Skill audit against primary sources · MGMT E‑5000 / E‑5005

HES Strategy Register

Every framework the strategic-analysis skill carries, checked line by line against the five course documents it claims to encode.

1,130 PDF pages + 1 DOCX swept 2.57M characters extracted Compiled 29 Aug 2026
2Contradictions resolved
46Core frameworks missing
393Canonical corpus items
74Items skill carries

Everything below marked Verified was confirmed directly against the source files. Nothing here is inferred: every item traces to a page in one of the five documents, and every gap was hand-checked against the skill files before being counted.

Part One

Errata: two contradictions, both resolved

The skill contains one self-flagged contradiction and one it never noticed. Both are on testable material. Both are now settled against the sources.

Transaction cost frequency: the skill corrects Chung using an author the course never cites

Verified

The skill's corporate-strategy.md lists three conditions justifying vertical integration, then interrupts itself mid-list to reverse the third one — asserting that high frequency justifies integration because governance cost amortizes over many transactions. That correction imports Oliver Williamson's canonical formulation.

Term frequency across the full corpus
Term Excerpts
173pp
Binder
835pp
Lectures
93pp
Binder2
29pp
Midterm
docx
“Williamson”00000
“asset specificity”00030
frequency as a TCE condition00010

Williamson appears nowhere in 1,130 pages. Both Rothaermel and Chung source transaction cost economics to Coase alone. The three-condition list is not in the lecture deck either — Chung's Vertical Integration lecture Vert Int s.9–13 teaches TCE as Coase's origin question, then external versus internal transaction costs, then Cin-house < Cmarket, then the market/hierarchy tradeoff grid, then the make-or-buy continuum. No asset specificity. No uncertainty. No frequency.

The condition list surfaces exactly once in the entire corpus, on the Birds Eye key-lessons slide:

The slide sets the market as the default, then lists three exceptions under which it treats market contracting as prohibitive: asset specificity, uncertainty, and — as the third condition — low frequency of transactions. Birds Eye Case Discussion, slide 5 · the header reads “Ben and Jerry's” though the content is Birds Eye, a copy-paste artifact repeated on the IMG deck's slide 5. Note also that the Birds Eye deck in the binder runs 1, 2, 3, 5 — slide 4 is missing.
Resolution

On the variable as written, they do contradict. High and low frequency cannot both favour hierarchy. Two tests decide it.

Arithmetic. Chung's own decision rule is Cin-house < Cmarket Vert Int s.11, and the internal costs he lists are fixed — recruiting, salaries, shop floor, office space Vert Int s.10. Fewer transactions spread that fixed cost across a smaller base, so per-transaction internal cost rises as frequency falls. Low frequency is when integration is least affordable, not most. The bullet contradicts the criterion on the slide two pages earlier.

Corner versus margin. There is a real argument nearby — no specialist supplier ecosystem, no repeat-game reputational discipline, high search cost per deal. But that is market thinness, a market-structure variable, not dyad-level recurrence. And it is exactly the Birds Eye fact pattern the slide summarises: no mature cold-storage or distribution network existed at entry, and once third parties emerged, outsourcing became correct. What drives that is the level of transaction costs and the arrival of providers — not how often Birds Eye bought cold storage.

Verdict: a labelling error wrapping a conclusion that is right on the facts. Chung's conclusion (integrate when no viable supplier market exists) is correct; the variable name attached to it is not. Read his third bullet as thin-or-absent market and both frameworks reconcile.

Corroboration that this is slide-level and not course doctrine: the frequency bullet is never applied to anything. The Birds Eye value-chain slide Birds Eye s.2 sorts every stage on asset specificity alone — supply contracted and not asset-specific, cold stores and processing integrated. Frequency touches no stage.

What to write on the exam

Reproduce Chung's list — asset specificity, uncertainty, low frequency — after stating the market default. It is a one-slide keyed answer and a grader working from the slide will mark the Williamson version wrong. Do the analytical work with asset specificity, because that is what the course actually applies.

If you invoke the frequency bullet, phrase it so it is true under both frameworks: contracting was prohibitive because the market was thin and immature, so per-transaction search and negotiation costs were prohibitive. That earns the bullet without asserting the inverted rule as a general principle.

Never attribute a frequency claim to Rothaermel. He makes none — Chapter 8 develops asset specificity, opportunism, incomplete contracting and the cost rule with no frequency dimension at all. In E‑5000, where Rothaermel governs, citing one would be a fabricated citation.

One further correction, to the skill and to the first draft of this page: the skill's parenthetical presents the Williamson version as the course answer and relegates Chung's wording to a footnote. That inverts the provenance. Chung's phrasing is not a variant of the standard version — within this course it is the only version.

Benefit-to-cost ratio: Chung gives two different formulas in one deck

Verified

The skill never caught this because it only ever read the second slide.

