Strategic Analysis Flashcards
It assesses what an entity can and cannot do, for factors both internal (strengths and weaknesses) as well as external (opportunities and threats).
A. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis
Elements of SWOT Analysis
describe what an organization excels at and separates it from the competition.
Strengths
Elements of SWOT Analysis
things that stop an organization from performing at its optimum level
Weaknesses
Elements of SWOT Analysis
external factors that an organization can use to give it a competitive advantage.
Opportunities
Elements of SWOT Analysis
refer to factors that have the potential to harm an organization.
Threats
It examines the effects of relevant external factors, or the macro environmental factors, on what is being decided on.
Political, Economic, Social, and Technological (PEST) Analysis
Elements of PEST Analysis
includes the government regulations and legal factors that affect the decision-making
Political
Elements of PEST Analysis
includes factors like inflation, interest rates, economic growth, and business cycle followed in the country
Economics
Elements of PEST Analysis
includes demographics, cultural limitations, lifestyle attitude, and education
Social
Elements of PEST Analysis
includes technological advancements, role of the Internet, and popular gadgets
Technological
It calculates the strengths (benefits, advantages) and weaknesses (costs, disadvantages) of each of the alternative solutions given to a problem in monetary values. The calculation for this analysis is specific because it uses monetary values to represent the costs and benefits of a program or an action but there are areas which would not be appropriately measured in terms of monetary value like health and satisfaction.
Cost-benefit Analysis (CBA)
This technique compares the relative cost to the outcomes or relative effects of the course of action taken by a group or an organization. Quality-adjusted life years (QALY) or the improvement in the quality of life given the number of years one is expected to live, can also be used to measure effectiveness. For example, Healthcare Programs A and B have the same cost or monetary value but option A results in greater QALY, it is a better choice than program B.
Cost-effectiveness Analysis (CEA)
