Strategic Analysis Team

Assignment October 14
MAR 3231
Fall 2008

Focal Retailer
Teams

Focal Retailer

Competitors

Publix

Whole Food, Kroger

Whole Foods

Publix, Kroger

Target

Wal-Mart, Costco

Costco

Wal-Mart, Target

Walgreens

RiteAid, CVS

CVS

RiteAid, Walgreens

Best Buy

Radio Shack, Circuit City

Radio Shack

Best Buy, Circuit City

Components of Report
z
z

z
z
z

(10%) Review the history of the retailer, identify its

direct competitors. and describe its general strategy
(20%) Outline the retailers strengths (its basis for
competitive advantage) and its weaknesses relative to
competitors activities undertaken to improve position
(20%) Include a financial analysis for the retailer
comparing its present to past performance and to
performance of competitors.
(10%) What the threats in the environment that may
adversely affect is performance?
(20%) What are logical growth opportunities being
pursued or could be pursued for the firm?
(20%) Assess its performance and position in the
marketplace, and prospects for the future. What does
it need to do in the future to provide strong financial
returns? Why?

Strategic Analysis
z

Discussed in Chapter 5
z
z
z
z

Components of a strategy
Strengths Competitive advantages
Types of growth opportunities
Threats Think about the future

Sources of information focal company and

competitors, retail sector
z
z
z
z

Articles in trade press, WSJ, NYT

SEC Filing 10K
Analysis reports
Company websites

Financial Analysis
Exhibit 612
Financial Performance of Macy's Inc. and Other National Department Store Chains
Macy's
Net sales (millions $)
Gross margin %
Overhead (SG&A $ of sales)
Net profit % (before taxes)
Return on assets
Inventory turnover (year end inv/
annual sales)
Sales per square foot
Sales per employee
Growth in sales 2006/2005
% change

Sears
19,903

53,012

39.90%

39.30%

28.70%

3.70%

Asset turnover

Comparable store sales

JCPenney
26,970

5.80%

2.80%

0.91

1.57

1.76

3.37%

9.11%

6.48%

2.91

3.55

3.82

172

193

181

143,457

131,808

168,292

16.98%

5.64%

7.33%

4.40%

3.70%

-3.70%

Financial Analysis
z Discussed
z Sources

in Chapter 6
of information

SEC Filing 10K reports

Hoovers
z Company website annual report
z
z

Deliverables
z 10-20

page report plus exhibits

Bibliography
z Business style
z Outline make point with support
z Coherent
z Figures and tables
z

z Presentation

-10 minutes

Everyone does not need to present

z No more than 10 slides
z