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capability to increase organizational effectiveness.

What is the structure and dynamics of each industry that thefirm competes and how competitive are they? What changes are taking place in the industry, orindustries, that will affect the focal firm specifically and/or industry profitability over the next few2years? How does the firm compete at the product or business level? What are the firm’s internalsources of competitive advantage/disadvantage? What is the focal firm’s current strategy? How wellis the firm performing from a financial perspective? Assessment of Current Situation (the Fulcrum) The purpose of the fulcrum is to synthesize the current situation analysis into an assessment ofcurrent and future expected performance. It should also consider the broad direction of a newstrategic initiative, if the status quo is sub-optimal. The important questions here are: How well is thefocal firm performing from a broad strategic perspective? Is the current strategy highly successful,successful, inadequate or disastrous? What is predicted to happen to overall performance if theexisting strategy continues? If the strategy is not successful, what is the source, or sources, of theproblem? In which broad strategic direction should the firm move? When dealing with these issues,the analyst also needs to think ahead: what type of choice method will be used to evaluate thestrategic alternatives at the solution analysis stage?