Various tools and technique used in Strategic Management for Strategic Analysis.

1. Tools for Strategic Management
JYOTI MAURYA

2. Strategic Analysis
• The process of developing strategy for a business by
researching the business and the environment in which it
operates.
• Strategic analysis helps you to explore your growth
options, addresses challenges within your industry, and
makes better corporate decisions.

3. Tools For Strategic Management
CRITICAL QUESTION
ANALYSISALYSIS
BCG MATRIX
SWOT ANALYSIS
BALANCED
SCORECARD
FOUR CORNER'S
ANALYSIS
PEST ANALYSIS
FIVE FORCES
ANALYSIS
VALUE CHAIN
ANALYSIS
VRIO ANALYSIS

4. CRITICAL QUESTION ANALYSIS
What are the purposes
and objectives of the
Organization?
Formulating appropriate organizational strategy is a process of
critical question analysis.
The 4 critical questions to be answered here are:
In what kind of
environment does the
organization now
exist?
Where is the Organization
presently going?
What can be done to better
achieve organizational
objectives in the future?

5. Boston Consulting Group(BCG) Matrix
The Boston Consulting Group Matrix
is the most common tool for
performing a portfolio analysis.
According to the BCG Matrix, products and services with high
growth and high market share are the most desirable, while
those with low growth and low market share are undesirable.
Considers products and services
according to two dimensions:
market growth and relative market
share.

7. SWOT Analysis
A useful technique for analyzing a
firm's position in the market.
This can allow a firm to exploit opportunities using its strengths
, while at the same time improving upon its weaknesses in orde
r
to avoid external threats.
Considers the firm's internal strengths
and weaknesses against external
opportunities and threats.

9. BALANCED SCORECARD
Developed by Robert S. Kaplan and
David P. Norton. Used by organizati
on to measure its performance.
Includes various non-financial measures like
customer, business process and learning
measures.
Includes both financial and
non-financial metrics of the
organization’s performance.

10. Customer/
Stakeholder
“Satisfaction”
Financial/
Stewardship
“Financial
Performance”
“learning and
growth”
Vision
and
Strategy
Internal Business
Process
“Efficiency”
Strategic Objectives Strategy Map
Performance Measures & Targets Strategic
Initiatives

11. FOUR CORNER'S ANALYSIS
developed by Michael Porter, is a mo
del well designed to help company st
rategists assess a competitor's intent
and objectives, and the strengths it is
using to achieve them.
It examine competitor's current strategy, future
goals, assumptions about the market, and core
capabilities.
It's evaluate competitors and
generate insights concerning
likely competitor strategy changes
and determine competitor reaction
to environmental changes and
industry shifts.

13. PEST ANALYSIS
PEST analysis is a scan of the
external micro-environment in
which anorganisaion exists.
It can be used for evaluating marketgrowth, potenti
l and direction for a business.
PEST is an acronym for Political,
Economic, Social and Technological
factors, which are used to assess the
market for a business or
organizational unit.

14. Political factors: These include
government regulations such as
employment laws, environmental
regulations and tax policy. Other
political factors are trade restrictions
and political stability.
Social factors: These impact on the
consumer’s need and the potential
market size for an organisation’s goods
and services. Social factors include
population growth, age demographics
and attitudes towards health..
Economic factors: These affect the
cost of capital and purchasing power
of an organisation. Economic factors
include economic growth, interest
rates, inflation and currency exchange
rates.
Technological factors: These
influence barriers to entry, make or
buy decisions and investment in
innovation, such as automation,
investment incentives and the rate of
technological change.

15. FIVE FORCES ANALYSIS
 Michael Porter developed the Five Forces Model in 1980.
 It is a powerful competitive analysis tool to determine the principal
competitive influence in a market.
Five Forces analysis helps you stay competitive by:
Knowing the strength of these five forces,you can develop
strategies that help their businesses be more competitive
and profitable.
Looking at opportunities, you can to strengthen their
organization's position compared to the other players for
reducing the competitive pressure as well as generate
competitive advantage.

17. VALUE CHAIN ANALYSIS
Value chain analysis is a way to
visually analyze a company's
business activities to see how
the company can create
competitive advantage for itself.
It can help organisation to gain better
understanding of key capabilities and
identify areas for improvement.
It is based on the principle that
orgnisation exist to create value for
their customers

18. VRIO ANALYSIS
VRIO Analysis It was developed by Barney, J.B (1991). Used to analyze firm’s
internal resources and capabilities to find out if they can be a source of
sustained competitive advantage.
VRIO is an acronym for the four questions- the question of Value, the question
of Rarity, the question of Imitability, and question of Organization..

19. Firms' resources
and capabilities are
valuable if they
enable a firm to
implement
strategies that
improve their
efficiency and
effectiveness
VALUABLE
A valuable resorces
is considered rare
as long as the
number of firms
that possess the
resource is less than
needed to genrate
perfect competition
dynamics
RARE
Valuable and rare
resources are
imperfectly
imitable due to
unique historical
condition, social
complexity or
casual ambiguity
IMPERFECTLY
IMITABLE
A firm's resources
are organization
specific if these are
no strategically
equivalent, valuable
and rare resources
ORGANISATION
SPECIFIC

20. CASE STUDY
TOOLS:
 SWOT ANALYSIS
 PEST ANALYSIS
 VALUE CHAIN ANALYSIS
 FIVE FACTOR ANALYSIS

22. • Digital India : The initiative includes plans to connect 250,000 villages with high-
speed internet networks.
• • Google has so far installed free Wi-Fi in more than 52 railway stations.
• • Google station will provide free Wi-Fi in public places.
• • Demonetization.
• India is one of the fastest economically growing countries in the world.
• • Per capita income has increased from $ 729 to $ 1581 in last 15 years.
• • Affordable smart phones are available in market.
• Increase in number of children going to school from 102 crore to 121 crores in last
10 years (2005 to 2015) .
• Age of 65% India’s of total population is below 35 yrs
• There are total 331.66 million internet users in India.
• 93.82% of total internet users use internet on mobile
• Internet penetration is 27% . It is expected to increase to 34.8%

24. FIVE FORCES ANALYSIS

25. THANK YOU !