ITEE ITEE-1 | Page 71

2-1 Business strategy management 2-1-1 Business strategy techniques A “business strategy” is a plan with a long-term perspective for the business development of the corporation. Its goal is to develop a competitive edge over other companies and enable it to adapt to any changes occurring around it. Corporations formulate their business strategies using the steps summarized below. 1 Manifestation of corporate philosophy Specify the corporation’s raison d'etre and action guidelines, etc. Manifestation of corporate goals Specify the final destination of the corporation. Definition of corporate domain Define the corporation’s position in the market. Determination of business strategy Set a course for the future that will enable the corporation to adapt to changes and survive. Business information analysis techniques In order to determine a business strategy, it is necessary to understand the full capabilities of the corporation, and analyze its current situation and position. Data analysis techniques for determining business strategy are summarized below. Reference Internal environment “Internal environment” refers to various aspects of a corporation including human resources, business strength, product appeal, selling power, technological strength, brand, competitiveness, financial standing, etc. 65 (1)SWOT analysis A “SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis” is an evaluation method that analyzes the strengths, weaknesses, opportunities, and threats of a corporation. Strengths to capitalize on and weaknesses to overcome are further clarified by analyzing the “internal environment” of the corporation.