Critical Success Factors:

1) Achieving financial success: positive money flow and profitability.

2) Meeting customer needs: Customer satisfaction in current products and
anticipate future needs.
3) Provide quality products: Provide expected quality for price paid by customers
and consistent value.
4) Encourage innovation and creativity: New and improved ways to execute
activities in b.
5) Gaining employee commitment: positive working environment (respected and
valued)
6) Creating a distinctive advantage: Unique and valuable products.
Diamond-E: analyzing structure, culture, process-related elements in an
organization and how it relates to business strategy.
1) Strategy: most important
- Link environment and internal components (organization)
- Plan used to pursue opportunity, achieve CSFs, avoid risks in environment
2) Management Preference:
- Biases of management: people who make decisions and determine
strategy.
- Different management style = diff strategies.
3) Organization:
- Capabilities, structures, cultures and leadership of the organization
4) Resources:
- Human, capital and financial resources.
Principal logic: internal consistency and external alignment.
External analysis: scanning and evaluating opportunities and threats in external
environment
PEST factors: analyze general trends and changes, identify the complete
competitive environment
1) Political-Legal: business and gov.
- Law and regulation, taxes, policy, trade agreement, political
stability/system.
- Roles: create incentive/constraint and protect domestic consumers and
businesses.
2) Economic: economic conditions
- Economic growth, stability and employment
- Affects: costs, financial uncertainty and sales.
3) Social: cultures and business
- Huge impact on link between strategy and environment.
- Cultures, customs and values, attitudes, standard of business conducts,
trends and demographic.
- Affects: customer preferences, workers attitudes, business conducts and
lifestyle.
4) Technological: business adds value to their constituents

Internet and e-commerce, I.T, innovative cycle.

Affects: how we work, produce and sell (efficiency), constant learning.

Porters Five Forces: (industry-specific) identify industrys attractiveness, ease of

entry, competitive pressure and profitability.
1)
2)
3)

4)
5)

Industry competitors: most powerful

- Price competition => increased costs and lower price.
- Sol: differentiate and high switching costs.
Suppliers:
- High bargaining power for suppliers => increase price you can demand.
- Sol: strategic alliance, internal supply and bargaining.
Buyers:
- High bargaining power for buyers => decrease price you can demand.
- Sol: alliance with other businesses, increase marketing and lock in
customers.
Substitutes:
- Place price ceiling on price you can charge.
- Sol: lock customer in and high switching cost.
Potential entrants:
-