NeoPhotonics Corporation (NSM:NPTN)

Business Summary

NeoPhotonics develops, manufactures and sells optoelectronic products that transmits, receive and switch digital optical signals for communications networks. Co.’s products are categorized into two groups: High Speed Products, a transmitter and receiver products as well as switching and other component products designed for 100G and beyond data rates, such as at 200G, 400G, for telecom and data center or content provider networks; and Network Products and Solutions, for speeds less than 100G including 40G, 10G and lower data rates, and other passive telecom and instrumentation products.

Instructions:

In
completing the report, you will use the chapters in the eBook and other
course material, and perform research on the company and industry in
which the company operates and answer the required elements below in
narrative form following the steps provided.

Step 1: Specific Company for All Four Projects

In this project, you will complete a Company Overview, an Evaluation of the General Environment and a conclusion.

You
will be assigned by your instructor one focal company to complete the
analysis. The assigned company must be used for all four projects in
this course. You are not allowed to write the report on any other
company different from the company specifically assigned by your
instructor. If a company other than that assigned to you is used, a
zero will be assigned.

The companies that your instructor has assigned to each of you is listed in List of Companies.

Students
must complete the project using the assigned company. Deviating from
the assigned company will result in a zero for the project. You will
look for the company assigned to you in the Announcement area of the
classroom.

Step 2: Course Material and Research

Although
you are required to research information about the focal company and
the internal environment for this project, you are accountable for using
the course material to support the ideas, reasoning and conclusions
made. Course material use goes beyond defining terms but is used to
explain the ‘why and how’ of a situation. Using one or two in-text
citations from the course material and then relying on Internet source
material will not earn many points on an assignment. A variety of
source material is expected and what is presented must be relevant and
applicable to the topic being discussed. Avoid merely making
statements but close the loop of the discussion by explaining how something happens or why something happens,
which focuses on importance and impact. In closing the loop, you will
demonstrate the ability to think clearly and rationally showing an
understanding of the logical connections between the ideas presented
from the research, the course material and the question(s) being asked.

Note: Your
report is based on the results of the research performed and not on any
prepared documentation. What this means is that you will research and
draw your own conclusions that are supported by the research and the
course material rather than the use any source material that puts
together any of the tools or techniques whether from the Internet,
for-pay websites or any pre-prepared document, video or source
material. A zero will be earned for not doing your own analysis.

Success: The
analysis is based on research and not opinion. You are not making
recommendations and you will not attempt to position the focal company
in a better or worse light than other companies within the industry
merely because you are completing an analysis on this particular
company. The analysis must be based on factual information. Any
conclusions drawn have to be based on factual information rather than
leaps of faith.

To
ensure success, as stated above student are expected to use the course
material and research on the focal company’s global industry and the
focal company. Opinion does not earn credit nor does using external
sources when course material can be used. It is necessary to provide
explanations (the why and how) rather than making statements. Avoid
stringing one citation after another as doing so does not show detailed
explanations.

Library Resources

On
the main navigation bar in the classroom select, Resources and then
select Library. Select Databases by Title (A – Z). Select M from the
alphabet list, and then select Mergent Online. You may also use Market
Line and should be looking at the focal company’s Annual Report or 10K
report. You are not depending on any one resource to complete the
analysis. It is impossible to complete a Porter’s Five Forces,
competitive analysis or OT by using only course material.

You should not be using obscure articles, GlassDoor, or Chron or similar articles.

Research for Financial Analysis: Financial Research

Research for Industry Analysis CSI Market

UMUC library is available for providing resources and services. Seek library support for excellence in your academic pursuit.

Library Support

Extensive library resources and services are available online, 24 hours a day, seven days a week at https://www.umuc.edu/library/index.cfm to support you in your studies. The UMUC Library provides research assistance in creating search strategies,
selecting relevant databases, and evaluating and citing resources in a
variety of formats via its Ask a Librarian service at https://www.umuc.edu/library/libask/index.cfm.

Scholarly Research in OneSearch is allowed.

To
search for only scholarly resources, you are expected to place a check
mark in the space for “Scholarly journals only” before clicking search.

Step 3: How to Set Up the Report:

In
this first part of the External Environmental Analysis, you will
develop part of a strategic plan: the Company Overview and an Evaluation
of the General Environment. You are not lifting from other sources
but performing your own analysis.

Use this template to complete the project: Project 1 Template. The
document has to be written in Word or rtf. No other format is
acceptable. No pdf files will be graded. Use 12-point font for a
double-spaced report. The final product cannot be longer than 8 pages
in length, which includes all tables and matrices but excludes the title
page and reference page. Do no use an Appendix.

