ASTRA analysis

From CEOpedia | Management online

ASTRA analysis method refers to the study of two problems related to the activities of the company. The first concerns of the diagnosis on strategic activities, as well as an analysis of what is happening inside and outside the company. The second comes down to modify previously adopted strategy, to withdraw from realizing it or adopt entirely new. ASTRA analysis is mainly used by the top management of the organization. It allows to specify the behaviour of the enterprise as a whole under the impact of a changing environment.

Stages

  1. Evaluation of the implementation of the current strategy
  2. Analysis of competitive environment
  3. Study on the organization and functioning of the company.
  4. Design of strategic options.

Evaluation of the implementation of the current strategy

In this step, managers examine the facts on the company in order to obtain information that will allow to make decisions regarding the correction of previously adopted strategy or completely withdraw from it. This phase should take into account in particular the "public needs test", which are formulated in Mission of the company. These tests are essential, because they result shows that overlapping positive relationships between the company and the environment. Environment refers to the companies existing in the industry and to legal institutions, social insurance, etc. An important part of this step is to assess the cost-effectiveness of management strategies currently applied (yields, liquidity, solvency).

Analysis of competitive environment

This phase refers to the analysis of opportunities and threats for the company inherent in the environment. SWOT analysis is often used, which orients company in the marketplace and reveal position relative to competitors.To determine the position managers use different measures, e.g. market share, financial income, revenue from the sale, products and services, profit, profitability, rate of the share of exports and domestic production (..). SWOT analysis also includes in its structure survey and assessment of the possibility of disposing of products in various market segments and study of demands or expectations of buyers relative to the manufacturers or suppliers.

Study on the organization and functioning of the company

This step comes down to the analysis of the strengths and weaknesses of the company. It should lead managers to solutions that will help to eliminate any irregularities in connection with the activities of the company. The first step is to apply these solutions that require minimal financial resources.

Design of strategic options

It consists of collecting all the information from previous stages and selection of most rational variant of strategic options. Each of the variants should be the subject of extensive research and evaluation. Selection of one of them must be based on reliable account of the effectiveness of the intended business ventures.

Examples of ASTRA analysis

  • One example of ASTRA analysis is the analysis of a company’s competitive position. This involves looking at the strengths and weaknesses of the company and its competitors. It also requires reviewing the external environment to identify potential opportunities and threats. This analysis is used to develop a strategy to gain a competitive advantage and to position the company to take advantage of those opportunities and mitigate the risks posed by the threats.
  • Another example of ASTRA analysis is the analysis of a company's resources. This involves looking at the internal strengths and weaknesses of the organization and its resources. It also requires looking at the external environment to identify potential sources of resources and the competition for those resources. This analysis is used to provide an understanding of the company's ability to acquire resources to achieve its goals.
  • A third example of ASTRA analysis is the analysis of a company's organizational structure. This involves looking at the internal structure of the organization and its processes. It also requires looking at the external environment to identify potential changes in the structure and the processes of the organization. This analysis is used to identify ways to improve the organization's structure and processes to help it achieve its goals.

Advantages of ASTRA analysis

ASTRA analysis brings a variety of advantages to the company. These include:

  • Improved decision-making - ASTRA analysis helps to identify the strengths and weaknesses of the company and facilitate making more informed decisions. It also helps to recognize opportunities and threats in the market, enabling the company to act quickly and effectively in order to take advantage of them.
  • Reduced risks - ASTRA analysis allows the company to plan and prepare for potential risks, enabling it to be better prepared and reduce the likelihood of negative outcomes.
  • Improved competitiveness - ASTRA analysis helps to identify the most successful strategies used by the competitors and replicate them in order to stay ahead of the competition.
  • Increased efficiency - ASTRA analysis enables the company to identify and address inefficiencies in its operations, as well as to identify and address weaknesses in the market. This can lead to improved operational efficiency and higher profits.

Limitations of ASTRA analysis

One of the main limitations of ASTRA analysis is that it can be time-consuming and costly, due to the need to collect and analyze data from inside and outside the company. Additionally, the results of the analysis are subjective and depend on the individual interpretations of the data. Furthermore, it can be difficult to anticipate and predict future changes in the environment. Finally, the analysis is limited to a particular time period and may not take into account the long-term effects of a particular strategy. *It may also lead to a bias in strategic decision-making, as the individual performing the analysis may be influenced by their own personal beliefs and interests. *In addition, it may be difficult to obtain sufficient information from external sources in order to make an accurate assessment of the company’s environment.

Other approaches related to ASTRA analysis

ASTRA analysis is a method of studying the activities of a company, but there are many other approaches related to it.

  • SWOT Analysis: SWOT analysis is a method used to evaluate the strengths, weaknesses, opportunities, and threats of a business or organization. It helps businesses to identify areas of improvement and develop strategies to capitalize on the opportunities and minimize threats.
  • PEST Analysis: PEST analysis is a strategic management tool used to evaluate the Political, Economic, Social, and Technological factors that can affect the performance of a business. It is used to identify the external factors that could impact the success of a project or product.
  • Porter's Five Forces Analysis: Porter's Five Forces Analysis is a framework used to analyze the competitive environment of a business. It uses five forces to identify potential threats and opportunities in the market. These five forces are the threat of new entrants, the threat of substitute products or services, the bargaining power of buyers, the bargaining power of suppliers, and the intensity of competitive rivalry.
  • Value Chain Analysis: Value Chain Analysis is a framework used to analyze the activities of a company in order to identify areas where it can add value and create a competitive advantage. It helps to identify areas of improvement and develop strategies to create more value for customers.


ASTRA analysis — recommended articles
Internal analysis — Strategic analysis — Company situation analysis — Importance of swot analysis — Relevant information — Strategic decision — SPACE method — EFE matrix — Near environment

References

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