Wiki Template Part-2: Gaps, Issues and New Strategy BUSI 4940 – Business Policy DELTA airline Part 2-A CONDUCT A STRATEGIC GAP ANALYSIS AND IDENTIFY MAJOR ISSUES ASSESS OVERALL FIT AND IDENTIFY KEY ISSUES/PROBLEMS: (ENVIRONMENT (( STRATEGY (( ORG. CAPABILITIES) 1. DATA COLLECTION What is needed now is to simply bring it all together in one place. Review your conclusions from the previous steps on firm performance, environment, strategy, and org. capabilities and jot-down the important information here. Note that you can use “short-hand notes” here, so long as you remember the richness of your ideas in each section and refer back to those when you are analyzing and making decisions on the information in steps 2 and 3 below. THE ENVIRONMENT/INDUSTRY 1. Drivers of change 2. Key survival factors 3. Product/Market and Value Proposition possibilities STRATEGY OF THE FIRM 1. Goals 2. Product focus and market focus 3. Value proposition 4. Core Activities ORGANIZATIONAL CAPABILITIES OF THE FIRM 1. ___________________ 2. ___________________ 3. ___________________ PERFORMANCE OF THE FIRM 1. Financial Performance 2. Market Performance 3. Organizational Health 2. ORGANIZATION AND ANALYSIS a. The Strategy (( Environment Link Compare the drivers of change and key survival factors of the environment with the strategy components of the firm. Identify: · Where, if at all, there is a good fit between environmental demands and the firm’s strategy. That is, identify how the strategy does a good job of addressing/responding to specific drivers and/or KSFs · Where, if at all, there is a misfit between the environmental demands and the firm’s strategy. That is, identify how the strategy does a poor job of addressing/responding to specific drivers and/or KSFs · Where there are potential future misfits (given current industry trends). That is, identify where the strategy is likely to fall short of addressing/responding to specific drivers and/or KSFs in the future b. The Strategy (( Org.s Capabilities Link Now look inside the firm and compare the package of Org. Capabilities created by Resources, Management Preferences, and Organization with the strategy components of the firm. Identify: · Where, if at all, there is a good fit between the org. capabilities of the firm and the firm’s strategy. That is, show how the capabilities support specific aspects (value proposition, goals, etc.) of the firm’s strategy · Where, if at all, there is a misfit between the org. capabilities of the firm and the firm’s strategy. That is, show how the capabilities fail to support specific aspects (value proposition, goals, etc.) of the firm’s strategy · Where there are potential future misfits (given current trends within the firm). That is, show where/how the capabilities may fail to support specific aspects (value proposition, goals, etc.) of the firm’s strategy in the future c. Firm Performance and Strategic Gaps Theory and empirical research inform.

1. Wiki Template Part-2: Gaps, Issues and New Strategy
BUSI 4940 – Business Policy
DELTA airline
Part 2-A
CONDUCT A STRATEGIC GAP ANALYSIS AND IDENTIFY
MAJOR ISSUES
ASSESS OVERALL FIT AND IDENTIFY KEY
ISSUES/PROBLEMS:
(ENVIRONMENT (( STRATEGY (( ORG. CAPABILITIES)
1. DATA COLLECTION
What is needed now is to simply bring it all together in one
place. Review your conclusions from the previous steps on firm
performance, environment, strategy, and org. capabilities and
jot-down the important information here. Note that you can use
“short-hand notes” here, so long as you remember the richness
of your ideas in each section and refer back to those when you
are analyzing and making decisions on the information in steps
2 and 3 below.
THE ENVIRONMENT/INDUSTRY
1. Drivers of change
2. Key survival factors
3. Product/Market and Value Proposition possibilities
STRATEGY OF THE FIRM
1. Goals
2. Product focus and market focus
3. Value proposition
4. Core Activities

