INDUSTRY PROJECT: STRATEGIC BUSINESS PLAN ASSIGNMENT H
Project Overview
The Company’s Board of Directors is concerned about the financial future of your company and its ability to deliver shareholder value. Senior management assembled a task force of its top managers (your team!) to conduct a strategic analysis, prepare a business plan and present it to the Board. Your task force has been empowered to do “whatever it takes” to develop innovative strategies that ensure the company’s long-term success. The Board will approve your recommendations as long as you have research and analysis to support them, resources in place, an implementation plan, and a measurement process. You have been given three months to complete this project.
Teams of 6-7 are formed with an attempt to match schedules and interests. A drawing will be held for choice of hospitality company (listed at end). The project contains three parts (1) conducting a strategic analysis, (2) writing a business plan, and (3) making a presentation to the Board.
Timeline and Deliverables
| Project Stage | Points | Deliverable | Completed Draft | Final Report |
| Strategic Analysis | 20 | PR1: Direction Setting | 2/14 | 2/16 |
| 20 | PR2: Environmental Analysis | 2/28 | 3/2 | |
| 20 | PR3: Competitive Analysis | 3/14 | 3/16 | |
| 20 | PR4: Strategy Development | 4/4 | 4/6 | |
| 20 | PR5: Strategy Implementation | 4/18 | 4/20 | |
| 20 | Report Manager | on assigned dates | ||
| Business Plan | 40 | Consolidated Business Plan | 5/2 | 5/4 |
| Presentation | 40 | Team Project Presentation | N/A | 4/23,25,30 |
| PROJECT TOTAL | 200 | |||
Progress Report due days
- Completed hard copy draft and team meeting with instructor – Wednesday IN CLASS
- Online progress report submission for grading– Friday midnight via Webcampus. Use the following naming convention: PR#_TeamName, e.g. PR1_Marriott
- Team member evaluation submitted through Webcampus by Friday midnight
Project Management
- A WebCampus discussion board is available for each team to facilitate communication.
- Teams should develop a communication plan, establish meeting times/dates, and prepare a timeline for completing each report.
- IMPORTANT: It is fine to assign people to work on different sections, but everyone is responsible for the entire report. Many of the sections are connected and cannot be written without consulting other team members. “That is not my part” is not an excuse. With groups of 6-7, it is often better for two people to pair up on major sections rather than dividing sections into smaller parts.
- On Wednesday of the due date each team meets with the CEO (professor) in class to review the draft. A complete, printed report must be brought to the meeting. Everyone is required to be present for the entire class period. While other groups are meeting, activities are assigned or teams work on their projects. The group has until Friday at midnight to revise the report and submit via Webcampus. Each team meeting counts 5 points.
| Team meeting grading | Points |
| Report manager present | 1 |
| Individual team members present (individual) | 1 |
| Complete hard copy draft with all sections | 3 |
| Total | 5 |
| Late to meeting (individual) | -1 |
Report Manager
A different report manager (RM) is responsible for each report and the business plan. The RM coordinates the report activities, integrates everyone’s input into a coherent single document, solicits and incorporates feedback from team members, and conducts a final review and edit prior to submission. The RM receives double the report grade (divided by 2 for the business plan and presentation). The RM is not responsible for writing the entire report, but should be familiar with all components. The report manager should NOT simply paste in everyone’s contribution, it is his/her responsibility to ensure the quality of the entire report. RMs will be assigned by the CEO. If someone has a specific date conflict, assignments can be changed with permission from the CEO.
Teamwork
This is a group project, and every team member is expected to contribute to every stage of the project. Working in groups is not easy, but it is a fact of business life and the task force approach mirrors the real world. In business, employees do not get to choose their teams and often end up on projects with low performers. A good leader will coach those employees, not blame them. If you have issues with a team member, take action immediately, do not wait until it is too late.
Team member evaluation form: Every student is required to complete a team member evaluation form for each progress report, the business plan, and the final presentation. Forms are due on Friday of the week the report is due, and should be submitted through WebCampus assignments. Each evaluation is worth 5 points. Your score is your relative contribution. In a 6-person group, each person should contribute 16.7%. If your rated contribution is 10%, your teamwork score is 3. Consistently low contributors will have their project score adjusted as well. There is a place on the form to state what you contributed to the report. If you do not turn in an evaluation form or submit it late, your teamwork score for that stage of the project is 0. SOME PEOPLE FORGET TO SUBMIT THEIR EVALUATIONS. This is a silly way to lose 5 points.
