BU 111 External Analysis and Case Analysis Flashcards

Comprehensive vocabulary flashcards covering the Diamond-E Framework, PEST Analysis, Porter's Five Forces, Generic Strategies, Case Analysis Process, and Key Success Factors.

Diamond-E Framework

A strategic management framework that connects internal factors (Management Preferences, Organization, Resources) with Strategy and the external Environment to ensure strategic fit.

Principal Logic

The foundational rule of the Diamond-E Framework stating that internal consistency between strategy, resources, management preferences, and organization leads to good execution, while external alignment ensures the strategy fits the environment.

PEST Analysis

An external analysis tool used to evaluate the Political, Economic, Social, and Technological factors shaping a firm's general environment.

Porter's Five Forces

An industry-level framework that analyzes competitive intensity and profitability drivers through five forces: Industry Competitors, Potential Entrants, Substitutes, Suppliers, and Buyers.

Rivalry Among Existing Firms

The most powerful competitive force in Porter's model, driven by factors like many equal-sized competitors, low industry growth, or commodity products, which leads to price competition and reduced profitability.

Threat of Substitutes

A force in Porter's Five Forces model referring to products from other industries that perform a similar function, which places a price ceiling on products and increases marketing costs.

Threat of New Entrants

A competitive force involving potential future competitors entering the market, requiring existing firms to build entry barriers such as economies of scale, patents, or switching costs.

Bargaining Power of Suppliers

The power exerted by providers of key inputs who can reduce industry profitability by increasing input prices, limiting supply, or lowering quality.

Bargaining Power of Buyers

The power exerted by customers who can depress industry profitability by demanding lower prices, higher product quality, or increased service levels.

Porter's Generic Strategies

A framework mapping four strategic market positions based on two axes: Competitive Advantage (Low Cost vs. Uniqueness) and Competitive Scope (Broad Target vs. Narrow Target).

Cost Leadership Strategy

A generic strategy targeting a broad market scope by leveraging scale and operational efficiencies to produce offerings at a lower cost than competitors.

Differentiation Strategy

A generic strategy targeting a broad market scope by delivering unique features and high perceived value that command a price premium.

Cost Focus Strategy

A generic strategy offering low-cost goods or services targeted specifically at a narrow market niche.

Differentiation Focus Strategy

A generic strategy offering unique, specialized product or service features tailored to a narrow market niche.

Immediate Issue

The surface-level problem or explicit question presented in a business case, usually stated in the introduction or conclusion.

Underlying Issue

The root cause of an immediate business problem (or the core aspiration in an opportunity pursuit) that must be addressed to ensure long-term resolution.

3 Whys Approach

A problem-solving technique of asking 'Why' repeatedly to drill down from an immediate surface issue to the underlying root cause.

Decision Criteria

Descriptive standards, boundaries, and key performance drivers used to compare options and ensure a solution is feasible, effective, and desirable.

Objectives

Explicit quantitative or qualitative performance targets and Key Performance Indicators (KPIs) used to demonstrate that a solution is effective.

Force Field Analysis

An analytical tool evaluating internal and external enabling forces against constraining forces to justify strategy choice and ensure feasibility and completeness.

Strategic Recommendation

The central 'big idea' or overarching thesis proposed to answer the main problem or opportunity in a case analysis.

Tactical Recommendation

The 2 to 3 main action pillars or key initiatives required to make a strategic recommendation a reality.

Operational Recommendation

Detailed implementation steps specifying what specific resources, items, or actions must be built, bought, or executed to fulfill tactical plans.

Risk Mitigation Strategy

A planned action or measure implemented specifically to reduce the likelihood that a potential risk will occur.

Contingency Strategy

An alternative course of action designed to be executed if an identified risk actually materializes.

Key Success Factors

The six essential areas an organization must execute well to ensure survival, growth, and long-term financial performance: Customer satisfaction, Employee commitment, Innovation & creativity, Quality products & services, Distinctive competitive advantage, and Financial performance.

Key Performance Indicators

Quantifiable measurements (such as Net Promoter Score, market share, cycle time, defects, ROI, and turnover) used to track progress across Key Success Factors.