MD ISFM-300 Case Study - Business Environment Analysis

ISFM-300 Case Study, Stage 1: Business Environment Analysis Before you begin this assignment, be sure you:
1. Have completed all previously assigned readings, particularly those assigned in Week
1 of the class
2. Read the “Kelly's Salon Case Study" and review the “Walmart Example.” Purpose of this Assignment This assignment gives you the opportunity to apply the concepts of the Porter Five Forces model to
a specific business, explain and support an identified a strategy for competitive advantage for
Kelly's Salon, and analyze the identified business process that could be improved with the use of
technology. This assignment specifically addresses the following course outcomes to enable you
to: Overview of Business Environment Analysis for Kelly's Salon
Kelly's Salon has been in business since 1995 and has seen an increase in competition from
a variety of competitors, as described in the Case Study. With the news that a Hair Cuttery
is likely to open only five miles away, Kelly, the owner of Kelly's Salon, is concerned and has
begun analyzing her situation and what could be done to remain competitive in this
changing environment. She has recognized that scheduling her employees and her
customers is causing her problems, and she thinks she should focus on that first,
as it is fundamental to her business. Kelly also believes that there must be a
technology solution that could help her run her salon, but she has no idea where to start.
You are a Systems Analyst, and Kelly has asked you to help her with determining how she
can improve her business. Kelly has requested, specifically, that you verify and provide
added support to her own analysis that has resulted in the identification of a Strategy for
Competitive Advantage and a Business Process for Improvement. This will be the basis for
defining business and systems requirements for an IT solution. This Strategy and IT Solution
will help to bring Kelly's Salon into the 21st century and take advantage of current
technology. You will analyze her business environment using Porter's Five Forces Analysis.
Then, you will use the results of that analysis to explain how it supports Kelly’s Strategy for
Competitive Advantage, and the business process that she selected for improvement
through the use of technology.
It is important to note that a business owner has many areas where improvements can be
made, such as: staff, building facility, supplier agreements, advertising, etc. There are also
many possible solutions that could improve the business strategy and processes. Since time
and costs are involved, the owner should address basic problems first in choosing the
strategy and which processes to improve. (Consider a lemonade stand; while it would be
nice to have a chair to sit behind a table to serve the lemonade to customers, that is not
crucial; however, having lemonade and cups are crucial to the business.)
A second important concept for this class is that, among all the ways that competitive
advantage and processes can be improved, the focus is on information technology solutions.
In your role as a Systems Analyst, you will be supporting Kelly's selected strategy and
process for improvement, and proposing an appropriate IT solution. This work begins with
an analysis of Kelly's Salon using the Five Forces Model. 7/8/2016 - Rev 1 1|Page
ISFM-300 Stage One Case Study Five Forces Analysis:
You know that Michael Porter’s Five Forces Model is a useful tool for analyzing a business.
The Model is used to help understand the importance of the five competitive forces and
determine a strategy to develop and maintain a competitive advantage. The Five Forces are
described and discussed in Chapter 7 of the e-textbook. They are: Buyer Power Supplier power Threat of substitute products or services Threat of new entrants Rivalry among existing competitors Strategy for Competitive Advantage:
After reviewing Porter's Generic Strategies for competitive advantage, as shown in the table
below, Kelly has decided on the Cost Leadership Strategy because she wants to provide a
variety of services at a cost that is lower than her competitors and thereby attract more
customers. She knows that she can offer lower costs than the Hair Cuttery that is opening
nearby, but she will need to make some improvements to do that. Target Scope Advantage
Low Cost Product Uniqueness Broad
(Industry Wide) Cost Leadership Strategy Differentiation Strategy Narrow
(Market Segment) Focus Strategy
(low cost) Focus Strategy
(differentiation) Business Process:
Following a Five Forces Analysis and selection of a strategy for competitive advantage, the
next step is to identify a process for improvement that will support the strategy and provide
the most benefit, and position the business for future improvements. While there are
several areas in need of improvement, Kelly has decided that Customer and Employee
Scheduling is the most important process to be improved.
In your role as Systems Analyst, Kelly wants you to provide solid justification for the strategy
for competitive advantage and the business process that she has selected, and help her
determine if an information technology solution can help.
