoria

MGMT 4309: Strategic Management
Project Instruction
1. General information:
1.1. AACSB Assessment: This assignment is used to
assess student performance for AACSB
accreditation. In other words, this assignment is how
UHV determines whether you have
learned certain skills that UHV would like all graduates to know
.
1.2. Academic Honesty: You may include a few
short, selected quotes (properly cited with page
numbers included)
in your report, but each and every sentence you write
in this assignment
must be crafted by you. This means that you need to seriously a
void copying and pasting from
any sources. Your assignment will be checked for originality.
2.
Project Description: The purpose of this project is to apply theo
ries, concepts, and tools of strategic
management to a real‐world case. The students should conduct a
full strategic planning process on
the selected company, starting from the company’s vision and m
ission statement, to the analyses of

its external and internal environment, to developing strategic re
commendations.
2.1.
Your Role: For this assignment, assume that you are a managem
ent consultant hired to analyze
the company and to give an honest and thorough assessment of t
he company’s environment
and competitive situation. You are required to research the com
pany, and the industry yourself,
and to conduct the required analyses requested using the tools, t
heories, and ideas that you
have learned in this class and in the core and elective classes yo
u have completed.
3. Report Format: All the parts must be typed and
double‐spaced using font size 12, Times New
Roman, 1 inch margins on all sides, spell‐ and virus‐checked.
APA style is required. Please remember
to include page numbers.
References: You are required to provide appropriate references f
or all data and for all sources
of information that you use in your analyses. For any source fro
m the ‘web’, you also need to
provide an appropriate reference as you would for any other cite
d reference (author, date, etc.).
You also should include the date the URL was accessed and the
entire web address to reach the
cited materials. Please and to use the APA format. You
may refer to
http://libguides.uhv.edu/content.php?pid=284400&sid=2341410

Center: The Student Success Center provides writing assistance
and writing resources
to University of Houston‐Victoria students in Victoria, Sugar La
nd, and Cinco Ranch. Face‐to face
or online, the Center staff review class papers and other student
writing projects. UHV students
may make an appointment for face‐to face tutoring or email doc
uments as attachments through
WCOnline available at http://uhv.mywconline.com. The report f
ormat accounts for up to 10% of
the total grade; therefore, I strongly encourage you take advanta
ge of this free service.
4.
Report Structure: The final term project report consists of four
parts. The Midterm exam consists of
Parts I and II. The team project report (Final exam) consists of t
he REVISED Parts I and II along with
Part III and IV. Please follow the structure in Appendix
A and number each section and its
subsections.
2
Part I includes an analysis of the general environment, the indus
try and the assigned firm’s
competitors. You are expected to provide a specific
definition of the industry and an in‐
depth analysis of the industry’s current and future
outlook. Your focus in Part I is the

external environment.
II requires you to analyze the assigned firm.
Part III is the section where you need to summarize the strategic
challenges (opportunities
and threats) from both the general environment and the industry
environment (Part I) and
match them with the internal strengths and weaknesses through
SWOT analysis.
IV is the section of recommendations.
4.1.
Executive Summary (1‐2 pages): The executive summary is the f
irst section of a report for your
audience to read and the
last section you write after completing your report. The executi
ve
summary is simply a brief description of a) the purpose and sco
pe of the report, b) major parts
of the report and methods and results in each part, and c) the fin
al conclusion. The executive
summary may have 4‐5 paragraphs. Each paragraph consists of
3‐5 short sentences.
4.2. PART I: External Environmental Analysis
limit: 10‐15 pages total, excluding figures or
tables, which should be included in the
Appendix section.
A. General Environmental (PESTEL) Analysis (2‐4 pages): This

