Strategic Analysis Tools for CXOs

Strategic Analysis Tools for CXOs

Strategic analysis is the core step of the strategic learning cycle. Each strategist should have a set of analytical model tools for processing. However, there are many techniques and tools available for policy analysis. If you search Google online, you will find many options available.

The challenge is to get the right technology and tools for specific business issues. This article provides you with a brief introduction to start the strategic analysis learning process.

What is strategic analysis?

First, what is strategic analysis? Strategic analytics can help you explore growth options, address industry challenges, and make better business decisions. Strategic analysis is a way to promote, research, analyse, and map an organization’s capabilities to achieve a future vision based on current realities, and to often consider the organization’s processes, technologies, business development, and people capabilities.

You need to look outside our organization to identify changes outside and look to the future and consider future opportunities. Strategic analysis is more than just understanding change. It is about generating choices and choices, making decisions and integrating them into the organization’s planning process, translating them into concrete actions.

Selected strategic analysis tools

Just as having the right tools doesn’t necessarily make you a good mechanic, having the right strategy analysis tools won’t make you a great strategist – but they will help you get the job done more effectively. Here’s a list of the basic tools for strategic analysis:

SWOT analysis

SWOT analytics is a technology developed at Stanford in the 1970s and is often used for strategic planning. SWOT is an abbreviation for strengths, weaknesses, opportunities, and threats, and is a structured planning approach that evaluates four elements of an organization, project, or business risk. SWOT analytics is a simple and powerful framework that leverages your organization’s strengths, improves weaknesses, minimizes threats, and maximizes opportunities.

Strategic Analysis Tools for CXOs

SWOT analysis is the process by which management teams identify internal and external factors that affect a company’s future performance. It helps us identify what’s happening internally and externally so that you can plan and manage your business in the most efficient and efficient way.

PEST analysis

PEST analysis is a useful tool for understanding market growth or decline, as well as for understanding the position, potential and direction of an enterprise. PEST is an acronym for political, economic, social, and technical factors used to evaluate the market for business or organizational units. Sometimes it expands to include legal and environmental factors and is called PESTLE analysis.

Strategic Analysis Tools for CXOs

PEST analytics guides us in setting priorities, allocating resources, planning time and development roadmaps, and developing effective strategies for control mechanisms. With this analysis, you can identify potential opportunities and threats related to your strategy and identify ways to leverage them and avoid them.

Value chain analysis

Value chain analytics is a way to visualize a company’s business activities to understand how a company creates a competitive advantage for itself. Value chain analysis helps companies understand how it adds value to something and how it then sells its products or services for more than the cost of adding value, resulting in profit margins. In other words, if they operate effectively, they should get more value than the cost of running them, i.e. customers should return to the organization and trade freely and voluntarily.

Value Chain Analysis began in the 1980s with Michael Porterand is a conceptual concept of value chain form valueadded. He suggested that an organization be divided into “primary activities” and “support activities”. The following diagram divides the activities recommended by Porter’s value chain analysis model into primary and support activities.

Strategic Analysis Tools for CXOs

Five-force analysis

Michael Porter developed the five-force model in 1980. Michael Porter’s Five Forces is a powerful competitive analysis tool to determine the main competitive influence in the market. This is a widely used business model that refers to five important factors driving a company’s competitive position in an industry. By considering how each force affects you, and by determining the forces and directions of each force, you can quickly assess the power of this position and your ability to make a sustained profit in the industry. Therefore, five force analysis can help you stay competitive:

  • Knowing the strength of these five forces, you can develop strategies to help their businesses become more competitive and profitable.
  • Look at the opportunities, and you can strengthen your organization’s position to reduce competitive pressures and create competitive advantage over other participants.

Strategic Analysis Tools for CXOs

Four-corner analysis

The four-corner analysis model developed by Michael Porter is a good way for corporate strategists to assess competitors’ intentions and goals and the advantages they use to achieve them. It is a useful technique to evaluate competitors and gain insights into possible changes in competitor strategy and to determine how competitors react to environmental and industry changes. By examining competitors’ current strategies, future goals, market assumptions, and core competencies, Four Corners Model helps analysts address four core issues:

  • Motivation – What drives competitors? Find drivers at different levels and levels so you can gain insight into your future goals.
  • Current Strategy – What are competitors doing and what can competitors do?
  • Competency – What are the strengths and weaknesses of competitors?
  • Management assumptions – What assumptions has been made by a competitor’s management team?

Strategic Analysis Tools for CXOs

Business Motivation Model (BMM)

If an enterprise provides some way for its business activities, it should be able to explain why and what results it wants to achieve. This Business Motivation Model (BMM) is an OMG-supported modeling symbol for business decisions about how to respond to a changing world. Businesses can use BMM by purchasing bMM modeling tools and then creating their own – populating the model with enterprise-specific business information. There are two broad purposes:

  • Capture decisions about change responses and develop their fundamentals so that they can be shared, improve clarity and improve decision-making by learning from experience.
  • Refer to the results of decisions that affect their operational business, such as changes to business processes and organizational responsibilities, from influencers to operational changes to provide traceability.

BMM provides support in four areas, as shown in the following image:

Strategic Analysis Tools for CXOs


The scope of an enterprise BMM may be the entire enterprise or one of its organizational units. Outside the Enterprise boundaries, higher-level organizational units may appear to lower-level organizations as affecting organizations, and their instructions may have regulatory status. Enterprise BMM does not have to represent the entire enterprise. Stakeholders can create a local view of the BMM, citing only those business sections related to his or her responsibilities and decision-making authority.


Finally, it defines what an enterprise wants to be (to-be). There are three levels:

Strategic Analysis Tools for CXOs


This means defining the decisions an enterprise needs to make to achieve its goals. There are three types:

Strategic Analysis Tools for CXOs


The influencer is what the business decides that might affect it. There are two broad categories:

Strategic Analysis Tools for CXOs


When an influencer makes a significant change, the business evaluates its impact and identifies risks and potential returns. There may be multiple assessments, possibly from different stakeholders.

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Strategic planning in cooperation with BMM

The OMG Business Motivation Model (BMM) provides an excellent framework for developing, communicating and managing strategic plans. The framework reflects widely accepted strategic planning techniques to help you identify strategic drivers and strategic objectives in strategic planning.

Guidance process with BMM strategic planning

For beginners, the learning curve for BMM execution can be a bit steep. Interconnection between elements is difficult to maintain and visualize, which is why the BMM guidance process occurs.

BMM Guide-Through provides a common process to help you develop a business motivation model. Through a step-by-step process, the core components of strategic planning will be identified. The result information is automatically archived as a document.

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Benefits of the BMM guidance process:

  1. Structure into activities and steps, embedded with descriptions and samples
  2. A progress indicator that shows where you are and the status of the activities and steps that completed them
  3. Query and visualize complex element structures and information in the Arcimate diagram
  4. Perform work and automatically generate deliverables and reports
  5. Automatically transcribe data from one step to another to perform further operations or perform different forms of analysis to ensure consistency between elements.


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