How to Conduct Strategic Analysis Essay

1099 Words Nov 13th, 2012 5 Pages
One critical piece of the Strategic Planning process is Strategic Analysis. It is an integral part of a company’s evaluation program; it provides managers with a comprehensive assessment of the organization’s capabilities and market factors; revealing growth opportunities and vulnerabilities. With this information, managers can more effectively choose from strategic alternatives and create the greatest future reward potential.
A) Company Mission – Vision
The first step I would take as part of my Strategic Analysis process would be to look at the Company’s mission and its vision. Mission statements include the aim of the organization, the organization’s primary stakeholders, the product or service offered and a declaration of the
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The five forces are: 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 will be.
C) Internal Analysis
The next step I would take in my Strategic Analysis Process would be to examine the company’s internal environment. The internal environment consists of those factors that exist inside the company. Some of these factors include the company’s identity, the knowledge of their employees, their financial situation, etc. Again, similar to the external analysis, there are many different models that analyze a company’s internal environment. The one to be discussed in this report would be the Value Chain which is explained below.
- Value Chain
Every company’s 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 combine to form a value chain. This is because of the underlying intent of a company’s activities, which is to do things that ultimately create value for buyers. A company’s value chain also includes an allowance for profit because, it is customarily part of the price (or total cost) borne by buyers. The value
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