Running head GROUP CASE ANALYSIS 11GROUP CASE ANALYSIS 15.docx

Running head: GROUP CASE ANALYSIS 1 1
GROUP CASE ANALYSIS 1 5
Alternative Strategies
Market Development.
Advantages
As of 2017, China is the largest automobile market in the world
with annual sales of over 24 million. Also, the Chinese
government is very ambitious in the promotion of electric
vehicles. This affords Tesla the opportunity to enter the Chinese
market using its brand and innovation to gain leverage in a new
market before other firms. Tesla has the needed capital and
human resources for such an endeavor (David & David, 2017).
Tesla has already begun laying the groundwork for expansion
into China by “having Tesla personnel install charging points at
customer homes or businesses well before delivery” (David &
David, 2017, p. 517).
Disadvantages
The major disadvantages of this strategy are the cost of
expanding into the Chinese market and the product not being
well-received by the consumers, resulting in a financial loss for
the company.
Product Development.
Advantages
Tesla already has made a name for themselves in the electric
vehicle realm and is becoming a well-known brand with
consumers. With the promising outlook of the electric vehicle
market, Tesla should conduct research and develop
improvements and modification to its current and future line to
keep interest high for the consumer. David & David (2017) note
that one of the guidelines for this strategy is “An organization
competes in an industry that is characterized by rapid
technological improvements.” Tesla’s investment into the
Gigafactory that will enable the company to mass produce the

batteries that power the vehicle at a rate higher than all of the
world’s combined output (David & David, 2017). The
Gigafactory will also allow the production of lithium-ion
batteries to be reduced through economies of scale and
innovative engineering (Tesla, n.d.).
Disadvantages
Much like the disadvantages of the market development
strategy, there is a cost that comes with the research and
development to stay at the forefront of the competition. The
improvements made could not be attractive to the consumer
therefor resulting in a loss.
Market Penetration
Advantages
A guideline for implementing the market penetration strategy is
“the usage rate for present customers could be increased
significantly” (David & David, 2017, p. 138). Some
manufacturers are still producing lead-acid batteries for their
hybrid cars which have a distinct disadvantage over lithium-ion.
This is a negative aspect to consumer who are looking to buy an
electric vehicle. The Gigafactory will increase production
density and accelerate output for the batteries, which will
increase production capacity exponentially and provide the
support for production of about 500,000 vehicles (Tesla,
January 4, 2017).
Disadvantages
One of the disadvantages of market penetration is the potential
for missed opportunities in other areas. The resources used in
this strategy could be used elsewhere. If the company has many
product lines and they focus their efforts on improving just one
there could be negative impacts regarding the rest of products.
There results of the market penetration strategy could be
minimal and have a negative effect.
Related Diversification
Advantages
Related diversification is defined as “Adding new but related
products or services” (David & David, 2017, p. 134). This

strategy is effective because it allows an company to capitalize
on its current products and brand recognition. A guideline for
implementing this strategy is “adding new, but, related products
would significantly enhance the sales of current products”
(David & David, 2017, p. 140). By building its own Gigafactory
for its production of it lithium-ion battery cells, Tesla is also
producing renewable energy for other applications such as the
home. Not only that but other companies can use the facility to
produce batteries for their own products (Tesla, 2017).
Disadvantages
As with the other strategies listed above, the resources used in
related diversification could have no return and impact the
company negatively. The investment made in not only money,
but also human capital could prove to be a costly mistake that
could prove to be fatal for a company if the products that are
introduced are not well-received by potential new consumers, or
if present customers don’t like the direction the company is
going, they could take their business to the competition.
Recommendations
Specific Strategies
The specific strategies that Tesla should implement are Market
Penetration and Related Diversification.
Tesla has topped U.S. sales of electric and plug-in hybrid
vehicle they should capitalize on this opportunity and improve
their current products and add new innovations that the
company is known for to not only attract new consumers but
also keep existing customers as well (David & David, 2017).
With Tesla’s investment in building the Gigafactory production
facility and as of 2014, the company has installed a total of 380
charging stations worldwide has already shown that this is an
effective strategy in maintaining the edge in the electric vehicle
market (David & David, 2017).
The Gigafactory is also a sign that “Tesla is not just an
automaker but a technology and design company with a focus on
energy innovation” (David & David, 2017, p. 517).
Long-Term Objectives

By implementing the recommended strategies Tesla could see
growth in the Chinese market since it is the largest automobile
market in the world with the Asia Pacific region being home to
the highest emitters of CO₂ (Rapier, 2017).
The Chinese government is very ambitious in the promotion of
electric vehicles. With the outlook on the revenue growth of
lithium-ion battery production in the U.S. to approach 20% in
2020 this is also an opportunity for Tesla to expand its product
line as well.
Both of these endeavors will be helped by the Gigafactory Tesla
has opened up in Nevada. Reducing production costs and
increasing output will help Tesla to finally see a profit.
References
Cheong, T., Song, S., & Hu, C. (2016). Strategic alliance with
competitors in the electric vehicle market: Tesla Motor's case.
Mathematical Problems in Engineering, 1-10. Retrieved from
https://search-proquest-
com.ezproxy.liberty.edu/docview/1776060210/fulltextPDF/2AA
69C05D0CE448DPQ/1?accountid=12085
David, F., & David, F. (2017). Strategic management: A
competitive advantage approach (16th ed.). Boston, MA:
Pearson.
Rapier, R. (2018, July 01). China Emits More Carbon Dioxide
Than The U.S. and EU Combined. Retrieved from
https://www.forbes.com/sites/rrapier/2018/07/01/china-emits-
more-carbon-dioxide-than-the-u-s-and-eu-
combined/#b192e98628c2
Tesla. About Tesla. Retrieved from https://www.tesla.com/about
Tesla Gigafactory 1 Investor Event. (2017, January 4).
Retrieved August 13, 2018, from http://ir.tesla.com/static-
files/7aafe167-39ec-4b30-84ad-6cf32723d47e
Zhang, Q., Ou, X., & Zhang, X. (2017). Electric vehicle market

penetration and impacts on energy consumption and CO2
emission in the future: Beijing Case. Energies, 10(2), 1-15.
Retrieved from https://search-proquest-
com.ezproxy.liberty.edu/docview/1878408319?pq-
origsite=summon&accountid=12085
Running head: GROUP CASE ANALYSIS 2 1
GROUP CASE ANALYSIS 2 15
Running head: Page no
Group Case Analysis 2
Group #
Course and Section Number
Liberty University
Date
Heading on each page
Page no
Alternative Strategies

Checklist and tips:
· Include only the Types of Strategies listed in Table 5-4 (see
David & David, 2017, pp. 132-144)
· In this section, discuss the alternative strategies (see textbook
pp. 132-144 and Table 5-4, page 133), using the EFE, CPM,
IFE. SPACE Matrix, BCG Matrix, IE Matrix, results and other
resources in Chapter 5.
· In this section, discuss the alternative strategies (see textbook
pp. 132-144 and Table 5-4, page 133), using the EFE Matrix,
Competitive Profile Matrix, IFE Matrix, SPACE Matrix, BCG
Matrix, IE Matrix, results and other resources in Chapter 5.
· Explain your rationale
· Use the results of the EFE, CPM, IFE. SPACE Matrix, BCG
Matrix, IE Matrix, matrices as your rationale.
· Since the results are in this paper, there is no citation required
when using these analyses.
· However, you must discuss how the results of your analyses
either support or are not needed for each alternative strategy.
· Use the textbook, Chapter 5, as a resource for your rationale.
· See textbook, p. 169: The process of generating and selecting
strategies “
· “A basic tenet of strategic management is that firms need to
formulate strategies to take advantage of external opportunities
and avoid or reduce the impact of external threats. for this
reason, identifying, monitoring, and evaluating external
opportunities and threats are essential for success” (David &
David, 2017, p. 11).
· See textbook, p. 169: The process of generating and selecting
strategies. “See The Matching Stage beginning on textbook 172,
Use the information in the case to identify the company’s
internal strengths and weaknesses, and the external
opportunities and threats (SWOT Analysis).
· See Table 6-1, page 169 of the textbook, for some ideas for
identifying key internal (strengths and weaknesses) and external
(opportunities and threats) and matching them to strategies.
Consider generating Table 6-1 as a worksheet when identifying

strategies.
· “Organizations strive to pursue strategies that capitalize on
internal strengths and eliminate internal weaknesses” (David &
David, 2017, p. 12).
Advantages
Checklist and tips:
· Discuss the advantages of each alternative strategy as it
relates to the company (see textbook, pages 132-144)
· Use feedback from IALE2, GALE3, ICA2, GCA1
· Cite your sources.
· Chapter 5 of the textbook is a good resource.
Disadvantages
Checklist and tips:
· Discuss the disadvantages of each alternative strategy as it
relates to company. (see textbook, pages 132-144)
· Use feedback from IALE2, GALE3, ICA2, GCA1
· Cite your sources.
· Chapter 5 of the textbook is a good resource.
Recommendations
Checklist and tips:
· Using the alternative strategies, select those alternative
strategies that you recommend the company to implement.
· Remember to limit your recommended strategies. “Because no
organization has unlimited resources, strategists must decide
which alternative strategies will benefit the firm most. Strategy-
formulation decisions commit an organization to specific
products, markets, resources, and technologies over an extended
period of time. Strategies determine long-term competitive
advantages. For better or worse, strategic decisions have major
multifunctional consequences and enduring effects on an
organization” (David & David, 2017, p. 5).
· “Most, organizations simultaneously pursue a combination of
two or more strategies, but a combination strategy can be

exceptionally risky if carried too far. No organization can
afford to pursue all the strategies that might benefit the firm.
Difficult decisions must be made. Priority must be established.
Organizations, like individuals, have limited resources. Both
organizations and individuals must choose among alternative
strategies and avoid excessive indebtedness” (David & David,
2017, p. 133).
· ‘Recommendations are alternative strategies actually selected
for implementation’” (David & David, 2017, p. 157)
· Discuss your rationale:
· Use the findings from the SWOT, EFE Matrix, IFE Matrix,
Competitive Profile Matrix, SPACE Matrix, BCG Matrix, and
IE Matrix as justification in your discussion.
· Explain how financial, human, physical, technological, and
other resources will be needed and to achieve the long-term
objectives. See Table 5-4, page 133 of the textbook.
· Cite your sources
· Chapter 5 of the textbook is a good resource and provides
examples that may be similar to what you are recommending.
Specific Strategies
Checklist and tips:
· Link your tactic for facilitating each strategy to the
recommended strategy discussed in the previous section.
· Discuss how to implement the specific strategies discussed in
the previous section, Recommendations, using “Tactics to
facilitate strategies”, pages 152-154 of the textbook as a guide.
· Cite your sources that support your tactics for each
recommended strategy.
Long-Term Objectives
Checklist and tips:
· Link your long-term objectives to each recommended strategy.
· Explain what you expect the company to achieve through these
recommended strategies.
· How will these objectives be evaluated?

· How will progress be monitored?
· What tools or analysis will be used or are indicators of
performance for these objectives?
· What will success look like?
· How will you measure success?
· How will you know if objectives have been achieved?
· Cite your sources that support your rationale.
· How are these long-term objectives possible based upon the
recommended strategies and tactics (specific strategies)
discussed above?
Forecasted Ratios
Checklist and tips:
· Use the financial ratios discussed on pages 106-109 of the
textbook. See Table 4-6 for some key financial ratios.
· Determine which ratios are important for implementing your
recommendations above and to achieve the long-term objectives
discussed in the prior section.
· Calculate the ratio for the current financial statements
presented in the case.
· Project the ratio for the number of years required to implement
your recommendations and projected in the pro-forma financial
statements.
· Include those key financial ratios in this section. Discuss why
these ratios are important indicators for your recommendations
and assessing achievement of the long-term objectives.
Action/Timetable Agenda
Checklist and tips:
· The action/timetable agenda represents the timing or agenda
for action required for implementing your group's strategic
plan.
· It is important that the action/timetable agenda include
the time frame and sufficient detail for achieving strategic
goals, strategies and objectives, measurable outcomes or
targets, dates for accomplishing each strategic/objective and

outcome/target, etc.
· Your action/timetable agenda should be comprehensive, using
information presented throughout this course and include not
only annual objectives, quantitative measures, evaluation
criteria, audits, and contingency plans as discussed in chapters
7-9 of your textbook, but any other actions that are required to
successfully implement your group's strategic plan.
· There are many different formats for presenting the
action/timetable agenda.
· It can be presented in a hierarchy flow chart as discussed in
the Annual Objectives section of chapter 7 of your textbook
beginning on page 207 and presented in Figure 7-3 on page
210.
· Some organizations present the timeline in a calendar-agenda
format.
· Some other organizations present the
implementation timeline in a matrix, as is the case with Liberty
University's Strategic Plan (see pages 67-252).
· See also the post in the Collaboration and Community Center
forum.
Projected Financial Statements
Checklist and tips:
· You probably remember reviewing, analyzing, and preparing
financial statements in other business courses throughout your
program, including your finance course. This incorporates not
only the material learned so far this term in this course, since
BUSI 400 is the capstone course, it also incorporates prior
knowledge and cumulative learning from the entire business
program.
· If you need a refresher for preparing financial statements,
please refer to Chapter 8 of the textbook (pages 255-262),
which include the steps for developing projected financial
statements and has examples for you to review.
· The Chapter 8 PowerPoint (in the Course Content in
Blackboard) also have information that will be helpful when

