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What is strategic analysis and what does it involve?
Strategic analysis refers to the process of conducting research on a company and its operating environment to formulate a strategy. It involves identifying and evaluating data relevant to the company’s strategy, defining the internal and external environments to be analyzed, and using several analytic methods such as Porter’s five forces analysis, SWOT analysis, and value chain analysis.
How can strategy be defined?
Strategy can be defined as an action that managers take to attain one or more of the organization’s goals, or as 'A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process.'
What are some common factors involved in the process of strategic analysis?
Some common factors involved in the process of strategic analysis include identifying and evaluating data relevant to the company’s strategy, defining the internal and external environments to be analyzed, and using several analytic methods such as Porter’s five forces analysis, SWOT analysis, and value chain analysis.
What are the main methods used in strategic analysis?
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What is the goal of a strategy?
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Study Notes
Strategic Analysis
- Strategic analysis is a process of evaluating an organization's internal and external environment to identify opportunities and threats, and to make informed decisions about its future direction.
Defining Strategy
- Strategy is a plan of action designed to achieve a particular goal or set of goals, taking into account the organization's resources and the environment in which it operates.
Factors Involved in Strategic Analysis
- Internal factors: organizational resources, capabilities, strengths, and weaknesses
- External factors: market trends, competitors, customers, suppliers, and regulatory environment
Methods Used in Strategic Analysis
- SWOT analysis: identifies strengths, weaknesses, opportunities, and threats
- Porter's Five Forces analysis: evaluates the competitive forces of an industry
- PESTLE analysis: examines the impact of political, economic, social, technological, legal, and environmental factors
Goal of a Strategy
- The goal of a strategy is to create a sustainable competitive advantage, achieve a desired outcome, or solve a particular problem.
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Description
Test your knowledge of strategic analysis with this quiz. Assess your understanding of the process, factors involved, and the relevance of data in formulating effective strategies for a company's success.
