Using Strategic Business Analysis In Positioning Business Essay Example

accomplish a specific goal.

The term "scheme" has military roots, originating from the Greek word for general. In the military context, scheme and tactics are distinct concepts. Tactics pertain to the actions within individual battles, whereas scheme pertains to the interconnectedness of multiple battles. Put simply, tactics concern how a conflict is waged, encompassing battle conditions and necessity, while scheme concerns the overarching strategy.

Military scheme, a component of the four levels of warfare (political goals, strategy, operations, and tactics), pertains to a state's long-term plan in achieving its political objectives (source: Wiki).

In the business world, the survival of small businesses greatly relies on having a robust business strategy. Without one, these ventures are unlikely to endure for an extended period. Generating income and achieving success for your small business necessitates significant effort, investigation, and focus.

Small businesses are typically considered as start-ups. However, various large companies like Hewlett-Packard and Apple Computer originated from humble beginnings with only a few individuals operating in a garage.

According to Heller, small companies often stay small because their owners do not have the skills required to manage multiple locations or workshops. The main difference between successful CEOs of large companies and independent coffeehouse owners, as well as between big and small businesses, is ambition. Even if a large company handles its tasks poorly, its managers still anticipate growth in sales and profits. Despite the possibility of failure, their mindset is always focused on moving forward. In contrast, small business owners may choose to remain stagnant, which can be seen as a valid decision.

Strategic planning is guided by strategic thinking, which entails identifying the initial concept or objective of "Where does the organization

aspire to be?" It is crucial for all organizations, regardless of size, to effectively define their purpose and rationale for existing. Strategic thinking plays a key role in the strategic planning process.

Strategic thinking involves bringing together future vision and making it a reality. This process consists of four steps: converting strategic goals into actionable tasks, persuading others to carry out these activities, assessing their impact, and obtaining important insights through strategic assessment.

The text focuses on the current position of the organization and its strategic evaluation process. This process takes into account both internal and external factors to identify gaps and develop appropriate strategies to achieve the organization's strategic goals. According to Henry Mintzberg (1976), strategy planning is often an intermittent and discontinuous process. It involves making choices about which options the organization will pursue to move from its current state to where it wants to be. Ultimately, the strategic choices made should address the strategic challenges presented by the context.

There are four steps involved in the pick procedure, including identifying options, evaluating them against selected standards, choosing the best option, and taking action. This analytical procedure requires proficiency in different subjects to obtain the best option. Various tools are used in Strategic Analysis, which include Scenario Planning, Market Segmentation, P.E.S.T Analysis, Rival Analysis, and Critical Success Factor Analysis. Successful companies consider these analytic tools as a crucial part of their business strategy. According to market research, large companies and enterprises are increasingly investing in analytics technologies such as customer relationship management, data warehousing, and business intelligence software, and these investments are proving to be beneficial.Successful companies view analytics as a fundamental element of their business

strategy.

Compared to lower-performing companies, these companies also have more advanced analytical tools and technologies, value analytical insights more, and have better analytics than their competition (Gohring). According to a study conducted by Accenture, 55% of directors possess some analytical capabilities, and 19% have significant analytical capabilities derived from integrated enterprise system information. By 2009, 74% of companies had some analytical capabilities, and 33% had more substantial capabilities. The companies also have plans to implement additional enterprise tools and techniques in the future (Gohring). Analytic tools provide professionals with the ability to analyze the collected information so that they can assist top management in making sound business decisions. While a lot of business software is used for analysis, software experts and HR practitioners agree that technology cannot replace sound business expertise.

While analytics are becoming an integral part of many companies, some industry observers question whether companies are prepared to utilize the technology, as practitioners may be stuck in the habit of simply collecting data. Those who break free from that mold can use the tools to determine if the business aligns with the company's business strategy and vision and how to apply these tools in the specific business context. Strategies do not function on their own. Shank and others argue that many management systems fall short because they focus too narrowly on measurements and outcomes. Measurement is not management, they assert. Instead, they advocate for the Booz-Allen system, Performance Management, which continuously analyzes decision-making and leverages intra-company relationships rather than delivering a simple account of good or bad results.

Companies struggle to reach their full potential and improve their decision-making by effectively managing the drivers of performance.

For a small business, it is crucial to implement various effective tools and processes that align operational decisions with financial performance. These tools should be continuously updated as the business evolves, with the information being communicated to all levels of management.

One of the properties of analytical tools is their ability to capture cognition across concern. This enables directors to emulate the successes of the best performing artists. In essence, the use of analytical tools goes straight to the heart of a company's behavior. Therefore, all business leaders and directors utilize analytical tools and techniques to analyze complex information.

Interrupting them into studies and charts, these studies and charts help them to consume the information. This has an enormous impact on critical concern decision making. These tools and systems that provide directors with the systems and information needed to manage the performance of an organization are referred to as Corporate Performance Management (CPM) or as Business Intelligence (BI). These systems aim to gather all relevant business data, track key performance indicators, provide data analysis in the form of charts, and track data through real-time dashboards. (Industry Canada) CPM takes a practical approach to implementing and monitoring business strategy. It combines business methodologies such as scorecards, economic value added (EVA), and activity-based management; metrics that are the specific measures used within that methodology; processes, which are the procedures that an organization follows to implement and monitor corporate performance; and systems, which are the technology solutions that combine the methodology, metrics, and processes into a single enterprise-wide management system.

CPM, or Corporate Performance Management, sets itself apart from other approaches to performance management by combining technology and best business practices.

It helps executives address key questions related to strategy planning and execution. CPM follows a closed-loop process that begins with assessing the current state of the organization and determining its desired future state. From there, objectives are set, and resources are allocated to achieve those goals. CPM also includes monitoring the performance of these plans, identifying any deviations, and offering insights into the reasons behind them.

CPM is a tool that aids in decision-making by allowing the rating of options. It helps organizations determine their desired direction. CPM is used for strategizing, incorporating various aspects such as planning, budgeting, forecasting, consolidation, reporting, and analysis. It also supports the allocation of resources, both financial and non-financial, to align with strategies and drive them into action. Executives can use a CPM application to effectively communicate and implement strategy throughout the organization, enabling people to make decisions that align with strategic goals. Additionally, CPM allows members of the organization to focus on key issues and critical data rather than being overwhelmed by all possible information and events.

It provides the correct information to the correct individuals at the correct pace in the correct context. (Coveney) The important objective of Tools and Techniques is to integrate business intelligence data into a single system for the purpose of providing enhanced insight to senior management who can utilize this system to manage business strategy continuously. Tools can have a tremendously positive impact on a business as managers become empowered to make decisions based on real-time information. However, data must be utilized cautiously. (Industry Canada) S.W.O.T Analysis Meaning and Definition SWOT analysis is a fundamental technique that is commonly used in strategic planning, enhancing

company success, organizational development, and identifying competitive advantage.

Swinton explains the SWOT (Strengths, Weaknesses, Opportunities, and Threats) concept in a simple manner that is understandable to everyone. Like other strategic models, the name itself indicates its components: S for Strengths, W for Weaknesses, O for Opportunities, and T for Threats. The SWOT matrix consists of four quarter-circles like other effective models. By analyzing each quarter-circle in order, we can assess the current situation, determine the desired outcome, and create an action plan to achieve it. Whether used for future planning in a specific product or project or personal development in any field, the process of SWOT analysis remains consistent. It is important during this time to list all existing strengths.

It is crucial to recognize and acknowledge existing weaknesses in the present. Honesty and avoiding underestimation are necessary in this process. Simultaneously, it is vital to envision and outline possible future changes. These changes can transform into opportunities and strengths in the future.

Then, within the list, enumerate all potential dangers in the future. Dangers are possible future weaknesses. Plan of action: Review your SWOT matrix with the intention of creating an action plan to address each of the four areas. (Swinton)

• In summary;
• Strengths must be preserved, built upon, or utilized.
• Weaknesses must be rectified or eliminated.
• Opportunities must be prioritized and optimized.
• Threats must be countered or minimized.