section needs to include a complete
analysis of the general external environment. Please refer to Ta
ble 3.1 and figure 3.1 on page 39 of
your textbook (4
th
Ed.). You should explicitly analyze how any trend you
identify in each of the
segments in the external environment may affect the
industry. You need to explicitly state the
implications. For example, if the industry you are analyzing is
personal computers and you see an
expanding economy in some emerging economies, but a recessio
n and declining disposable incomes
in other economies, your analysis should include how
these trends are likely to influence the
personal computer industry. Do not discuss specific
companies in this section. At the end of this
section, you need to identify the industry top two driving forces
(DFs). A driving force is an external
environment change (e.g. change
in a governmental policy or emergence of a new breakthrough
technology) which may significantly change the rule of the gam
e in the industry competition. Please
refer to Table 3.3 and pages 55‐57 of your textbook (4
th
Ed.).
B. Industry Dominant Economic Features (2‐3 pages): This
section needs to include a complete
analysis of Market Size, Market Growth Rate, etc. Please refer t
o Table 3.2 and pages 41‐42 of your
textbook (4

th
Ed.).
C. Five Forces Analysis & Industry Attractiveness (3‐5
pages): You need to employ the 5 forces
framework to examine the competitive environment of the comp
any. This section also includes an
analysis of the industry profitability based on the collective stre
ngth of the five forces. Your analysis
should clearly address profitability of the industry for an “avera
ge” firm. You are required to provide
a table (in the appendix) summarizing your findings using
the format shown below. Industry
profitability is defined as its long‐term profit potential of the in
dustry. Please refer to Figure 3.2 and
pages 42‐54 of your textbook (4
th
Ed.).
3
Summary of Five Forces Analysis
Buyer Leverage
Supplier Leverage
Threat of New Entrants

Threat of Substitutes
Intensity of Rivalry
Profit Potential
Rating Key: VL = Very Low; L = Low; M = Medium;
H = High; VH = Very High; N/A = Not applicable
D.
Industry Competitors Analysis and Analysis of their Anticipated
Strategic Moves (2‐3 pages):
This section delves deeply into the specific industry of the assig
ned firm (as opposed to the general
environmental analysis). In this section, the focus is on
the competitors, and their Anticipated
Strategic Moves. Please refer to pages 61‐62 of your
textbook (4
th
Ed.). In addition, this section
explains all strategic groups in the industry (Please refer to text
book pages 59‐61).
E. Industry Key Success Factors (1‐2 pages): This section provi
des an examination of 3‐5 key success
factors (KSFs) you identify in the industry. A KFS may be defin
ed as what any firm in the industry
must have to survive and grow. Please refer to Table 3.4 and pa
ges 62‐64 of your textbook (4
th

Ed.).
4.3. PART II: Internal Analysis
limit: 10‐15 pages total, excluding figures or
tables which should be included at the
Appendix section.
A. Organizational Strategy Analysis (4‐6 pages): This
section examines the company’s current
strategy and its components. For analyzing a company's current
strategy at the business level,
Figure 5.1 on page 94 of your textbook is useful.
Please use this table as a framework for
analyzing the current business strategy for the company. For ex
ample, if you think the company
is pursuing a cost‐leadership strategy, your analysis should incl
ude a rationale based on market
segmentation and key functional areas (basis of
competitive advantage). This section also
includes analyses of mission statement, core values, organizatio
nal culture and leadership.
A. Financial Analysis (2‐3 pages): Please provide an
interpretation of the financial ratios. This
section explains completely what the numbers mean in
terms of the financial health of the
company. Please refer to pages 240‐241 of your textbook (4
th
Ed.). The financial review includes
the past 3‐5 years. Industry average ratios and/or 2‐3
major competitors’’ ratios need to be