Two formulas, same lecture deck
SlideFormulaStatus in skill
Intro s.4
Foundations — “you are responsible for knowing them and being able to apply them”
B/C = (Revenues − Costs) / Costs Absent
Intro s.34
Appendix, detailed treatment
B/C = Net benefits / Investment
Investment = PV of capex, excludes ongoing opex
Carried
Resolution

Chung is internally inconsistent, and the slide the skill omitted is the one he flags as testable. Carry both, labelled by slide. If a question gives revenues and costs but no capex figure, p.5 is the intended formula.

Part Two

Taught in E‑5005, missing from the skill

Each confirmed present in the lecture deck or case binder and absent from all eleven skill files. Citations are PDF page numbers, not the slide numbers printed on the slides.

Collis & Rukstad strategy statementIntro s.11 · B&J s.1 Objective (ends) · Scope (domain) · Advantage (means). Used live in the Ben & Jerry's discussion — “Can you say what Ben and Jerry's strategy is?” The skill has no trace of it.
Premises of corporate strategyDiv Exp s.8 Porter's three premises: competition occurs at business-unit level; corporate strategy inevitably adds cost and constraint; shareholders can diversify more cheaply themselves. The skill carries premise one as a bare quotation and drops the other two.
Acid test for corporate strategyCorp Adv s.4 The business must not be worth more to another owner; if it is, divest to the highest bidder and redeploy. Named test, absent from the skill.
Identify / Invest / Leverage / UpgradeCorp Adv s.6 Four-question corporate-advantage test from Collis & Montgomery's Conceptual Framework. Entirely absent.
Key threshold considerationsDiv Exp s.4 Pre-diversification question grid across Resources, Businesses, and Plan — what to ask before running Porter's three tests.
Market versus hierarchy gridVert Int s.12 Market benefits (informational efficiency, high-powered incentives) and costs (transaction costs, market power) against hierarchy benefits (authority, coordination) and costs (bureaucracy, agency). The skill has the transaction-cost split but not this grid.
Vertical integration benefits and risksVert Int s.18 Six benefits against four risks. The skill compresses this to a two-item version (market power, efficiency).
Evaluating expansion opportunitiesVert Int s.5 Five-step process for quantifying opportunity along the value chain. The skill embeds a four-step variant inside its value-chain entry and never names it.
Why firms grow, and limits to growthVert Int s.7 Five growth motives resolving into diseconomies of scale and scope — the setup for the whole limits-to-firm-scope argument.
Considerations when determining scopeIntro s.26 Four named considerations, plus the Collis & Montgomery split the skill does carry: vertical scope tracks governance costs, horizontal scope tracks production costs.
Demand-side externalities as a diversification forceAlphabet s.5 Network effects driving the outside-in logic in the Alphabet discussion. The skill's Alphabet entry omits it, and also omits that Chung reads the Moonshots as showing elements of all four Porter concepts at once.
Chung's own foundational framework listIntro s.4 SWOT, Five Forces, PESTEL, profit tree, benefit-to-cost ratio — declared prerequisites he may not lecture on but holds students responsible for. This is the single most exam-relevant slide in the deck and the skill never references it.

Four course topics with no skill coverage at all

Intro s.3

Chung's own topic list runs twelve items. The skill covers eight. These four have no entry, no reference file, and no vocabulary:

  • Managing the Multibusiness Corporation
  • Portfolio Planning and Resource Allocation
  • Managerial Decision Making
  • Corporate Transformation

One instruction the skill inverts

Apple s.6

Chung's Apple key-lesson reads: “Use either the Resource Continuum or the Triangle of Corporate Strategy to assess corporate advantage.” The skill's failure-mode list mandates pairing at least two frameworks and specifically names this pair. Defensible as analysis; wrong as a report of what he taught.

Part Three

What the skill carries

Seventy-four items across eleven files. This is the baseline the course sweep is being diffed against.

External & industry

  1. PESTEL
  2. Porter's Five Forces
  3. Complements (sixth force)
  4. Strategic group analysis
  5. SWOT
  6. Strategic SWOT questions

Internal & resource

  1. Resource-Based View
  2. Resource heterogeneity
  3. Resource immobility / sticky resources
  4. Tangible vs intangible resources
  5. Resources → capabilities → activities → core competencies
  6. VRIO
  7. Isolating mechanisms
  8. Direct imitation vs substitution
  9. Three market forces
  10. Five resource tests
  11. Firm-level value chain
  12. Core competency
  13. Path dependence
  14. Causal ambiguity
  15. Social complexity
  16. First-mover advantage

