When a plan gets converted into a process through strategy then it is called strategy analysis. Strategy analysis is important, as it will help to make planning for decision making and smoothing the work in a company. This analysis will tell how do to it and what to do it, means how things can done to achieve the goal and what things are needed to make that happen. It has some key components.
1.Goal and Vision of business – Goal and vision both are important for analysis and for making the strategy , this will give us a structure that what we want to be for our company and how we see our company in future. Goal is what we want to achieve in the coming time, it also helps to grow the business and by knowing the performance of our team we can track the goals. And vision have the essence of the what we want to achieve, what problems or threats we will face. Vision and Goal creates a future picture of a team and a organization.
2.Resources – this includes the resources that we need to achieve the goal or to make strategies. This is also an important factor, as it according to this we make plans for the process. Resources can be tangible or intangible. Tangible resources are like financial resource or physical asset and intangible resources are like technology or reputation of a company or brand recognition, Intangible resources are not visible but more important than intangible resource.
3.Environment – Environment includes the threats and opportunities that are associated with business. Environment can affect the strategy and in analysis we will identify the impact of the threats or the events. This component will help to understand the external and internal factors of a business, this is based on two factors External environment analysis and Internal environment analysis
- External environment analysis – this will focus on wider environment that affects the business. It includes PESTLE technique and Porter’s five force model.
PESTLE stands for Political Economical Sociological Technological Legal, this will determine the external factors that affecting a business, this will tell that we don’t have control on political changes and also identifies the problems and the probability of that problem, this will also explain how a problem or issue can affect the growth of a company
- Internal environment analysis – Internal analysis will tell the internal factors of a business like their strength and weakness, by this analysis company will know their own strengths and weaknesses and can improve them, it also helps to evaluate the performance. SWOT analysis comes under internal analysis
SWOT stands for Strength Weakness Opportunities Threats, in this we will analyse the what are the strengthens and weaknesses of an organization or a company and also analyse the opportunities that we can have and the threats that can affect the organization. Strength and weakness are internal factors, we can have control over them and can change them, Opportunity and threat are external factor, and we can’t control them.