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9 essential strategy analysis tools Strategic Analysis is a core step in the Strategic Learning Cycle.

Every strategist should have a toolbox of analytical models at his or her disposal. Just as having the right tools won't necessarily ma e you a good mechanic! having the right strategy analysis tools won't necessarily ma e you a good strategist " but they will help a good strategist get the #ob done more effectively. $ere is my list of % essential strategy analysis tools&

1. SWOT
'he S()' is the most basic form of strategic analysis. Simply list the organisation's Strengths! (ea nesses! )pportunities and 'hreats. *learn more+

2. Porters Value Chain


'he value chain is a simple *graphical+ method for identifying and describing a firms main functions and understanding how they contribute to value creation. *learn more+ McKinsey 7-S 'he ,c-insey %"S is usefull for ensuring that you consider all aspects of the organisation when identifying its strengths and wea nesses. 'he % Ses stand for& Structure! Systems! Style! Staff! S ills! Strategy and Shared .alues. *learn more+

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4. PEST
'he /ES' framewor is useful for ensuring that you consider a broad range of possible sources of opportunities and threats. 'he letters represent the /olitical! Economic! Social *or Socio"economic+ and 'echnological opportunities and threats in the firm's environment. *learn more+

5. Porter's 5 Forces
/orter's 0 1orces model is another framewor for identifying threats and opportunities within the firm's environment. 2t considers the bargaining position of suppliers and customers *including distributors+! the threat of new entrants and substitutes! as well as competitive factors within the industry itself. *learn more+

6. C! Matri"
'he 3C4 ,atrix can be applied to any business with more than one product or service line! or more than one customer segment. 2n simple terms! it involves plotting the mar et share against the mar et growth rate for each product! service or customer segment! and then basing strategic decisions on their relative position on the chart. *learn more+

7. Pareto #nalysis
A /areto Analysis is based on the maxim that 56 percent of the products! services! customers or distributon deliver 768 ofthe profits. A /areto chart is a useful visualisation for showing this. Accuracy! however depends on the reliability of your cost allocation system. *learn more+ 7. The Voice o$ the Custo%er &VOC' 9o matter how good your other data is! at some point you have to engage directly with your customers *and other sta eholders+. :ou can use traditional structured methods! such as focus groups! more modern methods! such as social media! or even simply #ust go and chat to people. The Strategy Can(as /opularised in the boo ;3lue )cean Strategy;! the Strategy Canvas is used to understand how a firm differentiates itself from its competitors. *learn more+ 3onus tool& An additional tool which you may find very helpful is the Strategy Canvas! popularised in the boo ;3lue )cean Strategy;. $ere are some critical success factors for strategic analysis& <. Avoid being too intros)ecti(e. (hat do your customers! distributors and suppliers thin about these issues= (hat are your customers doing= 2f appropriate! get an external review. 5. 1or insight! present data! facts and interpretation. >. ?emember that not all tools are use$ul in all circu%stances and that not all analysis yiel*s results. ,uch of it will end up on the cutting roo% $loor.

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