Business analysis
I'm attempting to explain why external analysis is necessary and what kind of business analysis tools may be utilized to understand business demands in this portfolio entry. To use one of the analysis tools to analyze the external environment of AH classics. This is important because, in order to create a perfect strategy or plan of action, you must first understand the business environment with respect to the priorities and the issue at hand, which includes factors such as competitive structure, position, dynamics, and history. As a result, an adequate plan of action will be prepared to drive growth, profitability, and volatility.
SWOT analysis is a tool that I used to analyze AH Classics as a business.
SWOT analysis is used as an external analysis since it not only helps to analyze the immediate external environment where internal and external environments interact, but it also helps to analyze the internal environment as well as macro environment characteristics such as threats and weaknesses. As a result, the SWOT analysis for AH classics will include both PESTLE analysis for identifying threats and Porter's Five Force analysis for understanding the competitive environment, which will aid in determining market opportunities for AH classics.
If I summarise the SWOT diagram above, the positive components are strengths and opportunities, while the negative factors are weaknesses and threats. When it comes to the company's strengths and opportunities, AH Classics has a lot of expertise in customizing classic cars, which leads to customer satisfaction by redesigning the old car into a new version that meets the customer's expectations. In addition, AH Classics does have the potential to develop into a new business vertical and expand more into the international market. They can also build their network and control in the market by establishing new connections with multiple companies. Ineffective workflow, persistent decline in profit, lack of market presence, and bad infrastructure are among their shortcomings and challenges. Aside from the negative aspect, there is also a number of threats that have been identified for AH Classics as a company.
I was able to comprehend business analysis ideas for how and where to implement this analysis tool by using the SWOT technique for external analysis of the AH Classics business environment. The SWOT analysis tool aids in the study of a company's internal and external environment by identifying the strengths and weaknesses of the organization, as well as the opportunities and dangers to which it is exposed. As a result, this technique aids in the identification of factors that influence the organization's operation, providing helpful information for the strategic planning process. When it comes to the limitations of the analytical technique, it delivers a lot of helpful information but does not make it easy to make the best selection.
An alternative tool that can be used for the external analysis of AH classics is SOAR analysis, this tool is a framework for analyzing a company’s strengths, opportunities, aspirations, and results. It answers the question such as where are you now? Where do you want to be? How to get there? Did you manage to make it?
Hence, it focuses on the positive factors than the negative factors. Most importantly, the SOAR technique is action-oriented and therefore it will result in the planning and implementation of the strategies for the AH classics business.
