Introduction

Question 1

What is strategic management?

Answer 1

An ongoing process that evaluates and evolves a firm’s direction by:
1. Assessing competitive environment and setting goals
2. Determining and choosing between strategic choices
3. Regularly re-assessing implementation
4. Evaluating changing/newly emerging circumstances

Question 2

How is strategic management different from other business disciplines?

Answer 2

Other disciplines tend to cover one functional area but strategi management focuses on the whole business as a holistic approach

Question 3

What is the diamond-E framework?

Answer 3

A framework used to for business strategy analysis that focuses on integration of relevant elements for a big picture view

Question 4

What are the elements of the diamond-e framework?

Answer 4

1. Environment
2. Strategy
3. Organization
4. Resources
5. Management Preferences

Question 5

What are the tensions within the diamond-e framework?

Answer 5

1. What we need to do as dictated by the environment and strategy
2. What we can do based on our organization, resources, and strategy
3. What we want to do based on management preferences and strategy

Question 6

What are the 10 steps of the strategic analysis process?

Answer 6

1. Issue identification
2. External analysis
3. Internal analysis: Strategy
4. Internal analysis: Diamond-E
5. Financial analysis
6. Competitor analysis
7. Strategic choices
8. Recommendation
9. Action Plan/Implementation
10. Risks/Contingency Plan

Question 7

What are the steps for determining issues in strategic analysis?

Answer 7

1. Recognize the decision maker’s role in the case
2. Identify key issues/problems the company is facing
3. Keep identified issues front and centre as you move through the rest to ensure it matches and addresses the identified issue

Question 8

What are some methods used for external analysis in strategic analysis?

Answer 8

1. Porter’s Five Forces tells you about competition and if your industry is profitable
2. Using the industry value chain to see who is capturing value in the chain and where
3. PEST to see what is happening in the environment that will impact the industry
4. Key Success Factors to determine how a company can “win” the industry

Question 9

What are the 4 parts of the strategy triangle used for internal analysis in strategic analysis

Answer 9

1. Goals
2. Product Market Focus
3. Core Activities
4. Value Proposition

Question 10

What questions are asked during diamond-e analysis for strategic analysis?

Answer 10

1. Is there good alignment between elements?
2. What does performance to date show?
3. What is the company’s competitive advantage? Is it sustainable?

Question 11

What is the purpose of conducting a financial analysis during strategic analysis?

Answer 11

Using key financial ratios so we can see how well the strategy is doing and where we might need to make changes

Question 12

What questions should we be asking during competitor analysis for strategic analysis?

Answer 12

1. Who are our main competitors and why?
2. How are they performing financially compared to our firm?
3. What resources or capabilities do they have?
4. Do they have the ability to take away our competitive advantage?

Question 13

How should we go through strategic choices for strategic analysis?

Answer 13

Develop alternatives that are viable and distinct
Assess pros and cons, thinking through strategi, financial, and organizational aspects
Be careful you are not already supporting a foregone conclusion

Question 14

What questions should we be asking when developing an implementation plan for strategic analysis?

Answer 14

1. Who will do what?
2. What is the timeline for implementation
3. How will the recommendation impact the functional areas of the firm?