Developing a business plan is the first step to a successful business. This guide will provide an outline in forming your effort to gather and evaluate information about your business.
Here are three simple business analysis tools to help you identify what distinguishes your brand from the rest:
PEST is a way to analyze the macro level changes within your industry to identify growth opportunities.
Specifically, the acronym stands for:
1.Political factors-Political stability can build up confidence among business community while political instability can bring uncertainty in the organization.
2.Economic factors-It has an immediate and direct impact on the business. It includes interest rate, inflation rate, change in the income of consumer.
3.Social factors-It includes various social forms custom belief, literacy rate, values, trends, etc.
4.Technological factors-It includes new methods of production.
These factors can bring boom in the organisation or be a threat to the organization.
SWOT is typically used at a more micro level to analyze a specific business, product or service. The acronym stands for:
A. Strengths– The advantageous skills, resources, capital, network that distinguishes your firm from all others. Your strengths are the reasons why customers want to buy your products and chose you.
B.Weaknesses– Weaknesses are where your strengths fall short in comparison to your competitors’. These may be internal disadvantages within your company or external weaknesses that fall prey to the market, economy or technology.
C.Opportunities– This is where you leverage your strengths to exploit openings such as lower interest rates, competitor prices, seasonal changes or consumer trends and strategies to capitalise on them.
D.Threats- Threats are those things which can cause danger or damage to business. For e.g. The people becoming health conscious is a threat for a sweets company.
The secret to maximizing the value of a SWOT analysis: Put your strengths against your opportunities and use the result to maximize the advantage. Place your weaknesses against your threats and use the by-product as defense points.
3. 7S model
Developed by McKinsey & Company, the seven S’s of strategy, structure, systems, style, shared values, staff and skills, each S is consistent and reinforces the other S. Recognize the full range of elements that need to be changed and focus on the ones that will have the greatest effects. All seven variables are interconnected to make progress in one, adjustments need to be made in others.
Reference from: http://www.entrepreneur.com/article/246865