Part One: Conducting a Strategic Analysis
The first part of the project requires each team to do research and summarize their findings as a written report. There are five progress reports, each with a report manager. Guidelines for each report are provided below, along with a grading rubric with point values. 4-6 pages per report, 1 point deducted for every page over the limit. SUGGESTED length is a general guideline to help you organize the report. It is NOT REQUIRED length. Going under is okay!
PR1: Direction Setting.
This report sets the tone for your business plan. You will apply concepts from Chapter 3 and class. Use objective sources (not just the company website) and DO NOT COPY OR PARAPHRASE ANYTHING from the company website. Do not use words for which you do not know the meaning. Remember that the audience is the Board and Executives who do not need a bunch of company facts.
| Section | Suggested Length** | Contents | Points |
| Company Overview | 1 page
|
· Company overview (1 paragraph). Describe the company. Do not provide company history or reword sections off the website.
· Domain definition (itemized) |
2
4 |
| Vision, Mission, Values | 1 page | · Create a separate vision and mission statement, applying the concepts from the book and class.
· Define your company’s core values and state how you will achieve them. Consider types of the types of social responsibility from the text. Also consider sustainability. · Remember, this is YOUR vision-mission etc. Be original and do not copy from the company website. |
4
2
|
| Stakeholders | 1.5 pages | · Identify at least 10 key stakeholders and state (1 bullet per stakeholder) why they are important (be specific to your company)
· Conduct a stakeholder analysis · Reach conclusions from the analysis |
2
2 2 |
| Format | Overall flow, organization, formatting, following guidelines, grammar, spelling, references, etc. | 2 | |
| TOTAL | 20 |
**Suggested length is NOT required length.
PR2: Environmental Analysis.
This report evaluates external, industry and company forces affecting your company and the business environment in the next 5 to 10 years. You should apply content from Chapter 2 as well as information from outside sources and the library class. Several library references are needed.
| Section | Sugg.
Length |
Contents | Points |
| Environ-mental Assessment | 1-2 Pages | Create a table that includes the following (see Table 2.3):
· 2 external trends or forces for each of the 4 broad environmental areas that could influence your segment of the hospitality industry (e.g., chain hotels) · an opportunity AND a threat that it creates for your company. · a reliable EXTERNAL source to track each trend (do not include any company sources). List the type/title of the sources and put the full citation in the reference list. |
2
2
2 |
| Porter’s 5 Forces Model | 1.5 pages | Create a full page visually effective Porter’s 5 Forces model for the business segment in which your company operates (e.g., casino resorts, major hotel chains). Include within the model for each force (see Fig. 2.4)
In a separate paragraph, discuss the implications of the model: What forces present the biggest threat to your company? What actions do you recommend to manage the 5 Forces? |
1
2
2
1
1
|
| SWOT analysis | 1 page | Conduct a SWOT analysis by combining 3 opportunities and 3 threats from your Environmental Assessment with 3 strengths and 3 weaknesses of your company that you determine by researching the company. Develop 3 strategies for each of the four quadrants: S-O, W-O, S-T, W-T. | 5 |
| Format | Overall flow, organization, formatting, following guidelines, grammar, spelling, minimum of 10 reliable references | 2 | |
| TOTAL | 20 |
PR3: Competitive Analysis.
This section evaluates where your company stands relative to competitors. Make sure you focus on your competitors in every aspect of this report, and keep the same set of competitors throughout. This is not just about your company, so all the information you present should include a comparison with competitors. Use reliable sources such as D&B Hoovers or NexisUni, not just company websites.
| Section | Suggested Length | Contents | Points |
| Competitive Set | 1/2 Page | Identify-describe your top 3 competitors.
|
2
|
| Resource Comparison | 1.5 Pages | Create a resource analysis table that contains the following in comparing your company to its competitors side-by-side:
· The 5 resource categories, with 2 resources under each that are important for your company (see Fig. 4.5 for ideas) · The strength or rank of each resource for your company and each competitor, giving a reason for your evaluation. This evaluation should be based on research using reliable sources (not just company websites). In a separate paragraph, reach a conclusion based on your resource analysis as to which company has the highest competitive advantage in each resource category |
2
2
1 |
| Critical Success Factors | 2 Pages | · Do a descriptive CSF analysis, following the example in class and slides, using the same format as the resource table. Include at least 6 critical success factors. Do not duplicate resources.
