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What Is Business Management Analysis?

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  • Written By: Mary McMahon
  • Edited By: Shereen Skola
  • Last Modified Date: 11 November 2016
  • Copyright Protected:
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    Conjecture Corporation
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Business management analysis is evaluation of a business from a management perspective. Consultants provide this as a third party service for businesses and it can also be conducted internally. One advantage of using consulting services is access to someone who can view the business from a fresh perspective. Consultants can also bring experience in the industry to bear on the project, and may approach the analysis using a number of different techniques.

In this process, the first step is to outline stated goals of a business. The analyst also looks at current methodologies in place, including how the company is organized, how it enforces policies, and what kinds of procedures it uses for decision making. This can involve interviewing members of management to learn about how they perceive the business, as well as talking to individual employees at various levels within the company. Approaches such as the "strengths, weaknesses, opportunities, and threats" (SWOT) philosophy may be used to filter the information collected during this phase of business management analysis.

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The analyst looks at the material about the company, and how it compares to stated goals and ideals. Analysts may take a look at long term business strategy as well, to see how it meshes with the current workplace climate, and how well the strategy as stated and implemented will work to support long term plans. All of this information together can be used in a business management analysis report that provides a thorough review of the strengths and weaknesses of a company's current management strategy.

Reports can include discussions of where the company is doing things right as well as wrong. The analyst might note, for example, that the company has a very clear, detailed, and helpful long term business plan that is in line with its goals. Likewise, a company might have a good framework for handling decisions or resolving disputes. On the other hand, a company might have poor management procedures, an unclear management structure, and other issues that hinder it in daily operations or long term planning.

Companies may request a business management analysis when they have concerns about the efficacy of their management or as part of a periodic review. Regular reviews before problems arise can help a business grow and stay strong, as it can identify problems before they become significant. Reactive evaluations like those ordered in the wake of a breakdown in the daily operations of the business can be less effective, as the company will need to clean up a mess before it can implement changes to prevent future incidents of a similar nature.

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