Case Questions for 2nd case paper: 

Sonic:  A Success Story

Use these questions to guide your analysis, but not to limit it.  That is, you may extend your analysis BEYOND these questions.

NOTE:  Use the same basic format on these papers as on the first assignment.  Try to integrate comments and feedback    that I gave you from the first case into your work on THIS case.

1.  Use what you know about environmental analysis to analyze Sonic's situation.  (Remember to refer to the first chapter in the case book, which tells you how to prepare a case analysis, should you forget how to do this.  Supplement this information with the contents of the 3rd chapter in the book for more ideas.)

2.  Describe the nature of Sonic's competition, its overall effect on Sonic's competitive advantage, and the ways in which Sonic may address these competitive forces in light of its resources, capabilities, and current strategies.

3.  What do you think Sonic's key success factors are?  That is, what factors in its environment, both internal and external, seem to be KEY to its success?

4.  Can the drive-in concept continue to be a valuable resource for Sonic?

5.  Assess Sonic's performance in terms of the following ratios and tell me what you think all of this means.  YOU MUST PREPARE THIS DATA IN A TABLE, showing the ratio's as follows:

    a.  Profitability ratios:  ROA, ROE

    b.  Leverage ratios:  Long-Term Debt/ Equity

    c.  Activity Ratios:  Total assets turnover.

6.  What are your conclusions about Sonic?  That is, if you were hired to consult the company, what advise would you offer them about their current plans, suggestions for improvement, etc.?  (Be specific, be clear, and be careful!)