included in the comparative analysis. Please include summary ta
bles in the appendix.
B.
Value Chain Analysis (4‐6 pages): For the value chain analysis,
you may refer to Figure 4.1 on
page 78 of the textbook. A complete value chain analysis includ
es examination of the company
and at least ONE of the competitors or
industry average statistics so that you can assess the
company's cost competitiveness in relation to its rivals. Be sure
to identify major primary and
4
support activities undertaken to deliver value to the customer, a
nd value chain activities that
firm does more or less well (or more or less efficiently/cost effe
ctively) than competitors. Your
analysis should help you understand the internal cost structures
of the firm (vs. competitors),
and the resources and capabilities of the firm. Please also refer t
o Table 4.1 on pages 71 of your
textbook (4
th
Ed.).
4.4. PART III: Strategic Fit Analysis
limit: 5‐10 pages total, excluding figures or tables

which should be included at the
Appendix section.
C.
Strategic Opportunities and Threats (1‐2 pages): Based on Part I
analysis, these section lists 2‐4
external opportunities and 2‐4 external threats. Please refer to T
able 4.2 on pages 76 of your
textbook (4
th
Ed.).
of an opportunity or threat depends on
the level of company capabilities to
respond to them. With a relevant and strong internal
capability, the company may see an
external challenge as an opportunity. However, when a company
lacks the necessary capabilities
to properly respond to a strategic challenge then that challenge
becomes a threat.
The potential benefits of pursuing each opportunity should be id
entified.
The consequences of failing to address each threat should be ide
ntified.
D.
Core competencies (1‐2 pages): Based on Part II analysis, this s
ection lists 2‐4 internal strengths

and 2‐4 internal weaknesses. Please refer to Table 4.2 on pages
76 of your textbook (4
th
Ed.).
Using the 4 tests framework (Chapter 4, Pages 71‐72 in your tex
tbook), you need to justify which
of the internal strengths may be considered as the most
important core competency of the
company.
E. Strategic Fit (SWOT) Analysis (3‐6 pages): This
section explains the link between Strategic
Challenges (O&T) and the organizational competencies (S&W).
need to provide a “SWOT summary table” (in the
appendix) that recaps the strengths,
weaknesses, opportunities, and threats.
SWOT Summary Table
A. List of Opportunities (external)
B. List of Threats (external)
C. List of Strengths (internal) D. List of Weaknesses (internal)

5
After strengths and weaknesses are matched with opportunities
and threats, strategic directions
emerge at their intersections. You need to identify 4‐5 such strat
egic directions. The following
matrix describes the 4 types of matching with related questions
which may help you identify the
strategic directions. Needless to say, not all internal and externa
l factors may match well with
each other. Therefore, you need to only focus on the meaningful
, relevant, and significant fits.
need to provide the “SWOT Matrix Table” (in the
appendix) that recaps 4‐5 strategic
directions.
SWOT Matrix Table: Strategic Directions
A. List of Strengths (internal) B.
List of Weaknesses (internal)
C
.
Li
st
o
f
O
p
p

o
rt
u
n
it
ie
s
(e
x
te
rn
a
l)
1 – S/O Match Strategic Recommendations
attractive options
to produce greatest ROI (Return On
Investment)
to be quickest to implement and
easiest to justify immediate action‐
planning or feasibility study
‐ Executive question: "If we are not
already looking at these areas and
prioritizing them, then why not?"
2 – W/O Match Strategic Recommendations

attractive options
to produce good returns if capability
and implementation are viable
exciting and rewarding due to
change, challenge, surprise tactics, and
benefits from achieving improvements
‐ Executive questions: "What's actually
stopping us from taking advantage of these
opportunities?"
D
.
Li
st
o
f
T
h
re
a
ts
(e
x
te
rn
a
l)
3 ‐ S/T Match Strategic Recommendations

to defend and counter
basic awareness, planning, and
implementation required to meet these
challenges
in these issues is generally
safe and necessary
‐ Executive question: "Since we are strong
here, can any of these threats be turned
into opportunities?"
4 ‐ W/T Match Strategic Recommendations
high risk
risk is low , we must ignore these
issues and not be distracted by them
risk is high we must assess capability
gaps and plan to defend/avert in very
specific controlled ways
‐ Executive question: "Where the risks of
these threats are high, do we have specific
improvement plans for related weaknesses
to minimize the risk of those threats?"

