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Strategic Business

Analysis

Learn More Prof. JB Bernat, PhDc


Strategic business analysis
• Change is necessary for organizations to continue to thrive and grow,
but how do you pivot strategy and retool an organization to remain
relevant?
• Strategic business analysis involves outcome-focused thinking,
simultaneously understanding business context, business challenges,
and the complexities of the internal and external environment to
frame the scope of the transformation, articulate the business
need/outcome, and shape the agenda for transformation.

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Strategic business analysis
• Strategic business analysis requires a focus on all
aspects of the organization.
• It leverages business analysis, change leadership, and
program and project management.
• Strategic business analysis focuses on ‘what and why’,
not the ‘how’ of solution implementation.

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Strategic analysis
“We measure, study, quantify, analyze every single piece of our
business. . . . But then you’ve got to be able to take all that data and
information and transform it into change in the organization and
improvements in the organization and the formalization of the
business strategy.”
—Richard Anderson, former CEO of Delta Air Lines

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Strategic analysis
• Strategy analysis may be looked upon as the starting point of the
strategic management process.
• It consists of the “advance work” that must be done in order to
effectively formulate and implement strategies.
• Many strategies fail because managers may want to formulate and
implement strategies without a careful analysis of the overarching
goals of the organization and without a thorough analysis of its
external and internal environments.

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Strategic analysis
• Strategic analysis (sometimes referred to as a strategic
market analysis) is the process of gathering data that
helps a company’s leaders decide on priorities and goals,
shaping (or shifting) a long-term strategy for the
business.

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Strategic analysis
• It gives a company the ability to understand its
environment and formulate a strategic plan accordingly.
• Strategic analysis is paramount in any organization
because it provides the context and backbone upon
which the strategy and overall position of the business is
formulated.

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Strategic analysis
• Strategic analysis refers to the process of conducting
research on a company and its operating environment to
formulate a strategy.

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Strategic analysis
The definition of strategic analysis may differ from an
academic or business perspective, but the process involves
several common factors:
• Identifying and evaluating data relevant to the company’s
strategy
• Defining the internal and external environments to be
analyzed
• Using several analytic methods such as Porter’s five forces
analysis, SWOT analysis, and value chain analysis

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Strategic analysis
What is Strategy?
A strategy is a plan of actions taken by managers to
achieve the company’s overall goal and other subsidiary
goals. It often determines the success of a company. In
strategy, a company is essentially asking itself, “Where do
you want to play and how are you going to win?”

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Strategic analysis PROCESS

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Strategic analysis PROCESS

1. Perform an environmental analysis of current strategies


• Starting from the beginning, a company needs to complete an
environmental analysis of its current strategies.
• Internal environment considerations include issues such as
operational inefficiencies, employee morale, and constraints
from financial issues.
• External environment considerations include political trends,
economic shifts, and changes in consumer tastes.

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Strategic analysis PROCESS

2. Determine the effectiveness of existing strategies

• A key purpose of a strategic analysis is to determine the


effectiveness of the current strategy amid the prevailing business
environment.
• Strategists must ask themselves questions such as: Is our strategy
failing or succeeding? Will we meet our stated goals? Does our
strategy align with our vision, mission, and values?

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Strategic analysis PROCESS

3. Formulate plans
• If the answer to the questions posed in the assessment stage is
“No” or “Unsure,” we undergo a planning stage where the
company proposes strategic alternatives.
• Strategists may propose ways to keep costs low and operations
leaner. Potential strategic alternatives include changes in capital
structure, changes in supply chain management, or any other
alternative to a business process.

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Strategic analysis PROCESS

4. Recommend and implement the most viable strategy


• Lastly, after assessing strategies and proposing alternatives, we
reach a recommendation.
• After assessing all possible strategic alternatives, we choose to
implement the most viable and quantitatively profitable strategy.
• After producing a recommendation, we iteratively repeat the
entire process.
• Strategies must be implemented, assessed, and re-assessed. They
must change because business environments are not static.

