Page 109 - PRAGMATIC STRATEGY
P. 109

DIAGNOSIS

                  List the problems facing the organization:



                  a) Explicit problems ;


                  define them in terms of the available standards of performance
                  historic (past performance or expectations),or

                  environmental (competitor industry average etc.),or
                  control standards (internal planning and control measures, e.g. actual
                  v. budget  expenditure).


                  b) Implicit problems ;


                  do not accept the 'problems' presented in case study at face value,
                  do not confuse symptoms with causes.


                  To unearth hidden and perhaps critical problems compare
                  organization's performance on profitability, marketing, production etc.
                  with performance levels that would normally be expected from a
                  healthy company.

                  e.g.,

                  Marketing problems might be

                  - limited distribution
                  - lack of branding
                  - inadequate advertising


                  Finance
                  - low profit on sales

                  - low asset productivity
                  - liquidity problems
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