Business

Overview
Acting as a recently hired compensation consultant, you will assist the burgeoning online music firm e-sonic to develop an internally consistent and market- competitive compensation system that recognizes the achievements of individual contributors. The major portion of the project is divided into three milestones, which will build upon the previous milestone. The milestones are submitted in Modules Three, Five, and Six. The final version of the entire project will be due at the end of Module Seven.

Preparation
1. Read the Building Strategic Compensation Project narrative. Note: Section 3: Recognition of Individual Achievements WILL NOT be included in the course project.

2. Download the Comp Analysis Software Microsoft Excel file. Directions on accessing this file are located in the Module Resources section of Module One. To run on a PC, the file requires Microsoft Excel 2007 or later. To run on a Mac, the version requires Excel 2011 or later.
o NOTE: Users of the CompAnalysis software must set the macros to a low level in order for the software to work. If the macros are set on too high of a security level, then the software will be disabled and will not work properly. Navigate to the Tools menu, click Macros, and then click Security. Lower the security level, save the spreadsheet, close, and re-open.

o Click on the External Market Survey feature, which will be used in Section 2 of the project, titled Market Competitiveness. Make your decisions first by following the directions in the Building Strategic Compensation Project (Appendix 3 in the student version, Appendix 5 in the instructor’s version) and jot down the pertinent information on paper.
o After completing the External Market Survey section, move on to the Merit Pay Planning feature, which will be used in Section 3 of the project, titled Recognition of Individual Achievements. Input your choices as indicated in CompAnalysis and analyze the data.

Milestone One: Strategic Analysis

Milestones

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 MyManagementLab Building Strategic Compensation Systems casebook for faculty and students, linked in the course menu in MyLab. Follow the explanations and outline to complete this milestone.

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
ii. Competition
iii. Foreign Demand
iv. Long-Term Industry Prospects
v. Labor-Market Assessment
c) Analysis of Internal Capabilities
i. Functional Capabilities
ii. Human Resource Capabilities

The 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.

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
ii. Competition
iii. Foreign Demand
iv. Long-Term Industry Prospects
v. Labor-Market Assessment
c) Analysis of Internal Capabilities
i. Functional Capabilities
ii. Human Resource Capabilities

The Strategic Analysissection is fully described in the MyManagementLabBuilding Strategic Compensation Systems casebook for faculty and students, linked in the MyLabcourse menu. Follow the explanations and outline to complete this milestone.The Strategic Analysis section is due at the end of Module Three.

WE ACCEPT