How appropriate/useful do you think these analytical/modelling tools are for the strategic decision maker?

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Introduction

The thinking techniques are like different tools in a machinist’s tool kit. For a business analyst, a good tool kit with a range of analytical tools, which when used together, increase the strength to get to the bottom of a complex business problem.

What is strategy? In simple words ‘strategy’ means a long-term plan or a series of stratagems to achieve future goals. These stratagems can be easily identified by using the strategic tools.

How appropriate/useful do you think these analytical/modelling tools are for the strategic decision maker?

For a decision maker, strategy modelling tools help to look at any complicated business problem in an organised and précised way. When other people feel incapacitated and intimidated by the situation, these analytical tools help to find the right approach for solving an unstructured business problem. These techniques are effective to extract valid information from dry facts. Business strategy tools also help to understand the business and its competitive environment which in turn helps to develop a competitive edge and to identify the best way forward.

In my group work on strategic analytical review of the case study organisation ‘STARBUCKS’ we have used many analytical tools to understand the concept of strategy modelling and management. Some of these tools were used for collecting primary and secondary data, technique to find the goals of the company by looking at its Mission Statement, SWOT (strengths, weaknesses, opportunities & threats) analysis, TOWS matrix, SPECCTRe (PEST, PESTLE, PESTEL, PESTLIED, STEEPLE, SLEPT analysis), Marketing mix- the 4P’s, Porter’s 5 forces, core competences analysis etc. These tools help us to solve an intricate business problem.

Focussing on Customer segmentation- This helps to identify the key customers & their expectations. By doing this a company can reduce the gap between customers’ expectations & perceptions and, improve its customer satisfaction rate.

Competitor analysis- Now days, for any company, it is critically important to know about its competitors, their strengths-weaknesses & what makes them successful. This type of analysis will help the company to counter-act their strengths and exploiting their weaknesses to achieve their business goals.

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Porter’s 5 forces- It is a competition theory model proposed by Michael E. Porter to analyse the industry structure and develop business strategy. The careful analysis of the five forces discussed in this model will give companies the necessary insights to build strategies. This tool is very helpful to judge the profitability of new products/businesses.

Competitive advantage- Every company is putting in a great effort to distinguish itself from its competitors. This will help them to attract more customers. According to Kenichi Ohmae:

"Business strategy is all about competitive advantage. The sole purpose of strategic management is to enable an ...

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