Essay about Strategic Analysis and Strategic Management

908 Words Nov 26th, 2013 4 Pages
Explain why strategic analysis is necessary in the process of developing an appropriate strategy. Identify tools that are available to examine the external environment and discuss how and why they are used.

Introduction
Strategy is a high level plan in which to achieve one or more goals under conditions of uncertainty. It is very important because resources available to achieve these goals are usually limited. Strategy is often the difference between mediocrity and excellence.

Strategies exist at several levels in any organisation as stated above - ranging from the overall business through to individuals working in it.
Corporate Strategy- is concerned with the overall purpose of the business to meet
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The second component hinges on the idea that everyone should have a personal strategic agenda for his or her own work. In other words, individuals must see themselves as business units, each with a population of one. This individual strategy is unique for each contributor and explores how he or she can add value and offer distinctive service to the organization now and in the future.
Strategic analysis is the use of tools such as SWOT analysis, PEST analysis, and value chain analysis with an aim of determining the best way in which an organization can reach up to the desired goals and objectives using the available resources. strategy In its broadest sense, is about taking "strategic decisions" - decisions that answer the questions above.
In practice, a thorough strategic management process has three main components, shown in the figure below:

Strategic Analysis
This is all about the analysing the strength of businesses' position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including:
PEST Analysis
Porters Five Forces
SWOT Analysis
Scenario Planning
Market Segmentation
Directional Policy Market
Competitor Analysis
Critical Success Factor Analysis
Strategy Choice
This process involves understanding the nature of stakeholder expectations,

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