BASIC PLAN
(Cover Page)
XXX Company - Strategic analysis and Operational Recommendations (for 20xx to 20xx)
To: XXX company Board of directors (senior manager)
From: xxx, xxx position
Date: xxx

Executive Summary - Very brief
“…company has been successful since…..gain…..profit…”; “….caused the issue”; “…goal and target required….”
“…alternatives available for the company…includes #, #....”; “…….is recommended for both strategic and major operational issues…”
“…implementation plan is also provided …result if implement recommendations…”
Introduction – from “Require”
“Purpose of the report is to…”
“…analyze the current business situation and opportunities…”
“…provide an update situational analysis, proposed alternatives, and recommendations on both strategic and operational issues”
“…also an implementation plan base on the recommendation…”
Mission – from backgrounder
Vision – from backgrounder
Targets & Constraints
Discount rate %; bank financial, capacity, certain financial rate… what level of improvement, or benchmark for NPO
Stakeholder’s preference – bullet point, name, role and preference
Additional SWOT:
Internal – Strength, Weaknesses
External – Opportunity, Threats
Financial ratio analysis (and Industry Benchmarks)
“Calculations for the financial analysis are presented in Exhibit 1, the following comments can be made about the analysis provided”
“…ratio has improved / declined since xxx and is high / low…”
“…the ratio indicates…inability to pay off short term obligations….”
“….customers paying on time….”
“…ratio has improved / declined due to heavy reliance on….”
C.L.S.P. Liquidity, Coverage, Activity, Profitability
Liquidity: current ratio, quick ratio
Coverage: debt to equity, debt to assets, times interest earned
Activity: inventory turnover, days dales of inventory
Profitability: growth profit margin, net income margin
Key Success Factors – list of 3
Internal competency; external industry level (include from original SWOT)
Key Risk – list of 3
Major Issues
“…Xxx Company faces the following strategic issues…”
“…increase revenue…”; “…decrease cost…”; “…cut division….”
Major Strategies - list
“#1 - …”
“#2 - …”
“#3 - …”
Operational issues – List and refer to weakness
Analysis of alternatives - at least 3 - 5 yrs.
“Refer to Exhibit # …”
Financial result & Pros & Cons
Pros:
Positive $ NPV of capital investment, positive $ net income, save operating cost, free cash
Financial available, bank loan, government support, fund donation, endowment
Prospective economic, take advantage of growing demand, economic of scale and customer preferences
Meet constraint (discounted rate of return, filled capacity, sales target, fund limited, gross profit %)
Meet goal, meet industry benchmark, meet bank request, meet government funding request, meet board requirement, senior management purpose
Align with mission & vision, support by xxx, preferred by xxx
Successful previous experiences
Take advantage of strength, opportunity, growing trend, new location, new market
Welcome by community, improve NPO reputation and fund raising
Solve operational issue (performance, HR, IT upgrade, facility update, ethical)
Cons:
Negative NPV for capital investment, net lost, increasing cost, lower than benchmark
Concern of supplier quality, delivery term, financial reliability
Not cover by funding, additional loan, high interest rate, suck up cash
Decreasing market trend, destroy quality, impact reputation,