Success factors and strategic analysis models

Question 1

A good strategy matches:

Answer 1

internal circumstances to external circumstances

Question 2

INTERNAL:

Answer 2

preference for scenic route or highway tolls, ability to drive off-road, gas

Question 3

EXTERNAL:

Answer 3

road closures, traffic, weather

Question 4

What is Diamond-E Framework

Answer 4

• key strategic model to guide analytical thinking
• Simple, logical, most common; primary strategic framework
• Strengths & weaknesses(internal); opportunities & threats (external)
• Each condition can potentially affect the others → integration of elements

Question 5

Diamond-E 5 components

Answer 5

1. Management Preferences (internal)
2. Organization (internal)
3. Resources (internal)
4. Strategy (plan used to pursue objective; reflects & links internal & external)
5. Environment (external)

Question 6

Tension

Answer 6

when there is a gap between what entity wants to do & its capabilities

Question 7

Strategic Tensions Model

Answer 7

Our strategy needs to be aligned w/ what we should do (external environment) & what we want to do, (internal management preferences) and what we can do (resources)! Strategy more effective if there’s low strategic tension (no or small gaps)!

Question 8

Management Preferences:

Answer 8

• vision, mission, preferences & biases
• Identify who the decision-makers are & their preferences/patterns of decision-making
• Can hire new CEO/team w/ preferences that align w/ new direction company is taking
• Identify what management wants/ambitions/objectives
• Realize company’s priorities

Question 9

Organization:

Answer 9

• culture (who they are), capabilities (strengths) & structure (division of work)
• Identify strengths and gaps in capabilities & CLOSE GAPS to make plan feasible
• Ensure company is organized to execute strategy efficiently & effectively
• Learn how time is spent (Generating new ideas)

Question 10

Resources:

Answer 10

• human, financial & capital–including tangible assets, intangible assets (reputation, patents protecting intellectual properties, relationships w/ suppliers)
• Consider the amount of money needed to acquire new resources
• Identify best way to obtain resources you need but don’t have
  E.g. borrow, raise equity, sell assets

Question 11

Strategy:

Answer 11

• Is our current strategy aligned with future opportunities & threats?
• How can we use our strengths for competitive advantage given environment?
• What new strategies are feasible and worthwhile?
• What do we need to execute a strategy? Can we get it? Where are we inconsistent?

Question 12

A GOOD Solution

Answer 12

Feasible - firm has or can get resources to realistically implement solution
Effective - good chance of achieving immediate & overarching objective
Complete - address all key aspects of the problem

Question 13

Principle Logic

Answer 13

consistency & alignment
- Internal Consistency = good execution
- External Consistency = right strategy for environment