The book "Good Strategy, Bad Strategy" by Richard Rumelt doesn't provide a specific step-by-step guide on how to do a good diagnosis. However, it emphasizes the importance of understanding the challenge at hand, identifying the critical issues, and focusing on strategic objectives. A good diagnosis in the context of business strategy involves a thorough analysis of the situation, understanding the competitive landscape, identifying the strengths and weaknesses of the organization, and recognizing the opportunities and threats in the environment. It's about getting a clear picture of what's going on and identifying the key factors that will influence the future of the business. Remember, a good diagnosis is the foundation of a good strategy.

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Good Strategy, Bad Strategy

Even some of the world’s biggest organizations do strategy poorly, and incorrectly credit their success to personal decision-making skills. We read th...

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As computer technology progressed in the 20th century, the focus shifted from interconnected individual computer systems—that were made and maintained by companies like IBM and DEC who specialized in integrated systems—to a series of component parts driven by the microprocessor. Now each part was 'smarter', and didn't require expertise of holistic integration. The industry had shifted, and IBM had to readjust.

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IBM's strategy adjustment in response to the shift in the computer technology industry was primarily driven by the evolution of technology. As the industry moved from interconnected individual computer systems to component parts driven by the microprocessor, IBM had to adapt. The new technology was 'smarter' and didn't require the expertise of holistic integration that was IBM's specialty. IBM had to readjust its strategy to stay relevant in the changing landscape. This involved diversifying their product and service offerings, focusing more on software and services, and less on hardware.

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