Question

You have now had experience with each aspect of the strategic analysis process from conducting an external and internal environment scan of current strategies, assessing a firm's current strategy and environment, determining goals for future performance, and recommending strategic alternatives. What, in your opinion, are the strengths of strategic analysis? What are its weaknesses? Do the weaknesses outweigh the strengths of this analytical approach? Explain.

Answer 1

Strengths of strategic analysis are as follows-

1. It allows having clarity of internal positive attributes of the organization that are under control.

2. It helps identifying strengths of both external and internal resources

3. It helps in gaining competitive advantage

4. If offers internal components that add value to the organization.

Weaknesses of strategic analysis are as follows-

1. It can generate too many ideas and creates confusion in choosing the most suitable one

2. Main focus always on solving existing problems therefore there is little time left for innovating new product

Sometimes weaknesses outweigh the strengths of the analytical approach. But we should use its weaknesses as strength and put main focus on strengths not on weaknesses. Analytical approach breaks the problem into small problems and it is easier it to solve smaller pieces more efficiently than big problem. Most people fail to solve difficult problems because the problem solving process does not fit the problem. Most of the time people use an inappropriate approach without realizing it and it will lead to failure. Use appropriate analytical approach is the most important. Most of the times management fails to consider all the alternatives completely and this will lead to incomplete analysis. That’s why sometimes its weaknesses outweigh its strengths.

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