Strategic Analysis (Essay Sample)

Strategic Analysis Student’s Name Institutional affiliation Strategic Analysis Organizations usually utilize diverse strategies to enhance efficiency. One of the fundamental tools used by an organization is strategic analysis, which refers to the process that entails the researching of an organization’s business environment analysis within which the organization operates. Importantly, strategic analysis is critical to formulating strategic planning for decision-making and the optimum operation of an organization. Keenly, strategic analysis enables the identification and evaluation of data relevant to the organization. The analysis also defines the external and internal environments to be analyzed. The evaluation of the strategic analysis is fundamental in comprehending its significance to different organizations. Pointedly, the use of strategic analysis would be essential for the Kroger Company. It is fundamental for Kroger Company to utilize strategic analysis in order to achieve a competitive advantage against its competitors. The Kroger Company has realized significant growth and increased efficiency. The strategic analysis reveals that in the second quarter, the company had an operating loss of 479 million dollars, which was an Eps of 0.25 dollars. Moreover, the adjusted FIFO operating profits were 989 million dollars with an adjusted EPS of 0.96 dollars. Additionally, further analysis reveals that some of the competitors of the company include Dollar General, Target, Amazon, Sprouts Farmers Market, and Costo (Trejo-Pech & White, 2023). Moreover, analysis reveals that Walmart has 25.2%, Costco has 7.1%, Kroger has 5.6%, and Dollar General has 1.8% in regards to market dominance. The use of strategic analysis is critical to addressing strategy evaluation. It enables the analysis of a strategy whereby there is the assessment of how effective it has been instigated and executed. The Kroger Company must conduct strategy evolution within the strategic analysis in every quarter in order to effectively determine the effectiveness of their various operational strategies that would assist in gaining a more significant market share. Additionally, strategic analysis is vital in strategic planning. It entails the development of a shared vision of Kroger Company’s future and determining the various significant steps to be taken to achieve the set vision. Strategic planning would be instrumental in ensuring that there is planning not only for long-term objectives but also for daily decisions critical for the progressive growth of the company. Furthermore, Kroger Company would benefit while utilizing strategic analysis in strategic implementation (Grant, 2021). The strategic implementation is vital as it is associated with action rather than brainstorming of concepts. Fundamentally, it enables a team to comprehend that the developed strategies are viable. Strategy implementation would serve Kroger Company as a significant tool for its team development as each member would partake in the process. Kroger Company must conduct internal and external analyses. Basically, internal analysis is the process of Kroger Company investigating its internal elements to evaluate its assets, competencies, characteristics, capabilities, resources, and competitive advantages. Moreover, the internal analysis would assist the company in management during fundamental strategy formulation, decision-making, and execution processes by identifying the organization’s weaknesses and strengths (Doole, Lowe & Kenyon, 2019). Alternatively, external analysis entails conducting trend research, market analysis, regulatory changes, competitive forces, customer behavior, and technological advancements. Importantly, by comprehending these external elements, Kroger Company can anticipate probable threats and discover opportunities that can significantly impact their strategic decision-making. Notably, one of the types of internal analysis includes the SWOT analysis. Different businesses widely use it, and it would be essential for Kroger Company. The analysis tool involves investigating the Strengths, Weaknesses, Opportunities, and Threats...