Business-unit strategy

  1. Porter's generic strategies
  2. Stuck in the middle
  3. Ansoff matrix

Corporate strategy

  1. Three dimensions of corporate scope
  2. Five elements of corporate strategy
  3. Five tests of a corporate strategy
  4. Triangle of Corporate Strategy
  5. Tight fit
  6. Three tests of corporate advantage
  7. Resource Continuum
  8. Types of corporate diversification
  9. Inverted-U performance curve
  10. Porter's 3 essential tests
  11. Porter's 4 concepts
  12. Porter's action program
  13. Industry-level value chain
  14. Backward / forward integration
  15. Collis & Montgomery 5-step tree
  16. Transaction cost economics
  17. External vs internal transaction costs
  18. Asset specificity
  19. Make-or-buy continuum
  20. Taper integration
  21. Strategic outsourcing
  22. M&A vs alliance criteria
  23. M&A failure risks
  24. Corporate parenting advantage
  25. Best parent test
  26. Divestiture criteria
  27. Mode of entry

Portfolio & organizational

  1. BCG growth-share matrix
  2. GE / McKinsey 9-box
  3. McKinsey 7S

Quantitative

  1. Profit tree
  2. Benefit-to-cost ratio
  3. V − C
  4. Financial ratios (29, five categories)
  5. HHI
  6. CAGR
  7. NPV
  8. WACC
  9. CAPM
  10. EVA
  11. Learning curve
  12. Market share / relative market share
  13. SMART goals
  14. Economies of scale
  15. Economies of scope
  16. Diseconomies of scale

Course vocabulary

  1. AFI framework
  2. “Mickey Mouse”
  3. Outside-in vs resource-based
Operating discipline the skill also encodes (not framework content)

Roughly sixty percent of the skill's value is procedure rather than taxonomy — and procedure is what a headings-only reading loses, because rules live in table rows and prose, not headers.

Diagnostic mode. Confidence gates requiring two of three evidence types before classifying; named wrong-call anti-patterns (Costco is cost leadership, not differentiation; Apple is differentiation with a scale cost advantage); discriminating questions per classifier; VRIO recognition shortcuts; concepts-coexist rule; a Five Forces attractiveness scoring rule; a re-evaluation test for existing integration; a never-invent-details rule.

Socratic mode. Five critical rules — one question per turn, stop and wait, validate then nudge, hint rather than answer, mandatory closing synthesis. A universal opener that functions as a session contract. A five-row stuck-symptom hint table. A required close offering two named next directions.

Case tactics. A gate forbidding progress until the decision is stated in one sentence; Rothaermel's symptoms-before-diagnosis analogy; a nine-point success pattern grouped by Triangle corner; the Mickey Mouse tagging convention; the six-stage Birds Eye industry chain; a restructuring answer pattern; eight instructor criteria; four named tensions; and a nine-row failure-mode table distinct from the seven-row one in the main skill file.

Reusable answer templates. Three, one per worked example — VRIO, vertical integration, corporate advantage.

Part Four

The E‑5000 sweep

Sixteen extraction agents over 1,130 pages returned 936 items. Two adversarial critics then hunted for what the extractors missed, verifying every candidate by grep before reporting it. Both converged independently on the same largest omission.

An entire assigned reading was missing — from the sweep and from the skill

Recovered

Goold & Campbell's Do You Have a Well-Designed Organization? (HBR, March 2002) is reproduced verbatim in the binder — syllabus reading 18 for Class 12 — and appears twice over. Both critics named it as the single largest framework in the corpus absent from the skill. It also survived two extraction passes undetected, including a re-run of its chunk after that agent failed mid-response. I pulled it out of the source by hand.

1 · Market Advantage TestfitDoes the structure put enough management attention on the source of advantage in each market served?
2 · Parenting Advantage TestfitDoes the design let the corporate parent actually add value to the units beneath it?
3 · People TestfitDoes the design match the real strengths, limits and motivations of the people who must run it?
4 · Feasibility TestfitHave the constraints that could block implementation been accounted for?
5 · Specialist Cultures Testgood designAre units that need a distinct culture insulated enough to keep it?
6 · Difficult-Links Testgood designDo the unit-to-unit links likely to cause trouble have a coordination mechanism attached?
7 · Redundant-Hierarchy Testgood designAre there more parent levels or units than the structure can justify?
8 · Accountability Testgood designDoes the design give each unit controls that actually work?
9 · Flexibility Testgood designCan the design accommodate new strategy and adapt as conditions change?

