Question

Good company situational analysis along with good industry and competitive analysis is a valuable precondition for good strategy making.

In both chapters 3 and 4 we are introduced to multiple tools that assist businesses in analyzing their internal and external environment. These tools allow companies to position themselves for competitive advantage over their rivals. Which of these tools stands out to you as particularly impactful and what is it about that tool that stands out?

Answer 1

The best tool as per my opinion is SWOT Analysis. SWOT stands for strength, weaknesses, opportunities and threats. This is a tool that help in developing an effective business strategy because it focuses on internal and external factors that impact the growth of company. Strengths and weaknesses are both internal factors that can be controlled and changed over time where as opportunities and threats are both external that means the things going in the market. These things can provide us opportunities but also warn us of possible threats.
This tool helps companies in analyzing the past and present situation and helps in planning for better future. This tool also helps organizations in developing objectives and also identifies core competencies. so therefore, this analysis tool helps in understanding the business better.