Strategic Analysis & Planning - Essay Example

It is best practiced from top to bottom to facilitate proper information and by understanding the direction towards which the organization wants to move, as is the case of Microsoft. Discipline in the execution of strategic analysis is highly regarded since through it the organization will achieve its goals. Though no known formula has been developed to help in strategic analysis and planning, certain principles ought to be followed concisely to succeed. They are; analysis of current situations, core competencies analysis, and key success factors, business unit strategy, among other principles.

By analysing such factors, business objectives are bound to be achieved. Strategic Business Units, commonly referred to as SBUs, are distinct organizations that are part of the main organization as is this case for Minecraft, that pursue their own objectives and mission and are fully functional. They report their activities to the parent company’s headquarters. They act independently with a specific market target to increase profitability and appeal to consumers, which are always tied at the hip.

They improve the performance of the parent organization and augment the customer base. In this case, Microsoft’s acquisition of Minecraft is meant to consolidate the gaming community ascribed to Minecraft and secondly expand its profitability. Some analysts argue that with the large game community of Microsoft’s Xbox and its diversity as a different sort of player, then millions of gamers will be attached to Microsoft’s products and what that means is profitability. With the SBU in mind, the evaluation of these levels of strategic analysis and planning is important.

Different levels of analysis exist which include: These steps are to be discussed into details showing how each step could help Microsoft in its new acquisition, how to consolidate that market and what should be done and how it ought to be done so that the SBU in Minecraft is