strategic business analysis
what are the components of swot
strengths, weaknesses, opportunities, and threats
components of pestel analysis
political economic social technological environmental legal
involves evaluating companies strategic position and developing actionable plans to achieve long-term objectives
strategic business analysis
it focuses on understanding the competitive environment identifying strategic opportunities and threats and formulating strategies to ensure sustainable competitive advantage
strategic business analysis
what are the five key components of strategic business analysis
1. external environment analysis
2. internal environment analysis
3. strategic formulation
4. strategy implementation
5. strategic evaluation and control
enumerate the three external environment analysis
pestel analysis
porter's five forces
market trends and dynamics
enumerate internal environment analysis
swot analysis
resource-based view
value chain analysis
enumerate strategy implementation
•organizational structure
•change management •performance measurement
enumerate strategic evaluation and control
•performance monitoring
•risk management
•feedback and adaptation
enumerate strategic formulation
.vision mission and objectives .strategic options and choices .competitive strategies
it examines the macro environmental factors
pastel
analyzes industry structure and competitive forces
porter's five forces
identifies changes and trends in the market that could impact the business
market trends and dynamics
assesses internal strengths and weaknesses and external opportunities and threats
swot analysis
focuses on a firm's internal resources and capabilities as sources of competitive advantage
resource based view
identifies value creating activities within the organization and evaluates their efficiency and effectiveness
value chain analysis
define the company's purpose aspirations and specific goals
vision, mission, and objectives
evaluates different strategic paths growth strategies diversification market entry strategies
strategic options and choices
development of cost leadership differentiation or focus strategies
competitive strategies
a line structure and resources to support strategic initiatives
organizational structure
facilitates organizational change to ensure successful strategy execution
change management
use tools like balanced scorecard to monitor and evaluate strategy effectiveness
performance measurement
regularly reviews progress against strategy goals
performance monitoring
identifies and mitigates risks associated with strategic initiatives
risk management
uses performance data to define and adjust strategies as needed
feedback and adaptation
concentrates on assessing the financial health of an organization by analyzing financial statements
financial analysis
examines internal processes and operations to improve efficiency productivity and quality
objective: it identifies areas for cost reduction process improvement and operational excellence
operational analysis
this analysis of consumer needs and technological trends has driven its product innovation strategy leading to the successful launch of products like the iphone, ipad, and apple watch
apple inc.
launched innovative products like the ipad iphone ipod
apple
became the world's largest online retailer with a diversified portfolio
amazon
common pitfalls and challenges in strategic business analysis
•data overload
•bias and subjectivity
•uncertainty and complexity
•resource constraints
a systematic process for envisioning a desired future and translating this vision into broadly defined goals and a sequence of steps to achieve them, it involves setting objectives analyzing the competitive environment and aligning resources to execute the plan, its purpose is to establish a direction for the organization allocate resources efficiently and ensure that all stakeholders are working towards common goals.
strategic planning
enumerate strategic processes
1. Vision and mission
2. environmental scanning
3. goal setting
4. strategy formulation
5. implementation
6. evaluation and control
helps identify external factors that could influence the organization strategy
pestel analysis
it provides a comprehensive overview of the organizations strategic position
swot analysis
a framework for analyzing the competitive forces within an industry, helps understand the competitive dynamics and industry attractiveness
porter's five forces
enumerate the components of porter's five forces
1 threat of new entrants
2 bargaining power of suppliers
3 bargaining power of buyers
4 threat of substitutes
5 industry rivalry
a tool used to analyze the internal activities of a business to identify value creating processes
value chain analysis
a strategic planning tool that provides a framework to executives senior managers and marketers device strategies for future growth
ansoff matrix
components of bcg matrix
stars, cash cows, question marks, dogs
components of ansoff matrix
market penetration, product development, market development, diversification
san miguel corporation
pestel analysis
sm investments corporation
swot analysis
pldt
porter's five forces
universal rubina corporation
value chain analysis
jollibee foods corporation
BCG matrix
it assesses the ease with which new competitors can enter the industry
Factors:
barriers to entry, economies of scale, brand loyalty
threat of new entrants
looks at the likelihood of alternative products or services replacing the industries offerings
Factors: availability of substitute products, price performance trade off, switching costs
threat of substitutes
it analyzes the intensity of competition within the industry
Factors:
number of competitors, market growth rate, product/service differentiation
industry rivalry
examines the influence customers have on an industry
Factors:
buyer concentration, product differentiation, price sensitivity
bargaining power of buyers
evaluates the power that suppliers have over the industry
Factors:
number of suppliers, availability of substitutes, supplier concentration
bargaining power of suppliers
it involves assessing and understanding competitors strategies strengths and weaknesses
competitor analysis
the systematic collection and analysis of information about competitors to support strategic decision making
competitive intelligence
companies providing alternative solutions the fulfill the same customer needs
indirect competitor
companies offering similar products or services
direct competitor
a model that sees resources as key to superior form performance, this an approach to achieving competitive advantage that emerge in the 1980s in 1990s
resource based view
two types of resources in resource based view
tangible and intangible assets
everything that has no physical presence but can still owned by the company, usually stay within a company and are the main source of sustainable competitive advantage
intangible assets
the first assumption is that skills capabilities and other resources that organizations possess differ from one company to another
apple incorporation vs. samsung electronics is a good example of how to companies that operate in the same industry and that are exposed to sing external forces can achieve different organizational performance give to the difference in resources (apple)
heterogeneous
the second assumption of our beliefs that resources are not mobile and do not move from company to company,
immobile
reasons why resources can be hard to imitate
historical conditions
casual ambiguity
social complexity
to find valuable rare and costing to imitate resources you should first look at the company's _____
intangible assets
how many other companies own a resource or can perform capability in the same way in your industry?
can a resource be easily bought in the market by rivals?
can competitors obtain the resource or capability in the near future?
finding rare resources
do other companies can easily duplicate a resource?
can competitors easily develop a substitute resource?
do patents protect it?
is a disorder capability socially complex?
is it hard to identify the particular process tasks or other factors that form the resource?
finding costly to imitate resources
potential questions
what is our competitive advantage?
what resources do we have?
what products are performing well?
strengths
possible questions
where can we improve?
what products are underperforming?
where are we lacking resources?
what are our detractors?
what are our lowest performing product lines?
Weaknesses
what trends are evident in the marketplace?
what demographics are we not targeting?
what new technology can we use?
can we expand our operations?
what new segments can we test?
opportunities
companies often tend to over emphasize their strengths while dumpling weaknesses
mistake when preparing swot
enumerate the ansoff matrix
market penetration
market development
product development
diversification
this is the riskiest of the four growth strategies
diversification
a framework that evaluates business portfolio provides further strategic implications and helps to prioritize the investment needed for each business unit
GE-Mckinsey
a strategy tool that offers a systematic approach for the multi business corporation the prioritize its investments among its business
Ge-mckinsey 9-box matrix
focuses on increasing sales of existing products within existing markets
market penetration