Tuesday, January 19, 2010

Business Analysis

Business analysis can make or break an organization, so managers have to ensure that their business analysis models point them in the right direction.

Managers have to know how to do business analysis effectively and know what they are looking for, and also draw the right the conclusions from what they find. Not only that, but they must take the correct action based on that business analysis and structure accordingly.

Everyone learns from their mistakes and the ability to use business analysis to spot errors and correct them is invaluable. This means making the best of what seems to be a bad job.

For example, there was one company that had invested in a new product that ended up making heavy losses because a typical business analysis error had been made: historical data had been extrapolated into the future. They had misread their sales and demand.

The company then embarked on some new business analysis, scaled down production and attacked the market from a different segment. The product then went on to dominate its market sector and became a highly profitable market leader.