Project-Tool Analysis Report

Project-Tool Analysis for the company: Acacia Communications, Inc. (NSM: ACIA)

https://www.sec.gov/Archives/edgar/data/1651235/000165123520000022/aciaq4201910k.htm

Please do not include a title page, I will do this.
You will use the tools and apply concepts learned in this and previous business courses to demonstrate an understanding of how organizations develop and manage strategies to establish, safeguard and sustain its competitive position in the 21st century (rapidly evolving/shifting/changing), uncertain hyper-competitive business environment.

Monitoring competitors’ performance is a key aspect of performing an external environment analysis. This project provides you with the opportunity to evaluate the competitive position of one of the organizations listed below and integrate that information in a partial SWOT (OT), Porter’s Five Forces, External Factor Evaluation (EFE) matrix and Competitive Profile Matrices (CPM).

In this project, you are presenting a report document. The expectation is that the report provides the level of details to help the audience grasp the main topics and to understand and complete the External Environmental Analysis.

Analysis is the operative word. In analyzing the external environment, you are expected to thoroughly research and take that research and break it into small parts to gain a better understanding of what is happening in the external environment of the business. In researching an industry, it is important to understand that every company within an industry is different so gathering information on one company does not mean that the collected information is relevant to other companies within that industry. When researching, parsing the material is critical to an accurate analysis. Avoid presenting just any information as that may lead to using irrelevant information.

You will then write the report in your own words to share the external analysis. You are expected to present information and support the ideas and reasoning using the course material and your research. You will not lift any information from source documents without properly citing and referencing. For the technical analysis aspect of the project, you are required to create the technique on your own and may not use it from any source material that you happen to find.

BCG matrix: Relative market share vs market growth rate
How to compute the relative market share for each product category

BCG matrix is to evaluate the relative market share of each product category against the industry market growth rate of that product category in the portfolio of product categories.
• Use two different examples for 3 product categories for the 1st focal company and 5 product categories for the 2nd focal company.

Example 1 with three product categories
The 1st focal company X has a product portfolio of three product categories A, B, and C which makes up three different percentages (such as 60, 30, 10% respectively) in the total revenues of that focal company.
a. Calculate the relative market share for product category:
Let’s assume 6 companies compete in the whole industry with respect to product category A. The researcher would need to research all the revenues of that product category A for each competitor in the whole industry to determine which company is the largest competitor. Compare the focal company’s revenue in product category A with the revenue of the largest competitor for product category A to calculate the relative market share of the focal company in product category A.
a. Research the market growth:
How much is the growth rate for product category A for the whole industry? You need to find that out by research.
a. Determine the relative location in BCG
These two results from (a) and (b) determine the relative location of product category A in BCG matrix of the focal company.

Completing the above steps (a), (b), and (c) is for product category A only.
Please note that one identical set of companies may compete in one product category of the focal company, but not in another product category of that focal company. Hence, different product categories of the focal company may involve different sets of competitive companies. That is why the total competing companies change for product category B and product category C in my illustrative example.
For product category B, let’s assume 10 companies (instead of 6 companies) are competing in the industry for the second product category. Repeat the same process of (a), (b) and (c).

Maybe for product category C, let’s assume 15 companies (instead of 6 or 10 companies) are competing in the industry for the third product category. Repeat the same process.

After completing the process 3 times, the relative positions of 3 product categories have been determined in the BCB matrix for focal company X.
In summary, for 3 product categories, the computational process of steps (a), (b) and (c) would need to be repeated 3 times.

Example 2 with 5 product categories
For the 2nd focal company Y, let’s assume there are 5 product categories A, B, C, D, E and F, and the respective product categories in revenues of the focal company are 40, 25, 20, 15 and 5% respectively in the total revenues, the researcher needs to repeat the same process of steps (a), (b), and (c) 5 times so that 5 relative positions of 5 product categories are determined for placement in BCG matrix for company Y.
In summary of the two illustrative examples, for each product category, compute the focal company’s relative market share, and research industry growth. Repeat the same process for all the remaining product categories.
BCG matrix: Intra-company product portfolio analysis
BCG matrix is used to evaluate the product categories within the product portfolio of a single company, (that is, intra-company evaluation of its product portfolio of “product categories”) because “intra-company” means “within the same company that has one or more business units.”

BCG matrix is not to be used for evaluating the product categories of one company/corporation against its competitors (in this latter case, “inter-company evaluation”) because “inter-company” means “among different companies/corporations that are not under the same parent corporation”.

You can just use the Excel program to build from scratch by using 9 cells, select 9 cells, and place the intersection at the appropriate placement in the appropriate cell together with all the necessary values for X-axis and Y-axis.

Total weighted scores from IFE Matrix is on the X-axis (X-values extend from right to left; that is to say, X-values increase leftwards).
Total weighted scores from EFE Matrix are on the Y-axis. (Y-values extend from the bottom upwards, that is to say, Y-values increase upwards.)
After drawing in Excel, you can copy that matrix table from Excel and paste it into Microsoft document for the project.

If you cannot use Excel, you may use an engineering draft paper to build your 9 cells, draw the intersection manually, and provide all the necessary X-axis and Y-axis values. Then scan the graphical representation and paste it into the Microsoft document as a drawing to the written content of the project.

