Zale Corporation - 2004
Case Questions
Notes:
a) You are being provided with an annual report for 2003 (year-ended July, 2003) for Zale. You are responsible for returning this to me, without writing on it, with your case. Your case will not be considered complete without return of these materials.
b) You need to research and obtain complete information on the two most important competitors in the same market as Zale. You also need to research information regarding the industry. The summary sheets I am giving you are not sufficient. At a minimum, you must read and reference in your case the material on the research links and at least four competing companies. For a grade higher then minimum, you should have at least two additional industry references.
c) This case is as of 7/31/2003. Subsequent company actions or events should not be used to justify or support any recommendations or analysis. Note the date to use for each potential competitor. You may use industry information through June, 2004.
Questions:
1. Market
A. Clearly and specifically define this business as it now exists and its market in one clear and specific sentence. This must be a complete definition (customer, product/service, level in chain, and geographic area at a minimum).
B. Provide full support as to why this is the best definition. Address each part of the definition.
C. Fully analyze this market. For example, what is its growth rate, how large is it, approximately what is the company's share of the market, and then briefly note who are the major competitors (at least four or five) and what are their positions.
D. What does this theory recommend for the company? Explain.
2. Competition
A. List the company's two most important competitors. Fully justify your selection of each in terms of their importance and their similar market definition.
B. For each of the same two competitors, provide a description of their markets, highlighting all the various ways they may differ from the company's.
3. Competitive Profile Matrix - CPM
A. Prepare a Competitive Profile Matrix for the company, comparing it the TWO MAJOR competitors you defined in #2. Use 10 to 12 factors. Be sure you use competitive factors and the same industry you defined in #1.
B. What does this theory recommend for the company? Explain. Be sure to clearly address BOTH levels of the recommendation.
4. BCG
A. Develop a BCG matrix for the company. Clearly and fully state facts to support your conclusions for each axis and carefully draw the chart to scale. Clearly specify what measure you are using and justify your use of that measure. Be sure to use the same industry you defined in #1.
B. What does this theory recommend? Explain in BCG terms. Do not use David’s wording or recommendations.
5. Recommendation:
A. What one major strategy should they pursue now? You must be specific (not generic) and support fully. Support for your choice being the most appropriate choice is critical. Use the following outline to answer this question. You must address all detail items within 5.A.3 & 5.A.4 fully.
1. State your recommended strategy.
2. Explain your strategy.
3. Support why your strategy is appropriate.
4. Support why your strategy is the best strategy.
B. Clearly relate and justify your proposed strategy to each tool above.
1. Relate to the market share theory in #1.
2. Relate to the CPM in #3.
3. Relate to the BCG in #4.
See FAQ for answers to frequently asked questions about this case.
See Research Case Notes for suggestions on research cases.
See Zale Corporation Research for company and industry specific research links.
- Q1 - 8/07/2004 -