Test names are Goold & Campbell's; the questions above are paraphrased to their substance rather than reproduced. First four are “fit” tests — an initial screen on whether the structure supports strategy, talent, and situation. Last five are “good design” tests, which tune the balance between empowerment and control. BND pp.382–388

Also confirmed present and absent from the skill

Verified by grep
Parenting propositionsBND p.384Select · Build · Stretch · Link · Leverage — the five categories of corporate-parent value creation that sit underneath the Parenting Advantage and Redundant-Hierarchy tests.
Six basic forms of unit-to-unit linksBND p.385Shared know-how, shared tangible resources, pooled negotiating power, coordinated strategies, vertical integration, new-business creation. The analytic backbone of the Difficult-Links Test.
Redundant-hierarchy 10% ruleBND p.385A parent level must improve the units reporting to it by at least 10%; three layers therefore need 30% total parenting value added to justify themselves.
“Getting the Bugs Out”BND p.386Two-tier ordered remedy procedure for design problems — steps not involving major design change, then steps that do.
Four global strategy archetypesBND p.~790International, multidomestic, global-standardization, transnational, plotted on the integration-responsiveness grid. Both critics flagged this independently.
Galbraith STAR model structure policiesBND p.~690Specialization, shape/span of control, distribution of power, departmentalization.
Mobility barriersBND p.~700What separates strategic groups — the mechanism that makes group mapping analytically meaningful, and the standard exam hook. Both critics flagged it.
Core rigidityBND p.~705A former core competency that turned into a liability as the environment changed. Defined on the dynamic-capabilities slide.
Absorptive capacityBND p.~420Identify, assimilate, and apply external knowledge, with not-invented-here as the named failure mode.
Liability of foreignnessBND p.~788Additional costs of operating in an unfamiliar cultural and economic environment. The standard counterweight in global-strategy questions.

Holes in the course materials, not in the skill

Worth knowing

The critics also established what is genuinely absent from your corpus. If any of these are examinable, the binder will not save you:

  • Corporate governance and business ethics. Rothaermel Chapter 12 appears roughly twenty times — but only as a syllabus and agenda header. Zero hits for agency theory, principal-agent, market for corporate control, poison pill, moral hazard. The assigned Sonnenfeld reading is listed but not reproduced.
  • Rothaermel Chapter 11 organizational-design canon. Zero hits for mechanistic versus organic, M-form, functional structure, formalization, “structure follows strategy”, Chandler. The corpus's only org-design theory is Galbraith's STAR model and the Goold & Campbell nine tests.
  • Porter's 2008 five-forces article and the finer half of What Is Strategy? A critic reported both flagship articles missing; that was half wrong and I checked it. What Is Strategy? is in the binder — productivity frontier, operational effectiveness, trade-offs, fit and the activity system all extract from it. What is genuinely absent is its taxonomy: no variety, needs, or access-based positioning, no first, second, or third-order fit, no profit pools.
  • Decision-making biases. Genuinely absent, not merely unextracted — no groupthink, anchoring, sunk-cost, escalation of commitment, bounded rationality.
  • Valuation tooling. Thin throughout: no DCF procedure, no Tobin's q, no IRR, no DuPont decomposition.

Blue ocean, platforms, network effects, business models, and international strategy were checked and are adequately covered — the critics confirmed those are correctly represented rather than missed.

Part Five

Master list

902 items swept from the corpus, canonicalized by ten agents working one theme each, then reconciled across themes. The reconciler folded 41 duplicate pairs. I hand-adjudicated every core gap against the skill files afterwards, because automated matching could not settle it.

393Canonical items
107Core frameworks
46Core, absent from skill
7Present but thinner

The raw flag said 60. Hand-checking removed six the skill already carries — the experience curve is filed under learning curve, ROIC is in the ratio table, corporate advantage is in the glossary, the control and coordination mechanisms are both Resource Continuum dimensions, and the case-analysis method is the whole of case-tactics.md — merged the strategy canvas with its value curve, and reclassified seven as present-but-thinner.

Business-level strategy and positioning

12

The largest cluster. Porter’s positioning canon plus the entire blue-ocean school.