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Who is BUSINESS ANALYST?
• A business analyst is any person who performs business
analysis tasks.
• Business analysts are responsible for discovering,
synthesizing, and analyzing information from a variety of
sources within an enterprise, including tools, processes,
documentation, and stakeholders.

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Who is BUSINESS ANALYST?
• The business analyst is responsible for eliciting the actual
needs of stakeholders—which frequently involves
investigating and clarifying their expressed desires—in
order to determine underlying issues and causes.

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Who is BUSINESS ANALYST?
Business analysts play a role in aligning the designed and
delivered solutions with the needs of stakeholders. The
activities that business analysts perform include:
• understanding enterprise problems and goals,
• analyzing needs and solutions,
• devising strategies,
• driving change, and
• facilitating stakeholder collaboration.

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Business Analysis Core
Concept Model (BACCM)

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Change

• The act of transformation in response to a need.

• Change works to improve the performance of an enterprise.


These improvements are deliberate and controlled through
business analysis activities.

Business Analysis Core


Concept Model (BACCM)
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Need

• A problem or opportunity to be addressed.

• Needs can cause changes by motivating stakeholders to act.


Changes can also cause needs by eroding or enhancing the value
delivered by existing solutions.

Business Analysis Core


Concept Model (BACCM)
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Solution

• A specific way of satisfying one or more needs in a context.

• A solution satisfies a need by resolving a problem faced by


stakeholders or enabling stakeholders to take advantage of an
opportunity.

Business Analysis Core


Concept Model (BACCM)
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Stakeholder

• A group or individual with a relationship to the change, the need,


or the solution.

• Stakeholders are often defined in terms of interest in, impact on,


and influence over the change. Stakeholders are grouped based
on their relationship to the needs, changes, and solutions.

Business Analysis Core


Concept Model (BACCM)
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Value

• The worth, importance, or usefulness of something to a


stakeholder within a context.

• Value can be seen as potential or realized returns, gains, and


improvements. It is also possible to have a decrease in value in
the form of losses, risks, and costs.

Business Analysis Core


Concept Model (BACCM)
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Value

• Value can be seen as potential or realized returns, gains, and


improvements. It is also possible to have a decrease in value in
the form of losses, risks, and costs.

Business Analysis Core


Concept Model (BACCM)
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Value

• In some cases, value can be assessed in absolute terms, but in


many cases is assessed in relative terms: one solution option is
more valuable than another from the perspective of a given set
of stakeholders.

Business Analysis Core


Concept Model (BACCM)
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Context

• The circumstances that influence, are influenced by, and provide


understanding of the change.

Business Analysis Core


Concept Model (BACCM)
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Context

• Changes occur within a context. The context is everything


relevant to the change that is within the environment.
• Context may include attitudes, behaviors, beliefs, competitors,
culture, demographics, goals, governments, infrastructure,
languages, losses, processes, products, projects, sales, seasons,
terminology, technology, weather, and any other element
meeting the definition.

Business Analysis Core


Concept Model (BACCM)
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Guide Questions

• What are the kinds of changes we are doing?


• What are the needs we are trying to satisfy?
• What are the solutions we are creating or changing?
• Who are the stakeholders involved?
• What do stakeholders consider to be of value?
• What are the contexts that we and the solution are in?

Business Analysis Core


Concept Model (BACCM)
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Asynchronous task
1. This task can be done individually or by group (maximum
of 3 members only).
2. Using the Business Analysis Core Concept Model (BACCM),
conduct a research to provide information about the context,
stakeholders, change/s, need/s, solution/s, and value of a
chosen organization. Just choose one organization.
• Netflix
• Starbucks
• Airbnb

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Asynchronous task
3. Indicate the references/sources used in your research.
Follow the APA style of referencing.
4. Follow the recommended template for the output.

Suggested APA Reference Guide:


https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide
/reference_list_electronic_sources.html

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Name of Student/s:
Chosen Company:
Relevant Information
What is the present context of the
organization?
Who are the stakeholders involved?
What are the needs the organization
is trying to satisfy?
What are the solutions being done to
address the need/s?
What are the kinds of changes that
the organization is doing or has done?

What kind of value that the


organization creates and provides to
its stakeholders?
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Reference List:

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