2. ORGANIZATIONAL CAPABILITIES OF THE FIRM
1. ___________________
2. ___________________
3. ___________________
PERFORMANCE OF THE FIRM
1. Financial Performance
2. Market Performance
3. Organizational Health
2. ORGANIZATION AND ANALYSIS
a. The Strategy (( Environment Link
Compare the drivers of change and key survival factors of the
environment with the strategy components of the firm. Identify:
· Where, if at all, there is a good fit between environmental
demands and the firm’s strategy. That is, identify how the
strategy does a good job of addressing/responding to specific
drivers and/or KSFs
· Where, if at all, there is a misfit between the environmental
demands and the firm’s strategy. That is, identify how the
strategy does a poor job of addressing/responding to specific
drivers and/or KSFs
· Where there are potential future misfits (given current
industry trends). That is, identify where the strategy is likely to
fall short of addressing/responding to specific drivers and/or
KSFs in the future
b. The Strategy (( Org.s Capabilities Link
Now look inside the firm and compare the package of Org.
Capabilities created by Resources, Management Preferences,

3. and Organization with the strategy components of the firm.
Identify:
· Where, if at all, there is a good fit between the org.
capabilities of the firm and the firm’s strategy. That is, show
how the capabilities support specific aspects (value proposition,
goals, etc.) of the firm’s strategy
· Where, if at all, there is a misfit between the org. capabilities
of the firm and the firm’s strategy. That is, show how the
capabilities fail to support specific aspects (value proposition,
goals, etc.) of the firm’s strategy
· Where there are potential future misfits (given current trends
within the firm). That is, show where/how the capabilities may
fail to support specific aspects (value proposition, goals, etc.)
of the firm’s strategy in the future
c. Firm Performance and Strategic Gaps
Theory and empirical research inform us that firm performance
is closely related to the firms position vis-à-vis the criterion of
consistency. That is, the better the fit among the three
components of in the criterion of consistency framework, the
better is the firm’s performance.
Review the results of your “fit” analysis and attempt to
document how the fits/misfits identified in your analysis may
explain the achievements or lapses in firm performance on one
or more of the three dimensions: financial performance, market
performance and organizational health
3. CONCLUSIONS AND RECOMMENDATIONS
Given the above, answer the following questions:
a. Overall FIT and Symptoms: Taken together, how do you see
the overall alignment among the elements of the “criterion of
consistency”? That is, is there a good fit, an ok but weakening

4. fit, a poor fit, a really bad fit, etc.? Be sure to explain WHY
you believe this is the case. Next, refer back to your
assessment of firm performance and show how this fit (or lack
of fit) is reflected in the performance of the firm. That is, can
the “symptoms” of underlying problems (e.g., decreasing sales
or market share, poor profitability, disgruntled employees, etc.)
identified in your analysis of the firm’s performance be traced
to specific strategic “fit” problems?
I.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_______
II.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_______
III.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_______
b. Selecting the Most Significant Issues Facing the Firm:
Based on the fit/misfit identified above, highlight the areas that
you see as the biggest issues/problems. That intent here is to
move beyond the symptoms identified through performance and
other previous analysis above to reveal the underlying causes
that the firm must address. That is, what is causing the
symptoms (e.g., decreasing sales or shrinking market share,
poor profitability, disgruntled employees, etc.) that were

5. identified above? Where possible, these causes should be
expressed in terms of the alignment (or misalignment) between
specific strategy components and specific aspects of the
environment and/or org. capabilities (e.g., the product/market
focus is no longer appropriate for the environmental conditions
of … because; the … org. capabilities do not support the value
proposition because ..., etc.).
I.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_______
II.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_______
III.
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_______
c. Project Future Performance of the Firm Given the Challenges
identified in “a’ and “b” above:
Given your descriptions of this “current state” of the firm, what
would you expect performance to be like in the next few years
if they do not make any changes to their strategy and/or
operations? Undertake the following:
I. Briefly describe the likely future state of the firm in words,

6. showing where/how the issues identified above are likely to
affect the actions and outcomes of the firm.
II. Use techniques taught in earlier classes (e.g., accounting,
finance, marketing, etc.) to project a 5-year pro forma income
statement that assumes a logical progression of the firm’s
current strategic fit and performance levels.
Specifically, do the following:
· Use a 5-year timeframe
· Use the common-size (sometimes called “vertical analysis”)
technique/tool to project the performance of the firm over the
next five years, assuming that (a) it makes no changes to its
current strategy or capabilities and, (2) industry changes will
occur in the direction predicted by you in Part-1A of the SBI
process
· Provide this projection, in a table, and on a single page
· Use additional sheets (if needed) to identify the “base
components” line item used in the computations of other line
items, any assumptions made, and any clarifications that are
deemed necessary
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