This Tool helps you analyse the industry you are competing in and the influences upon your firm.It also helps you to understand and explain the purpose of your business and how that is impacted by your analysis in this and other tools.

How to work through this tool

Look at the background to the five forces model, then use it to analyse your industry and your firm's position in it. Develop the purpose for which the firm exists, then look at what you have done in Tool 1 and in the industry analysis to see how practical your business purpose is.

For owner-managers it may be a good idea to check both the business purpose and your own purpose in having the business.

Business Diagnostoc Tool 2 (pdf - 105.4 kb) Industry Analysis and Purpose