Strategic Analysis Tools for Strategic Analtsis

1. Strategic Analysis
Aji R Lal
S4 MBA

2. Strategic Analysis
Why use it?
To take advantage of the path of least resistance to achieve
your goal.
When to use it?
When you are planning to make a change in your
organization, and you need to determine the best path to
take.
“The process of conducting research on the
business environment within which an
organization operates and on the
organization itself, in order to formulate
strategy.”

3. TOOLS of Strategic Analysis
A number of tools are used in the process of
strategic analysis, including
A. PEST
B. SWOT Analysis
C. Michael Porter's Five Forces Model.
D. Value chain analysis
E. Mckinsey’s Seven S Model

4. PEST Analysis
PEST analysis stands for
"Political, Economic, Social,
and Technological analysis"
and describes a framework
of macro-environmental
factors used in the
environmental scanning
component of strategic
management.
Political Economic
Social Technological

5. SWOT Analysis
SWOT Analysis is a strategic
planning method used to evaluate the
Strengths, Weaknesses,
Opportunities, and Threats involved
in a project or in a business venture.
It involves specifying the objective of
the business venture or project and
identifying the internal and external
factors that are favorable and
unfavorable to achieving that
objective.

6. Porter five forces analysis
• The threat of
substitute products
• The threat of the entry
of new competitors
• The intensity of
competitive rivalry
• The bargaining power
of customers
• The bargaining power
of suppliers
Competitive
Rivalry
within an
Industry
Threat of
substitute
Product
Bargaining
Power of
Suppliers
Threat of
New
Entries
Bargaining
Power of
Customers

7. Value chain analysis
Value chain analysis is based on the
principle that organizations exist to create
value for their customers. In the analysis,
the organization's activities are divided into
separate sets of activities that add value.
1. Separate the organization's operations into primary and support
activities
2. Allocate cost to each activity.
3. Identify the activities that are important to customer’s satisfaction
and market success.
The three steps for conducting a value chain analysis are

8. Mckinsey’s 7 s Model
It is a management model that
describes 7 factors to organize a
company in an holistic and
effective way. Together these
factors determine the way in which
a corporation operates. Managers
should take into account all seven
of these factors, to be sure of
successful implementation of a
strategy.

9. Conclusion
In my opinion strategic analysis provides us a clear
view of the company's business operations, their
objectives, goals and how they achieve their targets.
The SWOT, PEST, Porter’s five forces model,
Mckinsey’s 7 s model and Value Chain analysis helps
in measuring the success or failure of the strategies
implemented in the company.