Business Studies

Strategic Management Topic 8 Q3

You have now had experience with each aspect of the strategic analysis process from conducting an external and internal environment scan of current strategies, assessing a firm’s current strategy and environment, determining goals for future performance, and recommending strategic alternatives. What, in your opinion, are the strengths of strategic analysis? What are its weaknesses? Do the weaknesses outweigh the strengths of this analytical approach? Explain.

ANSWER

Strategic Analysis

Strategic analysis or evaluation is the process that engages researching an organization’s business environment within which it functions. This analysis is significant in designing an effective operating plan for decision-making and the efficient functioning of the organization. With the involvement of strategic planning, the aims or goals set by the institution can be achieved. For improvements to emerge, businesses should periodically do a strategic analysis which will, in turn, assist them in evaluating areas that need improvements and places that are already succeeding.

Strengths and Weaknesses of Strategic Analysis

One of the advantages of strategic analysis engages the ability to acknowledge the existing strengths of both external and internal resources, which in turn creates an increasingly competitive advantage. The second importance of this process includes the internal components it offers. These components add value or create a competitive advantage for the business. When a company has a tremendous competitive advantage over its competitors, it is at a strategic phase of improving beyond its current level. The one aspect that would need clarity is what is not going the business’s way (Gasparian et al., 2018). Also, strategic analysis enables the business to clarify internal positive attributes to the institution under control. By acknowledging the positive qualities of a company, it can replicate the plan whenever applicable.

On the other hand, strategic analysis weaknesses include creating numerous ideas and perspectives without coming up with the best action among the many pictures (Breja, Banwet & Iyer, 2016). Another weakness engages too much time spent on existential problem solving; therefore, leaving limited time for innovating new items or designing service level strategies and the institutional level. In summary, the strengths of strategic analysis outweigh the weaknesses because of the profound positive change it brings to organizational operations.

References

Breja, S. K., Banwet, D. K., & Iyer, K. C. (2016). Towards sustainable excellence: strategic analysis of Deming Prize-winning companies. The TQM Journal.

Gasparian, M. S., Kiseleva, I. A., Korneev, D. G., Lebedev, S. A., & Lebedev, V. A. (2018). Strategic analysis of risks when implementing investment projects. Espacios, 39(27), 16.