Blue Ocean StrategyKim & Mauborgne A business-level strategy that combines differentiation and cost-leadership activities through value innovation to open uncontested market space and make competition irrelevant. Blue oceans — untapped market space, new demand, profitable growth; Red oceans — known market space, cut-throat rivalry, commoditized products, zero-sum; Simultaneous pursuit of differentiat
Eliminate-Reduce-Raise-Create (ERRC) FrameworkKim & Mauborgne The four questions that initiate a value-innovation move — two that lower cost and two that raise perceived value. Eliminate (lowers cost) — which factors the industry takes for granted should be eliminated?; Reduce (lowers cost) — which factors should be reduced well below the industry standard?; Raise
Minimum Efficient Scale (MES)Rothaermel The output range at which cost per unit is driven as low as it can go, below which a firm bears a scale cost disadvantage and above which diseconomies set in. Below Q1 — cost disadvantage from unrealized scale economies; Q1 to Q2 — minimum efficient scale, constant returns to scale; Above Q2 — diseconomies of scale; Entry-barrier role: high MES re
Operational Effectiveness vs. StrategyPorter Operational effectiveness is doing the same activities better than rivals (faster, cheaper, more efficiently); strategy is performing different activities — best practices are easily emulated, so oper Operational effectiveness: same activities done better (faster, cheaper, more efficiently); Strategy: performing different activities from rivals; Easy emulation of best practices; Convergen
Perform Different Activities vs. Perform Activities DifferentlyPorter The two-option test for a business strategy to yield competitive advantage: perform activities different from rivals, or perform similar activities differently. Perform different activities than rivals; Perform similar activities differently than rivals; Effective positioning requires trade-offs (Walmart illustration)
Porter's Three Principles of Strategic PositioningPorter Three tests of what makes a position a strategy: a unique position, a willingness to choose what not to do, and activities that reinforce one another. Unique positioning within markets (a different set of activities); Making trade-offs — choosing where you won't compete; Alignment and fit: all activities reinforce one another and the strat
Productivity FrontierPorter The sum of existing best industry practices — the maximum value a firm can deliver at a given cost using the best available resources — which shifts outward continuously. Sum of all existing best industry practices; Maximum value creatable at a given cost; Best available technologies, skills, management techniques, inputs; Constant outward shift of the fronti
Strategic Fit and Activity SystemsPorter Competitive advantage comes from a network of interlocking activities that reinforce one another, and the system must be refreshed over time or it becomes a strategic misfit. Activities combine and interact to reinforce one another; Interlocked, reinforcing array resists imitation; Core strategic themes with clusters of tightly linked supporting activities; Dynam
Strategy CanvasKim & Mauborgne A graphical plot of a company's relative performance against competitors across an industry's key success factors. Horizontal axis: industry key success factors / factors of competition; Vertical axis: relative performance (high/low); Plotted profiles: differentiator, stuck-in-the-middle, low-cost leader
The Three Value DisciplinesTreacy & Wiersema Market leaders narrow their focus to deliver superior customer value along one of three disciplines rather than trying to lead on all dimensions. Operational Excellence — reliable products at competitive prices with minimal inconvenience; lead on price and convenience; Customer Intimacy — segment and target precisely, tailor offerings
Value InnovationKim & Mauborgne The simultaneous pursuit of higher differentiation and lower cost that creates a leap in value for both the firm and its customers; the cornerstone of blue ocean strategy. Align innovation with total perceived consumer benefits; Align with price; Align with cost
Who-What-Why-How Questions of Business-Level StrategyRothaermel The four-question sequence that formulates a business-level strategy — the goal-directed actions taken to gain competitive advantage in a single product market. Who are the customer segments we will serve (including whom to avoid)?; What customer needs, wishes, and desires will we satisfy?; Why do we want to satisfy them?; How will we satisfy them?

Innovation and business models

8

The skill treats innovation only as a letter in PESTEL.

Absorptive CapacityChung A firm's ability to take in and use external knowledge, assessed in four steps as a diagnostic of openness to innovation. Identify valuable knowledge; Assimilate knowledge; Transform knowledge; Apply external knowledge; Failure mode at the assimilate step: not-invented-here syndrome (inward-looking rejection of
Crossing the ChasmGeoffrey Moore, presente Moore's adopter-segment model: each stage of the industry life cycle is dominated by a different customer group, and a chasm separates early adopters from the early majority that most innovations fail Technology enthusiasts 2.5%; Early adopters 13.5%; THE CHASM (between introductory-stage and growth-stage customers); Early majority 34%; Late majority 34%
Disruptive InnovationClayton Christensen, pre An innovation that uses a new technology to attack an existing market from the bottom up, starting as a low-cost, lower-performance solution whose rate of improvement outpaces the rate of improvement Characteristic 1: begins as a low-cost solution to an existing problem; Characteristic 2: initially inferior performance, but a steeper technology trajectory (rate of improvement) than the i
Markets-and-Technology Framework (four types of innovation)Rothaermel, Exhibit 7.11 A 2x2 that classifies an innovation by how new its underlying technology is (existing vs. new) and how new its market is (existing vs. new), yielding four innovation types. Incremental innovation — existing technology, existing market; builds on the established knowledge base and steadily improves an existing offering; Radical innovation — new technology, new m
Open vs. Closed InnovationChesbrough lineage Paired models of where innovation comes from: a closed funnel in which research projects stay inside the firm's boundary and serve only current markets, versus an open funnel in which ideas and paths Closed principles: internal expertise reliance; self-reliance for profit from R&D; first-mover advantage; control over intellectual property; Open principles: collaboration beyond company bo
Platform vs. Pipeline Business ModelParker, Van Alstyne & Ch The contrast between a linear pipeline that transforms inputs into outputs along an internal value chain and a platform that enables value-creating interactions between external producers and consumer Pipeline — linear, gatekeeper-controlled value chain from raw materials to after-sales service (ExxonMobil, BlackBerry); Platform dimension 1: a business enabling value-creating interactions
The Four I's (innovation process)Rothaermel The four-step sequence by which new knowledge is discovered, developed, commercialized and copied. Idea — abstract concept or research finding; Invention — transformation of an idea into a product or process; Innovation — commercialization of the invention (the test that turns an inventio
Why, What, Who, and How of Business ModelsAmit & Zott, adapted by A four-question framework for formulating and implementing a business model, each question mapping to a named output block. Why does the business model create value? → value proposition; What activities must be performed to create and deliver the offering? → key activities; Who are the main stakeholders performin

