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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 purpose of strategic analysis in business? |  |
Ans. The purpose of strategic analysis in business is to evaluate an organization’s current position in the market and to identify potential opportunities and threats. It helps in understanding the internal and external factors that can impact the organization's performance. By conducting a strategic analysis, businesses can formulate effective strategies to achieve their goals, allocate resources efficiently, and enhance competitive advantage.
| $2. What are the key components of a strategic analysis? | |
Ans. The key components of a strategic analysis typically include a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), PESTEL analysis (Political, Economic, Social, Technological, Environmental, and Legal factors), and competitive analysis. These components help in understanding both the internal capabilities of the organization and the external environment, facilitating informed decision-making.
| $3. How does a SWOT analysis contribute to strategic planning? | |
Ans. A SWOT analysis contributes to strategic planning by providing a clear framework to assess an organization’s strengths and weaknesses, as well as the opportunities and threats present in the market. By identifying these factors, organizations can leverage their strengths, mitigate weaknesses, seize opportunities, and prepare for potential threats, thereby forming a robust strategic plan that aligns with their objectives.
| $4. Why is it important to consider external factors in strategic analysis? | |
Ans. Considering external factors in strategic analysis is crucial because these factors can significantly influence an organization’s performance and strategic direction. External factors such as market trends, economic conditions, regulatory changes, and competitive dynamics can create opportunities for growth or pose threats. By analyzing these external influences, organizations can adapt their strategies to remain competitive and responsive to the market.
| $5. How can technology impact the strategic analysis process? | |
Ans. Technology can impact the strategic analysis process by providing tools and data analytics capabilities that enhance the accuracy and efficiency of the analysis. Advanced software can process large volumes of data, enabling organizations to identify trends and insights quickly. Additionally, technology facilitates real-time monitoring of market conditions, allowing businesses to adjust their strategies proactively in response to changing environments.
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