Project 3: Internal Environmental Analysis
This project is the third of four projects. Students will perform an internal environmental analysis using the tools and concepts learned in the course to date. You will also draw from previous business courses to understand how organizations develop and manage strategies to establish, safeguard, and sustain their position in a competitive market.
Students also can review an organization’s objectives and goals and the key functional areas within the organization. Performing an internal environment analysis helps assess a firm’s internal resources and capabilities. It plays a critical role in formulating strategy by identifying a firm’s strengths to capitalize on to effectively overcome weaknesses.
Outcomes Met With This Project
Step 1 Specific Company for All Four Projects
(the selected company is Exxon Mobile Corporation)
The company that your instructor has assigned to you for Project 1 is the company you will use for this project. The assigned company must be used for this project and in subsequent projects in the course. Students must complete the project using the assigned company. Deviating from the assigned company will result in a zero for the project.
After reading the course material, you will complete the steps below.
Step 2 Course Materials and Research
Note: Your report is based on the research results and not on any prepared documentation. What this means is that you will research and draw your own conclusions that are supported by the research and the course material rather than the use of any source material that puts together any of the tools or techniques whether from the Internet, for-pay websites, or any pre-prepared document, video or source material. A zero will be earned for not doing your own analysis.
Success: The analysis is based on research and not opinion. You are not making recommendations, and you will not attempt to position the focal company in a better or worse light than other companies within the industry merely because you are completing an analysis on this particular company. The analysis must be based on factual information. Any conclusions drawn have to be based on factual information rather than leaps of faith. As stated above, you are expected to use the course materials and research on the focal company’s global industry and the focal company to ensure success. The opinion does not earn credit, nor does the use of external sources when course materials can be used. It is necessary to provide explanations (the why and how) rather than making statements. Avoid stringing one citation after another, as doing so does not show detailed explanations.
Library Resources (Company Required)
Additional Library Resources
Library Support Personal Assistance
Step 3 How to Set Up the Report
The document has to be written in Word or RTF. No other format is acceptable. No pdf files will be graded. Use 12-point font for a double-spaced report. The final product is expected to be 10 – 12 pages. The final project may not be more than 12 pages in length, including all tables and matrices, but excluding the title page and reference page. Do no use an Appendix.
Step 4 Write the Report – use the Headings and Heading Numbers that appear here in Red Font
I. Corporate Level Strategy Analysis
There are three levels of strategy: corporate-level strategy, business-level strategy, and functional-level strategy. Corporate-level strategies are related to businesses or markets the focal company successfully can compete within. Corporate-level strategies affect the entire organization and are formulated by top management using middle and lower management input. Decision-making about corporate-level strategies is considered complex, affects the entire company, and relates to an organization’s resource capabilities. Corporate level strategies align with an organization’s mission statement and ideally are designed around goals and objectives.
Perform an analysis on the Corporate-level strategies of the focal company. Use both course materials and company research for support.
II. Partial SWOT (SW) Table
Create a Partial SWOT Table highlighting at least five strengths and at least five weaknesses for the focal company. Provide a citation from company research for support for each of the strengths and weaknesses. Include these citations within the table.
III. SW Analysis
Perform an SW analysis, and discuss the strategic inferences/implications of the strengths and weaknesses on the focal company. Discuss what strategies would allow the company to capitalize on its major strengths and what strategies would allow the company to improve upon its major weaknesses. Use both course materials and company research for support.
IV. IFE Matrix
Create an IFE matrix and present an analysis of the scores. Make sure to explain how the matrix was developed, provide a justification for the weights and ratings used, and discuss the strategic inferences and implications. Use both course materials and company research for support.
V. Grand Strategy Matrix
Develop a Grand Strategy Matrix in order to identify the correct quadrant for your focal company. Explain how the matrix was developed and discuss the strategic inferences/implications for the focal company. Use both course materials and company research for support. (Note, you don’t have to draw a Grand Strategy Matrix, but at a minimum you must indicate which quadrant the focal company falls in and why. See Dr. Kathy’s Notes for Week Five for further guidance on the Grand Strategy Matrix. Note: “Market Growth” means “Industry Growth”. Use 2021 and 2020 Industry Growth from CSI Market for this calculation. See link to CSI Market above under Library Resources or go to csimarket.com.)
VI. The Business Level and Business-level Strategies
VI. A.The Business Level
Evaluate the company’s product line, target market. Use company research and course materials for support.
VI. B. Business-level Strategies
Identify and explain business-level strategies of the focal company. Use course materials and company research for support.
VII. Functional Level Strategies and Alignment
VII. A. Functional-level Strategies
Assess the company’s organizational structure and the organizational culture. Also, BRIEFLY describe any marketing, production, operations, finance and accounting, and R&D that can be accomplished by viewing the company’s website or interviews. Use course materials and company research for support.
VII. B. Alignment of Functional-level Strategies
Explain how these strategies align with the company’s vision and mission statements. Use course materials and company research for support.
VIII. Strategic Financial Analysis for the Last Reported Fiscal Year
VIII. A. Financial Ratios for Company
Use the company’s income statement and balance sheet to calculate four (4) key financial ratios, OR, obtain the 4 ratios from Statista or CSI Market or other credible library sources (see Library Resources section above). One key ratio must come from each of the four key categories: leverage, liquidity, profitability, and efficiency. The four (4) specific ratios selection must come from the following categories.
The selection of the ratios has to be relevant to the focal company, so it is important to choose wisely. Citations should be provided to demonstrate the origin of these ratios from company research.
VIII. B. Financial Ratios for Industry
Quote industry financial average ratios correlate to the four (4) financial ratios selected for the focal company. You may find the industry averages through Statista or CSI Market (see Library Resouces and Support sections above). Provide a citation from industry research for each ratio.
VIII. C. Financial Analysis
Explain the importance of the four (4) averages you chose to use (in other words, why are these ratios relevant for this company and its industry?). Then compare the company and industry ratios and comment on whether each ratio is Strength or a Weakness for the company, in comparison to the industry average. Support this analysis with both course materials and company/industry research.
IX. Composite Analysis/Conclusion
The one-paragraph conclusion is intended to highlight the key 3-4 key findings, consequences, and recommendations resulting from your analysis. Comment on both the qualitative findings (from the matrices) and the quantitative findings (from the financial analysis). Support this composite analysis with both course materials and company research.
Course materials to use: