Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

How to Analyse Business Strategy

By Rodney Wincaster Subscribe to RSS | July 30th 2012 | Views:
loading
 
  



Analysis of a company’s strategy is a must, markets are changing and so are trends, the organisation will have to modify their strategy so as to maximise their gains. The analysis of a business strategy is a lengthy process and it contains a lot of steps. Though it is tedious, it is thorough and in-depth so that the organisation can know accurately what they need to modify or enhance so that they can perform more efficiently. Analysing the business strategy basically shows what the company’s current position is, in the market if it is favourable, unfavourable or neutral. There are two methods- Internal and External Audit i.e Internal or within the business, in the company through performance appraisal and other methods and external via Market and economic indicators.

Internal Audit

Internal audits includes the analysis of the following areas

 Human resources or capital, how efficient are these resources

 Costs how much are people paid, what are the expenses that can be cut down

 Attrition rate how many people are leaving the job in a year, absenteeism when and how much do employees take off from work.

 Quality of the products being manufactured, involves quality checking or control (QC)

 Cash flow how much is the company earning and where and how is it spend

 SWOT analysis: What are the strengths, weaknesses, opportunities and threats of the current strategy?

 Core competencies: What is the company good at? What specific area is it known for. Example Amazon is for books, people will identify with the organisation for what it is competent at

External Audits

External audits includes the analysis of the following areas

 General market trends: Employment and growth rate, inflation or recession

 Competitors: What have they been doing? Is it similar to what your company is doing? This area needs to be understood clearly.

 The Political, Economic, Social and Technological factors (PEST)

 What is the current political environment like? Is it a before or after an election? During a war or some calamity?

 Economic: Economic indicators such as Gross Domestic Product and Gross National Product, Per Capita Income etc what are the current values is it favourable to the organisation or not

 Social: Demographics of the market

 Technological changes: new technology being used or invented, and still using old techniques

 The market: Understanding the market is the most important aspect, certain key elements needs to be understood.

 7 P’s of a market: product, prices, promotion, place, packaging, positioning and people. All these 7 elements need to be understood while making a business strategy. During the process of analysis the company must know if they are positioning it in the right market at the right place, time and value.

 Niche marketing: If the company has a product or service which doesn’t fall into the categories of FMCG, tangible or intangible.

 Mass market: If the product or service would be purchased by many people across demographics. These products tend not to fail as different age and social groups would buy a mass market product. Example Computers, mobile phones.

A business strategy is analysed by understanding all these elements both in a macro manner. A business strategy is made so that it lasts for a long time, minor alterations are possible. The strategy should last at least 5 years; a better strategy can be made when the company understands all these elements. This analysis can indicate plan helps in growth of the organisation, in the current economy a product or service would actually work without causing losses.

Rodney Wincaster - About Author:
Read our latest article on business strategy and learn how to analyse internal and external audits for business strategy.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/how-to-analyse-business-strategy.htm

Related Business Articles Subscribe to RSS

Payroll software helps to handle financial issues of the business
Published by Alliedsoft on January 10th 2012 | Business
Although, Payroll software has been formulated through payroll specialists plus is more technologica...
 
Promotional products for the efficient promotion of business
Published by Anoshan on July 21st 2012 | Business
Good promotion is very necessary for any small or big business. Advertises and hoardings do the work...
 
Unsecured business loans as fast and active funding option
Published by Macrobusinesscapital@gmail.com on December 30th 2011 | Business
Being a small business owner the need of financing is always there to get your operations running or...
 
As the UKs leading surfacing business playground markings are a doddle for Riggotts
Published by Mary Porter on June 15th 2012 | Business
Whether you commission Riggotts to complete a playground markings project or all manner of sports co...
 
Giving your business a boost with merchant cash advance
Published by Joseph Richard on May 14th 2012 | Business
Every businessman has come across a time when he really needed an infusion of cash for his business....
 
Industrial Heating is an essential part of any business whether you are heating an office or a factory
Published by Mary Porter on June 18th 2012 | Business
Most people take for granted the heating systems in their companies until something goes wrong. The ...
 
Business Gas the main supply of power to business
Published by Ashish Pandey on January 21st 2012 | Business
The business gas prices are very important for the running of a business, but it must also be inside...
 
Accountants for contractors: keep the financial cohesion of your business
Published by Crowin Smith on February 13th 2012 | Business
The business systems that run the economy of the world are completely dependent on the flow of the m...
 
Advantages of business coaching in Los Angeles: Three for Three
Published by Aldrich Wise on April 21st 2012 | Business
Business coaching in Los Angelescan elevate and accelerate your successby working through mental blo...
 
Gurgaon calling for your business
Published by Atul Sharma on April 12th 2012 | Business
The write up is based on the real estate properties available in Gurgaon. It talks about how you can...
 
Promotional products that will work wonders for your business
Published by Drothy on July 21st 2012 | Business
Are you looking for the right kind of advertisement for your business? Then the one stop solution fo...
 
Advantages of hiring SEO Next professionals for your online business
Published by James Blee on March 3rd 2012 | Business
SEO Next professionals are in fact the most sought after among business establishments that are look...
 
Business Law gives smooth flow to every business
Published by Wills Loren on March 7th 2012 | Business
feedbackhere.com: We provide Law services most event planners have something directly to them, in ma...
 
Real aspects of moving freight business
Published by Pittervertigo on June 26th 2012 | Business
Moving of goods, people, etc from one place to another is the job of the transport companies. There ...
 
For washing machine repair Manchester with quality workmanship guaranteed contact the best in the business at MS Appliance Repairs
Published by James Blee on August 23rd 2012 | Business
Time is a luxury not many of us can afford in the busy world we live in so when something breaks dow...
 
Business Telephone Systems: the nerve center of your business
Published by John Kumar on December 17th 2011 | Business
A telephone system as commonly understood represents the service that is provided by telephone compa...
 
Limited company advantages: the greatest defense for a business owner
Published by Crowin Smith on February 13th 2012 | Business
The business laws that govern the world of business have to be understood properly before taking fur...
 
For the ultimate luxury of business jets with a reliable, precise service contact the market leaders at Airmayfair.
Published by on June 21st 2012 | Business
We take our position very seriously, ensuring your trip is a safe and secure, and are very aware of ...
 
WordPress Development- Right way to give your business online visibility
Published by Veenawad on April 18th 2012 | Business
This article is all about how to gain visibility for your online business and create good websites w...
 
How can seo los angeles consultants can help your business become a success through Social Media Marketing?
Published by Jack on June 6th 2012 | Business
The techniques used in Social Media Marketing (SMM) when implemented properly will not just help you...