1. Strategic Analysis
Rushda Jalal
Roll# 508194531

2. Strategic Analysis



The process of conducting research on
the business environment within which
an organization operates and on the
organization itself, in order to formulate
strategy.
Why use it?
To take advantage of the path of least
resistance to achieve
your goal.
When to use it?
When you are planning to make a
change in your
organization, and you
need to determine the best path to take.

3. TOOLS of Strategic Analysis

A number of tools are used in the
process of strategic analysis, including
PEST, SWOT analysis, and Michael
Porter's five forces model.

4. PEST Analysis

PEST analysis stands for "Political,
Economic, Social, and Technological
analysis" and describes a framework
of macro-environmental factors used
in
the
environmental
scanning
component of strategic management.

5. PEST Analysis

Political factors, are how and to what
degree a government intervenes in the
economy.
Specifically,
political
factors include areas such as tax
policy, labour law, environmental
law, trade restrictions, tariffs, and
political stability.

Economic factors include economic
growth, interest rates, exchange rates
and the inflation rate. These factors
have major impacts on how
businesses
operate
and
make
decisions. For example Exchange
rates affect the costs of exporting
goods and the supply and price of
imported goods in an economy.
Social factors include the cultural
aspects
and
include
health
consciousness, population growth
rate, age distribution, career attitudes
and emphasis on safety. Trends in
social factors affect the demand for a
company's products and how that
company operates. For example, an
ageing population may involve a
smaller and less-willing workforce
(thus increasing the cost of labor).
 Technological
factors
include
ecological and environmental aspects,
such as R&D activity, automation,
technology incentives and the rate of
technological change. They can
determine barriers to entry, minimum
efficient production level and
influence outsourcing decisions.


6. SWOT Analysis

SWOT Analysis is a strategic planning
method used to evaluate the
Strengths,
Weaknesses,
Opportunities, and Threats involved in
a project or in a business venture. It
involves specifying the objective of the
business venture
or project and identifying the
internal and external factors that
are favorable and unfavorable to
achieving that objective.

7. The threat of substitute
products
 The threat of the entry of
new competitors
 The intensity of
competitive rivalry
 The bargaining power of
customers
 The bargaining power of
suppliers

Porter five forces analysis

8. Value chain analysis
Value chain analysis is based on the
principle that organizations exist to
create value for their customers. In the
analysis, the organization's activities are
divided into separate sets of activities
that add value.
 The three steps for conducting a value
chain analysis are:
1. Separate the organization's operations
into primary and support activities
2. Allocate cost to each activity.
3. Identify the activities that are important
to customer’s satisfaction and market
success.


9. Strategic Planning
1.
2.
3.
4.
5.
Identify mission and purpose
Identify goals
Identify objectives—specific,
measurable
Implement objectives to meet goals
Evaluate process.

10. Scenario Planning
Addresses the weakness of strategic
planning to see multiple futures
 Scenario planning identifies multiple
possibilities
 Think the unthinkable
 Discuss each scenario and plan
accordingly


11. Strategy formulation
Strategic formulation is a combination of three main
processes which are as follows:
1. Performing a situation analysis, self-evaluation and
competitor analysis: both internal and external; both
micro-environmental and macro-environmental.
2. Concurrent with this assessment, objectives are set.
These objectives should be parallel to a timeline; some
are in the short-term and others on the long-term. This
involves
crafting
vision
statements,
mission
statements, overall corporate objectives, strategic
business unit objectives, and tactical objectives.
3. These objectives should, suggest a strategic plan. The
plan provides the details of how to achieve these
objectives.


12. Strategy implementation





Allocation and management of sufficient resources
(financial, personnel, operational support, time,
technology support)
Establishing a chain of command or some alternative
structure (such as cross functional teams)
Assigning responsibility of specific tasks or processes to
specific individuals or groups
It also involves managing the process. This includes
monitoring results, comparing to benchmarks and best
practices, evaluating the effectiveness and efficiency of
the process, controlling for variances, and making
adjustments to the process as necessary.
When implementing specific programs, this involves
acquiring the requisite resources, developing the
process, training, process testing, documentation, and
integration with (and/or conversion from) legacy
processes.

13. Strategy evaluation
Measuring the effectiveness of the
organizational strategy, it's extremely
important to conduct a SWOT analysis to
figure out the strengths, weaknesses,
opportunities and threats (both internal
and external) of the entity in question.
 In corporate strategy, strategic options
are evaluated against three key success
criteria:
1. Suitability (would it work?)
2. Feasibility (can it be made to work?)
3. Acceptability (will they work it?)


14. Strengths
1.
2.
3.
4.
5.
6.
7.
8.
Network Coverage
International Roaming
GPRS Roaming
Licensed to Azad
Kashmir & Northern
Areas
Quality Coverage
Value added services
Lower Prices
Second largest market
share
Weaknesses
1.
2.
3.
4.
5.
6.
7.
8.
Behind on excessive
demand
Poor organizational
structure
Stagnant profitability
Lack of franchises
Lack of innovative
services
Network coverage
Competition
Internal problems
Case Study
SWOT Analysis of U-fone

15. Opportunities
1.
2.
3.
4.
Expanding Globally
Publicity & Marketing
Developing new value
added services
Developing new
franchise in remote
areas.
Threats
1.
2.
3.
4.
5.
Government
interference
Pension payouts
Increased heath care
cost
Tough competition
Economic problem
SWOT Analysis of U-fone

16. Political Analysis
1.
2.
3.
4.
5.
Pakistan
Telecommunication
Corporation Act, 1991.
Environmental
Concerns
Internet Regulation
Concerns over
Radiation from Mobile
Telephones
Converged Regulation
Economical Analysis
1.
2.
Fluctuations in the
Economy
Overall Economy of
Pakistan
PEST Analysis of U-fone

17. Social Analysis
1.
2.
3.
4.
5.
Shift towards the
Information Society
Mobile Society
Increasing Need for
Communications
Internet at Home
Changing Population
Demographics
Technological Analysis
1.
2.
3.
4.
Wireless and Mobile
Communications
Union
Residential VoIP(voice
over internet protocol)
Real-Time and OnDemand
Communications
PEST Analysis of U-fone

18. Conclusion
In my opinion strategic analysis
provides us a clear view of the
company's business operations, their
objectives, goals and how they
achieve their targets. The SWOT,
PEST, Value Chain analysis and
Porter’s five forces model helps in
measuring the success or failure of
the strategies implemented in the
company.