1. Capstone Case Pointers Remember the key attributes of strategic management  Should be directed toward overall goals and objectives  Includes multiple stakeholders (Owners, employees, customers, suppliers, community-at-large)  Needs to incorporate and integrate short-term and long- term perspectives (Profit measurement is short-term; Research and Development and Innovation is long-term)  Should recognize trade-offs between effectiveness and efficiency

2. Analyze Porter’s Five Forces  Threat of new entrants (Capital investment, technology, brand recognition, etc.)  Buyer power (Few buyers-high, etc)  Supplier power (Few suppliers-high, etc)  Pressure from substitute products (Many substitutes-high, etc.)  Rivalry among existing firms (Number of major players and intensity of rivalry)

3. Corporate Level Strategies (Directional)  Introduction and Growth (Promotion of potential)  Maturity (Brand recognition, continuing improvement)  Decline (Retrenchment): Selling off divisions or product lines

4. Business Unit Strategies  Overall low cost leadership  Differentiation  Focus  Combination

5. Functional Strategies  Should follow up on business unit strategy  For example, in a low cost leadership business unit strategy, the production function would emphasize efficiency. On the other hand, with a differentiation strategy, a company might emphasize quality in the production function

6. Financial Analysis  Profitability and quality of earnings  Efficiency and control  Cash flows and liquidity  Risk assessment  Company value trend (stock prices and book value equity growth or decline)  Recommendations