RIZAL TECHNOLOGICAL UNIVERSITY

Boni Ave., Mandaluyong, 1550 Metro Manila

DEPARTMENT OF ACCOUNTANCY

Name: HONSON, ALYSSA MAE B. Section: CBET01-901A

Subject: STRATEGIC BUSINESS MANAGEMENT

Activity 1: An Introduction

1) What is strategic management analysis?

Strategic management is based around an organization's clear understanding of its

mission; its vision for where it wants to be in the future; and the values that will guide
its actions. The process requires a commitment to strategic planning, a subset of
business management that involves an organization's ability to set both short- and
long-term goals. Strategic planning also includes the planning of strategic decisions,
activities and resource allocation needed to achieve those goals.

Strategic Management Analysis is also the ongoing planning, monitoring, analysis, and
assessment of all needs that an organization requires to accomplish its goals and
objectives. Companies will have to reevaluate their success methods on a regular
basis as a result of changes in the business environment. The strategic management
analysis process aid companies in providing an overview of their current condition,
developing plans, implementing those strategies, and evaluating the success of those
plans.
2)   What are the 4 types of strategies under
strategic analysis?

The 4 types of strategies under strategic analysis are:

Corporate Strategy

It is formulated at the top level by the top management of a diversified

company. Such a strategy describes the company’s overall direction in terms
of its various businesses and product lines.

Business Strategy

It is a business-unit level strategy, formulated by the senior managers of the unit.

This strategy emphasizes the strengthening of a company’s competitive position
of products or services.

Functional Strategy

It is concerned with developing a distinctive competence to provide a business,

unit with a competitive advantage.

Operational Strategy

It is formulated at the operating units of an organization. A company may develop

operating strategy, as an instance, for its factory, sates territory or small sections
within a department.
3) Why strategic business analysis is important?

The importance of strategic business analysis is 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. It also brings the important information about evaluation and
development of environment inside and outside the company and reveals possible
opportunities and threats that need to be consider in strategic decision-making.
 4) What are the 4 steps in the strategic analysis process?

The 4 steps in the strategic analysis process are:

1. Perform an environmental analysis of current strategies

o A company must accomplish an examination of the environment in which its

current strategies are operating. Considerations for the internal environment
include difficulties like operational inefficiency, job satisfaction, and limitations
brought on by economic issues.

2. Determine the effectiveness of existing strategies

o Determining the success of the current strategy in light of the present

business environment is a primary goal of a strategic analysis.

3. Formulate plans

o Strategists may suggest approaches to maintain low costs and lean

operations. Changes in capital structure, adjustments to supply chain
management, or any other substitute for a business process are examples of
potential strategic alternatives.

4. Recommend and implement the most viable strategy

o We decide to follow the most practical and statistically profitable strategy

after considering all feasible strategic choices. After giving a
recommendation, we iteratively repeat the entire process. It is necessary to
implement, evaluate, and reevaluate strategies. Because corporate
environments are dynamic, they must adapt.