Overview

Company Background/s & History

Industry, Competitors, & Firm/s Evolution












External Analysis Macro Environment

Technological Demographics Culture Economic Legal International





Relevant R&Cs
Example 1 (VR) Example 2 (VRIO) Example 3(V) Example 4 (VRIO)



External Analysis - Porters 5 Forces - Threats

Threat of Entry Threat of Rivalry Threat of Substitutes Threat of Suppliers Threat of Buyers
EoS : # of Similar Firms : Substitute Products : # of Suppliers : # of Buyers :
Differentiation : Slow Growth : Unique Inputs : Standard Product :
CIS (i.e. proprietary
tech, know-how,
favorable access,
learning curve) :
Differentiation : Substitute Inputs: % of Buyers Costs :
Gov. Regulation : Capacity Increments : Vertical Integration : Buyers Earnings :
FF are Important : Back V Integration :

Threat = Threat = Threat = Threat = Threat =
(+ high, 0 neutral, - low)
Overall Expected Returns in the Industry



External Analysis - Industry Stage - Opportunities

Industry Stage Opportunities






Relevant R&Cs
Example 1 (VR)
Example 2 (VR)

Internal Analysis - VRIO

R & Cs Valuable Rare Costly to Imitate Organized Implications














Includes: R&Cs, Sources of Cost Leadership, Bases of Differentiation, Vertical Integration / Capabilities Perspective,
Diversification & Economies of Scope, Alliances, Mergers & Acquisitions
Business Level Strategy

Business Level Strategy
Product Differentiation

Sources of Cost Leadership (Table 4.1) or Bases of Product Differentiation (Table 5.1)
Product Features (V)
Product Customization (VR)
Linkages with other firms (VR)

Relevant R&Cs
Example 1 (VR)
Example 2 (VR)
Example 3 (VR)
Example 4 (VR)
Example 5 (VR)
Example 6 (VR)
Example 7 (VRIO)


Business Level Strategy Impact on Five Forces
Threat of Entry
Threat of Rivalry
Threat of Substitutes
Threat of Buyers
Threat of Suppliers
Reduced


Vertical Integration

Transaction Specific Investments (e.g. Site, Physical, Temporal, Human Capital, Dedicated Assets)






Vertical Integration Considerations
VI & Opportunism (TCE) VI & Firm Capabilities VI & Flexibility












Corporate Diversification

Type of Corporate Diversification Evidence


Economies of Scope through Diversification (Table 7.1)
Example 1 (VR)
Example 2 (VRIO)



Relevant R&Cs
Example 1 (V)
Example 2 (VRIO)
Example 3 (VR)



Corporate Diversification Organization

Organizational Structure Management Controls Compensation Policies










Strategic Alliances

Type of Alliance Motivation Evidence



Strategic Alliance Value (Table 9.1)
Example 1 (VR)
Example 2 (VRIO)



Relevant R&Cs
Example 1 (V)
Example 2 (VRIO)
Example 3 (VR)





Alliance Threats (Table 9.2)
Adverse Selection Moral Hazard Hold-Up







Mergers & Acquisitions

Strategic Relatedness of M&A - Value
(Tables 10.1, 10.2)
Motivation (Table 10.4) Evidence






Competitive Implications of M&A
Example 1 (V)
Example 2 (VRIO)
Example 3 (VR)


Relevant R&Cs
Example 1 (V)
Example 2 (VRIO)
Example 3 (VR)




Bidding Firm Rules (Value goes to Bidder) Yes/No Target Firm Rules (Value goes to Target) Yes/No
(VR) Economies of Scope
Asymmetrical Information with Bidders
Asymmetrical Information with Targets
Avoid Bidding Wars
Close the Deal Quickly
Operate in thinly traded acquisition markets
Seek Information from Bidders
Invite other Bidders to Join
Delay but do not stop Acquisition

Miscellaneous
Economic Evaluations / Additional Considerations







Conclusions
Recommendations