6
4.5. PART IV: Recommendations
limit: 5‐10 pages total, not including figures or
tables which should be included at the
Appendix section.
A.
Selection and Justification of the Top Two Recommendations (1
‐2 pages): In part III, you have
identified a set of 4‐5 strategic directions. In this section, you n
eed to select the top 2 out of
those and include a complete discussion to
justify your selection. Each of your top 2 choices
needs to answer the questions of what, why, how, and
when to really develop into sound
recommendations.
You need to develop specifics rather than vague,
general statements like “they
should innovate.” Your recommendations should
include detailed descriptions. Be specific
about what you are recommending and how you propose it be ac
complished. For example,
“we recommend the company expand
its northeast coast operations through a balanced
combination of retail outlets and direct sales approaches”.
You need to explain why it is important that the
company implement your

recommendations. For example, “Our recommendation will prod
uce needed sales growth,
utilize excess capacity, build on our reputation for quality
products and is projected to
produce $30 million in revenues in the first year”.
How: You need to explain how the company may implement the
recommendations and how
to acquire the required capital to pay for it. For example, “Since
sixty percent of our current
customers purchase our products in retail outlets we
propose forming an exclusive
relationship with PDQ Corporation to provide the needed additi
onal retail channels. PDQ
Corporation is the Northeast’s leading retailer of products and h
as 156 locations in the most
densely populated regions of the northeast. Our proposal
will be funded by issuing $50
million in debt and financing the rest of the needed
working capital through short‐term
credit. Please refer to appendix 3C which illustrates. . . ”.
When: Describe the time horizon for the plan. How long will the
plan take to implement?
B. Implementation of the Top Recommendation
Plans, Deliverables, and Milestones (2‐4 pages):
The first step in strategic
implementation is to develop action plans. A 3‐year or 5‐year pr
ojection is very helpful. Your
action plans should be a straightforward description of the speci
fic actions that are required

to accomplish your strategies. Action plans are effective
when they incorporate the
following elements.
Specific tactics and actions. Action plans should specify what e
xactly needs to be done
today, tomorrow, next week, next month, or next quarter.
Clear period for completion. You action plan must specify when
actions start and when
objectives will be reached.
The next step is to define major deliverables—
the expected outputs over
the life of the improvement project. Deliverables typically inclu
de time and quantity.
Milestones. A milestone is a significant event in a project that o
ccurs at a point in time.
Resources, Technical requirements, and Budgeting (2‐4 pages):
This section the following
elements:
Identification of personnel involved: You must specify which or
ganizational department
or manager is responsible for each action in the plan.
Will current staff handle the
strategies? Are you planning for staffing increases or layoffs?

7
Identification of materials and costs: You must specify at what
cost, if at all, can the raw
materials be procured? Can the materials be found in time to su
pport the effort?
al requirements: You must specify technical
requirements to ensure proper
performance of the new product or service. Examples from
IS projects include speed
and capacity of database systems and connectivity with alternati
ve systems.
ting: Allocating scarce resources involves funding
capital projects, shifting
resources, downsizing some areas, upsizing others, killing activi
ties no longer justified,
and funding new activities with a critical strategy role. Specific
ally you should suggest a
project budget to explain resource allocation, the cost
control metrics you think are
valid, and milestone reports. You must specify the Key Perform
ance Indicators for each
phase of the plan. Explain why you chose each of them. You sho
uld also discuss cash
flow considerations and resource constraints.

8
MGMT 4309: Final Team Project Report Outline
Title page*
Table of content*
1.0. Executive Summary*……………………………………………
…………………………………………………………………………
……
2.0. Company History*
2.1. Background………………………………………………………
…………………….……………………….…………………………
2.2. Products and Services ……………………………………..…
…………………………………………….………….……………
PART I: External Environmental Analysis
3.0. External Analysis
3.1. General Environmental Analysis
3.1.1. Political Segment ……………………………………………
………………………………………….
3.1.2. Economic Segment …………………………………………
………………………………………………………….
3.1.3. Socio‐Cultural and Demographic Segment ………………
………………………………..………………
3.1.4. Technological Segment………………………………………
……………………………………………………….

