The process of strategy analysis involves assessing an organization’s internal and external environment to identify strengths, weaknesses, opportunities, and threats. This analysis forms the basis for evaluating strategic alternatives. Here’s a breakdown of the steps involved:

Strategy Analysis Process:

1. Establish Objectives and Scope:
   • Define the specific objectives and goals that the organization aims to achieve through the strategic analysis process.
   • Determine the scope of the analysis, including which aspects of the business will be examined.
2. Gather Data and Information:
   • Collect relevant data from both internal and external sources.
   • Internal data may include financial statements, performance metrics, and organizational reports.
   • External data may encompass market research, industry reports, competitor information, and macroeconomic trends.
3. Perform External Environmental Analysis:
   • PESTLE Analysis: Evaluate Political, Economic, Social, Technological, Legal, and Environmental factors affecting the organization.
   • Porter’s Five Forces Model: Analyze competitive forces within the industry, including supplier power, buyer power, competitive rivalry, threat of substitutes, and threat of new entrants.
4. Conduct Internal Analysis:
   • Resource-Based View (RBV): Identify the organization’s key resources and capabilities. Assess strengths and weaknesses in areas like human capital, technology, and brand equity.
   • Value Chain Analysis: Examine the activities and processes that create value within the organization, from inbound logistics to customer service.
5. SWOT Analysis:
   • Strengths: Internal attributes that provide an advantage in achieving objectives.
   • Weaknesses: Internal attributes that hinder the organization in achieving objectives.
   • Opportunities: External factors that the organization can leverage to its advantage.
   • Threats: External factors that pose potential challenges or risks.
6. Formulate Strategic Issues and Options:
   • Based on the analysis, identify critical strategic issues facing the organization.
   • Develop potential strategic options or alternatives to address these issues.

Analyzing Strategic Alternatives:

1. Feasibility Analysis:
   • Assess the practicality and feasibility of each strategic alternative.
   • Consider factors like resource availability, technical capabilities, and organizational capacity.
2. Risk Assessment:
   • Evaluate the potential risks and uncertainties associated with each alternative.
   • Consider factors like market volatility, regulatory changes, and competitive dynamics.
3. Cost-Benefit Analysis:
   • Compare the expected costs and benefits of each alternative.
   • This includes financial implications, resource allocation, and expected returns on investment.
4. Alignment with Organizational Goals:
   • Evaluate how well each alternative aligns with the organization’s mission, vision, and long-term objectives.
   • Ensure that the chosen alternative supports the overall strategic direction.
5. Scenario Analysis:
   • Consider different scenarios and how each alternative would perform under various conditions (best-case, worst-case, most likely).
6. Select and Implement the Chosen Alternative:
   • Based on the analysis, choose the most suitable strategic alternative.
   • Develop an implementation plan, including specific actions, timelines, and responsibilities.
7. Monitor and Evaluate:
   • Continuously monitor the progress of the chosen alternative.
   • Use key performance indicators (KPIs) to track performance against established objectives.

By following these steps, organizations can systematically analyze their strategic options and select the most appropriate alternative to achieve their objectives. It’s important to note that strategy analysis is an iterative process and may need to be revisited as conditions change.