7 tips for doing a good strategic business analysis

The benefits of a good strategic analysis are countless and can very well make the difference between growth/adaptation or the end of a business. Among them are:

• Visualize and diagnose the organization and its way of working
• Identify areas of opportunity and establish corrective measures
• Know the market and the future of the sector
• Plan structural improvements and formulate adaptive alternatives
• Generate competitive advantages
• Define strategies to provide better customer service
• Evaluate the feasibility of new businesses/investments, etc.

In this blog, we will tell you 7 tips that will help you define how to do your strategic analysis:

1. Determine the object of analysis and choose the relevant model

Let's not overlook the need to define exactly what information you want to obtain and what purpose you will carry out this analysis for, as this will depend on choosing the model that will give you the best results. The existing models are very varied and have been widely discussed and tested. The relevance of each one is due to the objective to be achieved and the level at which changes will be applied. According to several experts, the scope of the strategic plans generated from the analysis can be Corporate (at a structural level), of Businesses (regarding the market) and Functional (at an operational level).

To mention some of the most used models:

• The essential SWOT (Strengths/Opportunities/Weaknesses/Threats) is very useful in many cases, especially because it can be as detailed or superficial as the situation requires. It is generally used to outline strategic plans.
• The PESTEL analyzes the external factors of a macroeconomic environment: Political, Economic, Social, Technological, Environmental, and Legal. It is used to evaluate the market.
• applications of artificial intelligence Porter's Five Forces analyze the forces of a market
• GAP Analysis it is used to determine a company's position in the market
• Ansoff Matrix it is useful when looking for new sales strategies, either with new products or in new markets
• Business Model Canvas o Business Model EDV to develop a business plan
• Balanced Scorecard to evaluate the performance of the company
• BABOKTM or “Business Analysis Body of Knowledge” to understand management needs
• applications of artificial intelligence 4P (Product, Price, Place, Promotion), to define the Marketing Mix
• applications of artificial intelligence BCG Matrices We signed the McKinsey observe the viability of a business/product
• Blue Ocean Strategy to face market rivalry
• Models of Market Segmentation to identify Marketing needs.

The available models and tools are many, and this list is not exhaustive at all. New theories and models constantly emerge that help us ask the right questions and direct the generated information towards developing the maximum potential of our company. We can also generate our own models, whether novel or derivative, but that better cover our analysis and strategy needs.

2. Choose the right time

Again, according to the objective you want to cover with your strategic analysis, it will be important to choose the time when you will carry it out.

Obviously, it is important to perform a preliminary analysis before carrying out a project, as this will help you define strategies, develop the work plan, assign resources, etc.

Depending on the project, it may be necessary to analyze the operation during the same, which will generate a performance report and help correct flaws and change direction if required or to comply with the required work on time and in the correct form.

The posterior analysis ensures that the project needs are met and evaluates the process so that areas of opportunity and improvement can be identified. Evaluate the results of the proposed solutions.

3. Make an improvement plan

Analysis that remains on paper is a waste of resources. It is necessary to make an improvement plan with proposals and alternatives of specific and measurable activities at the different levels of the organization. Make decisions based on the information obtained and document each movement. Perform a section of recommendations and generates mechanisms of monitoring to ensure relevant changes.

4. Do not limit yourself to models

Use the models to understand all aspects of your business or project, but keep in mind that you can enrich the models with new ideas or exclusive adaptations to your business. Do not limit yourself to filling out forms: analysis is a creative process.

5. Work in team

Involve collaborators from different areas and positions. Everyone has different points of view and can contribute ideas and valuable information. Align the members of the organization with the strategy of the same. Make sure they know and identify with the values and mission of the company and that the projects and activities also align with that vision.

6. Business Intelligence

Implement a global software that allows you to visualize the operation of the company. Reporting tools included in a ERP like SAP Business ByDesign can easily compile information from the daily operation in all areas of your company and display it visually in an accessible, understandable and immediate way. You can program the reports you need so that it is not necessary to invest hours and days in generating information for the models.

7. Grow steadily

Generate the habit of making informed decisions. Strategic analysis should be periodic and permanentIt's the only way to verify and promote the optimal functioning of the business or the need to adjust course. Taking the time to perform these analyses will save you resources (and headaches) in the short, medium, and/or long term; it will point you in the right direction for decision-making; it will help you stay up-to-date, know your customers and your sector, especially your own companywhich will allow you to generate competitive advantages to boost your business.

Conclusion

Today, the biggest constant is change, and the only way to survive in this climate of uncertainty is the ability to adapt. Strategic analysis brings us creative tools that help us make decisions flexibly and proactively.

If you want to implement a system in your company that allows you to access strategic analysis tools for your business in real time, do not hesitate to contact us.