Covering many of the books and several articles, i go through a lot of strategies and analysis. these strategies helps me a lot in several areas in getting a lot of profit and a good business. so, to get there we need to know them from the base.
what is business strategy?
Well, a business strategy is a tool to understand the environment, to show the path, and to understand the nature of business and profit.
What is business analysis?
A business analysis is a concept of knowing about a business and from where it is earning profit. it shows the way to achieve more profit.
So, these business strategies and analysis really have a great impact upon businesses.
Business analysis and strategies:-
1. Porter’s Five forces framework
Michael porter divides the pressure’s sources in industry into five types of categories,
- Industry competition, Is the competition in the industry is high, and how much competitors are there in the industry.
- New entries, about the barriers of entry, Is there are any barrier to enter into the market.
- Substitute producers, Is the substitutes are available in the industry and if yes how much they are.
- Buyers, How much buyers are there, and Is they have choices to change their products. and if yes how much they are.
- Suppliers, how much suppliers are there in the industry.
You need to see, that these 5 points are satisfying in a particular industry. if they are on the maximum in that industry then please don’t go inside that. and if they are less then it’s your chance to achieve more.
2. SWOT analysis
Well, this analysis is very popular throughout the world and mostly everyone know about this technique.
SWOT analysis helps us to understand the environment and how should we react towards it. and the most important thing it tells us is, those coming opportunities and threats to our business.
- Strength, We have to examine what are the strengths of our business and is we have that much strength to achieve those coming opportunities.
- Weakness, What are those weaknesses which are creating a bad impact on our business and making our business not able to take opportunities.
- Opportunities, We have to see what are the opportunities coming in front of us and what are those opportunities we can grab in future to make more profit and reputation.
- Threats, what are the threats coming in future, these are those problems which are going to create a bad impact on our business.
When, it comes to applying this technique, you need to understand the concepts of these S,W,O,T .
This really have a great impact on business strategies and analysis.
You need to see what are the opportunities are coming in future and is we can grab those opportunities, is we have that much strength or our weakness will come in front to threat to us.
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3. VMOST analysis
This is used to identify the strengths and weaknesses of the organisation, you need to do a lot of research before doing this. because it is not easy to identify all the terms it covers.
- VISION, This is the vision of the organisation, that what is the impact, the organisation want’s to create in the world.
- MISSION, This is the mission of the organisation, the direction of the organisation.
- OBJECTIVES, This is what an organisation wants to achieve for itself. it covers, profit, capital and others.
- STRATEGIES, These are the long term plans and objectives of the organisation. where the organisation sees itself after a long period of time.
- TACTICS, These are the short term plans and objectives of the organisation which are necessary for achieving profits.
4. Boston Box
This technique is really a game changer. the more you deepen yourself in this technique the more you will get to know about it. this technique will show the direction.
The direction in which you should invest more and from which product you need to take out your capital.
- Wild cat or problem child (W), these are those products who have a good market growth and even a single good investment can make it the star of the market.
- Dog(D), these are all those products who don’t have a good market share and market growth. even, if you do investment in these products you may lose money. because it don’t have a growth in future, so these products are just a kind of waste of capital now.
- Cash cow (C), these are those products which have a good market share, but have less growth. you need to take it with a lot of care, taking invest out of them and putting in wild cats is such a good plan.
- Star (S), these are the star of the market, these products have a good market growth as well as a good market share, these products have a good capital with themselves, and have a high growth opportunities.
5. PESTLE analysis
This type of analysis should be done by an organisation. this is simple because of one big reason, that is responsibilities of the organisation.
It helps in defining the External environment of the organisation and which sectors organisation could pass.
- Political, This means the political environment in which the organisation survives. this don’t only effect our organisation but also the complete industry. because a political environment have a great impact all over.
- Economic, These are those factors which are not only limited to the home country, but to the international trade also. so, it have a great impact upon the organisation. a great example is subprime mortgage crisis of 2008.
- Socio-Cultural, These factors have a very great impact, and these are not easily discovered until they it has created an impact. so, an organisation should taken up with a proper care in social matters.
- Technological, These factors are one of the most dynamic fast rapid changing factors. as the growth will increase, these factors increase their importance. internet is a great example of this.
- Legal, These factors have a huge impact on the organisation. you can take an example of government in India.
