Part One: Strategic Analysis
The development of a strategic analysis guides all decisions made regarding your compensation systems throughout the project. The strategic analysis reveals firm-specific challenges, objectives, and initiatives that allow you to align the goals of a compensation system effectively with those of the company strategy.
The strategic analysis allows you to better understand the external market challenges e-sonic faces in addition to its internal capabilities. As a consultant, a thorough understanding of e-sonic’s business environment allows you to better align your competitive system design with e-sonic’s goals, challenges, and objectives. Follow the outline below when completing this portion of the project.
The strategic analysis is fully described in the attached casebook Building Strategic Compensation Systems.
Strategic Analysis Outline:
1. Executive Summary (Concisely conveys the project objectives and main findings. The executive summary is completed last, but included first in the strategic analysis.)
2. Strategic Analysis
a) Identification of e-sonic’s industry based on the North American Industry Classification System (NAICS)
b) Analysis of e-sonic’s external market environment
i. Industry Profile
iii. Foreign Demand
iv. Long-Term Industry Prospects
v. Labor-Market Assessment
c) Analysis of Internal Capabilities
i. Functional Capabilities
ii. Human Resource Capabilities
Project should be 5–7 pages in length.
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