COM 4PA3 – Tool Kit for Diamond-E Case Analysis – SAA 10th Edition

Using the Tool Kit: (S – Strategy, E – Environment, R – Resources, O – Organization, M – Management Preferences).
Tool Description SAA Page
S1 Role Pertinent elements of case – What is it about? Who are you? 2
Identify important operating performance metrics such as financial
Organizational 4
S2 ratios, trends, productivity. See financial statements for historical
Performance Tab 1.1
information. Rank from 0 – 10.
Organizational Consider employee turnover, intangibles, goodwill and reputation. 4
S3
Health Rank from 0 – 10. Tab 1.2
2x2 Matrix of Comments regarding longitudinal perspective, i.e. between “time1” and 5
S4
Tools S2, S3 “time2”, also called the “Performance Matrix” Fig 1.2
Strategy 12
S5 Goals, Product/Market Focus, Value Proposition, Core Activities
Triangle Fig 2.1
Categorize the goals stated in the case as Hard or Soft and whether 15
S6 Goals
they’re realistic or not. Include “green” environment as a soft goal. Tab 2.1
2x2 Matrix on Market Penetration – Product Development – Market Development – 17-19
S7
Product/Mkt Diversification (Market: Existing/New, Product: Existing/New) 2X2
Value How does the company compete? PFE – Price, features, execution, 20-21
S8
proposition combination, etc. Tab 2.3
Break the Value Chain into components and identify key elements. 22-25
S9 Core Activities
Comment on back / forward integration possibilities. Value Chain
Examine the linkages and the process of strategic analysis using the 36-46
D-E Diamond – E
base case Fig. 3.1, 3.4
Threat of new entrants, bargaining power of buyers, threat of
Porter’s Five substitutes, bargaining power of suppliers, intensity of rivalry. 49-53
E10
Forces Rank each Low/Med/High, overall judgement, Include exit barriers. HBR article
Don’t forget to sub-segment the markets/businesses if necessary.
Political, Economic, G-Environmental, Social and Technological.
E11 PEEST Is there an inimitable advantage? For economic analysis, does the 48
industry lead, match, or follow the business cycle?
E12 Stakeholder Identify and compare stakeholders’ interests 63-66
Industry Monopoly, Duopoly, Oligopoly, Free Market. Any changes that have
E13
Structure occurred in the industry prior to or anticipated in the future.
E14 Genealogy Predecessor/defunct companies, heritage, lineage.
Business How does the industry make money? Profit = Revenue – Expenses
E15
model π = (price * quantity) – (fixed costs + variables costs) identify drivers
Resource Particularly forward looking financial resources. Limiting factors on 88
R16
Analysis options facing company today and tomorrow. VRIO Tab. 6.1
R17 Gap analysis Matrix in Text. Where are the major resource gaps for the company? Tab. 6.4
M18 Mgmt. Pref. Governance, corporate social responsibility, frozen preference 136-137
O19 Organization Identify organizational structure and analyze implications Fig. 7.2
Change 167
20 Identify non-behavioural and behavioural changes needed
Agenda Tab 10.1
Crisis 169
21 Degree of urgency for taking action (anticipatory/reactive/crisis)
Curve Fig 10.2
Decision
22 Alternatives Develop options (include Do Nothing), establish evaluation criteria
Matrix
Recommend alternative(s), develop specific tactics for S/T, M/T, L/T, 11.1, 11.2,
23 Action Plan
scenario planning, contingency plans, targets, style 11.3