Outline of Diagnosis Phase in Strategic Management Process
Rex C. Mitchell, Ph.D.

PURPOSE is to gain understanding of the organization in the context of its external environment and to develop a set of critical issues:


* Current mission, strategic objectives, strategies, & performance

* Scan & analyze external environment: [see external module for more details.

* Scan & analyze internal environment
* Stakeholder analysis (see stakeholder analysis module)

* S.W.O.T. table:

* Set of "Critical Issues"

NOTE: As we scan and analyze each of the internal functional areas, we want to understand major things they are doing, and are especially looking for strengths and weaknesses in each functional area

* Four P's:

* Product Life Cycle - especially to help evaluate appropriate strategies for various product lines at different stages in the product life cycle (see separate module)

* Positioning & Competitive Strategy

* Product Portfolio Analysis (can be used in diagnosis, but we will make more use of this in formulation; see description of BCG and GE portfolio analysis models there)


* Often neglected

* Much of COGS here

* Can have large effects on competitive position

* Key strategic decision variables:

* Experience Curve


* Tie to technology developments in external scan

* Note successive S-curves (product performance vs. R&D expenditures). Key to competitiveness is when to shift resources to different technology, plus picking a "winning" technology

* Major strategic variables:


* Many aspects that could be considered, both in diagnosis and later in implementation

* Major considerations:

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Last modified July 14, 2009 Copyright 1985-2009 Rex Mitchell