3.1.5. Environmental Segment ……………………………………
…………………………………………………………
3.1.6. Legal Segment ………………………………………………
………………………………………………………….
3.1.7. External Environment Driving Forces ……………………
…………………………………………………….
3.2. Industry Dominant Economic Features (e.g., Market Size,
Market Growth Rate)…………………………
3.3. Five Forces Analysis
3.3.1. Threat of New Entrants………………………………………
………………………………………....
3.3.2. Power of Suppliers …………………………………………
………………………………………………
3.3.3. Power of Buyers………………………………………………
……………………………………….…….
3.3.4. Power of substitutes …………………………………………
………………………………………..…
3.3.5. Intensity of Rivalry …………………………………………
……………………………………………….
3.3.6. Summary of Five Forces Analysis …………………………
……………………………..……......
3.4. Industry Competitors Analysis and Analysis of their Antici
pated Strategic Moves……………………..
3.5. Industry Key Success Factors…………………………………
……………………………………………………………………
PART II: Internal Analysis
4.0. Internal Analysis
4.1. Organizational Strategy Analysis

4.1.1. Corporate Mission……………………………………………
……………………………………………..………………
4.1.2. Strategy (corporate level & business level) ………………
………………………………………………………
4.1.3. Organizational Culture and Core Values…………………
…………………………………………………………
4.1.4. Leadership ……………………………………………….……
…………………………………………..……………………
4.2. Financial Analysis
4.2.1. Valuation Analysis (e.g., Stock Price/Book value, P/E Rat
io)……………………………………………
4.2.2. Growth Analysis (e.g., Revenue growth rate)……………
…………………………………………………….
4.2.3. Profitability Analysis (e.g., Gross Profit Margin, ROA, R
OE, EPS)……………………………………….
4.2.4 Financial strength Analysis (e.g., Current and Quick Ratio
s, Debt/equity)……………………….
4.2.5. Management Efficiency Analysis (Inventory Turnover, a
ccounts receivable to sales)…………..
4.2.6. Summary of Financial Analysis……………………………
………………………………………………………….…
9
4.3. Value Chain Analysis
4.3.1. Support Activities
4.3.1.1. Structure (organizational chart, communication system,
etc.)………….…… ………
4.3.1.2. Design, Research and Development (R&D)……………
….………………………………………

4.3.2. Primary Activities
4.3.2.1. Input (tangible and intangible resources) ………………
…..……………………………………
4.3.2.2. Operation Processes (e.g. production, logistics, product/
service cost structure)
4.3.3.3. Marketing and Customer Service…………………………
………………………………………………
PART III: Strategic Fit Analysis
5.0. SWOT Analysis
5.1. Strategic Challenges: Opportunities and threats (based on P
art I)……………………………………………………..
5.2. Core Competencies: Strengths and Weaknesses (based on P
art II)……….……………………………………………
5.3. Strategic Fit Analysis (SWOT Matrix) ………………………
……................................................................…….
PART IV: Recommendations
6.0 Recommendations
6.1. Selection and Justification of the Top Two Recommendatio
ns………………………………………………….…..
6.2. Implementation of the Top Recommendation
6.2.1. Action Plans, Deliverables, and Milestones………………
…………………………………………………..…
6.2.2. Resources, Technical Requirements, and Budgeting………
………………………..……………….………
References……………………………………………………………

…………………………………………………………….. …………
…………….
Appendix …………………………………………………………….
…………………………………………………………………………
…………….
*Note:
Any report needs to have a title page, table of content and page
numbers.
Section 2 will be included in all project reports.
Executive Summary is only required for the final report (Part IV
).

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