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Strategic Analysis - 2 Video Lecture | Crash Course for CA Intermediate

FAQs on Strategic Analysis - 2 Video Lecture - Crash Course for CA Intermediate

1. What is the significance of strategic analysis in business?

Ans. Strategic analysis is crucial for businesses as it helps in understanding the internal and external environments in which a company operates. It involves assessing strengths, weaknesses, opportunities, and threats (SWOT analysis) to formulate effective strategies. This analysis provides insights that guide decision-making, resource allocation, and competitive positioning, enabling organizations to achieve their long-term objectives.

2. What are the key components of a strategic analysis?

Ans. The key components of strategic analysis include market analysis, competitor analysis, internal resource assessment, and environmental scanning. Market analysis involves examining industry trends and consumer behavior. Competitor analysis assesses the strengths and weaknesses of rivals. Internal resource assessment evaluates a company's capabilities, while environmental scanning looks at external factors like economic, political, and social influences that could impact the business.

3. How does SWOT analysis work in strategic planning?

Ans. SWOT analysis works by identifying a company's internal strengths and weaknesses alongside external opportunities and threats. Strengths and weaknesses focus on internal factors such as resources, capabilities, and processes, while opportunities and threats consider external factors like market trends and competitive landscape. This comprehensive view helps organizations leverage strengths, mitigate weaknesses, seize opportunities, and defend against threats, effectively guiding strategic planning efforts.

4. What tools are commonly used in strategic analysis?

Ans. Common tools used in strategic analysis include PESTEL analysis (Political, Economic, Social, Technological, Environmental, and Legal factors), Porter’s Five Forces framework, and the Value Chain analysis. PESTEL helps analyze external macro-environmental factors, Porter’s Five Forces assesses industry competitiveness, and Value Chain analysis examines internal processes to identify areas of improvement and competitive advantage.

5. How can strategic analysis impact decision-making in an organization?

Ans. Strategic analysis impacts decision-making by providing a structured approach to evaluate various factors affecting the business. It enables leaders to make informed choices based on data and insights gathered from the analysis. By understanding the market, competition, and internal capabilities, organizations can align their strategies with their goals, adapt to changes, and enhance their overall performance and sustainability in the market.

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Sep 30, 2025 Last updated

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