Create a title page with title, your name, the course number, the instructor’s name

Step 4: Company Overview

Provide
a company overview, which is an essential component to the strategic
management process. A company overview describes the purpose(s) for the
founding of the company, i.e, what problems was it formed to solve
and/or opportunities it was formed to exploit, who are the founders,
home country or state, current management, employee headcount, last
year’s revenue, etc.)

Step 5: Evaluate the General Environment

• Identify the global industry in which the company operates.
• Discuss
  the company’s general environment by developing a PESTEL analysis. Use
  the course material to identify the elements of the PESTEL and what
  components make up each element. Be sure to thoroughly present and
  support the reasoning for what is presented. You may not use a PESTEL
  analysis that is already completed and available on the Internet. A
  zero will result if used as the analysis has to be the result of your
  research and your own development. NOTE: A PESTEL analysis is not a table and it is not a bulleted assessment.
• Identify and discuss one key trend for each letter of the PESTEL for the industry.
• Select
  one of the six trends identified in the previous requirement and
  discuss how the focal company could be affected by the selected trends.
• Discuss
  key areas of uncertainty related to the identified trend for the focal
  company that could potentially impact the company’s strategy.
• Perform a strategic analysis of the company’s mission, vision and objectives.

Step 6: Conclusion

Create
a concluding paragraph. The Conclusion is intended to emphasize the
purpose/significance of the analysis, emphasize the
significance/consequence of findings, and indicate the wider
applications that are derived from the main points of the project’s
requirements. You will draw conclusions about the findings of the
external environment analysis.

Step 7: Submit the Report in the Assignment Folder

Submitting
the project to the Assignment Folder is considered the student’s final
product and therefore ready for grading by the instructor. It is
incumbent upon the student to verify the Project is the correct
submission. No exceptions will be considered by the instructor.

Report Requirements to Follow:

In writing the report,

• Use
  the grading rubric while completing the project to ensure all
  requirements are met that will lead to the highest possible grade.

• Third
  person writing is required. Third person means that there are no words
  such as “I, me, my, we, or us” (first person writing), nor is there use
  of “you or your” (second person writing).

• Contractions are not used in business writing, so do not use them.

• No
  direct quotes except for mission statement and vision statement. For
  all other source material used in the analysis, you will not use direct
  quotation marks but will instead paraphrase. What this means is that
  you will put the ideas of an author or article into your own words
  rather than lifting directly from a source document. You may not use
  more than four consecutive words from a source document, as doing so
  would require direct quotation marks. Changing words from a passage
  does not exclude the passage from having quotation marks. If more than
  four consecutive words are used from source documents, this material
  will not be included in the grade and could lead to allegations of
  academic dishonesty.

• Use in-text citations and provide a reference list that contains the reference associated with each in-text citation.

• You may not use books in completing this project.

• Provide the page or paragraph number in every in-text citation presented.

• You may not use Fern Fort University, Ibis World or any other for-fee website.

********PLEASE USE THE ATTACHMENTS………..

Track your experience of positive and negative emotions over 4 days this week.

Write a 700- to 1,050-word paper in which you address the following:

• Did you experience more positive or negative emotions during the tracking period?
• What did you notice about the range of emotions you experienced during the 4 days? What type of experiences generated the strongest emotional responses?
• Explain the psychological benefits of positive emotions as discussed in this week’s readings.
• What are some strategies to help cultivate positive emotions in your life?

Include the chart you created. Use the University of Phoenix Material: Tracking Example as a guide.

APA FORMAT

Discussion Assignment

Watch the following “time motion” video of unemployment in the United States during the “Great Recession” of 2008. As we will learn in Macroeconomics, 4.5% is the “Full Employment Rate of Unemployment.” This means that there is a job available for everyone who wants one, without the production of inflation. Americans are earning and are able to spend.

Discussion Question:

Use the Circular Flow model to offer an (1) an explanation of the economic downturn or (2) a solution to the economic collapse.

Feel free to speculate on the interconnections of the Circular Flow Model.

It is required to post a 200 word response to the question.

https://nv.instructuremedia.com/fetch/QkFoYkIxc0hh…

Module 3 – SLP

STRATEGIC CHOICES

Wonder Company Simulation – CVP Analysis

Simulation

In Module 3, you will use CVP analysis to inform the pricing of your three products.

SCENARIO CONTINUATION:

You have now completed SLP2, and the date is (once again) reset to January 15, 2017.

