Five Incremental Phases Of Strategic Analysis
INTRODUCTION
The strategy development process includes the analysis and understanding of the market and their cost and capabilities. Through analysing and putting new ideas can help in creating new options and opportunities which help in building and implementing a new strategic plan. Strategic analysis plays a critical role in strategic thinking process. Strategic analysis seeks to determine alternative courses of action that could best enable the firm to achieve its mission and vision objectives
The process of strategic analysis and choice involves five incremental phases. And these phases are at the business and corporate levels. Corporate level strategy involves
• The analysis of the overall company portfolio of business in terms of relative
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In internal analysis we basically concentrate on the strengths and weakness and in the external analysis we take into consideration the threats and opportunities of a particular project. The internal analysis is complemented by the external analysis as well. There is no particular process to do the internal analysis. Internal analysis involves the assessment of resources and capabilities and then identifying the core competencies of the business. External analysis involves the analysis of the threats and opportunities of the business. This can be done through strategic management audit which basically starts with collecting all the information regarding the business. SWOT analysis can also be done for the investigation of the threats and opportunities. The information collected basically includes all the social, political, technological, environmental and various other cultural trends. It also includes the demographic …show more content…
Its scope was extended by Harvard Business School and subsequently in 1975 the strategic planning institute was set up to develop PIMS for a variety of clients. The PIMS is a computer based model and its data base is information submitted by clients (participating companies) covering the financial and market performance of successful firms and ‘real losers’ in the market place.
Some of the key PIMS findings on the linkages between strategy and performance may be stated thus
1. In the long run, the most important factor affecting a business unit’s performance is the quality of its goods and services, relative to those of competitors.
2. High investment intensity act as a powerful drag on profitability.
3. Market growth and relative share influence performance
4. Long term market value of the firm can be influenced by return on
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