Understanding Three Levels of Strategic Business Analysis

by sophiajames

As an aspiring or seasoned business analyst, it is crucial to understand the three levels of strategic analysis and their profound impact on decision-making. In this comprehensive overview, we will unravel the layers of this analytical process, equipping you with invaluable knowledge and tools to navigate the complex world of strategy formulation.



Level 1: Corporate Strategy Analysis




Level 1 strategic analysis, or corporate strategy analysis, is the first and most crucial step in the strategic planning process. It involves understanding a company’s overall goals and objectives and identifying the strategies that will help it achieve them. This level of analysis focuses on the big picture and provides a framework for lower-level decision-making.



Corporate strategy analysis aims to assess a company’s current position in the market, evaluate its strengths and weaknesses, identify potential opportunities and threats, and develop strategies to achieve sustainable competitive advantage. This level of analysis considers factors such as industry trends, market conditions, customer needs, competitor behavior, and internal capabilities. Check out more information about CBAP Training.



One key aspect of corporate strategy analysis is understanding an organization’s mission statement – its fundamental purpose for existence. This statement outlines what the company strives to achieve in the long term and serves as a guide for all decision-making processes. By analyzing an organization’s mission statement, business analysts can gain insights into its core values, beliefs, and aspirations.



Another essential element of corporate strategy analysis is conducting a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. This tool helps businesses identify their internal strengths and weaknesses while considering external opportunities and threats in their operating environment. By evaluating these factors, companies can develop effective strategies that capitalize on their strengths while minimizing or mitigating potential weaknesses. Check out more information about BA Bootcamp.



Level 2: Business Unit Strategy Analysis




Level 2 of strategic analysis, also known as business unit strategy analysis, is an essential component of any organization’s overall strategic planning process. This level focuses on analyzing and evaluating the strategies and operations of individual business units within a company.



Business unit strategy analysis involves thoroughly examining the internal and external factors that impact the performance and success of each business unit. This includes assessing their resources, capabilities, strengths, weaknesses, opportunities, threats, market trends, customer needs, and competitive landscape.



The main goal of this level is to develop effective strategies that will help each business unit achieve its specific objectives while aligning with the organization’s overall goals. By understanding the unique characteristics and challenges faced by each business unit, companies can create tailored strategies that optimize their performance and contribute to the entire organization’s success. Check out more information about ECBA Training.



Level 3: Functional Strategy Analysis




Level 3 of strategic analysis is known as functional strategy analysis. This level focuses on a company’s specific functional areas and strategies to achieve the overall business goals. It involves evaluating each department’s contribution toward achieving the company’s objectives, identifying areas for improvement, and developing plans to optimize performance.



The primary purpose of functional strategy analysis is to align different departments’ individual goals and actions with the overall business strategy. Doing so ensures that all functions are working towards a common goal, leading to increased efficiency and effectiveness in achieving the company’s objectives.

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