· Prepare a competitive profile matrix to quantify the comparison. · In a separate paragraph, reach a conclusion based on both analyses. |
2
2
1 |
| Financial Analysis | 1/2 page | · In table format, compare your company and its competitors on 3 financial metrics in different categories (see Table 4.1). Include the category (e.g., profitability) and metric (e.g. net profit margin) in your table.
· Based on your comparison and the meaning of the financial indicators, describe your company’s relative financial position versus its competitors. · “No data available” is not acceptable. The HMD 454 library sources contain company data and you can get assistance from Lateka Grays. |
2
2 |
| Advantages and vulner-abilities | 1/2 page | · Using all of the above analysis, list your top 5 competitive advantages and the top 5 areas where you are most vulnerable to competition. | 2 |
| Format | Overall flow, organization, formats, following guidelines. Must include at least 4 reliable (library) references. | 2 | |
| TOTAL | 20 |
PR4: Strategy Development.
In this section, you develop business level strategies to build competitive advantage and corporate level strategies to set the direction of the entire organization. The material from Chapters 5 and 6 as well as strategy development tools from class are useful.
| Section | Sugg. Length | Contents | Points |
| Portfolio of Brands | 2 pages | · Classify your brands according to the generic business-level strategy they utilize and list each brand’s key characteristics (table format suggested)
· Create a visually effective portfolio of brands applying dimensions that are relevant for your company. DO NOT use the dimensions from the book! Use graphics and make it large enough to see each brand clearly. |
2
2 |
| BCG Matrix | 2 pages | · Create a visually effective BCG matrix for your company (NOT in excel). Make it large enough and scale the axes so brands are distributed among the four quadrants.
· Create a table containing the data used to create the matrix. Must use real data and explain assumptions and sources. · Develop/list an appropriate strategy for each brand, based on its position in the matrix. Every brand in a quadrant may not require the same strategy. Organize by quadrant. |
2
2
2 |
| Corporate-Level Strategies | 1 page | · Applying the corporate-level strategies in Chapter 6, identify and evaluate the generic strategies your company is currently using and has used historically, giving examples.
· Recommend the generic corporate level strategy your company should follow in the future and state how you will achieve it. |
2
2 |
| Strategic
Recommend-ations |
1/2 page | The most important part of your industry analysis! NOTE: These are not “generic” strategies such as best value, concentration, etc.; they are specific strategies such as global expansion, green initiatives, etc. They are based on all of the analysis you have done so far.
· Recommend at least 4 concrete, actionable business-level strategies for your company (bulleted list preferred). · Recommend at least 4 specific actionable corporate-level strategies for your company. |
2
2 |
| Format | Overall flow, organization, formatting, following guidelines, grammar, spelling, references, etc. | 2 | |
| TOTAL | 20 |
PR5: Strategy Implementation.
In this section, you put all the pieces together to ensure that you can carry out and evaluate your intended strategies (derived from PR4). Apply content from Chapters 7 and 8, class material, and your previous progress reports.
| Section | Length | Contents | Points |
| Interorganizational relationships | 1/2 page | · Use partnering and inclusion strategies (see Ch. 7) to create interorganizational relationships to achieve 3 of your strategies from PR4 (one IOR per strategy)
· State which strategy each relationship is tied to. · The relationships are specific and actionable, not general. State what stakeholder group you will partner with, and what the partnership will accomplish for both parties. Just using a company’s services are financial transactions, not IORs. |
2
1
1 |
| Functional Strategy Audit | 1-2 pages | · Conduct a functional strategy audit for your business level strategies (see Table 7.3). Apply at least 2 components from each of the six functional areas to describe how that department will contribute achieving your strategies.
· Conduct a functional strategy for your corporate level strategies. Note: Just one FSA at each level, table or bullet format |
2
2 |
| Organizational Structure | 1 page | · Determine which corporate-level organizational structure is appropriate for your company (from Ch. 8) and justify your choice.