In India government change in every 5 years, this is making every new government to do new policies and if those policies and developments projects completed in those 5 years then, that’s good.
Otherwise projects will stop and continue when that same government come again.
- Ecological, This is the environmental issues which an organisation should see. so, that it will not be charged. an example of this is pollution, that an organisation should not do anything which cause pollution.
So, these are the factors of PESTLE analysis, an organisation has to take care of these factors and how much good is the organisation in in these factors, will ultimately increase it’s position in industry.
for more business strategies and analysis you can read below and if you wants to see what we do you can simply go to the home page.
6. Ansoff’s matrix
This provides a set of alternatives which is required at the time when an organisation define it’s strategies.
- Market Penetration, This situation implies when market is captured by existing products for market penetration.
- Market Development, This situation is when organisations make development by going in other markets of the world for their products.
- Product Development, This strategy is when an organisation develops it’s existing products or a new product.
- Diversification, This is one of the most risky task as in this an organisation develops a new product and try that product in a new market.
This awesome strategy makes a visible and more clear way of doing things. how much, and which factors can help an organisation. and that how much risky is a new market.
This really have a great impact on business strategies and analysis.
7. McKinsey 7-s
This really helps an organisation to ensure the proper imply of a business change.
These all are the 7 key areas which link with a change. these 7 -s shows that the organisation can get success in new change or not.
- Skills, the key or important skills important for successful work of an organisation.
- Staff, the staffing requirement of an organisation which include categories of staff.
- Style, the cultural and management style of an organisation.
- Shared values, the values which underpin and express beliefs held by people who drive it.
- Systems, the systems which defines how the work is carrying out.
- Structures, this is the internal structure which defines communication between employees.
- Strategy, these are the strategies of an organisation, you can read about strategies above.
These 7-s should be taken with a care and how you are going to use them in your organisation is totally depend upon you and how you are going to implement them is also depends upon you.
8. Balanced Business Scorecard
This reflects those aspects of an organisation which is crucial for the organisation and for it’s growth.
These four factors are important a lot that these determine the vision and mission of an organisation many times.
- Financial, this considers the financial position of an organisation and include investments also.
- Customer, it’s from the customers prospective, which is important for the success of an organisation. and shows the way though customers see our organisation.
- Internal business process, these are internal processes which operate the organisation. moreover internal environment of an organisation is more important than external environment.
- Learning and Growth, the learning and growth both are most important and inter-related to each other. and to ensures a proper development of the organisation.
These factors have a different view in terms of an organisation, these factors are more important than others. as these are all necessary factors and one of them is the blood of an organisation and that is finance.
So, implementation of these factors are a lot important.
9. Power/Interest Grid
One of the most important and interesting business strategy, which can lead the growth of an organisation to the top.
There are some grids which are totally based on shareholders, but if you read a lot about it you can get to know that you can even do this in real life also.
- Low power Low interest, These are those shareholders who have low interest as well as low power in the organisation, these shareholders are not interested in ideas.
- Low power High interest, These are those shareholders who are interested in new ideas and growth of the organisation but have low power, that means they don’t have full power to start that idea.
- High power Low interest, these are those shareholders who have a high power in decision making but not interested in new ideas.
- High power High interest, these are the important ones, these shareholders have that curiosity to see new things and grab the opportunities of ideas. they are the important and leading factors of an organisation and it’s growth.
The right use of this technique is a lot more easy as compared to others. you just have to keep them as they are acting towards your ideas and take to high power and high interest ones.
10. RASCI charts
After doing a lot of thing, strategies and analysis an organisation needs to give the responsibilities and accountability to it’s employees.
- Responsibilities, an organisation needs to fix it’s responsibilities to the employees that who is responsible to whom, this also applicable to shareholders also.
- Accountability, an organisation need to accountability as well because an authority without a responsibility is a danger and responsibility without accountability is useless.
- Supportive, people who are supportive in nature is of those special kind. these people provide resources and other forms of support to the organisation.
- Consulted, people whom you can consult and they provide information necessary to complete the work of the organisation.
- Informed, these are the people whom the final result should be informed but don’t have to be consulted about the work.
so, you can easily take the proper work from the employees by taking these factors as a guide, and these factors have a great importance in achieving goals of the organisation.
So, These business strategies and analysis really have great impact upon business.
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