Organizational design and execution

5
Balanced ScorecardKaplan & Norton A diagnostic framework for strategy implementation that harnesses multiple internal and external performance metrics so financial and strategic goals are balanced, with metrics developed and tracked a Customer perspective — How do customers view us? (speed, quality, service, cost, reservation price); Internal business process / value-creation perspective — How do we create value?; Learnin
How Units Connect (six forms of unit-to-unit links)Goold, Campbell & Alexan The six basic forms cross-unit links take, used inside the Difficult-Links Test to decide which links need a designed coordination solution rather than being left to unit managers. Shared Know-How Links; Shared Tangible Resources Links; Pooled Negotiating Power Links; Coordinated Strategies Links; Vertical Integration Links
Nine Tests of Organization DesignGoold, Campbell & Alexan A nine-test framework for evaluating an existing organization structure or creating a new one, built from four 'fit' tests that screen design options against strategy, people and constraints, plus fiv Fit test 1 — Market Advantage Test: does the design direct sufficient management attention to the sources of competitive advantage in each market? (single unit per segment = sufficient atten
Policy Deployment (Hoshin Kanri)Danaher / Japanese lean The planning-and-control tool used to drive and monitor implementation of an agreed strategy, converting multi-year breakthrough objectives into annual targets, improvement priorities and named owners 3-5 year breakthrough objectives that dramatically improve firm performance; Annual target to improve, including breakthrough initiatives; Improvement priorities; Resources; Primary responsi
STAR ModelGalbraith Galbraith's five-point organization design model holding that structure, processes, rewards and people policies must all be aligned to the chosen strategy. Strategy — the company's formula for winning: goals, values/mission, products/services, markets served, value offered, sources of competitive advantage; Structure — placement of power and au

Global strategy

5

The skill covers geographic scope in one line plus a mode-of-entry list.

AAA Triangle (Adaptation, Aggregation, Arbitrage)Pankaj Ghemawat Ghemawat's framework holding that a firm expanding outside its home market must choose one, or at most two, of three basic global strategies rather than balancing scale against responsiveness. Adaptation — boost market share and revenue by customizing offerings to local needs; local relevance through national focus; locate in countries close on CAGE; levers: scope selection, varia
Advantages and Disadvantages of Going GlobalRothaermel A paired list of three benefits and three costs of globalization, each tied to a generic-strategy or resource logic. Advantage: access to a larger market — participate in a larger market, outcompete local rivals, helps firms based in small economies; Advantage: access to low-cost input factors — supports a
CAGE Distance FrameworkPankaj Ghemawat Four dimensions of cross-country distance that guide which foreign markets to enter — adaptation configures operations to limit their effects, arbitrage configures operations to exploit them. Cultural distance — different languages, ethnicities, religions, social norms; lack of connective ethnic/social networks; lack of trust; country-of-origin effects; bites hardest on linguisti
Integration-Responsiveness FrameworkRothaermel A 2x2 crossing pressure for cost reductions against pressure for local responsiveness that yields four archetypal global strategies. Axis: pressure for cost reductions (low/high); Axis: pressure for local responsiveness (low/high); International strategy — low/low; leverages home-based core competencies; same product at h
Porter's Diamond of National Competitive AdvantagePorter A four-determinant model of why some nations produce globally competitive firms in particular industries. Factor conditions — human capital, market size, infrastructure, technology adoption, legal/regulatory framework, logistics; Demand conditions — market size and growth, customer sophisticatio

Strategy process, purpose and stakeholders

4
Deliberate vs. Emergent StrategyMintzberg & Waters Two simultaneous strategy-making processes — a conscious top-down deliberate process and a cumulative bottom-up emergent process — that both feed the resource allocation process, with the right choice Intended strategy vs. realized strategy; Deliberate strategy: conscious, analytical, top-down, a discrete project; Emergent strategy: cumulative day-to-day prioritization and investment deci
Stakeholder TheoryRothaermel An approach that treats the firm as embedded in a network of internal and external constituencies, each making contributions and expecting consideration in return, so strategy responds to stakeholder Internal stakeholders: employees, managers, founders/partners, board and shareholders; External stakeholders: customers, suppliers, alliance partners, creditors, unions, communities, governm
Strategy Statement (Objective, Scope, Advantage)Collis & Rukstad Collis and Rukstad's device for stating a strategy in 35 words or fewer using three elements — objective (ends), scope (domain), and advantage (means). Objective (ends): the end and its measure; typically a financial metric management is held accountable to; Scope (domain): customer segments, geography, vertical value-chain position, produc
Triple Bottom LineRothaermel Three dimensions — economic, social and ecological — whose simultaneous positive achievement provides the basis of a sustainable strategy, drawn as three intersecting circles. Profits — the economic dimension: firms must be profitable to survive; People — the social dimension; Planet — the ecological dimension: the relationship between business and the natural env

