There are many business analysis techniques that are quite useful in carrying out an effective and productive business analysis. Some of the important techniques for business analysis often used by business analysts are:

PESTLE

The concept of PESTLE is used for the analysis of external environment and identify every aspect of external factors that can affect the project or the organisation.ADS_TO_REPLACE_1

PESTLE stands for:

• Political (P): To analyse the current political scenario that can influence the organisation.
• Economic (E): The economic condition of the country and the area and even the world economy.
• Sociological (S): The influence of society on the organisation.
• Technological (T): The effect of existing and upcoming technologies on the organisation and its strategic goals.
• Legal (L): The influence of national legislation as well as world legislations on the organisation.
• Environmental (E): Environmental issues including both external and internal environments.

HEPTALYSIS

This involves the in-depth analysis of early stage of business in seven categories:ADS_TO_REPLACE_2

• Market opportunity: Defines the potential customers for the business and benefits of customers from the business. Other things that are kept on mind are the segmentation of target market, the time of introducing the product in the target market and the competitive edge of the product or services over the competitors.
• Product/Solution: Defines the types of product or services that the company is going to introduce. It is decoded that whether the company is going to come out with a product, service or a combination of both. In addition to that, it also kept in mind whether there are any follow-up products or not.
• Execution plan: The question ?how to do it?? is answered in this phase to execute the project. A detailed plan of Marketing and Promotion, Sales and Distribution, Production and Quality, Compensation and Growth is made in this phase.
• Financial engine: The monetary aspect for starting the business is planned in this phase including expenses like salaries, lease, maintenance fees and marketing expenses. It is then decided depending upon the nature and horizon of the business whether the expenses are to be made via internal resources or through external sources such as loan.
• Human capital: To make a group of efficient employees for the growth and sustainability of the business in long term. Proper allocation of work, policies for employee satisfaction and regular motivation is key factors to be kept in mind.
• Potential return: Analysing the current market situation, the forecast for the potential revenue generation is done. The points to be kept in mind during this phase are expected share of market, pricing strategy, potential customers and the time frame needed to achieve profit from the business.
• Margin of safety: Since, a business is dynamic in nature and highly influenced by both the internal as well as external factors, there is always a chance of risk involved in the business. This risk can be reduced through proper risk management activities and in depth analysis of market.

MOST

This analysis technique is usually performed for analyzing the internal factors of the organisation on the basis of four attributes of MOST, which are:

• Mission (M): What is the intention behind the business?
• Objectives (O): The major goals set for achieving the mission of the business.
• Strategies (S): Strategy needed to take the business forward successfully.
• Tactics (T): How to implement the strategy formulated to gain maximum results.

SWOT

SWOT Analysis is done to analyse the potential of business and the potential area of improvement and exploration of new market using four attributes of SWOT.ADS_TO_REPLACE_3

• Strengths (S): The competitive edge of the company over the competitors and in which areas the business is doing well
• Weaknesses (W): What are the areas in which the company is lacking behind and needs to improve.
• Opportunities (O): The areas where the competitors are not performing well or exploring new target market are the opportunities for the company.
• Threats (T): Competitors are the major threat for a company. Sometimes legal aspect also acts as a threat of a company.

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