A look at strategic analysis e.g. SWOT, PESTEL, strategic choice e.g. Ansoff and Boston Matric and Strategic Implementation through an acronoym - OGADIR.
Diagrams are used and evaluation via advantages and disadvantages are provided.
Strategies are designed to achieve corporate objectives.
Are you plans of action + vitally important.
Taking appropriate strategic decision will make or break a business.
One model of strategic decision making (the scientific model) suggests there are 3 strategies in the process:
1. Strategic analysis - SWOT, PESTEL, market data + financial data.
2. Strategic choice - Ansoff's Matrix + Boston Matrix, Break Even, forecasted return on capital employment +
investment appraisals.
3. Strategic Implementation - Management translates this into action. Must be constantly reviewed.
a. A scientific strategy is OGADIR.
O Objectives.
G Gather Data.
A Analyse Data - Where we are now (SWOT).
D Develop Strategy - Ansoff + Boston Matrix. Should be Asset Led your strengths + the
market opportunities.
I Implement.
R Review.
Strategic Analysis - Where are we now? -
Two common techniques that can be used to facilitate an analysis of the current position facing a business
include: a SWOT + a PESTLE analysis.
SWOT Analysis:
Involves an examination of the strengths + weaknesses (internal) of a business + a review of
the opportunities + threats (external) facing a business.
Is meant to provide an in-depth identification, explanation +analysis of the various issues.
Acts as a reference point for decision making.
Strength: This is a factor which a business currently possesses and which it performs
effectively, such as having a strong management team, a profitable portfolio of products,
or a loyal customer base. Something the company is good at and can bring a competitive
advantage. It is important to know these strengths so that you can replicate this expertise
elsewhere in the company to try to improve the other areas of the business.
Weaknesses: Is an area in which the business currently performs poorly, such as having a high level of industrial
disputes, falling profitability or falling productivity levels. Action has to been taken to do something about it.
The business is not good at it. The business is not as efficient as you could be. It is important to identify the
them improve then make the company perform better.
Opportunity: Is a potentially successful or profitable activity that the business could take advantage of in the
future, such as the take-over of a competitor, the development of new products, or breaking into new markets.
This is external can make you better business. A situation that may arise that may allow the business to develop
e.g. a change in government in legislation or new technology.
Threat: Represent a potential future problem which the business may face in the future, such as new
competitors entering the industry, new legislation restricting the use of certain raw materials or the possibility
of being taken-over by another company. This external, having a detrimental problem to the business. Anything
that is an opportunity could be a threat depending on your business.
This is a useful way of collecting relevant information about the business + summarising the key external issue facing the
business. It provides the basis for further planning + development for the business.
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