Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Business Management & Operations
  • Strategy, Entrepreneurship, & Innovation

Strategic Analysis - Explained

What is Strategic Analysis?

Written by Jason Gordon

Updated at April 7th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is Strategic Analysis?What goes into Strategic Analysis?Research existing strategies Evaluate the Effectiveness of Current Strategies Devise a Strategic Plan Choose and Implement the Strategy Academic Research on Strategic Era Analysis

What is Strategic Analysis?

The term strategic analysis involves researching an organization and its daily activities to create a strategy. The strategic analysis process involves the following:

  1. Finding out and ascertaining information that coincides with the organizational strategy.
  2. Understanding the types of environment, both internal and external, for analysis purpose
  3. Making use of various analytical techniques, including Porters five forces analysis, value chain analysis, and SWOT analysis.
Back to: STRATEGY & PLANNING

What goes into Strategic Analysis?

A strategy is nothing but a well-formulated plan devised by managerial levels for accomplishing the primary and secondary organizational objectives. To create a business strategy, the company must understand its nature of operations and its significance. Start by considering the following:

  • Vision: What the company looks forward to achieving in the next 5 or 10 years?
  • Mission Statement: What is the nature of the organization?
  • Values: What are the pillars of the organization that represent its ethics and moral values?

The process for conducting a strategic analysis involves the following steps: 

Research existing strategies 

Assess the companys current strategies. Focus on internal environment considerations, such as financial problems, improper functioning of operations, reduced employee motivation, etc.. The look to external consideration, such as economic fluctuations, changes in preferences and interests of customers, prevailing trends in politics. 

Evaluate the Effectiveness of Current Strategies 

Is the current strategy meeting company objectives? Is it feasible to continue the strategy? Does the strategy coincide with the set vision, mission, and values? 

Devise a Strategic Plan 

This involves developing alternative strategies. For example, changing from a cost to a differentiation strategy. 

Choose and Implement the Strategy 

Once a proper evaluation of various strategic alternatives is made, its the time to execute the most feasible and beneficial strategy. Implementation of the strategy will vary across firms. Its important to execute, evaluate and re-evaluate strategies for better results. Strategic plans include three stages in the context of scope:

  • Organization-level - At the topmost level, a corporate strategy is related to making top-level strategic decisions so that the business can have core competence and maintain its profitability in the coming years.
  • Business-level - The middle strategy levels are the point where business-level decisions are taken. This type of strategy emphasizes market positions so as to enable the organization in having a sense of competitive advantage in not only the industry its operating in but also the other industries.
  • Functional-level - Function-level decisions are made at the lowest level of management. They emphasize operations taking place within and amidst several functions in order to make the organization efficient. Such strategies concentrate on specific functions and categories.

Related Topics

  • ***Industry Analysis to Build a Strategy***
  • Strategic Analysis
  • SWOT Analysis
  • SPACE Analysis
  • Situational Analysis - 7C
  • Competition Profile Matrix
  • Resources and Capabilities
  • VMOST
  • Core Competency
  • VRIO Analysis
  • Value Chain Analysis
  • Internal Factor Analysis
  • Value Creation Index
  • PEST(LE) Analysis
  • Industry Lifecycle Analysis
  • Industry Lifecycle - Definition
  • Porter's Five Forces
  • Modes of Management
  • External Factor Evaluation


Was this article helpful?

Yes
No

Related Articles

  • Strategic Planning - Explained
  • Prior Experience in Entrepreneurship - Explained
  • Time to Market - Explained
  • Needs vs Wants (Customers) - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand