ABSTRACT
This chapter discusses the concept of strategic analysis and underlying salient theory and analyses the competitive context in which an organisation operates. It explains what is meant by an external and internal analysis and describes some key tools of external and internal analysis. The chapter evaluates the future prospects of an organisation and describes the necessity to develop successful strategies in world where adaptability and creativity drive business success. It considers a range of strategy tools and techniques and uses the context of external and internal analysis. The chapter also considers some more theory, which is rather dated, but forms an excellent platform for the student and practitioner to acquire some understanding of the key components to take into account. It suggests that executives should ask themselves "why?" as well as "how?" By asking "why?" organisations will assess both internal and external environments and by using a broad array of stakeholders will produce more challenging and innovative strategies.
