ABC Corporation Strategic Management Case Study Guide

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Case Study: Projections, NPV, Compilation Assignment Instructions Overview Continue working on the individual case study started in Case Study: Matrices Assignment of ABC Corporation. Complete this portion of the case study: Case Study: Projections, NPV, Compilation Assignment. A formal, in-depth case study analysis requires you to utilize the entire strategic management process. Assume your group is a consulting team asked by the ABC Corporation to analyze its external/internal environment and make strategic recommendations. You must include exhibits to support your analysis and recommendations. Instructions The completed case study must include these components, with portions to be submitted over several modules as the Case Study: Matrices Assignment, the Case Study: Historical Financial Analysis Assignment, and the Case Study: Projections, NPV, Compilation Assignment. Cover page (must include the company name, your name, the date of submission, and a references page; the document must follow current APA guidelines) A total of 12 – 15 pages (for all there parts, combined) of narrative text, this does not include the financial statements, reference pages, or matrices Reference page (follow current APA guidelines) Historical Financial Statements, Proforma Financial Statements, NPV Calculations and a Cost Sheet for the strategy in an Excel document Matrices, which must be exhibits/attachments in the appendix and not part of the body of the analysis (The Strategy Club has excellent templates/examples for exhibits and matrices). You will use the information completed in Case Study: Matrices, and Case Study: Historical Financial Analysis as part of your Case Study: Projections, NPV, Compilation Assignment final document. Be sure to make any corrections to Part One and Part Two based on feedback given on each of the assignments. Your Case Study: Projections, NPV, Compilation Assignment paper must include: Executive Summary – this should be no more than one page and provide the reader with an overview of what will be contained in the following pages. The problem and strategic solution being recommended should be in this summary. Details for the choice and implementation and data to support the decision should be contained in the following sections. Existing mission, objectives, and strategies A new mission statement (include the number of the component in parenthesis before addressing that component) Analysis of the firm’s existing business model SWOT Analysis TOWS Matrix Competitive forces analysis Historical Financial Statements (Income Statement, Balance Sheet, and Statement of Cash Flows) from the 3 most current years for the firm Historical Ratio Analysis Competitors Ratio Analysis Alternative strategies (giving advantages and disadvantages for each). There should be at least two alternative strategies identified and discussed. Projected Financial Statements (Income Statement, Balance Sheet and Statement of Cash Flows) for 3 years into the future. This must be broken down by year into two (2) columns: 1 column without your strategy and 1 column with your strategy. The without column should serve as the basis for your with strategy column and only those financial statement accounts that will be changed, based on your strategy, should be impacted. Include Projected ratios for the without and with strategy by year. Discuss how these ratios compare and contrast with the historical findings. Cost Analysis completed on an Excel tab that outlines the cost that will be incurred to implement the strategy. This information should correspond with the With Strategy on the Projected Financial Statements, linking of cells to the financial statements is encouraged. Net Present Value analysis of proposed strategy’s new cash flow – you may also use Excel to solve for this. From the income statement the change in operating income between your with and without strategy should serve as your cash inflow for each year. NOTE: To construct the first cash flow (cf1) the new revenue from your strategy(s) must be discounted back to the present value by calculating EBIT (Operating Income on the Income Statement) and that figure will be your cfn for each year. cf0 (initial cost of your strategy), cf1 (discounted cash flow first year), r (opportunity cost of capital, the rate of the next best alternative use of cash/debt/equity resources). Implementation strategy – how and when will the strategy be implemented, this should outline the who, how, what, and when of the implementation process. Specific recommended strategy and long term objectives Explain why you chose the strategy, discuss the advantages/benefits to organizational success and sustainability. Incude a discussion of the challenges or disadvantages that may arise as a result of the strategic choice. Text must follow this order with current APA level headings for each component. Place the results of the case study analysis in a Word document include matrices as appendices and a reference page. Submit a separate Excel document for your Historical financials, Projections, NPV, and Cost of the strategy.

 

Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!

This detailed guide walks students through every section required for the Case Study: Projections, NPV, Compilation Assignment.
Use it to organize your writing, Excel documents, matrices, and strategic analysis in a way that follows the assignment instructions precisely.

✅ Step-by-Step Guide for Completing the Full Strategic Case Study

This assignment compiles all three parts of the case study (Matrices + Historical Financial Analysis + Projections & NPV).
Your final Word document will be 12–15 pages of narrative, plus appendices and a separate Excel file.

Let’s break each requirement down clearly.

