Identification and Evaluation of Applications of Analytical Tools in Strategy

Identification and Evaluation of Applications of Analytical Tools in Strategy

Introduction

Strategic management is defined as an enterprise determining its mission, according to the external environment and internal conditions and set the strategic objectives of the enterprise to ensure that target the correct implementation and realization of the plan. It relies on internal capabilities, implement the planning and decision-making, and control the implementation process.

Strategic Planning is the art of anticipating and managing change, in order to create strategies which guarantee the future of organizations. (Gary, 2010) It is critically important for any company. A number of analytical tools are available for strategic planning which help planning department of any organization to meet business needs and objectives. (Arthur, 2005) This paper will address Identification and Evaluation of Applications of Analytical Tools in Strategy.

Discussion Strategic analysis tool is the analysis method often used in business strategy consulting and management consulting practice. Customers in the business activities are often subject to internal and external factors. External changes in economic conditions, technological advances, and competitors suddenly increased; and if the financial condition of the internal deterioration of the backwardness of production equipment and capacity and other factors will directly affect business performance, thus affecting the customer's strategic formation. (Boulton, 2001)

Great strategies are worth nothing if they cannot be implemented. It can be extended to say that better to implement effectively a second grade strategy than to ruin a first class strategy by ineffective implementation. Less than 50% of formulated strategies get implemented (Miller 2002). Every failure of implementation is a failure of formulation.

The utility of any tool lies in its effective usage and so is the case with strategy. Strategy is the instrument through which a firm attempts to exploit opportunities available in the business environment. The performance of a firm is a function of how effective it is in converting a plan into action and executing it. Thus implementation is the key to performance, given an appropriate strategy.

Analytical Tools

Analytical Methods and Tools are a key for making certain that stability and an appropriate level of rigor is used in the research for a company. The aim of the analytical tools is to improve the concentrate of the research and to make sure a thorough, healthy strategy, which proves to be beneficial for the company. All analytical tools depend on traditional, backwards looking information to predict future results. It is important to interpratate these results properly and carefully otherwise the research may be unnecessarily affected by opinions or demands within the enterprise. One of the key abilities of an ideal strategic analyst is in his comprehension of analytical resources or techniques are most appropriate to the goals of the research.

There are a number of essential concerns to be conscious of when using analytical tools:

The tools must help to response the question that the enterprise has requested.

The predicted advantage of using the tools needs to be identified and it must be doable. The more clearly the tool ...