As part of a continuation of our How to Build a Better Business blog series, we’re covering the questions to ask when taking the sixth step in analyzing performance: using models for strategic analysis.
There are useful business-analysis models that may help you think more strategically about your business. Just a few to research and consider:
- SWOT analysis (strengths, weaknesses, opportunities, threats) is the most popular option. This involves looking at the strengths and weaknesses of your business’ capabilities, and any opportunities and threats to your business. Once you’ve identified all of these, you can assess how to capitalize on your strengths, minimize the effects of your weaknesses, make the most of any opportunities, and reduce the impact of any threats.
- STEEPLE analysis is a technique for understanding the various external influences on a business: Social, Technological, Economic, Environmental, Political, Legal, and Ethical.
- Scenario planning is a technique that builds various plausible views of possible futures for a business.
- Critical success factor analysis is a technique to identify the areas in which a business must succeed to achieve its objectives.
- Porter’s Five Forces is the theory that there are five defined factors influencing the development of markets and businesses: potential entrants, existing competitors, buyers, suppliers, and alternative products/services. Using this model, you build a strategy to keep ahead of these influences.
This blog is the last in our How to Build a Better Business blog series. It’s important to stand back and review your business performance. These steps will give you a clear indication of any issues you need to address quickly to maintain your business in its early stages.
This information was gathered from Info Entrepreneurs, a team of business information experts from the Board of Trade of Metropolitan Montreal, part of the Canada Business Network.
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