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Strategic Analysis

A pervasive technique for Business Analysts


What's Wrong with this approach?

Lack of vision results in


lack of strategy. This
leads to wrong tactics &
bad operations

Wrong Tools

Wrong Focus

Wrong Area
Some Important Terms

Vision

Strategy

Objectives

Tactics
You want
to reach
here? (B)

How to reach from point A


to Point B?
You are
here (A)
What is Strategy?
The determination of the long run goals and
objectives of an enterprise, the adoption of
courses of action and the allocation of
resources necessary for carrying out these
goals
Game Plan
Alfred Chandler, Strategy and Structure
Levels of Strategy

CORPORATE CORPORATE
STRATEGY HEAD OFFICE

BUSINESS
STRATEGY Division A Division B

R&D R&D
FUNCTIONAL Personnel Personnel
STRATEGIES
Finance Finance
Production Production
Marketing/Sales Marketing/Sales
How to Derive a Strategy?

Both Internal & External Analysis are


required to arrive at a strategy
External Analysis-PEST

Gives
Complete
Environmental
Knowledge
External Analysis- Porters 5 Force Model

Industry
Attractiveness Profitability

6th Force is missing….


External Analysis- Scenario Building

IMPACT

H,L Build Best, Worst & H,H


Average scenarios in this
UNCERTAINITY

zone

L, L L, H
Internal Analysis- MOST Model

Mission- where the business intends to go


Objectives- they key goals which will help to achieve this
Strategies- analyses what options there are for proceeding
forward

Tactics- how these strategies are going to be put into action


Strategic Analysis in the Three Schools

Deliberate Emergent Adaptive

We do analysis We do analysis We do analysis


to position to review our to see what
ourselves for the patterns and opportunities are
future learn from our available
experience
Analytical Tools in the Three Schools

Deliberate Emergent Adaptive

SWOT analysis Reflection of Environmental


learnings Scanning
Environmental
Scanning Listening to Creating a
many sources responsive,
adaptive culture
Scenario Planning
Scenario Planning
• Addresses the weakness of strategic planning
to see multiple futures
• Scenario planning identifies multiple
possibilities
• Think the unthinkable
• Discuss each scenario and plan accordingly
Key Points
• Any of the approaches can be done well, or
done poorly
• Any thoughtful approach can help the
organization become sustainable
• The most useful approach depends on
– the organization’s mission
– The marketplace
– the personality of the management
– the strengths and weaknesses of the staff

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