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Analytical Tools Strategic Management

In: Business and Management

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Assignment : Analytical tools
Business professionals often use strategic planning frameworks such as a SWOT analysis or a five forces analysis in strategic planning initiatives. These frameworks help organizations think about the types of questions they need to ask and the information they need to be thinking about before making any business decisions.
SWOT
A SWOT analysis is a strategic evaluation framework used to look at a company. SWOT stands for strengths, weaknesses, opportunities and threats. The first step of a SWOT analysis is to evaluate the positive and negative aspects of the company. Once the strengths and weaknesses have been determined, the company can look beyond its own organization to evaluate opportunities and threats from the market or competitors.
Competitive forces affect strategy because your competitors react to the strategic actions you take in the marketplace, and your company has to react to their strategic moves. You have to make sure this interplay works to your advantage by using SWOT analysis to identify your company's strengths, weaknesses, opportunities and threats, and by performing the same analysis for your competition. You use this information to take action in areas where you are strong and your competitors are weak, exploiting their threats and capitalizing on your opportunities.
Five Forces
Porter's Five Forces is a framework used to evaluate an industry as opposed to a company. The "forces" refer to five aspects of an industry that dictate its attractiveness. The forces include power of suppliers, power of buyers, barriers to entry, competitive rivalry and availability of substitutes. By evaluating each of these elements, a manager or business can determine whether or not to enter a particular industry.
Framework for Analysis
One of the ways a SWOT or Five Forces analysis can benefit a strategic planning session is by…...

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