DuPont identity case

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Scenario: You are a strategy and finance consultant providing advice to senior leadership at a publicly traded company. Prepare a written and oral project analysis using a combination of finance and strategy following the guidelines below:

  1. Select a publicly traded company to analyze along with a direct competitor. Some sample industries include:
    Retail – Apparelo
    Retail – General Merchandise/Discount Storeo

Retail – Jewelryo
Retail – Cosmeticso
Retail – Supermarket/Groceryo
Retail – Pharmacyo Retail – Dollar Stores (or for a low price)o
Retail – Department Storeso
Retail – warehouseo
Retail – Onlineo
Retail – Specialtyo
Restaurant – Quick Serviceo
Restaurant – Casual Diningo
Restaurant – Fast Casualo
Restaurant – Fine Diningo
Manufacturing – Automotiveo
Computer – hardwareo
Computer – Softwareo
Consumer Good – Manufacturingo
Heavy Equipmento
Computer – networkingo
Oil/Gaso
Handbag Retailer/Manufacturero
Entertainment or theme parkso
Chemicalso
Retail – Home Improvemento
Drug Manufacturers – Majoro
Food Manufacturero
Consumer Electronics Manufacturero
Delivery Companyo
Beverageo
Internet/Cable Companyo

Diversified Machineryo
Communicationso Textile – Apparel Footwearo

Please avoid the following industries:

Bankingo Financial Serviceso
Insuranceo

  1. Calculate the DuPont Identity (Equation) for the past three years using VentureLine (or equivalent) for:
    Your chosen companyo
    Industry averageso A close competitoro
  2. Answer the following questions:
    1. Using chapter 5 of Crafting and Executing Strategy, which generic competitive strategy does your chosen company employ? Justify your answer. The five strategies are:
      Low-Cost Providero
      Focused Differentiationo Focused Low-Cost Providero Broad Differentiationo
      Best-Cost Providero
    2. What does the DuPont Identity tell you about your chosen company’s overall performance versus its competitor and industry benchmarks?
    3. Using industry averages as a benchmark, what advice would you give your company in order to improve their ROE? What strategic moves could the company make to improve their competitive position? (Feel free to use other financial ratios to augment your analysis). Chapter 6 of Crafting &  Offensive- Strategic Option –Improve market positionoExecuting Strategy contains the following categories of types of strategic moves the company can make to improve their competitive position such as:
      •  Defensive Strategy – Protect market position and competitive Advaontage
      •  Scope of Operations – Should they alter range of products or services offered?o
      •  Merger and Acquisition – Acquire or merge with another company either horizontalor verticalo
      •  Outsource Strategy – Narrow scope of products/serviceo
      •  Strategic alliance or partnershipso
        Please prepare a 5-10 page written report along your findings using the guidelines of the rubric for this project.

 

Last Updated on August 7, 2019 by EssayPro