4PA3 – Tool Kit for Diamond-E Case Analysis
Using the Tool Kit:: (S – Strategy, E – Environment, R – Resources, O – Organization, M – Management Preferences).
Tool
Description
Page
S1
Role
1-3
S2
Organizational
Performance
Pertinent elements of case – What is it about? Who are you?
Identify important operating performance metrics such as financial
ratios, trends, productivity. See financial statements for historical
information. Rank from 0 – 10.
Consider employee turnover, goodwill and reputation. Rank from 0 –
10.
Comments regarding longitudinal perspective, i.e. between “time1” and
“time2”, also called the “Performance Matrix”
S3
S4
S5
S6
S7
S8
S9
D-E
E10
E11
E12
E13
E14
E15
R16
R17
M18
O19
20
21
22
23
Organizational
Health
2x2 Matrix of
Tools S2, S3
Strategy
Triangle
Generalizes tools S6 - S9
Categorize the goals stated in the case as Hard or Soft and whether
they’re realistic or not. Include “green” environment as a soft goal.
2x2 Matrix on Market Penetration – Product Development – Market Development –
Product/Mkt Diversification (Market: Existing/New, Product: Existing/New)
Value
How does the company compete? PFE – Price, features, execution,
proposition
combination, etc.
Break the Value Chain into components and identify key elements.
Core Activities
Comment on back / forward integration possibilities.
Examine the linkages and the process of strategic analysis using the
Diamond – E
base case
Threat of new entrants, bargaining power of buyers, threat of
Porter’s Five substitutes, bargaining power of suppliers, intensity of rivalry.
Forces
Rank each Low/Med/High, overall judgement, Include exit barriers.
Don’t forget to sub-segment the markets/businesses if necessary.
Political, Economic, G-Environmental, Social and Technological.
PEEST
Is there an inimitable advantage? For economic analysis, does the
industry lead, match, or follow the business cycle?
Stakeholder
Identify and compare stakeholders’ interests
Industry
Monopoly, Duopoly, Oligopoly, Free Market. Any changes that have
Structure
occurred in the industry prior to or anticipated in the future.
Genealogy
Predecessor/defunct companies, heritage, lineage.
Business
How does the industry make money? Profit = Revenue – Expenses
model
Establish what specifically drives each variable
Resource
Particularly forward looking financial resources. Limiting factors on
Analysis
options facing company today and tomorrow.
Gap analysis Matrix in Text. Where are the major gaps for the company?
Mgmt. Pref. Corporate governance, corporate social responsibility, frozen
Organization Structure
Change
Identify non-behavioural and behavioural changes needed
Agenda
Crisis
Degree of urgency for taking action (anticipatory/reactive/crisis)
Curve
Alternatives
Develop options (include Do Nothing), establish evaluation criteria
Recommend alternative(s), develop specific tactics for S/T, M/T, L/T,
Action Plan
scenario planning, contingency plans, targets, style
Goals
3-4
Tab 1.1
5
Tab 1.2
5
Fig 1.2
18-19
Fig 2.1
21
Tab 2.1
25
28
Tab 2.3
30-32
47, 54
Fig 3.1, 3.4
60-64
HBR article
70
75-77
108
117
129,132,140
164-171
206
Fig 10.1
208
Fig 10.2
Fig 11.1,
11.2