Strategy Analysis

• Strategy analysis is usually concerned with understanding the organization strategic position. This is an element that is concerned with the changes that are going on in the environment and how the changes are going to affect the activities of the organization. Other factors that are considered in this element are the strength of the resources in the organization, in the context of the changes. It also focuses on what the associated groups in the organization aspire to and how the changes affect the present position and the future position of the organization (Durand, 2006). Strategic analysis usually aims at creating a view of the factors that can have an impact on the future and present performance of the organization. When strategic management is performed in the right manner, it helps in selecting the correct strategy.

• There are certain factors that should be considered during strategic analysis. The first factor includes the environment. It is hard for organizations to exist without interacting with a complex, political, commercial, economic, social, cultural, and technological environment. The environmental, changes are sometimes complex for certain organizations than others. Therefore, when organizations are faced with environmental changes, they should have a clear understanding of the impacts so that to be able to formulate a strategic plan. The central importance of strategic analysis is to understand the environmental effects to the organization (Durand, 2006). It is necessary to consider the environmental effects on the business and also the present and expected changes in the environment.

• The second factor is the organization resources, which are internal influences. When thinking about the strategic capability of the organization, it is necessary to consider the weaknesses and strengths. The weakness and strengths of organizations can be identified by considering the organization resource areas like its management, physical plant, products, and its financial structure. This aims at forming an observation of the internal influences and restriction on the strategic choice.