If SWOT is applied in a business context, it assists you in establishing a sustainable position in your market; and when used in a personal

context, it aids in developing one's career by making the most of their talents, abilities, and opportunities. The Key Distinction - Internal and External Issues: Strengths and weaknesses are Internal factors.

When evaluating your strengths, it is crucial to acknowledge the areas where you excel, particularly in sales. Conversely, weaknesses may stem from a dearth of new products. Meanwhile, opportunities and threats are external factors that can impact your business. For instance, an opportunity could arise from the emergence of a distribution channel like the Internet or shifts in consumer habits leading to increased demand for your offerings. On the other hand, a threat might manifest as a new competitor entering an essential market or technological advancements making your current products outdated.

It should be noted that SWOT analysis can be subjective, as two individuals rarely come up with the same version of a SWOT analysis even when given the same information about the same concern and its environment. Therefore, SWOT analysis is best used as a guide rather than a prescription. Adding and weighing criteria for each factor enhances the validity of the analysis.

Opportunity:
- A developing market such as the Internet.
- Mergers, joint ventures, or strategic alliances.
- Expansion into new market segments that offer improved profits.
- Access to a new international market.
- Opportunities arising from a competitor's unsuccessful efforts to capture a market. (Marketing Teacher Ltd)

Threats:
- Emergence of a new competitor in your local market.
- Price wars with competitors.
- Competitor introduces a new, innovative product or service.
- Competitors have better access to distribution channels.
- Imposition of taxes on your product or service. (Marketing Teacher Ltd)

Company Profile: 'Making it Big' is an enterprise engaged in the manufacturing

and retailing of clothing for plus-size women. The company was founded by Cynthia Riggs, who currently serves as the CEO of MIB. MIB originally started as a partnership between Cynthia and Janet.

The business was initially started with a small capital in the year 1984. The business operates through the Direct selling and sales operating scheme. The method used for this scheme is mail orders, which contribute to the majority of the administration's sales. Eventually, Cynthia became the sole owner of the business. The products offered include:

1. Career wear
2. Casual athletic wear
3. Formal wear
4. Outerwear
5. Accessories such as jewelry, scarves, shoes, and stockings.

The retailing methods used by the business are:

• Website
• Mail Order
• House Parties
• Trade Shows

The management team of MIB consists of 5 members:

1. Cynthia - Founder and CEO
2. Bridget - General Manager
3. Sharon - Production Manager

After 2001, the sales of MIB declined rapidly and in 2002 it fell below expectations.

MIB is facing tough competition in the Bing adult females's dress market from large retail chains such as Capturing Shoppers Inc, Lane Bryant, and Catherine's Plus Sizes. Additionally, well-known brands like Tommy Hilfiger and Old Navy have also launched their own plus size dresses, gaining popularity. The introduction of advanced technology poses a threat to MIB, as its competitors have access to computerized inventory and stock management systems, comprehensive customer databases, and accurate payment solutions. Compared to its rivals, MIB has limited financial resources, which hinders the company's growth and prevents the adoption of new technology and diversification of risk.

The company is currently facing internal obstacles such as a lack of adequate management staff, specialists, defined strategy, and professional advice. Capability-based strategies are built upon the belief that a firm's long-term profitability is derived from its internal resources and core competences. To evaluate these capabilities, a company conducts a capability profile assessment in four key areas: managerial, marketing, financial, and technical. Following this assessment, a SWOT analysis is conducted to determine if the company possesses the necessary strengths to handle external forces. This analysis allows managers to identify external threats and opportunities, as well as distinct competences to mitigate threats and overcome weaknesses. The findings from the SWOT analysis guide the selection of a strategy that will provide a competitive advantage. Chaff, Evans, and Schulman (1992) have

identified four principles that serve as guidelines for achieving capability-based competition: corporate strategy should focus on business processes instead of specific products or markets, key strategic processes should consistently deliver superior customer value.

1. Investing can be made in capability, nonmaps or SBUs.
2. The CEO is responsible for protecting the capability-based scheme.

Capability-based schemes, also known as the resource-based view of the company, are determined by the internal resources and capabilities that form the foundation of the company's strategy and the resources and capabilities that generate profit for the company.