Instructions:
Step 1: Specific Company for All Four Projects
The companies that your instructor has assigned to you for Project 1 is the company you will use for this project. The assigned company must be used for this project and in subsequent projects in the course. Students must complete the project using the assigned company. Deviating from the assigned company will result in a zero for the project.
After reading the course material, you will complete the steps below.

Step 2: Course Materials and Research
• You are required to research information about the focal company and the internal environment for this project, you are accountable for using the course materials to support the ideas, reasoning, and conclusions made. Course materials use goes beyond defining terms but is used to explain the ‘why and how’ of a situation. Using one or two in-text citations from the course materials and then relying on Internet source material will not earn many points on the assignment. A variety of source material is expected and what is presented must be relevant and applicable to the topic being discussed. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally showing an understanding of the logical connections between the ideas presented from the research, the course material and the question(s) being asked.
• Note: Your report is based on the results of the research performed and not on any prepared documentation. What this means is that you will research and draw your own conclusions that are supported by the research and the course material rather than the use any source material that puts together any of the tools or techniques whether from the Internet, for-pay websites or any pre-prepared document, video or source material. A zero will be earned for not doing your own analysis.
• Success: The analysis is based on research and not opinion. You are not making recommendations and you will not attempt to position the focal company in a better or worse light than other companies within the industry merely because you are completing an analysis on this particular company. The analysis must be based on factual information. Any conclusions drawn have to be based on factual information rather than leaps of faith. To ensure success, as stated above, you are expected to use the course materials and research on the focal company’s global industry and the focal company. Opinion does not earn credit nor does using external sources when course materials can be used. It is necessary to provide explanations (the why and how) rather than making statements. Avoid stringing one citation after another as doing so does not show detailed explanations.

• You should not be using obscure articles, GlassDoor, or Chron or similar types of articles.
• Research for Financial Analysis: Financial Research
• Research for Industry Analysis CSI Market
• Utilize a set of useful analytical skills, tools, and techniques for analyzing a company strategically,
• Integrate ideas, concepts, and theories from previously taken functional courses including accounting, finance, market, business, and human resource management.
• You may also use Market Line and should be looking at the focal company’s Annual Report or 10K report. You are not depending on any one resource to complete the analysis.

Step 3: How to Set Up the Report
• The document has to be written in Word. No other format is acceptable. No pdf files will be graded. Use a 12-point font for a double-spaced report.
The final product cannot be longer than 10 pages in length, which includes all tables and matrices but excludes the title page and reference page. Do no use an Appendix.

Step 4: Industry Analysis
• Perform Porter’s Five Forces analysis on the organization’s industry and the focal company in particular. The industry is the global industry. First, use the course materials to identify the five forces and what components make up each force. Then, perform an analysis of each force that clearly discusses the ‘why and how’ and concludes with the effect of the given force on the fortunes of the industry (industry profitability) and/or industry dynamics; that is whether the effect of the force on the industry is weak/modest/average/moderate or strong/severe and also on the focal company. You may not use Porter’s Five Forces analysis that is already completed and available on the Internet. A zero will result if used as the analysis has to be the result of your research and your own development.

Step 5: Competitive Analysis
• Perform a Competitive Analysis using the focal company’s closest three competitors plus the selected company. Explain why these companies are competitors. Analyze the competition’s products and services explaining features, value, targets, etc. What are the competition’s strengths and weaknesses and what is the market outlook for the competition?
• Identify and discuss at least eight (8) key success factors (critical success factors). Each industry has different key success factors so make sure the success factors fit the industry. Review the Competitive Profile Matrix Example under week 3 Content for clarification.
• Develop a Competitor Profile Matrix (CPM). Explain how you developed the matrix. Make sure to support your reasoning.

Step 6: Partial SWOT Analysis
A SWOT analysis is a tool used to assess the strengths and weaknesses (internal environment) and the opportunities and threats (external environment) of an organization. You will complete a partial SWOT analysis but only completing an analysis on the OT (Opportunities and Threats). The information presented is not based on your beliefs but on fact-based, data-driven information. The items used in the OT are factors that are affecting or might affect the focal company or those companies within the identified industry.
You will:
• Develop an OT table using your research to identify at least five (5) opportunities and five (5) threats that influence the industry and the focal company. Make sure to cite the elements within the table.
• Perform an OT analysis (separate from SWOT table).
• You may not use a SWOT analysis that is already completed and available on the Internet. The OT is for the focal company and no other company. A zero will result if used as the analysis has to be the result of your research and your own development. NOTE: A matrix is a table. It is not an analysis.

Step 7: External Factor Evaluation (EFE) Analysis
The External Factor Evaluation (EFE) matrix will allow you to use the information from the industry analysis and the competitive analysis to assess whether the focal company is able to effectively take advantage of existing opportunities while minimizing the identified external threats that will help you formulate new strategies and policies. You will use the opportunities and threats from the OT analysis.
• Using the information gathered for the OT analysis, develop an EFE matrix using five (5) opportunities and five (5) threats. Discuss how you developed the EFE matrix and the outcome. Make sure to support your reasoning.
Step 8: Conclusion
Create a concluding paragraph. The Conclusion is intended to emphasize the purpose/significance of the analysis, emphasize the significance/consequence of findings, and indicate the wider applications that are derived from the main points of the project’s requirements. You will draw conclusions about the findings of the external environment analysis.