Wednesday, November 18, 2009

Need to formulate a Strategy for your business?

Strategic analysis involves understanding the environment outside your organisation, whereas strategic planning is using that understanding to ensure long-term success(http://www.3s4.org.uk/drivers). When analysing your environment it's important to investigate and research all possible drivers(something outside of your organisation that has an impact on you). These include economic, political, technological, environmental, sectoral and social trends. It is a good idea to look at leading indicators to determine how these drivers will change in the future so that strategic planning can be done accordingly. Leading indicators in South Africa are divided into four main sub-groups, namely financial, global, real sector and business opinion surveys.

For example when Job advertisement space in the Sunday Times (percentage change a year ago) is increasing it is a good indicator that the economy is improving and therefore you can plan accordingly.

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