completing this exercise.
· Your work on last week’s Individual Case Analysis 2 may also
be helpful.
· In addition, remember to review the Projected Financial
Statements post in the Collaboration and Community Center
forum of the Discussion Board.
· The projected financial statements must include both the
Balance Sheet and Income Statement.
· The Balance Sheet including assets (e.g., cash, investments,
inventory, pre-paid taxes, property); liabilities (e.g., short and
long term debt, accounts payable, deferred compensation and
benefits, deferred revenue, deferred income taxes); and
stockholders’ equity (e.g., stock, retained earnings).
· The Income Statement includes revenue (e.g., net sales, cost
of sales, gross margin), expenses (selling-general and
administrative costs, depreciation, interest expense), and pre-tax
earnings, net income, and cash dividends per share.
Number of Years Projected
Checklist and tips:
· The number of years for your projected financial statements
are your judgement but should be consistent with your
recommendations, means for implementing your strategies, and
your long-term objectives discussed in the case analysis.
· For example, if your recommended strategies require five
years to fully implement before the desired results are fully
realized, then your financial statements should reflect how your
strategy affects the two primary financial statements.
Projected Balance Sheet
Checklist and tips:
· Balance Sheet (use balance sheet in textbook case as the
beginning point) including assets (e.g., cash and cash
equivalents, accounts receivable, inventories, other current
assets, property, plant & equipment, goodwill & intangibles,
other assets); liabilities (e.g., accounts payable, other current

liabilities, long-term debt, other liabilities); and equity (e.g.,
common stock, retained earnings, other equity, paid in capital).
----(Insert the projected balance sheet here) ---
Projected Income Statement
Checklist and tips:
· Income Statement use income statement in textbook case as
the beginning point) revenue (e.g., revenue, cost of sales) and
expenses (e.g., operating expenses, EBIT, interest, EBT, tax,
net income).
----Insert projected income statement here----
Projected EPS/EBIT analysis
Checklist and tips:
· Use the data from the projected balance sheet and projected
income statements to perform the EPS/EBIT analysis.
----Insert projected EPS/EBIT Analysis here---
Common Stock Financing
Debt Financing
Stock
Recession
Normal
Boom
Recession
Normal
Boom
Recession
Normal
Boom
EBIT
$0
$0
$0
$0

$0
$0
$0
$0
$0
Interest
0
0
0
0
0
0
0
0
0
EBT
0
0
0
0
0
0
0
0
0
Taxes
0
0
0
0
0
0
0
0
0
EAT

0
0
0
0
0
0
0
0
0
# Shares
0
0
0
0
0
0
0
0
0
EPS
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
References
· All sources that are cited in the text are included in this
section.
· Reference citations are double spaced, with no extra return

between the section heading, References, and each citation.
· The first line for each citation begins at the left margin and
subsequent lines are indented. When using Word, the format
command for Paragraph, Indentation, Special: Hanging, 0.5”
and double spacing is Spacing: Before: 0 After: 0, Line
Spacing: Double.
· The reference section begins on a new page of your paper.
· An example citation and the proper APA citation for the
textbook is included below:
David, F. R., & David, F. R. (2017). Strategic management: A
competitive advantage approach, concepts and cases (16th ed.).
Boston, MA: Pearson. ISBN: 9780134167848.
Do not include this section in your paper. This section includes
reminders only
· When conducting the case analysis, ask yourself how would
the CEO react to the recommendations. Is the rationale well
developed with sources cited and data so that the
recommendations are well-developed, logical, and credible?
· Please also refer to Part 6, "How to prepare and present a case
analysis" in textbook. Specifically, "Preparing a written case
analysis" on pages 362-363 and "Tips for successful case
analysis" on pages 365-367 provide useful information and
direction for completing your group's case analysis.
· Remember to use APA style throughout your paper
· The organization of your paper should follow APA style (see
Assignment/Paper Template in the Collaboration and
Community Center thread of the Discussion Board forum and
the Liberty University Online Writing Center APA resources).
· Remember to use proper APA style that includes a running
heading, proper cover page, page numbers, citations for all
information obtained or influenced by others, and references
that conform to APA format.
· When using Word, place your heading and page number in a

