Read the case study “E-Trade” and answer the questions:

Important facts in this case (company, industry, competition, etc)?
Environmental & Competitive Scan
External factors outside the direct control of the company, but which affect the company. External factors create opportunities and threats to which the company must respond. (e.g., political, demographic, environmental, political, global, legal)
Competitive factors that impact the company (e.g., nature of competition, characteristics of existing competitors, potential new competitors, substitute products, bargaining power of suppliers and customers)
What are the critical success factors in this industry? How well does this company address those critical success factors?
Internal Scan – what are the company’s internal strengths and weaknesses relative to critical success factors, the competition, and the environment? (Include financial ratios)
Internal strengths	Internal weaknesses
As you consider this company, what do you see as its sustainable competitive advantage(s), (i.e.,what core competencies does this company have that competitors will not be able to imitate/improve upon in the foreseeable future)?
What strategic recommendations would you make to this company(i.e., where should they go and how should they get there)?

Financial Ratio Analysis (Option: Use Financial Ratios CD for calculations)	Current Year	Previous Year	Change	Industry Averages	Comments on this ratio
Liquidity Ratios Current ratio Quick ratio
Leverage Ratios Debt-to-Asset ratio Debt-to-equity ratio Times interest earned
Activity Ratios Inventory turnover Avg. collection period Total asset turnover Fixed assets turnover
Profitability Ratios Gross profit margin Oper. profit margin Net profit margin Return on assets Return on equity
Revenue/ Expense Sales revenue Cost of sales Operating profit Net Income