· Create a visually effective organizational chart. This is YOUR org. structure, not the company’s existing structure. It should not include names of individuals or low-level functions like housekeeping. Be aware of font size (10 pt. min) and margins (1 inch). Text and graphics should be clear and crisp. |
2
2 |
| Implementation plan | 2 pages | · Create an action plan for achieving each of your strategies (8 total). It should include major tasks, timeline, responsibilities and resources required. Table format recommended.
· Develop SMART measurements to evaluate each strategy (8 total) and establish actionable targets (e.g., reduce energy costs by 10%; increase ADR by $5, etc.). Targets must set clear goals and be measurable. Achieving the strategy is not a measurement. |
4
2
|
| Format | Overall flow, organization, formatting, following guidelines, grammar, spelling, references, etc. | 2 | |
| TOTAL | 20 |
Progress Report Submission Format
- The title should be informative. “PR3” is not informative, “Competitive Analysis” is.
- 4-6 pages, excluding references
- Be concise and to the point! Shorter is better as long as coverage is adequate
- Use bullets rather than wordy sentences for lists
- Omit “empty” statements that add no content
- “Suggested length” is NOT required length. It is just a guideline.
- One point off for every page over.
- Do not quote or paraphrase ANYTHING from the company website. Restating content from the website in your own words is not allowed. See plagiarism definition in syllabus.
- Single-space paragraphs, double space between paragraph
- 12-pt. Times New Roman font with 1 inch margins, portrait orientation.
- Large tables can be 10-pt and must stay within margins in portrait orientation. Smaller tables must be 12 point.
- Well organized with headings and subheadings
- Use tables to display categorized or numerical information (never split between pages)!
- Number pages consecutively
- Names should be typed on paper along with company name and title. Please do not include the professor/course name.
- References for all sources in a list at the end in APA format. Every reference needs a title, date, and author (if available). A reference listed as www.xxx receives no credit. Wikipedia is not an acceptable reference and reliable sources must be used.
- Submit through WebCampus in MS Word only. Pdf format is not allowed. One submission per group.
Part 2. Business Plan
This is where the task force merges its collective efforts into a single, coherent business plan. The business plan is not simply the progress reports strung together; however, it should contain all of the analyses/components required for each report. The PRs should be revised based on the feedback provided, and integrated into one document that can be given to the Executive Team and Board of Directors. The content must be packaged in an effective report suitable for company executives. The Business Plan Report Manager is responsible for ensuring the quality of the final product. The business plan is limited to 25 single-spaced pages, excluding TOC, executive summary and references. Everything should be contained in a single electronic MS Word document.
- Table of Contents
- Executive Summary
- Direction Setting
- Environmental Analysis
- Competitive/Resource Analysis
- Strategy Development
- Implementation Plan
- Conclusions
- References in APA format
Business Plan Grading Criteria
| Section | Description | Points |
| Executive Summary | The Executive Summary gives the reader the “bottom line” of the business plan. It should stand alone and is not an introduction or a summary of the whole report. Be concise and use subheadings. | 5 |
| · Problem
· Solution · Justification · Benefits/Financial Projections · Call to Action (what do you want the Board to do?) · 1 page maximum. Start the main business plan on a new page. |
||
| Packaging, Format, Organization | · 25-page maximum, excluding title page, TOC, executive summary, references (-1 point for every page over)
· Table of Contents · Single online submission that contains all components plus hard copy turned in on due date · Portrait orientation, pages numbered · Consistent formatting throughout · Good flow and organization – no redundancies · Follows standard font, margin guidelines · Headings/titles to identify primary and subsections · Tables correctly formatted – no split cells · At least 15 references at end in APA format that include company’s 10k and annual report – no Wikipedia. Must include 10 non-internet (i.e., reliable, library) sources. Internet resources must be properly referenced, with title, date and author, not just the web site. References should be current – nothing earlier than 2016 unless used for historical comparison. · Grammar, spelling, no typos, no handwriting · Effective use of spacing. Do not cram stuff together to stay within page limit. |
5 |
| Body of Report | The main business plan consists of the most important items from the progress reports. In most cases, you are not writing anything new, just revising and packaging what has been done. Make sure you make the revisions on the feedback sheets, since that influences your grade. In business, it is never a good idea to disregard suggestions made by your boss! | |
| Direction Setting | 5 | |
| Environmental Analysis | 5 | |
| Competitive/Resource Analysis | 5 | |
| Strategy Development | 5 | |
| Implementation | 5 | |
| Conclusion | The conclusion should be brief (1 paragraph) and persuasive. End on a strong optimistic tone. |
5 |
| · Why the recommended strategies should be adopted
· Benefits and Risks · Strong Ending |
||
| TOTAL | 40 |
Helpful Hints
Coordination
It is important that the plan flows. With each member preparing sections, it can end up looking like a bunch of independent reports strung together. Check for repetitiveness and inconsistencies, provide transitions, and make sure the report is consistently formatted throughout. Start each section (PR) with a primary heading, but it does not have to start on a new page.
