Summary of Strategic Analysis

The external auditing process creates the information and analysis necessary to identify the key issues an organization needs to develop a successful strategy. A PEST analysis reveals critical areas of the external environment that the organization needs to consider. Industry analysis revealed the structure and strengths of industry players that any strategy would need to address. Competitor analysis reveals the relative position of direct competitors within a strategic group. Finally the market analysis started to explore the current trends and growth areas. Importantly, they began to build a picture of the customer.

External analysis is the initial stage in the process of establishing the key issues facing the organization.