Assignment: Kelly's Salon Stage 1: Create a document that includes:
I. Introduction 11/1/2015 Rev 2 ISFM-300 Case Study, Stage 1: Business Environment Analysis
2|P a g e Brief introduction providing the background of the case, why you are writing and what is to
come in your paper. This should only be 3-5 sentences. II. Five Forces Analysis Perform a Porter's Five Forces analysis for Kelly's Salon, addressing each of the five
forces in two or three sentences. For each of the five forces, your analysis should include: Explanation of the force and what it means to Kelly's Salon Assessment of the force’s impact (Positive, Negative or Neutral) on the business A statement as to whether it should affect Kelly’s strategy for a competitive
advantage (yes or no). You will copy the table below into your paper and use it as the framework for this analysis.
FIVE FORCES ANALYSIS FORCE EXPLANATION
(Minimum 2 good sentences) IMPACT
(POSITIVE,
NEGATIVE, or
NEUTRAL) AFFECT
STRATEGY?
(YES/NO) BUYER POWER
SUPPLIER POWER
THREAT OF SUBSTITUTE
PRODUCTS OR SERVICES
THREAT OF NEW ENTRANTS
RIVALRY AMONG EXISTING
COMPETITORS
[Note] Do not identify solutions or things that Kelly should do to address the force’s impact. (The idea
is to simply identify an assessment of the impact and if the force will affect Kelly's Salon’s Strategy for
Competitive Advantage.) III. Justification of Selected Strategy for Competitive Advantage IV. Explain how Kelly’s selected strategy for competitive advantage – Cost Leadership
Strategy -- is justified and supported by the Five Forces Analysis.
Relate the strategy back to each of Porter’s five forces discussing the impact of the
strategy based on your assessment of the force (positive, negative, or neutral).
Business Process 11/1/2015 Rev 2 ISFM-300 Case Study, Stage 1: Business Environment Analysis
3|P a g e Explain how the process Kelly has identified to be improved – Customer and
Employee Scheduling -- is related to and supports the strategy for competitive
advantage Kelly selected.
Explain generally how a technology solution could help improve the process. (Do not
provide any specific solution.) References: Provide at least one external resource in your paper on an area of your
choice. Note that two or more external resources are required for maximum points. An
external resource is a resource other than those provided in the class or textbook.
Incorporate a properly formatted APA citation in the text of your document. Then, place an
APA style reference page at the end of your document.
Formatting:
For academic writing, the writer is expected to write in the third person. In third person, the
writer avoids the pronouns I, we, my, and ours. The third person is used to make the writing
more objective by taking the individual, the “self,” out of the writing. This method is very
helpful for academic writing, a form in which facts, not opinion, drive the tone of the text.
Writing in the third person allows the writer to come across as unbiased and thus more
informed. Write a short concise paper: 2-3 double spaced pages of content; table entries for the
Five Forces analysis should be single spaced.
Use at least one external resources with APA formatted citation and reference.
Include a title page and a reference page.
Compare your work to the Grading Rubric below to be sure you have met content and
quality criteria.
Submit your paper as a Word document, or a document that can be read in Word.
Your submission should include your last name first in the filename:
Lastname_firstname_Stage_1 GRADING RUBRIC:
The "right" and "wrong" answers have to do with whether or not you correctly incorporated
the course vocabulary and concepts from the textbook to support your choices and have
addressed all parts of the assignment. ISFM-300 Case Study, Stage 1 Rubric: Business Environment Analysis 11/1/2015 Rev 2 ISFM-300 Case Study, Stage 1: Business Environment Analysis
4|P a g e 90-100%
Far Above
Standards Criteria Five Forces
Analysis 80-89%
Above
Standards 60-69%
Below
Standards < 60%
Well Below
Standards 41-45 Points 36-40 Points 31-35 Points 27-30 Points 0-26 Points Analysis covers all 5
forces, explaining
them and their
impact on the
business in the case
study (Positive,
Negative or Neutral)
and whether it
should affect the
strategy (Yes/No);
and strongly
demonstrates
understanding of
course vocabulary
and concepts,
analysis and critical
thinking. Analysis covers all
5 forces, explaining
them and their
impact on the
business in the
case study
(Positive, Negative
or Neutral) and
whether it should
affect the strategy
(Yes/No); and
demonstrates
understanding of
course vocabulary
and concepts,
analysis and
critical thinking. Analysis covers all
5 forces,
explaining them
and their impact
on the business in
the case study
(Positive,
Negative or
Neutral) and
whether it should
affect the
strategy (Yes/No).
