STRATEGIC BUSINESS
ANALYSIS
MS. NELDA A. ROSIMA, MBA
INSTRUCTOR
Chapter 1
STRATEGY
FORMULATION
Role of strategy
1. Framework for Operational Planning
2. Clarity in direction of Activities
3. Increase Organizational Effectiveness
4. Personnel Satisfaction
Mission statements define your organization's
purpose and its primary objectives. They are set in the
present tense, and explain why you exist as a
business, both to members of your organization and to
people outside it. Mission statements tend to be short,
clear and powerful.
Vision statements also define your organization's
purpose, but they focus on its goals and aspirations.
These statements are designed to be uplifting and
inspiring. They're also timeless: even if the
organization changes its strategy, the vision will often
stay the same.
MICHAEL PORTER’S 5 FORCES
STRATEGIC POSITIONING
The Ansoff Growth Matrix
Expansion into the global market place
Benefits:
1. Increase in revenue
2. Helps the organization to get many customers (increase the
market)
3. Helps the company to diversify its market
The organizational audit
1. Benchmarking
is a process of measuring the performance of a company’s
products, services, or processes against those of another business
considered to be the best in the industry, aka “best in class.”
Key Benefits
In addition to helping companies become more efficient and profitable,
benchmarking has other benefits, too, such as:
• Improving employee understanding of cost structures and internal
processes
• Encouraging team-building and cooperation in the interests of
becoming more competitive
• Enhancing familiarity with key performance metrics and opportunities
for improvement company-wide
BENCHMARKING PROCESS
TOWS ANALYSIS
is a variant of the classic business tool -
SWOT analysis, but it is directed more
outside. It allows you to analyze the
internal environment (weaknesses and
strengths) and to plan your own changes
through the analysis of changes in the
external environment (threats and
opportunities).
Value-chain analysis
Value chain analysis (VCA) is a process where a firm
identifies its primary and support activities that add value to
its final product and then analyze these activities to reduce
costs or increase differentiation.
Value chain represents the internal activities a firm engages
in when transforming inputs into outputs.
Product positioning
- is the process of determining new products’ position in
the minds of consumers. It includes analyzing the market
and competitors’ positions, defining the position of a new
product among the existing ones, and communicating a
particular brand’s product image.
Benefits of product positioning
• identifying key benefits of a product and matching them with
customers’ needs;
• finding a competitive advantage even when the market changes;
• meeting customers’ expectations;
• reinforcing your brand’s name and its products;
• winning customer loyalty;
• creating an effective promotional strategy;
• attracting different customers;
• improving competitive strength;
• launching new products;
• presenting new features of existing products.
5 Product Positioning Strategies
1. Characteristics-based positioning
2. Pricing-based positioning
3. Use or application-based positioning
4. Quality or prestige-based positioning
5. Competitor-based positioning
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