Business Planning: Performing Key Analyses

This is the second course of the Business Planning Series.

FAQs

A business plan will typically include an executive summary, information on market opportunities, the implementation details of the plan, and any necessary contingencies due to unexpected changes in market conditions.

People develop business plans for many reasons – it could be to seek funding for a project, evaluate future growth potential, or perhaps establish a new business partnership.

A robust situational analysis will include an internal analysis to identify the strengths and weaknesses of your company. It'll also include an external analysis to identify the external opportunities and threats to your company.

The Science of Better Learning

There are four steps you can take when conducting an internal analysis – although the steps don't need to be carried out in any particular order.

Another step in an internal analysis is assessing your company's resources. You need to identify the resources most important to the business, such as research and development employees, or top-of-the- line equipment.

Another key step is to evaluate the organizational and management strategies. During this phase of your analysis, you need to review the organizational structure of your company and its subunits.

Evaluating your organization's financial position is a fundamental step in undertaking any new initiative.

Use the table to help identify the strengths and weakness in your company.

Use the table to identify the strengths and weakness in your company.

An external analysis of a business environment includes careful consideration of political, economic, societal, and technological factors – otherwise known as a PEST analysis.

Organizations don't operate in isolation. Their success or failure can be affected by external factors such as economic downturns.

As part of an external analysis, you may use scenario planning. Scenario planning can help you visualize the future environment for your business.

Use this job aid to consider factors in the external environment.

After scenario planning for the broader political, economic, societal, and technological considerations, you can consider the market relevant to your business.

When conducting business planning, the third area to consider is the competition.

When writing a business plan, you also examine your industry. Industry information is readily available through sources such as government statistics or industry associations.

Use this job aid to consider factors in a market analysis that may impact your business plan.

A SWOT analysis uses information from your internal and external analyses to define strategies to maximize competitive advantage.

An important step in developing a successful business plan is to identify opportunities and threats.

You begin your SWOT analysis by listing important opportunities and threats in the context of your company's strengths and weaknesses.

A SWOT analysis is a glimpse at your company's competitive position and can be used to generate possible strategies for your business plan.

Use this learning aid to review Blazerfire's SWOT.

This is the second course of the Business Planning Series.

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