Minimal use of
course concepts
and vocabulary. Analysis covers 14 forces, and/or
lacks explanations
and/or strategy;
may be lacking in
demonstration of
understanding of
course concepts,
analysis, and/or
critical thinking. Analysis not
included, or
does not
address many
of the 5 forces. 14-15 Points 12-13 Points 0-11 Points The selected
strategy for
competitive
advantage is
supported based
on the
explanation of the
Five Forces
Analysis of the
business and
explained
demonstrating
some
understanding of
course
vocabulary,
concepts, analysis
and critical
thinking. The selected
strategy for
competitive
advantage is not
adequately
supported based
on the
explanation of the
Five Forces
Analysis of the
business, does
not come from
analysis of the
Case Study,
and/or is lacking
in demonstration
of understanding
of course
vocabulary,
concepts, or
analysis. 16-17 Points
18-20 Points Justification
of Selected
Strategy for
Competitive
Advantage 70-79%
Meets
Standards The selected
strategy for
competitive
advantage is
exceptionally well
supported based on
the explanation of
the results of the
Five Forces Analysis
of the business, and
is fully explained
demonstrating a
strong
understanding of
course vocabulary,
concepts, analysis
and critical thinking. 11/1/2015 Rev 2 The selected
strategy for
competitive
advantage is well
supported based
on the explanation
of the Five Forces
Analysis of the
business and is
adequately
explained
demonstrating
understanding of
course vocabulary,
concepts, analysis
and critical
thinking. Possible
Points No analysis
and/or
discussion of
strategy for
competitive
advantage
selected is
provided or
little effort is
shown. ISFM-300 Case Study, Stage 1: Business Environment Analysis
5|P a g e 45 20 8 Points 7 Points 6 Points 0-5 Points The explanation of
how the selected
business process is
related to and
supports the
strategy for
competitive
advantage and the
explanation of how
technology could
improve the
process are clear
and complete; and
demonstrate a
good
understanding of
course vocabulary,
concepts, analysis
and critical
thinking. The explanation
of how the
selected business
process is related
to and supports
the strategy for
competitive
advantage and
the explanation of
how technology
could improve the
process are both
provided; and
demonstrate an
understanding of
course
vocabulary,
concepts, analysis
and critical
thinking. The explanation
of how the
selected business
process is related
to and supports
the strategy for
competitive
advantage and
the explanation of
how technology
could improve the
process may not
both be provided,
or may not be
clear or relevant;
and may
demonstrate a
lack of
understanding of
course
vocabulary,
concepts, analysis
and critical
thinking. The
explanation of
how the
selected
business
process is
related to and
supports the
strategy for
competitive
advantage and
the
explanation of
how
technology
could improve
the process
are not
provided; or
little effort is
shown. 8 Points 7 Points 6 points 0-5 Points Two or more
sources other than
the textbook are
incorporated and
used effectively.
Sources used are
relevant and timely
and contribute to
the analysis.
References are
appropriately
incorporated and
cited using APA
style. At least one source
other than the
textbook is
incorporated and
used effectively.
Source(s) are
relevant and
contribute to the
analysis.
References are
appropriately
incorporated and
cited using APA
style. At least one
external resource
used and properly
incorporated into
the text.
Reference is cited
using APA style. A source other
than the textbook
may be used, but
is not properly
incorporated or
used and/or is not
effective or
appropriate
and/or is not
relevant or timely;
and/or does not
follow APA style
for references and
citations. 14-15 Points 12-13 Points 10-11 Points 9 Points 0-8 Points Report is very well
organized and is
easy to read. Very
few or no errors in
sentence structure,
grammar, and
spelling; doublespaced, written in
third person and
presented in a
professional format. Report reflects
effective
organization; has
few errors in
sentence structure,
grammar, and
spelling; doublespaced, written in
third person and
presented in a
professional
format. Report has some
organization; may
have some errors
in sentence
structure,
grammar and
spelling. Report is
double spaced
and written in
third person. Report is not well
organized, and/or
contains several
grammar and/or
spelling errors;
and/or is not
double-spaced
and written in
third person. Report is
extremely
poorly written,
has many
grammar
and/or spelling
errors, or does
not convey the
information. 9-10 Points Process to
Improve The explanation of
how the selected
business process is
related to and
supports the
strategy for
competitive
advantage and the
explanation of how
technology could
improve the process
are clear, complete
and convincing; and
demonstrate a
strong
understanding of
course vocabulary,
concepts, analysis
and critical thinking. 9-10 Points External
Research Report
Format 10 No external
research is
incorporated
or reference
listed is not
cited within
text. TOTAL
Points
Possible 11/1/2015 Rev 2 10 15 100 ISFM-300 Case Study, Stage 1: Business Environment Analysis
6|P a g e