Resources and capabilities

3
Strategic Activity SystemPorter A map of the firm as a network of interlocking, mutually reinforcing activities radiating from core strategic themes, whose interconnection — not any single activity — is the source of advantage. Strategic core activities (large ovals / central nodes); Clusters of tightly linked supporting activities (smaller circles); Reinforcing loops feeding the core (e.g. data → users → advertise
Sustainable Resource Analysis (three resource classes)Jeffrey R. Williams, Cal A time-based method that classifies each resource by the speed at which competitive pressure erodes it — slow-, standard- or fast-cycle — and reads the durability of any advantage from that class. Class 1 Slow-Cycle — strongly shielded, guild-like (e.g. legally protected IP); local monopoly analog; Class 2 Standard-Cycle — scale orchestrated (brand management, product development, glo
Three Tests to Identify a Core CompetencePrahalad & Hamel Prahalad and Hamel's screen separating a genuine core competence from an ordinary capability: wide market access, significant contribution to perceived customer benefit, and difficulty of imitation. 1. Provides potential access to a wide variety of markets; 2. Makes a significant contribution to the perceived customer benefits of the end product; 3. Should be difficult for competitors t

Performance measurement

3

The skill has the ratio tables but not the measurement theory above them.

ROIC Decomposition Tree (Exhibit 5.1)Rothaermel A two-level drill-down that breaks ROIC into return on revenue and working capital turnover and then into their component expense and asset ratios, to diagnose the underlying drivers of profitability Level 1a: Return on Revenue (ROR) = Net profits / Revenue — how much of sales converts to profit; Level 2 under ROR: COGS/Revenue (production efficiency); R&D/Revenue (innovation intensity);
Shareholder Value Creation / Total Return to ShareholdersRothaermel The second standard performance dimension: the return earned on shareholders' risk capital, measured as stock price appreciation plus dividends over a period, alongside market capitalization. Risk capital — money provided for an equity share, unrecoverable in bankruptcy; Total return to shareholders = Stock price appreciation + Dividends received over a specific period; Market ca
Three Standard Dimensions for Measuring Competitive AdvantageRothaermel The multidimensional perspective holding that competitive advantage is measured along three quantitative dimensions — accounting profitability, shareholder value creation and economic value creation — 1. Accounting profitability (ratios from publicly available 10-K data); 2. Shareholder value creation (total return to shareholders, market capitalization); 3. Economic value creation (V − C

Industry analysis

2
Competitive industry structures (fragmented-to-consolidated continuum)Rothaermel Taxonomy arraying industries from fragmented to consolidated on four structural elements, with profit potential rising along the continuum. Four structural elements: number and size of competitors; degree of pricing power; commodity vs. differentiated product; height of entry barriers; Perfect competition — many small price-taki
Industry life cycleRothaermel The five predictable stages through which supply and demand change as an industry ages, each demanding different competencies and strategies. Introduction; Growth; Shakeout; Maturity; Decline

Corporate scope and boundaries

2
Build-Borrow-Buy FrameworkRothaermel A four-question decision tree that closes a strategic resource gap by choosing internal development (build), an alliance or licensing (borrow), or an acquisition (buy). Relevancy — how relevant are existing internal resources to the gap? (high → build internally); Tradability — can the needed resource be obtained via a contract or license? (yes → borrow); C
Firms vs. Markets (market versus hierarchy trade-off)Rothaermel The paired benefits and costs of the two institutional arrangements for organizing economic activity — the market and the firm (hierarchy) — that the make-or-buy choice trades off. Market benefits: informational efficiency (prices), high-powered incentives; Market costs: transaction costs, market power, information asymmetry / opportunism; Hierarchy (firm) benefits: au

