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Business Strategy
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Business Strategy
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Strategic Analysis
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Strategic Analysis
Most businesses will constantly evaluate
their position
Strategic analysis includes different
methods of assessing
the current position of the business
in the market place
Two basic methods:
Internal
External

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Where Is The Business Now?
Internal Audits uses data and information
generated from within the business
Internal audits may be carried out through
recruitment of an outside consultant to look at
how the business works and offer an
independent viewpoint
External Audits uses information and data
from outside the business such information
may be outside of the businesss control but
has to be factored into decision making
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Internal Audits
Productivity Human resources/capital
Efficiency Using ratio analysis, investment data, etc.
Costs Wastage? Unnecessary expense, cost cutting opportunities?
Internal Data
Labour turnover, absenteeism
Customer satisfaction surveys
Quality procedures defects, complaints, etc.
Cash flow statements record what is actually happening
Sales trends generate patterns
Skills audit do the skills in existence match those required?
SWOT analysis Strengths and weaknesses can be viewed as
internal aspects
Core competencies What is the business good at and recognised
for?
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External Audits
General business environment Inflation,
competitiveness, unemployment/employment, growth,
consumer spending
Competitors What are they doing?
What threats do they provide?
PEST factors
Political e.g. change of government not only
in domestic country but in overseas markets
Economic potential trends in economic growth,
inflation, etc.
Social changing nature of social issues environment,
ethical expectations, changed outlook, age structure
of population, etc.
Technological rapid changes firm gets left behind?
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External Audits
The Market
Size growing, stagnant
or shrinking?
Share rising, stable
or falling?
Growth possible
or at the maturity stage?
Trends changing fashions,
new market opportunities
Changes new situations that
may fundamentally change
the market, e.g. technology
Mix 7 Ps
Boston Matrix analysis
of products
Product Portfolio Analysis
different stages of life cycle?
Gaps where there might exist
a market that is not being
catered for

Keeping up with the Joness an important part of
strategic analysis is knowing what your
competitors are doing. Microsoft will be as keen to
know what Apple are doing as Apple will be to
know what Microsoft are doing!
Copyright: KayPat, http://www.sxc.hu
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Strategic Planning
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Where Will The Business Go
In The Next Ten Years?
How far can the business
plan ahead?
How valuable are such plans?
Strategic intent provides
an outline framework of basic
principles and targets
to inform operational planning

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Strategic Planning
Competitive Advantage seeking to identify
sources of competitive advantage
Adding Value looking at ways to add value
Mass or niche markets? which is the best
route?
Cost based strategies focus on reducing
costs to compete and grow
Market based strategies focus on
satisfying consumer needs as the means
to growth
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Strategic Planning
Contingency Plan
fallback strategies in
case things do not
go as planned
Growth Plans how
can the business
grow in the future?
e.g. Tesco may have
now got to the stage
where it is more
difficult to see where
future growth is
coming from

Tescos growth in recent years has been phenomenal
both in the UK and abroad. It has expanded into
new markets, built dozens of new stores and moved
into mini-supermarkets but where does it go from
here?
Copyright: Mammuth, http://www.sxc.hu