A cardinal direction map is used to identify the necessary resources to maintain a competitive advantage in areas where these capabilities are needed. There are different levels in defining a company's overall strategic platform. The basic resources accumulated by the company over time can be divided into technical factors, competitive factors, managerial factors, and financial factors. Core competences refer to the distinctive combination of a particular company's resources and expertise.

It takes time and effort to develop these core competencies and they are difficult to replicate. The key factors that contribute to the sustainability of these core competencies are:

1. Durability - they have longer life spans than individual products or technology life cycles, as well as the resources used to produce them, including people.
2. Intransparency - it is challenging for competitors to quickly imitate these competencies.
3. Immobility - these capabilities and resources are not easily transferable.

MIB is a small but growing company and upon conducting the above S.W.O.T Analysis, I can see that there is a lot of potential in the company's business, which can lead Making it

Big to become a highly successful company. In my opinion, after conducting the S.W.O.T analysis, it is evident that the company lacks a proper business plan.

Hence, it is important for the company to focus on creating a strategic business plan that considers the current and long-term goals and objectives. This plan will outline how the company intends to grow. I recommend that MIB invest significant time and financial resources into developing and implementing a strong marketing plan. It is advisable for the company to seek assistance from professional marketing firms or agencies to oversee and develop the entire process. Specifically, MIB should consider hiring experts and specialists in the fields of Marketing and Product Design, as these are areas where the company currently lacks expertise. By doing so, not only will the company move in the right direction, but it will also have the opportunity to enhance its brand image.

MIB is already a well-known brand, with people being aware of its products and presence. I believe that having franchise outlets will boost sales by providing a wider distribution channel and making products easily accessible to a large number of customers in their local areas. MIB heavily relies on manual labor, so I suggest that the company should enhance the technology used for manufacturing and ensure quality checks are conducted at every production stage. Implementing automation will result in improved labor efficiency, better quality products, and optimal resource utilization. Additionally, attracting new customers should be a priority for MIB, as a significant portion of the business comes from repeat clients.

MIB should actively seek out new potential customers through various channels like Television, Road Shows, and Exhibitions,

among others. It is crucial to keep the Customer Database constantly updated with accurate profiles. New clients should be promptly added to the database. I suggest implementing a Points and Discount strategy on purchases for both new and existing clients, as this will boost sales and help clear out old stocks. Regarding staffing, I recommend closely reviewing the current staff, particularly the management team, as there seems to be a mismatch in skill sets with their job profiles.

Administering staff properly ensures that the correct person is selected for the job. Each member of the management team should be evaluated based on their skills, strengths, and weaknesses, and then placed in the appropriate position. The company needs to ensure that all employees are well-trained in their duties and have a clear understanding of the goals and objectives of the company, as well as what is expected of them in their role. Having employees with cross-skills or the ability to multitask will ensure optimal utilization of human resources. When employees are happy, it leads to better final products and improved work efficiency. The company should also make sure that all staff members receive bonuses and performance-based incentives in a timely manner. This will keep them motivated and ensure smooth operations for the business.

The company should have an internal job posting policy that allows eligible employees to apply for senior positions. This policy will fulfill the company's need in case someone leaves and will also save the cost of training and recruiting. I believe that these recommendations and suggestions will benefit the company in both the short and long term. MIB has the potential to grow and maintain

its position in the plus-size women's apparel market across America. I have made these recommendations considering the available financial and human resources, as well as the fact that MIB is a growing company with limited exposure and support. CEO Cynthia Riggs, as the founder and owner of the company, should review these recommendations and implement them to compete and become a leader in the plus-size apparel market.

The different tools and techniques utilized for crafting and implementing business strategies (e.g. S.W.O.T analysis, PEST Analysis, Competitor Analysis, and Five Forces Analysis etc.) are scientifically proven and commonly used by all types of organizations, regardless of size, to plan and develop their business strategies. I believe these tools and techniques will be effective in crafting and implementing business strategies for small businesses. By using these analytical tools, small business owners and managers will understand the essential requirements for their business and can develop a strategy based on the findings and results. We must not forget that even though a business may be small with limited resources, including specialized staff or expertise, there is great potential for growth if a well-designed business strategy is in place. I believe that the academic models used for analyzing business strategy are not complicated and can enhance the performance of a business, regardless of its size.

