In a competitive environment that is driven by fast-changing technology and scientific inventions, it is essential for the companies to keep abreast of all the activities in their environment. Business analysis models are great techniques to help all types of organizations. The frequently used business analysis is the SWOT analysis, which stands for Strength, Weaknesses, Opportunities and Threats. There are many other techniques like this available.
However, SWOT has always been at the forefront because it looks at the strengths and weaknesses of a business, and matches that with the external surrounding opportunities and threats. While SWOT analysis is a powerful technique, there are others that can provide a broader understanding of a company’s performance.
For a more comprehensive review, your organization can consider the following alternatives to SWOT analysis:
1. PESTLE Analysis
The PESTLE Analysis is a strategic planning framework that stands for Political, Economic, Social, Technological, Legal and Environment. It is an excellent tool to use if your organization wants to reduce business threats as it creates business alertness.
Using this type of business analysis, your organization has a better understanding of the environment that directly or indirectly affects the business. This analysis examines all changes including external forces that impact every business activity. Furthermore, by evaluating all these influential factors, your company can exploit the many opportunities available to promote your organization’s products and services.
2. Scenario Planning
Your organization probably never heard about this one. However, this technique is useful for analyzing possible future events. Leaders present a detailed picture of the range of outcomes as the industry evolves. It offers a bigger picture of trends and uncertainties. These results are then used for strategy formulation and implementation.
3. Critical Success Factor Analysis
Organization success will depend on the essential factors of success. With this analysis, your organization can determine the vital factors to be successful. Business leaders can concentrate efforts into strategy development using these key factors. Critical success factors are not always linked to the organization at the top level. It can be associated with a specific department, a project or even a team. However, the critical factors are always directly linked to the company’s overall strategy.
4. SCORE Analysis
SCORE analysis stands for strengths, challenges, options, responses and effectiveness. Similar to SWOT, the SCORE looks at all the environmental issues that impact the company and its profitability. The benefit of this technique is that your organization determines the challenges it faces and then moves on to finding responses to tackle these issues. It is a proactive approach that encourages your organization to plan around future obstacles rather than tackle issues after they occur.
5. SOAR Analysis
This acronym is short but captures information similar to the SCORE analysis. The difference though is that SOAR (Strengths, Opportunities, Aspirations and Results), concentrates on the positive aspects of the business like the advantages, business prospects and objectives. It helps to recognize the potential of the organization and brings about a shared vision within the organization. It is suitable for all industries at all levels of the organization, including new or existing businesses.
6. NOISE Analysis
This analysis is not what you are thinking. It is not about sound or signal analysis. Noise analysis in the business world stands for Needs, Opportunities, Improvements, Strengths and Exceptions. It is based on the traditional SWOT analysis with a few tweaks on the approach. The goal is to determine the business needs and understand the hurdles involved. It is best applied when an organization needs to improve its performance to achieve strategic objectives.
7. SCOPE Situational Analysis
SCOPE offers a 360-degree view involving the past, current and future perspectives. The acronym stands for Situation, Core Competencies, Obstacles, Prospects and Expectations. The analysis focuses on the environmental factors, unique abilities, threats, opportunities and future predictions. It retains some similarities to SWOT but presents more information that supports the strategic planning process.
8. Porter’s Five Forces
A straightforward but powerful tool, this analysis can help any company outperform its competitors. It presents information on the competitive business environment and helps your organization identify a profitable strategy. The five forces that are analyzed include competition, suppliers, buyers, substitution threats and new entry threats. The consolidated information gives your organization an in-depth understanding of your rivals and what factors within the business environment can impact your organization’s profitability.
9. MOST Analysis
Your organization probably has not heard about this one. The acronym stands for Mission, Objectives, Strategy and Tactics. MOST analysis is used to analyze what an organization aims to achieve and sets the direction for the business. It is a straightforward framework that helps companies make strategic decisions and focus on the result. Generally, mission statements slip into the background and get forgotten over time, but with MOST, companies stay on track. The company aligns its mission with strategic goals through this analysis ensuring that both are achieved over time.