COEPD – Center of Excellence for Professional Development Happy Learning
Strategy Analysis:
Strategy analysis is a process to understand the organization’s business environment within which it operates. It is essential to plan and make decisions for the smooth working of the organization. With the help of strategy analysis, the organization goals and objectives can be achieved. It is the pillar for any organization to achieve its goals. Strategy analysis helps the organization to be in line with the vision of the company. It helps the team to move in the right direction in order to achieve the organizational goals. In order to improve, the organization needs to keep reviewing the strategy analysis to check what is going right and what needs to be improved. It takes into consideration the things that are not working in favor and strives to improve it to increase the organization’s efficiency. Every company who has a goal and a missing will have a strategy analysis. Most of the well-known and established companies have a strategy planning which they keep referring to over and over again. Their success is purely defined by how they plan and implement strategy. Therefore, strategy planning is a long term and a continuous process. There are 2 types of strategy analysis – internal and external.
Internal Strategy Analysis:
This is done by carrying out a SWOT analysis. SWOT analysis is a process to determine the company’s strength, weakness, opportunity and threats. This is done to increase the efficiency of the company.
Strength – this tells us the strength area of the organization which has a winning edge over other organizations.
Weakness – this tells us the weaknesses of the organization that the company needs to work upon to sharpen or reduce its exposure.
Opportunity – this tells us the areas where the opportunity lies for the organization to explore more for it to generate more revenue.
Threats – this tells us the areas which may cause hindrances to the working of the organization and hence, to be avoided as much as possible.
External Strategy Analysis:
This is done by carrying out a process called PESTEL analysis. PESTAL stands for political, economic, social, technological, legal and environmental factors that affect the working of the organization. These are the factors that are mostly not in our control and hence contingencies are made to overcome them. These factors affect the working of the organization to a larger extent than the internal factors.
Strategy analysis process.
- Environmental Scanning:
Environmental scanning is the process of gathering information from various sources and analyzing them as per the requirement of the organization. It analysis data to understand the opportunities and threats of the organization in order to make necessary steps to achieve the goals and objectives of the organization.
- Strategy Formulation:
After gathering and analyzing the information, the key is to make appropriate strategy which suits and are important to achieve the organizational goals and objectives. This process will give the right direction that the organization needs to focus on to achieve its goals. They also consider the resources and the budget to complete the project.
- Strategy Implementation:
After the strategy is formulated, it is very important to communicate this strategy to the various teams and stakeholders. By doing so, they will be able to understand their role in the organization better. By doing this, everyone will be aligned to the organizational goals and objectives.
- Strategy Evaluation:
Every organization strives to achieve best for it own benefits. Hence, it is important to go back and review the strategy every now and then. This is done to check the status and the progress of the project. Therefore, strategy evaluation is a continuous process.