You turn on the TV. The local television news anchor is talking about events that occurred on January 1, 2013.

Your decision-making process will be different this time, as you will be using CVP analysis, a technique with which you recently became familiar.

You analyze the results of the decisions you made in SLP2. But this time, you aim to improve your Final Total Score by using the CVP Calculator to help you determine a new and improved strategy.

You analyze your SLP2 results using CVP and develop your complete four-year strategy, again taking notes, documenting your reasoning.

You finish the report that shows your revised strategy for the next four years.

Do not run the simulation yet. Simply turn in your written report.

Session Long Project

Write a 6- to 7-page paper, not including cover and reference pages, in which you use the results from SLP2 and CVP analysis to develop a revised strategy.

Keys to the Assignment

The key aspects of this assignment that should be covered and taken into account in preparing your paper include:

1.The revised strategy consists of the Prices, R&D Allocation %, and any product discontinuations for the W1, W2, and W3 tablets for each of the four years: 2013, 2014, 2015, and 2016.

2.You must present a rational justification for this strategy. In other words, you must provide clear and logical support for your proposed strategy using financial analysis and relevant business theories.

3.Use the CVP Calculator and review the PowerPoint that explains CVP and provides some examples.

4.You need to crunch some numbers (CVP Analysis) to help you determine your prices and R&D allocations.

5.Make sure all of your proposed changes are firmly grounded in CVP analysis, on the financial and market data provided to you, and on sound business principles.

6.Present your analysis professionally, making strategic use of tables, charts, and graphs.

Time Line Summary:

SLP1

2016: Hired on December 31, 2016.

Turned first report in to Sally on January 15, 2017.

SLP2

Time Warp 1 begins: January 15, 2017. You are warped back to January 1, 2013.

You realize you have to make decisions for 2013 – 2016, which you do.

December 31, 2016 – You have gone through all four years, and you write your report to summarize how you did.

SLP3

Despite your efforts in SLP2, you are once again taken back to January 1, 2013. You decide to use CVP analysis to revise the four-year plan you developed in SLP2. You analyze the results of your decisions from SLP2, taking detailed notes. You use the CVP Calculator to help develop your revised strategy, taking additional notes explaining the logic of your decisions.

SLP Assignment Expectations

Your paper will be evaluated using the grading rubric.

Tips and Suggestions

Please note the following tips and suggestions:

You might find these downloads and readings useful:

Irfanullah, J. (2013). Cost-Volume-Profit Analysis. Accounting Explained. Retrieved from http://accountingexplained.com/managerial/cvp-anal…

Decision Matrix Table – Download this Word doc with a blank table you can use to show your proposed strategy decisions.

PowerPoint discussing CVP – Provides a good overview of Cost Volume Profit analysis, the various equations that you can use, and how to use it. Some examples are provided showing how to use the CVP Calculator.

CVP Calculator – This is an Excel-based calculator that you can use to determine prices, volumes, and profits. Keep in mind that it will tell you what need, but the market determines what you actually get.

Include a cover page and reference page, in addition to the 6-7 pages of analysis described above.

Use section headings as appropriate. Use graphs, charts, or figures strategically – but not as “space fillers.”

Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes, and citations for that information which you have “borrowed” or paraphrased from other sources.

Follow Trident Guidelines for well-written papers.

______________________________________________________________________

SLP3 REPORT OUTLINE

Review Strategy used in SLP2

Use CVP to analyze the Results from SLP2

oUse CVP Calculator

oShow the numerical analysis

Explain the analysis – what you did and what you find regarding pricing, etc.

Explain how you use the CVP analysis to revise the strategy

Show the Revised: Prices, R&D%, Discontinuation

Explain what you expect the Results to be with this Strategy

DO NOT RUN THE SIMULATION – YOU WILL DO THAT IN SLP4

_____________________________________________________________

Module 3 – Background

STRATEGIC CHOICES

In Module 3, we will concentrate our efforts on strategic alternatives at the corporate, business, and functional levels. Companies follow strategies at each of these levels, as well as at the global level.

At the functional level, strategies are short term in nature, and refer to company functions such as marketing, manufacturing, materials management, customer service, and R&D.

At the business level, strategies are of medium range. They include the company’s market positioning, geographic locations, and distribution channels.

At the corporate level, strategies are long term, and include options such as horizontal and vertical integration, diversification, strategic alliances, and mergers and acquisitions (M&A).

Click on the link for a presentation on Strategic Choices by Professor Anastasia Luca.

