BUSINESS STRATEGY - ANALYSIS

Business strategy focuses on identifying the changes to an organization that are required for it to achieve its strategic goals. Business analysis provides the foundation for almost every kind of business change. Analysis has to do with the review of a company's structure, its vision, mission and core values.
    There are six basic tools that can be used to analyze a firm, they are;

1. Core competencies

1. Core business

1. Required inputs

1. SWOT

1. PEST

1. Five-forces

The most commonly used among these tools are the SWOT, PEST and the five-forces.
-SWOT: the SWOT stands for strengths, weakness, opportunities threats.A SWOT analysis can be carried out for a product, place or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. 

PEST
-Political: local, national and international political developments. How they will affect the organization and in what way/s?
-Economic: what are the main economic issues- both nationally and internationally that might affect the organization?
-Social: what are the developing social trends that may impact on how the organization operates and what will they mean for future planning?
-Technological: changing technology can impact on competitive advantage very quickly!

FIVE-FORCES
Developed by Michael Porter, forces that shape and influence the industry or market the organization it operates in.
-Strength of barriers to entry: how easy is it for new rivals to enter the industry.
-Extent of rivalry between firms: how competitive is the existing market?
-Supplier power: the greater the power, the less control the organization has on the supply of its inputs. 
-Buyer power: how much power do customers in the industry have?
-Threat from substitutes: what alternative products and services are there and what is the extent of the threat they pose?

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