Flashcards
STRATEGIC ANALYSIS
Cards in this deck (11)
- 1Strategic analysisthe process of conducting research into the business environment within which an organisation operates and into the organisation itself, to help form future strategies
( it's about looking in detail at your current position and what is happening to you now and what might happen to you in the future and then making sure that your long term plans fit in with this external analysis) - 2the strategic analysis explains the key role of strategic analysis to senior managers when strategically managing businessesThis analysis tries to find answers to 3 key questions ->
1. where is the business now?
2. how might the firm be affected by what is happening now or likely to happen
3. how could firm respond to these likely changes - 3effective strategic analysis will lead to -> - clearer and more relevant business goals - better quality strategic decisions - less risky future for the firm as it should be better prepared for futureStrategic analysis techniques ->
1. SWOT analysis
2. PEST analysis
3. Boston matrix
4. Porters Five Forces - 4SWOT ANALYSIS - a form of strategic analysis that identifies and analyses the main internal strengths and weaknesses and external opportunities and threats that will influence the future direction and success of a firmThe SWOT analysis provides information that can be helpful in matching a firm's resources and strengths to the competitive environment in which it operates
- 5- a strategic planning tool which is key to achieving business objectives - SWOT is the 1st stage of planning and looks at strengths, weaknesses, opportunities and threats involved in a project/ business- internal aspects -> they are within the control of firm they may refer to aspects of marketing, finance, manufacturing.
opportunities and threats are external factors - they are outside control of a firm but the firm has ability to reduce/increase the impact on its performance, this may include economic situation, social changes/ technological changes - 6- it is useful in strategy formulation and selection STRENGTHS- internal factors of firm that can be looked upon as real advantages
- could be used as a basis for developing a competitive advantage
- includes - experienced management, patents, loyal workforces and good product image
- factors are identified by taking an internal audit of the firm - 7WEAKNESSES- internal factors of the firm that can be seen as negative factors.
- in some cases can be the flip side of strengths
include - poorly trained staff, limited production capacity and ageing equipment
the information gained by internal adit - 8OPPORTUNITIES- potential areas for expansion of the firm and future profits
- factors are identified by an external audit of market firm operates in and its major competitors
- include - lower rates of interest increasing consumer demand, new technologies - 9THREATS- external factors from external audit
- the audit analyses business and economic environment, market conditions and strength of competitors
- include - new competitors entering the market, changes in the law regarding the sale of firms products, changes in government economic policy - 10SWOT AND STRATEGIC OBJECTIVES SWOT diagram focuses on key issues under strengths, weaknesses, opportunities and threats and a brief outline of each of this could then accompany diaram to make it more useful to managers for strategic planningthis approach helps managers assess most likely future strategies and constraints on them
- it may stand a better chance of developing a competitive advantage by identifying a good fit between a firm's strengths and potential opportunities - 11in many cases, firm may need to overcome perceived weakness to take advantage of potential opportunitySWOT is a common starting point for developing new corporate strategies but rarely sufficient further analysis and planning are usually needed before strategic choices can be made
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- Flashcards on STRATEGIC ANALYSIS, created by prisha patel on 20/03/2020.
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- prisha patel · Mar 2020
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- Mar 20, 2020
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