Competitive Advantage

In this module, we will focus on the strategic options available to companies at the business level. Companies select business strategies to obtain Sustained Competitive Advantage (SCA) against competitors. Read about SCA here:

Competitive advantage (2007). Quick MBA. Retrieved on August 29, 2014, from http://www.quickmba.com/strategy/competitive-advan…

SCAs are advantages that cannot be easily copied or imitated by competitors. A few years ago, strategists talked in terms of Porter’s generic strategies (basically cost and differentiation). Read about Porter’s generic strategies here:

Porter’s generic strategies. (2007). Quick MBA. Retrieved on August 29, 2014, from http://www.quickmba.com/strategy/generic.shtml

Today, we have four distinct strategies we use to analyze strategic options, although there are various approaches to achieving these strategies. They are:

Cost Leadership

Differentiation

Niche/Focus

Preemptive Move (or first-mover advantage)

Cost leadership

Most people think of economies of scale when they think of low-cost strategies. McDonald’s and Wal-Mart notwithstanding, high volume is not the only way to achieve low prices. Here are some other approaches to implementing a low-cost strategy:

No frills: Southwest Airlines eschewed big airports and cut costs by flying to smaller airports. Competitors such as Delta and American were too heavily invested in the hub business model to change.

Product design: Masonite developed an alternative to expensive wood products by using sawdust and woodchips. Telecommunications companies now “bundle” their products, offering cable/satellite TV, high-speed Internet and telephone service for one low price. Hershey’s shrank the chocolate bar to keep from raising its low price.

Operational economies: Companies can save money by eliminating high costs in the value chain. For example, a company such as Amazon can reduce its costs by reducing the rate of customer returns. Clearly, mass sales or mass production serve to increase economies of scale as the company’s operations become increasingly efficient.

Economies of Scale: With higher sales, fixed costs such as R&D, overhead, advertising, and even legal support can be spread over a larger revenue base.

Experience: Costs decline at a predictable rate with a firm’s accumulated experience. Such declines are attributed to the learning curve, technological improvements, and product redesign resulting in product and process efficiencies.

Here is another way of looking at low-cost strategies:

Scilly, M. (2015). Examples of cost leadership and strategy marketing. Small Business Chron. Retrieved from http://smallbusiness.chron.com/examples-cost-leade…

Differentiation Strategies

If a company positions itself as offering a product or service that is different from its competitors in a way that customers value, it is following a differentiation strategy.

A successful differentiation strategy will create customer value that is perceived as such by the customer. Many so-called “new-and-improved” products have fallen flat because the customer simply didn’t care. In addition, a successful differentiation strategy will only build Sustained Competitive Advantage to the degree that it is difficult to copy.

There are many ways to add value to any aspect of a business through differentiation:

Ingredients/components: Healthier, “greener,” longer-lasting ingredients/materials (e.g., Maytag appliances, Healthy Choice frozen dinners).

Product offering: Better-designed products (new generation products).

Combining products: Two is better than one (e.g., Colgate 2 in 1 toothpaste and mouthwash).

Added services: Extra services beyond the basic purpose of the product or service (e.g., concierge service with American Express cards).

Breadth of Product Line: Extra convenience in dealing with fewer vendors (e.g., Wal-Mart offers one-stop shopping, eliminating the need to go to multiple stores).

Channel: Offering items or services through a medium or channel unavailable in that form anywhere else (e.g., eBay offers instant access to hundreds of individuals worldwide, simultaneously or asynchronously).

Design: Product or service is unique (e.g., bed-and-breakfasts offer a more ”homey” alternative to standardized hotel rooms).

In general, there are two ways to build SCA through differentiation strategies. Most of the methods of adding value mentioned above can be related to either quality or brand recognition.

Quality Strategy: In this type of differentiation, a company tries to set its product/service apart on the basis of superior quality. It is probably the most widely used method of attaining Sustained Competitive Advantage. Usually, quality means superior performance, and a premium brand as opposed to discount or economy brands. Such top-of-the-line offerings command a high price tag. However, quality does not always mean expensive. Both Mercedes (expensive) and VW (less expensive) connote high-quality German engineering.

Branding: Brands build SCA through customer familiarity, loyalty, and trust. Aspirin is aspirin, but Bayer continues to thrive against low-priced generics due to the power of the brand.

Blue Ocean: An Alternative Approach

A combination of low-cost and differentiation strategies has created a buzz in the recent business press. Known as “Blue Ocean” strategy, it is a new idea that challenges the standard classifications of strategy.

The following is the official Blue Ocean website. Check out some of the links to view the tools and frameworks for Blue Ocean strategic planning:

Kim, W. C. and Mauborgne, R. (2009), What is BOS? Nine key points of Blue Ocean Strategy. Retrieved on August 29, 2014, from http://www.blueoceanstrategy.com/abo/what_is_bos.h…

Niche/Focus Strategies

Niche or Focus strategies are really variations of a cost or differentiation (or both) strategy, only concentrating the company’s efforts on a single or limited product or market. By focusing its efforts, the firm is able to realize the following advantages:

Avoid distraction or dilution: All of the firm’s efforts are directed toward a single end, and competitive pressures are diminished. All company resources and capabilities are matched to the market needs, creating SCA (remember RBV?).

Maximize limited resources: When resources are tight, they will go farther and create a greater impact when the target is limited.

Circumvent competitors’ resources and capabilities: By operating in a niche market, say, private-label manufacturing, a firm does not have to contend with the big advertising and distribution capacities of the brand names. Competitive pressures are diminished overall as there are likely to be fewer competitors.

Establish a unique identity: Offering a narrow product line, or operating in a limited geographic area can confer a certain cachet. In-N-Out Burger, for example, competes successfully with the huge fast food franchises by refusing to offer anything but hamburgers, made with the freshest site-prepared ingredients, in California, Nevada and Arizona only.

There are basically three ways a firm can establish a focus strategy. It can concentrate on one of these approaches, or a combination.

Focusing the product line: Firms that focus their product line often do so because they possess some expertise and special interest that often translates into technical superiority. These products excite and electrify. Take Bose Corporation, for example. It manufactures a small line of exceedingly high-quality audio products that are based on astonishing technology. If Bose broadened its offerings to all kinds of consumer electronics, it would run the risk of sliding into mediocrity with ho-hum products.

Targeting market segments: This is essentially “snob appeal” broadly defined. Gucci handbags target high-end fashionistas, Harley-Davidson targets rebellious non-conformists (at least in their own minds), and Castrol motor oil, which is not even sold in service stations, targets independent male do-it-yourselfers.

Limited geographic area: We have already considered In-N-Out Burger, but many other products are conferred a kind of cachet because you cannot get them just anywhere. Other examples include small breweries (e.g., Shiner Beers in Texas), coffee shops (independent and locally owned), or bakeries (Tim Hortons donuts in Canada and the northeast United States).

For another take on niche strategies, including some important caveats about potential pitfalls, read:

Iansiti, M. and Levien, R. (2004). Strategy for small fish. Harvard Business School Working Knowledge. Retrieved on August 29, 2014, from http://hbswk.hbs.edu/item/4331.html

Preemptive Strategy

By being the first entrant into a new market or business area, a firm can establish competencies or assets that competitors are not able to copy or develop on their own. The first-mover advantage can create high switching costs for customers, erect high barriers to entrance for competitors, and tie up contracts with suppliers. Thus, a preemptive strategy can confer SCAs both from internal and external sources.

Preemptive strategies are usually implemented in one of three ways:

Product opportunities: The first product offered in a new market can generate advantages in terms of dominant position that can be hard for competitors to later dislodge or overcome. A company can establish the “standard” for an industry, such as Intel did with microprocessors and Microsoft with operating systems. Of course, firms must continue investment in improvements lest an upstart come up with a “better mousetrap.”

Production systems: When a firm invents a better or more efficient production system that expands capacity, reduces cost and/or improves quality, they have created SCA.

Customer advantages: First movers have an advantage with customers—creating brand loyalty and increasing switching costs. Customers become used to a familiar product or brand and see no reason to switch. Some companies get customers to make long-term commitments—as in long contracts for the latest in iPhone or BlackBerry technology. Banks may vie to get first-mover advantage in online banking because such systems involve substantial switching costs for customers who pay all their bills online. Here is a brief article discussing the first-mover advantage in practice:

Liang, T., Czaplewski, A., Klein, G., & Jiang, J. (2009). Leveraging first-mover advantages in internet-based consumer services. Communications of the ACMe, 52(6), 146-148. Retrieved on August 29, 2014 from ProQuest.

Optional Reading

Akan, O., Allen, R. S., Helms, M. M., & Spralls, S.A. (2006). Critical tactics for implementing porter’s generic strategies. The Journal of Business Strategy, 27(1), 43-53. Retrieved on August 29, 2014 from ProQuest.

Ormanidhi, O., & Stringa, O. (2008). Porter’s model of generic competitive strategies. Business Economics, 43(3), 55-64. Retrieved from EBSCO – Business Source Complete.