BU111 Study Guide - Midterm Guide: Industrial Revolution, Holarchy, Consumerism
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BU111 Full Course Notes
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Critical success factors for business: achieving financial performance, profit & cash flow; survival & growth, meeting customers needs, without them no profit! External analysis is a process of scanning and evaluating the external environment (opportunities and threats) Look for data, statistics, trend forecasts, expert opinions, etc. Specific environment: affects industry participants (porter"s five forces: opportunities - positive external trends and changes, threats negative external trends and changes. Diamond-e framework identifies key variables to be considered in strategic analysis. 2: management preferences, organization, resources, strategy, environment. Determines what opportunities the business will pursue. Any other variable can either drive or constrain stratedy. Determines needed resources, organizational capabilities and management. The culture of a company; the type of leadership and capabilities of a company. Consistency between the variables is the most important aspect of the model. Absolute alignment is unrealistic: risk is sometimes necessary, it is the role of senior managers to decide which risks they are willing to live with.
