Strategic analysis involves examining a business model in relation to goals and performance compared to others in the industry. It includes evaluating products, conducting customer surveys, and analyzing internal factors such as marketing and finances, as well as external factors such as competition and location.
Strategic analysis refers to the process by which an entrepreneur or the management of an organization examines the business model in depth in relation to the goals of the business and the performance of the business in comparison with others in related fields. This is geared towards developing an effective plan or strategy for repositioning the business. This process must necessarily involve a study of the company’s current performance versus possible future performance, an internal study of the company, and a study or analysis of external factors that may have an effect on the company’s performance.
Conducting a performance analysis as part of the strategic analysis includes evaluating the product or service that is the company’s output, a customer survey, and a study of revenue within each business cycle. One of the foundations of successful businesses is a corporate goal or objective that the business hopes to achieve, maintain, and even exceed in its pursuit of excellence in its field or industry. This goal provides the company with a yardstick by which to measure its progress after the indicated periods in order to determine if the company is on track. Part of this process includes an analysis of the company’s product in order to find out how it is doing in terms of sales, acceptance and overall profitability. A consumer perception study of the product would include a survey of the target customers in order to find their opinions about the product and suggested areas for improvement.
While conducting an internal analysis as part of a strategic analysis, the company should check factors such as its marketing processes and the management of its finances. This part of the strategic analysis includes a study of using marketing resources, such as advertising and promotion, to build awareness and acceptance for the product. It would also include a study of the pricing structure in place in order to find out how this affects the company’s profits and overall sales. The company should analyze its human capital in order to ensure that the needs of the employees are met and that the level of productivity from human resources is more than adequate. Another part of strategic analysis is the study of external factors such as the company’s location, competition, and the ease of obtaining raw materials and other supplies.
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