Principles of Management
OER 2019 Edition
ISBN: 9780998625768
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 8, Problem 1CRQ
Why do managers use strategic analysis?
Expert Solution & Answer
Summary Introduction
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.
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Chapter 8 Solutions
Principles of Management
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