While larger organizations may have advantages in terms of working capital, infrastructure, quality staff, brand name, and goodwill, this scientific approach and analysis can still be applied to smaller organizations. For example, if the owner or director of a small candle manufacturing business wants to design and plan a business strategy, they can use tools like SWOT

analysis to identify the strengths and weaknesses of their unit. They can also assess the various opportunities and threats for their business. After a thorough review of these findings, they can begin designing a strategic plan to enhance their strengths (such as offering a greater variety of candles, entering new markets, attracting more customers, and expanding their staff), address their weaknesses, explore opportunities, and mitigate threats from competitors and technological advancements.

Once the Strategic Plan is prepared and executed, it will undoubtedly show a positive outcome. A strategic plan can help guide a company to success, whether it is in the short or long term. Without a sense of direction, an organization may end up going nowhere. This is why it is crucial to craft a strategic plan to navigate through both favorable and unfavorable circumstances. (Rose Halas) Numerous companies establish strategic planning committees that include representatives from various departments.

Every country should have representation to ensure that all employees feel included and empowered. Employee representation is crucial for gaining employee support and successful implementation. (Rose Halas) To achieve this, monthly meetings should be organized, with the chairperson setting an agenda and the committee establishing a timeline to complete a draft of the plan. Following each meeting, the committee's report should be published in the company newsletter or a designated section of the website, if applicable, to keep everyone updated on the progress of the document. (Rose Halas) Regular feedback should be sought from non-committee employees. As each draft of the strategic plan is developed, it should be communicated through company media, with a specific deadline for inviting feedback.

The program can distribute transcripts with a petition for

proposed redaction changes by a specific day of the month, ensuring everyone has a voice in setting the company's future goals (Rose Halas). Some goals to consider include:

1. Improving safety by increasing parking lot lighting
2. Increasing customer satisfaction by reducing order turnaround time from four days to two
3. Enhancing the lobby appearance by adding live plants and a rug
4. Setting larger or long-range goals under broad categories:
5. Customer satisfaction
6. Employee safety
7. Product integrity
8. Workplace harmony

As one goal is achieved, it should be replaced with another. Opportunities to improve company performance are always available.In addition to operational goals, it is important to emphasize the five- and ten-year objectives and the steps to achieve them. The five-year plan includes increasing profits by 25% (expanding the client base through sales calls and increasing the advertising budget by 10%), increasing staff by 10% (hiring a full-time employee each year for five years), adding 2,500 square feet of production space (purchasing adjacent land and constructing a pole building), reducing waste by 20% (conducting daily checks on product content), and decreasing absenteeism by 30% (offering a $200 annual bonus for perfect attendance). These specific and measurable goals and steps can be achieved through employee motivation and cooperation. During staff meetings, take the time to explain the purpose of the plan and the overall value it brings to the company, its employees, and its clients.

When developing the program, it is important to divide sections or countries into subdivisions. For each subdivision, list the steps needed to achieve the goals and include a timeline

for completing each action measure. Before finalizing the program, it should be circulated for final approval. Once the program is officially adopted, ensure that each employee receives a copy. Refer to it during staff meetings, retreats, and other special events. The program should be reviewed by the committee at least once a year to make updates and reprioritize if necessary.

A competent strategic program can provide the structure and guidance that will propel your company to the next level of success. After conducting a S.W.O.T analysis for MIB, it is evident that the company had a clear vision and mission of manufacturing comfortable, stylish, and high-quality Plus Size Apparels for large American women and teenagers. However, the company lacked a strategy to direct the business in the right direction. Despite founder Cynthia Riggs and other staff members' diligent efforts, the company experienced a decline in sales after a few years.

This, when analyzed today using one of the Tools, has brought to light the underlying causes and limitations in the company's growth.

Decision: In my opinion, the way forward for Making it Big is definitely co.