Strategic Analysis

Topics: Strategic management, Management, Strategy Pages: 2 (513 words) Published: November 12, 2008
Strategic analysis involves analysing the advantages and disadvantages of the systems and processes of an organization towards attainment of long-term goals and objectives. An efficient strategic analysis enables the organization to effectively manage environmental change and sustain its competitive advantage in the market. To undertake a strategic analysis of a private sector enterprise, one must analyse the industry to have a good understanding of it as this is essential to the survival and prosperity of the organization. The organization-environment relations must be analysed. When undertaking a strategic analysis, there are certain criteria to be considered an certain steps to take in the process.

First of all, the analysis of the external environment of the business at large should be done using the PESTLE analysis tool (PESTLE: People, Environment, Socio-cultural, Technological, Legal and Environmental).These are factors that the organization cannot influence. Secondly, the internal environment of the organization would be done parallel to the external environment using the SWOT analysis tool (SWOT: Strengths, Weaknesses, Opportunities and Threats). The third step would be to use competitor analysis to analyse the major competitors of the organization, analysing their position, performance and prospects in comparison to the organization.

These models mentioned above are very essential and useful in such strategic analysis. A PESTLE analysis is a useful tool for understanding the wider environment in which an organisation is operating, the one in which it operates and have limited influence or impact. It useful for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for the organisation. It is useful to review a strategy or position, direction of a company, a marketing proposition,or idea. SWOT is useful in understanding an organisation or situation...
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