External context: Refers to factors external to the organization that may
influence its performance and strategic decisions. This includes the
economic, political, social and technological environment in which the
organization operates. Understanding and adapting to these factors is
essential to making effective strategic decisions.
Internal context: Refers to the internal resources,
capabilities and characteristics of the organization that
can influence its performance and strategic decisions.
This includes organizational culture, tangible and
intangible assets, organizational structure, and staff
skills. The analysis of the internal context helps to
identify the internal strengths and weaknesses of the
organization.
Market analysis: Involves evaluating the market in which the
organization operates, including competitors, customers,
suppliers, and market trends. This analysis provides key
information about the opportunities and threats of the
external environment, which helps to make informed and
competitive strategic decisions.
Strategic planning: It involves the formulation of a
long-term strategy that defines the objectives and the path
to follow to achieve them. Strategic planning guides
strategic decision making by establishing a clear direction
and structure for the implementation of the strategy.
Resource management: Involves the efficient allocation of resources such as capital, personnel, technology, and other assets necessary to
implement the strategy. Proper resource management is essential to support strategic decision-making and ensure implementation feasibility
and success.
Innovation and adaptability: Includes the organization's ability to innovate,
adapt and respond to changes in the business environment. Strategic decision
making must take into account the need to keep up with the latest trends and
adopt innovative approaches to maintain competitive advantage.
Stakeholder Engagement: Involves involving all relevant stakeholders, such as
employees, shareholders, customers, and suppliers, in the strategic decision-making
process. Considering the perspectives and needs of stakeholders helps to make more
balanced decisions and build strong relationships with them.
Measurement and control: Involves the establishment of key performance indicators and the
implementation of control systems to monitor progress and evaluate the success of strategic decisions.
Measurement and control provide important feedback and allow adjustments to be made if necessary.