Step 1: Prepare Your Final Document Structure

Your Word document should follow this exact order with APA level headings:

  1. Cover Page

  2. Executive Summary

  3. Existing Mission, Objectives, and Strategies

  4. New Mission Statement

  5. Analysis of the Existing Business Model

  6. SWOT Analysis

  7. TOWS Matrix

  8. Competitive Forces Analysis

  9. Historical Financial Statements

  10. Historical Ratio Analysis

  11. Competitor Ratio Analysis

  12. Alternative Strategies

  13. Projected Financial Statements (With & Without Strategy)

  14. Projected Ratio Analysis (With & Without Strategy)

  15. Cost Analysis (Excel-linked)

  16. Net Present Value Analysis (NPV)

  17. Implementation Strategy

  18. Specific Recommended Strategy & Long-Term Objectives

  19. References

  20. Appendix (Matrices & Exhibits)

Your separate Excel file must include:
✔ Historical financials
✔ Projections for 3 years (with & without strategy)
✔ Cost sheet
✔ NPV calculations

Step 2: Write the Executive Summary (1 page max)

This summary should briefly outline:

  • The core problem ABC Corporation is facing

  • The strategy you will recommend

  • Major findings from your financial, internal, and external analysis

  • Expected outcomes and strategic benefits

This is not a teaser—it is a full but concise overview of the entire study.

Step 3: Present Existing Mission, Objectives & Strategies

Explain:

  • The company’s current mission

  • Long-term and short-term objectives

  • Existing strategies (corporate, competitive, functional)

Discuss whether these elements are effective or misaligned.

Step 4: Write a New Mission Statement

Your new mission must include at least nine components, each marked with a number:

Example format:
(1) Customers: …
(2) Products & Services: …
(3) Markets: …

Continue until all mission components are addressed.

Step 5: Analyze the Business Model

Describe:

  • How the company creates value

  • Core activities and resources

  • Cost structure and revenue model

  • Competitive advantage (or lack thereof)

  • Weaknesses or risks in the business model

Support with industry data when possible.

Step 6: Complete the SWOT Analysis

Include:

  • Strengths

  • Weaknesses

  • Opportunities

  • Threats

The SWOT must align with your matrices and upcoming strategy.

Place the full SWOT table in the appendix; summarize key points in the narrative.

Step 7: Develop the TOWS Matrix

Your TOWS must contain:

  • SO strategies

  • WO strategies

  • ST strategies

  • WT strategies

These generate strategic options for the company.

Put the full matrix in the appendix.

Step 8: Conduct a Competitive Forces Analysis

Use Porter’s Five Forces:

  1. Rivalry among competitors

  2. Threat of new entrants

  3. Threat of substitutes

  4. Power of buyers

  5. Power of suppliers

Explain which forces are strongest and how they affect ABC Corporation.

Step 9: Insert Historical Financial Statements (3 years)

(Excel Exhibit)

Include:

  • Income Statements

  • Balance Sheets

  • Cash Flow Statements

These go in the appendix or Excel file but must be referenced in your text.

Step 10: Perform Historical Ratio Analysis

Analyze:

  • Liquidity ratios

  • Profitability ratios

  • Leverage ratios

  • Efficiency ratios

  • Market ratios

Interpret trends—do not just list numbers.

Step 11: Compare Competitor Ratios

Pick at least one major competitor.

Compare:

  • Profitability

  • Liquidity

  • Leverage

  • Growth

  • Valuation

Explain what these comparisons imply for ABC Corporation.

Step 12: Identify at Least Two Alternative Strategies

Each strategy must include:

  • Description

  • Advantages

  • Disadvantages

  • Risks and assumptions

Examples:

  • Market development

  • Product diversification

  • Strategic alliances

  • Vertical integration

  • Cost leadership initiatives

Step 13: Create Projected Financial Statements (3 years)

(Excel Exhibit)

Each year must have two columns:

Year Without Strategy With Strategy

The “with strategy” column should update only the accounts impacted by your recommended strategy.

Step 14: Projected Ratio Analysis (With vs Without)

Calculate:

  • Profitability ratios

  • Liquidity ratios

  • Leverage ratios

  • Efficiency ratios

Discuss how your recommended strategy improves (or impacts) these ratios.

Step 15: Build the Cost Analysis (Excel)

Include:

  • Implementation costs

  • Capital expenditures

  • Additional labor costs

  • Technology costs

  • Training costs

  • Marketing or operational rollout costs

Link these to your projected financials.

Step 16: Conduct Net Present Value (NPV) Analysis

Your NPV must include:

  • cf0: Initial implementation cost

  • cf1, cf2, cf3: Change in EBIT each year (with vs without strategy)

  • r: Opportunity cost of capital

A positive NPV indicates a financially viable strategy.

Step 17: Create the Implementation Strategy

Explain:

  • Who is responsible (departments, leadership roles)

  • What tasks are required

  • When each phase will roll out

  • How success will be monitored

This section shows your practical understanding of strategic execution.

Step 18: Write Your Final Strategic Recommendation

Clearly state:

  • The strategy you chose

  • Why it is the best option

  • Expected advantages

  • Long-term benefits

  • Potential risks or challenges

Provide a strong, evidence-based conclusion.

📚 Helpful Resources You Can Use

Strategic Management Tools & Templates

Financial Analysis & Forecasting

NPV & Excel Guidance

APA Writing Support

 

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