Matsushita Case

Submitted By ek3486
Words: 1189
Pages: 5

Date: 1991
Latest financial information: This is for 1990, at year end of August 31st

Perspective: Investment analyst

Immediate Strategic Consideration: Whether or not to invest funds for a 5 million chateau that would double the companies production

STEP 1. FINANCIAL AND PERFORMANCE ANALYSIS
CdC’s evolving financial performance and position from 1987 -1990 can be analysed, largely based on Case Exhibit 4.
In 1987 sales (in thousands):2489
In 1988 sales (in thousands):1973
In 1989 sales (in thousands):2368
In 1990 sales (in thousands):2073

Based on the information above, analysis of trends and developments in CdC’s financial performance would consist of a downward trend in sales in every second harvest and in its financial position is positive in 1990 thanks to the Extraodinary items ( compensation paid for pipeline) was added after a operating loss was recorded in that year.

STEP 2. BUSINESS ENVIRONMENT AND MARKET ANALYSIS
Based on SSAP Exhibit 11, industry or market/segment key success factors and competitive advantages can be sought. Any disadvantages or weaknesses also can be identified. The market competitive position and performance of Matsushita’s businesses can be analyzed where possible.

STEP 2. EXTERNAL BUSINESS ENVIRONMENT ANALYSIS
Analysis will be on major market competitive drivers, and opportunities and threats faced by CdC. Competition in the wine industry will be analyzed and some assessment made of the market and financial performance of competitors. The strength of CdC is its winery location in Niagara which is a tourist attraction area. This creates a competitive advantage over CdC’s competitors. This therefore creates an enormous opportunity for CdC as it can increase their current visitors of 80 000 just by enlarging its Niagara winery.
STEP 2. BUSINESS ENVIRONMENT AND MARKET ANALYSIS
Analysis can be started with the historical evolution of the securities brokerage industry, including its structural changes brought about by progressive deregulation and impacts of communications and information technologies. The market performance of Schwab and its competitors can be analyzed as far as may be possible.

STEP 3. BUSINESS AND CORPORATE STRATEGY ANALYSIS
Schwab’s business establishment and growth can be analyzed, based on SSAP Method Exhibit 9. Schwab’s Technology-Market and Customer-Service connections can be established, along with its business model for sales revenue, profitability and profits. How do companies make money in the securities brokerage industry? How does Schwab make money in the securities brokerage business?

In particular, it is useful to consider who are Schwab’s customers, specifically. There are those who buy and hold, and there are those who trade. There are those who want advice or validation and those who do not. There are those who have significant financial assets and those who do not. Who, exactly, are Schwab’s customers, how are they effectively segmented? What, exactly, are customers buying from Schwab? Is Schwab’s customer mix changing as its commission income from stock trading has been falling? In particular, how does Schwab make money from traders and how does it make money from buy-and-hold clients? What different products and services does Schwab have that are connected to different types of customers or clients? Can these different Customer-Service connections be regarded as different, although related, service lines or businesses?
Schwab has taken some important strategic initiatives in 2000 – 2002, as described in the final section of the case. These initiatives may be analyzed as they relate to Schwab’s different service offerings or businesses, and as they will be significant in determining expectations for the future, going forward from the mid-2003 date of the case.

STEP 4. OPERATIONS AND ORGANIZATION ANALYSIS
Nucor’s internal value chain functions operations can be described and analyzed. This is the means for