How is “strategic analysis” defined in a business context?

In a business context, strategic analysis is defined as the evaluation of an organization’s position to inform decision-making. This encompasses understanding the internal and external environments in which the organization operates, including market trends, competitive landscapes, strengths, weaknesses, opportunities, and threats. By conducting a thorough strategic analysis, organizations can identify key factors that influence their strategic direction and operational planning.

This process is essential for informed decision-making, as it helps leaders and stakeholders understand where the organization stands relative to its goals and the competitive environment, allowing them to allocate resources effectively, optimize strategies, and enhance overall performance. Through strategic analysis, businesses can make data-driven decisions that align with their long-term vision and objectives.