header so it will repeat on every page. Also, select “Different
First Page” so that “Running head: ” appears only on your cover
page. Times New Roman 12 point is the preferred font style.
· Please remember when using APA style to double space
throughout your paper, with no extra line spacing between the
headings or paragraphs, or reference citations. When using
Word, use the Paragraph format command: Spacing Before: 0
After: 0 Line Spacing: Double.
Group Collaboration: Use GROUP TOOLS (i.e, File Exchange,
Group Discussion Board, etc.) to collaborate on this
module/week group discussion assignment:
Complete a case analysis of Apple, Inc., 2015, Case 21 (page
540) in the case section of the textbook. A formal, in-depth
case analysis requires you to utilize the entire strategic-
management process. Assume your group is a consulting team
asked by Apple, Inc., 2015 to analyze its external/internal
environment and make strategic recommendations. You will be
required to make exhibits to support your analysis and
recommendations. The case analysis must encompass 10–12
pages plus the exhibits, cover page, and reference page. The
cover page must include the company name, your group name,
and the date of submission. The matrices must not be part of the
analysis body but exhibits/attachments. The completed case
must include:
1. Executive summary;
2. Existing mission, objectives, and strategies;
3. A new mission statement;
4. SWOT (TOWS) analysis;
5. SPACE MATRIX;
6. BCG MATRIX;

7. IE MATRIX;
8. Competitive Profile Matrix;
9. EFE Matrix;
10. IFE Matrix;
11. A list of alternative strategies, giving advantages and
disadvantages for each;
12. A recommendation for specific strategies and long-
term objectives;
13. A preparation of forecasted ratios;
14. A preparation of pro-formal financial statements; and
15. An action timetable/agenda.
BUSI 400
Group Case Analysis 2 Grading Rubric
Criteria
Levels of Achievement
Content 70%
Advanced
Proficient
Developing
Not present
Case Analysis Content – Executive summary
9 points
Provides appropriate, thoughtful, in-depth critique and analysis
for the chosen company based on the following key areas.
8 to 6 points
Mostly provides appropriate, thoughtful, in-depth critique and
analysis for the chosen company based on the following key
areas.
5 to 1 points
Somewhat provides appropriate, thoughtful, in-depth critique
and analysis for the chosen company based on the following key
areas.
0 points

Does not provide appropriate, thoughtful, in-depth critique and
areas.
Case Analysis Content – Existing mission, objectives, and
strategies
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – A new mission statement
5 points
4 points
areas.
3 to 1 points
areas.
0 points

areas.
Case Analysis Content – SWOT (TOWS) analysis
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – SPACE Matrix
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.

Case Analysis Content – BCG Matrix
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – IE Matrix
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.

Case Analysis Content – Competitive Profile Matrix
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – EFE Matrix
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – IFE Matrix
5 points

4 points
areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – Alternative Strategies
9 points
8 to 6 points
areas.
5 to 1 points
areas.
0 points
areas.
Case Analysis Content – Recommendations of Strategies
10 to 9 points

8 to 7 points
areas.
6 to 1 points
areas.
0 points
areas.
Case Analysis Content – Forecasted Ratios
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – Pro-Forma Financial Statements
5 points
4 points

areas.
3 to 1 points
areas.
0 points
areas.
Case Analysis Content – Action Timetable/Agenda
5 points
4 points
areas.
3 to 1 points
areas.
0 points
areas.
Structure 30%
Advanced
Proficient
Developing
Not present
Professionalism
17 to 15 points
Entire submission is presented in a professional manner and

addresses the specific question(s) posed using proper support
and citations.
14 to 12 points
Submission is presented in a mostly professional manner and
mostly addresses the specific question(s) posed using for the
most part proper support and citations.
11 to 1 points
Submission is presented in a somewhat professional manner and
somewhat addresses the specific question(s) posed using some
proper support and citations.
0 points
Submission is not presented in a professional manner or
addresses the specific question(s) posed and does not use proper
support or citations.
Format and Grammar
20 to 18 points
Proper grammar, spelling, and current APA (when appropriate)
are used throughout the entire submission.
17 to 14points
Submission contains 0 - 2 noticeable errors in grammar,
spelling, or current APA format throughout the submission.
13 to 1 points
Submission contains 3 - 4 noticeable errors in grammar,
0 points
Submission contains more than 4 noticeable errors in grammar,
Total
/125 points
*Please remember to review the peer evaluation process and

how that impacts your group project grade.

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