How to Conduct Strategic Analysis

One critical piece of the Strategic Planning process is Strategic abbreviation. It is an integral go for of a companys evaluation program it provides managers with a comprehensive assessment of the organizations capabilities and market factors revealing growth opportunities and vulnerabilities. With this study, managers can more effectively ask from strategic alternatives and create the greatest future reward potential. A)Company Mission Vision The first quality I would take as part of my Strategic Analysis process would be to look at the Companys mission and its vision.Mission statements accommodate the aim of the organization, the organizations primary stakeholders, the product or do offered and a declaration of the organizations core purpose. A vision statement is similar to the mission statement but it doesnt include customers or clients in the statement. The vision statement is for members of the company and it paints a picture of what the company aims to be in the fut ure. Both the mission statement and vision statement must be examined before beginning the strategic outline as they provide the framework for this process.B)External Analysis The next step I would take for my strategic analysis process would be to examine the companys orthogonal environment. The external environment includes altogether factors that affect the substantial. Some of these forces may be outside of the firms control such as technological, governmental, economic, cultural, and demographic factors. Knowing these factors however, enables a firm to look at strategies that work within their respective environments.Other factors within the external environment include competitive rivalries, threat of new entrants, supplier power, buyer power, and threat of substitute products. These external industry environmental factors would be analyzed exploitation Porters Five Forces Model which is discussed below. -Porters 5 Rivals forces One of the earliest models used to examin e industry economics and industry activeness is Michael Porters Five Forces Model. This model identifies five forces at play in an industrys environment (external).The five forces atomic number 18 competitive rivalry, threat of new entrants, supplier power, buyer power, and threat of substitute products. The weaker these forces are the greater opportunity for superior performance by firms within the industry the stronger these forces are the more difficult it depart be. C) inseparable Analysis The next step I would take in my Strategic Analysis Process would be to examine the companys ingrained environment. The internal environment consists of those factors that exist inside the company.Some of these factors include the companys identity, the knowledge of their employees, their financial situation, etc. Again, similar to the external analysis, there are many antithetic models that analyze a companys internal environment. The one to be discussed in this report would be the Value Chain which is explained below. Value Chain every(prenominal) companys business consists of a collection of activities undertaken in the course of designing, producing, and marketing, delivering, and supporting of its product or service.All of the various activities that a company performs internally reliance to form a value chain. This is because of the underlying intent of a companys activities, which is to do things that ultimately create value for buyers. A companys value chain also includes an allowance for profit because, it is customarily part of the price (or total cost) borne by buyers. The value chain consists of two types of activities the primary activities that are foremost in creating value for customers, and the support activities that facilitate and enhance the performance of the primary activities.To conduct a Value Chain analysis you first stomach to make sure all activities both primary and support are identified. After this is done, costs must be allocated to these activities using activity-based costing. Performing this analysis allow for provide a picture of which activities cost the most money and identify problem areas or areas that could be more cost efficient. D) gussy up Analysis The next step I would take for my Strategic Analysis Process would be to take the findings of my internal and external analysis and lay it out in a SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis.The SWOT analysis guides you to identify the positives and negatives inside and outside of the organization. A SWOT analysis allow provide perspective, and reveal connections and areas for action. The SWOT analysis breaks muckle Internal Strengths and Weaknesses of the organization along with External Opportunities and Threats. Strengths and Weaknesses of the Organization (Internal) In this part of the analysis, factors which are internal or within the control of the organization should be identified.These factors may include skills and resou rces, structure, shared values, finances, staff/directors, and style of leadership within the organization or systems such as communications channels. All of these things will ultimately play a role in the organization and its mission. Opportunities and Threats Facing the Organization (External) All organizations are affected by outside influences over which they may have little control, this part of the analysis these factors will be identified. These factors have varying degrees of impact which are both positive and negative, on the organization.Factors to be addressed here will touch base to the mission. They may include activities of competing organizations, government policies, society/community influences or trends, markets, the economy, lifestyles, the environment, demographic trends, technological advances or alternatives. E)Long-term objectives/Key Issue or Decision Point When information regarding the company and its internal and external environments has been laid out, l ong term objectives must be established. The key content or decision point must be addressed.With the information gathered, realistic and measurable long term objectives may be set. One way of addressing or scoring these long term objectives would be to use a balanced score card. If the companys long term objectives have already been set, then perhaps there is a key discharge addressed or a decision that must be made. In this section of the strategic analysis process this issue or decision will be identified and analyzed in detail. F)Alternatives In this section of my strategic analysis process, alternative strategies to meet the long term objectives or to solve the issue or decision will be xplored. At first, all possible options will be laid out, including the status quo. The options will be narrowed down using pros and cons, as well as forecasting the outcomes of the various strategies. G)Choosing the Strategy/Recommendations This is the final piece of the strategic analysis pr ocess. This involves choosing the best possible strategy of all the alternatives listed above. After the best strategy is chosen, recommendations may be given as well as an implementation plan developed.