Corporate advantage

2
Acid Test for Corporate StrategyCollis & Montgomery Single-criterion test of a corporate strategy: no business the company owns may be worth more to another owner. Test: the company's business must not be worth more to another owner; If it is worth more to another owner → divest to the highest bidder; Consequence: divestiture frees resources for other
Premises of Corporate StrategyPorter, "From Competitiv Three premises any corporate strategy must confront before diversification can be judged to create value. Competition occurs at the business unit level — corporations do not compete, their business units do; Value is created at the business unit level and added at the corporate level; Successful
Seven the skill carries only in thinner form
  • Network Effects — skill names them once as a barrier to entry, not as a construct.
  • Vision, Mission and Values — skill has vision as element one of five; mission and values untreated.
  • Cost Drivers (cost-leadership levers) — listed inline under cost leadership, not as the named taxonomy.
  • Value Drivers (differentiation levers) — same, under differentiation.
  • Levels of Strategy (Strategic Management Hierarchy) — skill defines business-unit and corporate levels but not the named three-level hierarchy.
  • Three Value Creation Strategies (low cost / differentiation / dual advantage) — skill has the two generic strategies; the dual-advantage third position is absent.
  • Value Creation and Capture (VCC) Framework — skill has V minus C but not the VCC framing.

Below the core tier sit 178 supporting constructs, most also absent from the skill — among them dynamic capabilities, upper echelons theory, Level 5 leadership, jobs to be done, competing against nonconsumption, semi-globalization, mobility barriers, the parenting propositions and the redundant-hierarchy rule. They are real named constructs but not frameworks you would be asked to apply end to end, which is why they are not counted in the 46.

E‑5000 page citations come from the extraction agents and use mixed conventions across source documents. Treat them as locators, not exact references.

Part Six

Method

Stated so the findings can be re-run and challenged.

Sources swept
DocumentCoursePagesSizeCited as
Excerpts from the Book.pdf (Rothaermel)E‑50001733.1 MBEXC
Binder — Strategic Mgmt Full.pdfE‑500083587.3 MBBND
Corp Strategy Lectures 1–5.pdf (Chung)E‑5005931.4 MBIntro Resources Vert Int Div Exp Corp Adv
Binder2.pdf (case discussions)E‑5005290.7 MBAlphabet Apple Birds Eye B&J IMG
Midterm Exam Notes.docxE‑50050.1 MBMID

How to read a citation

E‑5005 citations name the deck and the printed slide number, so they match what you see on the slide rather than a position in the PDF. The five lecture decks and five case decks each restart numbering at 1, which is why the deck name is part of the citation.

Deck abbreviations and their PDF ranges
Cited asDeckPDF pagesSlides
IntroIntroduction1–351–34
ResourcesResources36–521–16
Vert IntVertical Integration53–731–20
Div ExpDiversified Expansion74–861–12
Corp AdvCreating Corporate Advantage87–931–6
AlphabetAlphabet Case Discussion1–61–5
AppleApple Case Discussion7–131–6
Birds EyeBirds Eye Case Discussion14–181, 2, 3, 5
B&JBen & Jerry's Case Discussion19–231–4
IMGIMG Case Discussion24–291–5

Two defects in the binder worth knowing before you cite from it. The Birds Eye deck skips slide 4 — its pages run 1, 2, 3, 5. And two key-lessons slides carry the wrong header: Birds Eye s.5 and IMG s.5 are both labelled “Ben and Jerry's Case Discussion”.

All five extracted with PyMuPDF and python-docx to page-marked plain text — every page carried a marker so citations survive chunking. Text density averaged 2,300 characters per page with two low-text pages across 1,130, so no OCR was required and no page was sampled rather than read.

Sources were split into fifteen page-aligned chunks and swept in parallel against a fixed schema capturing name, kind, attribution, page, definition, components, and a verbatim anchor phrase. Attribution questions were settled by exhaustive term counts before reading context — absence is only provable by full-corpus search, never by reading passages.

What the first pass of this audit got wrong

The initial inventory read three of eleven skill files in full and recovered the rest from headings alone. It claimed exhaustiveness on roughly fifty-five percent of the corpus, and its item counts were constructed rather than counted.

That method recovers taxonomy and drops procedure, because rules live in table rows and prose rather than headers. It also merged two distinct failure-mode lists into one, reported one of two non-matching inimitability lists, listed the worked examples by filename without opening them — missing three reusable answer templates — and passed over the transaction-cost contradiction after reading it.

It also treated the skill as the whole scope, never checking the five course documents the skill itself names as its sources. That omission is what this page corrects.

Two further errors happened while building this page, both worth stating because they shaped intermediate versions.

A pending agent is not a negative result. One extraction agent died mid-response; its chunk was re-run, and I searched the results for the nine tests of organization design while that re-run was still in flight. NOT FOUND was read as absence, and a master list was published on that basis. The agent had in fact captured all 61 items in its chunk. The content survived because I extracted it from source by hand; the count did not.

Re-running an extraction does not reproduce it. The second sweep was assumed to be a superset of the first. It was not — 206 items new, 202 named away, because agents label the same framework differently on different runs. Any diff across two runs needs semantic matching, not set arithmetic. The canonicalization was rebuilt against a single authoritative run, and the two independent passes then converged on 45 and 46 core gaps respectively, which is the reason to trust the figure.