Do not do a “Sales Pitch”
A business plan is an important internal document. It is used by the executives to drive decisions and actions. Your job is not to tell the executives how wonderful the company is! Be critical and try to focus on problems and solutions, rather than advertising the virtues of the company.
Keep it short and simple!
The reports should be clear, concise and well-written. Tables, charts and figures are often better than words when effectively displayed, but make sure there is a brief explanation of their contents. Use short, targeted paragraphs and bullet points rather than lengthy essays. Every page should have headings/subheadings to separate topics.
Be complete
The business plan should contain all the components required for each progress report. Do not shorten it by eliminating essential items.
Submission Format
The report should be submitted in 2 formats: (1) a hard copy suitable for submission to company executives, (2) an electronic group submission through WebCampus.
Part 3. Presentation to Board of Directors
The final presentation is your chance to pitch your idea to the Board of Directors. Your presentation should be professional but you can be creative in your slides and delivery. Focus on key findings and effective visual aids, leaving the detail to the written report.
- 20-slide, 20-minute maximum plus 5 minutes Q&A
- Only Microsoft PowerPoint is accepted.
- Include all major components of the business plan. Make sure to include all the visual/graphic items.
- Present strong case for adopting the recommended strategies.
- Teams NOT presenting should be prepared to ask questions in their role as Board of Directors and rate the presenting teams on a form provided.
- No reading! Rehearse so the presentation flows smoothly.
- Every team member must present. Anyone who does not present gets no credit for any aspect of the presentation.
- Team leads its own Q&A and keeps track of its own time.
- Submit electronic copy via Webcampus and hard copy in class.
- Presenters should dress in professional business attire. No sandals, athletic shoes, shorts, jeans, caps, t-shirts, mini-skirts, logo apparel. Business suit preferred.
Presentation Grading Criteria
The grade is a combination of instructor and peer ratings.
| Category | Measurement | Description | Points |
| Delivery | Nonverbal Communication | Maintains eye contact, stands up straight, effective (not excessive) gestures, pleasant facial expression | 4 |
| Verbal Communication | Loud and clear, effective rate of speed, articulates clearly, avoids “ums”, correct grammar, vocal variety | 4 | |
| Professionalism | Business attire, demeanor, respect, coordinated flow of presentation | 4 | |
| Q&A | Handles Q&A Effectively | 4 | |
| Time Management | Stays within allotted time. Does not “hog” time. | 4 | |
| Content | Introduction | Catches audience attention, establishes credibility, previews main points | 4 |
| Body | Well organized, relates topic to audience, main points fully supported | 4 | |
| Includes all main sections of business plan | |||
| Conclusion | Reviews main points, memorable, strong ending, recommendations made | 4 | |
| Visual Aids | Effective use of charts, graphs, text and visuals in Powerpoint | 4 | |
| Format/
Appearance |
Not cluttered, big enough to see, no typos, professional yet appealing | 4 | |
| TOTAL | 40 |
Companies for Analysis
The company must be a publicly traded hospitality business with multiple brands. Listed below are several to choose from. A lottery will be held to determine the order of choice. Other companies will be considered if you have a favorite.
- Choice Hotels (CHH): Multi-brand hotel chain
- Darden Restaurants (DAR): Casual-upscale dining company
- Eldorado Resorts (ERI): Casino operator with several brands in 10 states
- Extended Stay America (STAY): Extended stay hotel operator
- Hyatt (H): Major global hotel brand
- Pinnacle Entertainment (PNK): Casino operator with several brands in 6 states
- Royal Caribbean Cruises Ltd. (RCL): Multi-branded cruise company
- Yum Brands (YUM): Owns quick service restaurant chains
