Why do managers use strategic analysis?
To explain:
The reasons for using strategic analysis by the managers of an organization
Introduction:
Strategic analysis is the system that an organization uses to explore and comprehend the many distinct levels and aspects of their rival circumstance. It involves analyzing strengths, weaknesses, threats and opportunities for the success of the organization.
Explanation of Solution
Strategic analysis is actually the understanding of forces and variables within the organization and outside the globe at a big scale. The managers supervise this aspect and why they do so is because of −
- Objectives: - Strategic analysis concerns assessment of the goals and objectives of the company; and the actions taken to achieve them. In other words, the managers do strategic analysis so that the company can easily and effectively fulfill their short term, medium term and perhaps the long term targets.
- Internal variables: - The managers do strategic analysis also to run the organization in smooth manner so that not any factor within the company affects its sales and revenue negatively
- External variables: - The managers do strategic analysis also because the situations outside the company remain positive and cannot affect the sales and revenue negatively. These variables are like financial relations, market rivalry, customer acquisition and retention etc.
Want to see more full solutions like this?
Chapter 8 Solutions
Principles of Management
Additional Business Textbook Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Managerial Accounting (4th Edition)
Horngren's Accounting (12th Edition)
Principles of Accounting Volume 1
Construction Accounting And Financial Management (4th Edition)
Horngren's Accounting (11th Edition)
- How do companies use SWOT analysis in their marketing planning?arrow_forwardWhat is the role of strategic planning in management, and how can organizations develop and implement effective strategic plans to achieve their goals and objectives?arrow_forwardHow does the strategic planning process inform itself?arrow_forward
- What are the key components of a successful planning process, and how can organizations ensure that they are effectively integrated into their strategic planning initiatives?arrow_forwardHow might the three levels of strategic planning operational planning, and tactical planning complement one another in an organization?arrow_forwardWhat are the models of strategic decision making?arrow_forward