Business Diagnostics ©
Framework
Mike Thompson, FCMC
CeoBusinessDiagnostics.com
Evaluate and Grow
Your Business
Michael Thompson
With: Richard Mimick Terry Rachwalski
www.ceobusinessdiagnostics.com
Business Diagnostics
Size Up Grids External
Business Environment
Industry Conditions
Internal
Finance
Marketing
Operations
Human Resources
Technology
External Size Up External
Business Environment
Industry Conditions
PEST-C Analysis Political Factors
Economic Issues
Societal Factors
Technological Considerations
Competitive Considerations
P.E.S.T. - An Overview
Economic
Interest Rates
Inflation Rates
Employment
Economic Growth
Technological
R&D
Early Adoption
Product Life Cycles
Societal
Demographics
Social Awareness
Lifestyle Changes
Environmental Issues
Political
Assistance
Regulations
Competition
Your Company
The Business Environment Opportunities Threats
Political
Economic
Societal
Technological
Industry Conditions
Industry Evaluation Characteristics
Trends
Industry Competitive Conditions
Competition Assessment
Competitive Advantage
Situation Analysis (SWOT or TOWS)
Industry Competitive Environment
Industry Segment
Company
B
Company
A
Company
C
Intensity of Competition
Supplier Power Buyer Power
Threat of
Substitutes
Threat of
New Entrants Need to Complete:
Competitor Assessment
Situation Analysis (SWOT)
Identify Key Success Factors
Michael Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors,
The Free Press, 1980
Industry Competitive Conditions
High Medium Low
Threat of new entrants
Bargaining power of customers
Bargaining power of suppliers
Threat of substitutes
Intensity of competition
Competitive Analysis– SMART Model Critical Success Factor Competitor #1 Competitor #2 Competitor #3
Product
Customer Service
Price
Social Media Presence
Experience
The Internal Size UP Financial Evaluation
Marketing Strategy
Operations
Human Resources Management
Technology Assessment
The Financial Evaluation Financial Statements
Financial Goals and Ratio Analysis
Financial Projections
Managing Cash Drivers
Capital Budgeting Techniques
Financial Goals and Ratio Analysis Profitability and Cash Flow
Liquidity
Stability
Debt Services
Efficiency
Growth
Michael Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors,
The Free Press, 1980
Financial Size up
Strength Weakness
Profitability and Cash Flow
Liquidity
Stability
Efficiency
Growth
Managing Cash Drivers Improved A/R Collection
Defined A/P Settlement
Maximize Inventory Turnover
Marketing Strategy Market Analysis
Marketing Strategy Development
Marketing Strategy Execution
Market Analysis Segment Analysis
Competitor Evaluation
Trade Analysis
Sustainable Competitive Advantage
Unmet Customer Needs Assessment
Marketing Strategy Price
Product
Place (Distribution)
Promotion
The 5th P: People
Marketing Size up
Strength Weakness
Market Tactics
Market Analysis
Market Strategy Execution
The Operations Review Business Process (includes supply chain)
Risk Management Issues
Legal Concerns
Location Decisions
Technology Considerations
Operations Size up
Strength Weakness
Operations/business process
Risk Management
Legal Issues
Location Considerations
Technology Considerations
HR Management HR Function
Recruitment & Hiring
Training & Development
Compensation
Planning
Leadership
Organizational Structure
Skills Development
Teams & Teamwork
Management Capabilities
The Technology Assessment Technology Description
Product/Process Evaluation
Intellectual Property Issues
Markets
Potential Risk Factors
The Technology Assessment
Strength Weakness
Market Tactics
Market Analysis
Market Strategy Execution
Technology Push vs Market Pull
Technology
Products and/or
Services
Markets
Market Pull
Market feedback
modifies technology
and products
3 Denzil Doyle, Making Technology Happen
Technology Evolution and Cash Flow Realities
‘The Valley of Uncertainty’
+
_
IDEA R & D Product Development
Production &
Distribution
Product Migration
Market Expansion
Marston Control Devices Case
Manufactures control components for industrial robots
Apparent strengths
Hidden weaknesses
Strategic opportunities
Potential threats
Marston Control Size up
Use the Business Diagnostics Framework
Use Size up grids
External and Internal
Strategic Direction?
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