Importance of Strategy Development Tools in Business

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Key Strategy development tools

ESSAY
Strategic Development Tools
There is numerous strategy tools which require to include when the company is tend to
determine their strategic their strategic position in the market which includes proper
planning and implementation for the same. At the time of determination of strategic
position the most commonly used strategy development tools which has been used by
the company or organization are SWOT Analysis, Five forces, Ansoff Growth vector
Matrix, Generic strategies which are necessary in the development and growth of the
business are explained below:
SWOT Analysis
The SWOT Analysis is that strategy model which is used at the time of business
initiation along with the company’s strategic planning. SWOT stands for the Strengths,
Weaknesses, Opportunities and Threats. SWOT helps in indentifying the goals and
objectives of the business projects.
SWOT Analysis provide help to the organization to identify the areas in which they are
performing well and also those where they are lacking and contains chances of
improvement. These factors has broad point of view in the organization and helps in
enhancing the performance.
The decision which are taken in the organization involves he consideration of SWOT to
find out the probability of achieving the goals and objectives and if there are chances

when it seems like the goals and objectives are difficult to achieve they tend to select
different objective and then repeat the process.
In this Strength and Weaknesses are used to find out the internal factors of the
organization and it includes characteristics of the business which contains benefit over
the others and also it helps in finding out the disadvantages of the project and compare
them with others.
Opportunities and threats help in finding out the external factors which are present in
the organization and lead to generate the maximum returns. The opportunities act as
those things in which business can generate maximum advantage and they can grab it
fully up to the extent. The threats for the business are prevailing competitors and many
more business which are opening in the near future.
Cross Impact Analysis
The cross impact Analysis helps in determination of relationships within the events
which in return would impact the results and it involves the chances in which helps in
reducing the uncertainties which may arise in the future. Even Central Intelligence
Agency (CIA) has shown utmost interest in this analysis as it helps in predicting the
affects of factors and variables which can create impact in the future decisions. The
Cross impact analyses are suitable match for the businesses and communities as they
can use as intelligence analysts. The analysts have the chance to predict the
probability of certain events and determined how these events are interrelated to each
other and have the tendency to impact one or other’ s performance.