Strategic analysis
| Strategic analysis |
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| See also |
Strategic analysis focuses on two main areas: environment analysis and internal analysis. Analysis of the environment includes following research issues: competitors, customers, suppliers and political environment, Legal factors affecting business|legal]], environmental, social, etc. In contrast, internal analysis covers the following functional areas of business: finance, human resources, logistics, marketing, sales, production, etc.
Due to the complexity of the subject areas of analysis, an important task is to have integrated - general - look at the whole company, both in terms of its environment and internal situation.
Among other analyses used in business management, strategic analysis stands out because of the following features:
- Combine two ways of looking at company and two sources of information: the simultaneous examination of the environment and the organization and confronting these results. It is a procedure with roots in the art of war strategy, while it is completely alien to traditional procedures of analysis of the company.
- The interdisciplinary nature of strategic analysis, which use methods both quantitative and qualitative in the field of statistics, economics, finance, sociology, and psychology.
Advantages of strategic analysis
Strategic analysis is the process of evaluating an organization's internal and external environment in order to identify opportunities and threats, and to develop strategies that will enable the organization to achieve its goals and objectives. There are several advantages to conducting strategic analysis:
- Improved decision-making: Strategic analysis provides organizations with the information and insights they need to make better decisions, by identifying potential risks and opportunities, and by assessing the strengths and weaknesses of different options.
- Increased flexibility: Strategic analysis helps organizations to anticipate and adapt to changes in the environment, by identifying trends and patterns that may indicate future developments.
- Greater efficiency: By conducting strategic analysis, organizations can identify areas where they can improve their performance, and can make more effective use of their resources.
- Better alignment: Strategic analysis helps organizations to align their policies and practices with their overall goals and objectives, which can lead to improved performance and a more engaged workforce.
- Greater competitiveness: Strategic analysis helps organizations to identify new opportunities and to develop strategies that will enable them to compete more effectively in their marketplace.
- Improved stakeholder management: Strategic analysis helps organizations to understand the needs and expectations of their stakeholders, which can lead to improved stakeholder management and greater support for the organization.
- Better crisis management: Strategic analysis helps organizations to anticipate and plan for potential crises, which can help them to respond more effectively if a crisis occurs.
References
- Hall, R. (1992). The strategic analysis of intangible resources. Strategic management journal, 13(2), 135-144.
Author: Krzysztof Wozniak
