Not Just SWOT! Here Are Different Types of Business Analysis

You may have heard the term "business analysis" or "SWOT analysis." SWOT is just one part of business analysis, which encompasses many different types. There’s no right or wrong type of analysis; it all depends on the nature of your business. So, before you dive into your business journey, let’s explore what business analysis is and the various types of analysis in this article!

What is Business Analysis?

Business analysis is an initial process that involves in-depth observation of various elements, from breaking down and distinguishing to interpreting their meanings. According to the International Institute of Business Analysts (IIBA), business analysis is an approach to managing a profit or non-profit company.

It’s crucial to analyze business opportunities to effectively anticipate risks. Simply put, business analysis consists of a set of techniques and tasks that connect stakeholders, helping them understand an organization's structure, operations, and policies. This analysis is also essential for providing recommendations that guide the company toward its goals.

Types of Business Analysis

Source: Freepik

Based on information from revou.co, business analysis can be divided into five types, including the frequently used SWOT analysis, especially in the culinary business.

1. SWOT

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This analysis is typically conducted as an initial step in your business journey.
Example of SWOT analysis in the culinary business:

- Strengths: Offering a wide variety of flavors to cater to consumer preferences; easy access to raw materials.

- Weaknesses: Perishable items that require extra care to maintain their quality.

- Opportunities: High demand among the public and becoming a daily necessity.

- Threats: A large number of competitors in the culinary industry.

Read Also: Confused About How to Create a Restaurant SOP? Find Out Here!

2. BPM

BPM, or Business Process Modeling, is often used to help understand gaps in current business processes. There are four tasks associated with BPM analysis:

- Mapping business processes or strategies.

- Analyzing business performance.

- Identifying issues and recommending solutions.

- Collaborating with stakeholders.

3. MOST

MOST stands for Mission, Objectives, Strategies, and Tactics, aimed at evaluating and planning business strategies.
Example of applying MOST analysis in the culinary business:

- Mission: To become a restaurant that serves high-quality food with friendly service.

- Objectives: To increase visitor numbers by 20% in the next six months.

- Strategies: To create a seasonal menu featuring local and innovative ingredients.

- Tactics: To educate customers about the menu and run promotions to attract patrons.

4. PESTLE

This analysis is generally used to evaluate external factors that can influence the business environment. PESTLE stands for:

- Political: Government policies and regulations that affect industries and markets.

- Economic: Economic factors such as growth and inflation that influence purchasing power and consumer behavior.

- Social: Observing lifestyle, culture, and social trends that affect customer preferences and needs.

- Technological: Analyzing the impact of new technologies and innovations on business operations.

- Legal: Identifying regulations applicable to the industry.

- Environmental: Assessing environmental factors that can impact operations and the company’s reputation.

5. CATWOE

Lastly, CATWOE analysis is typically used in business system modeling, particularly in the context of information systems. CATWOE consists of six elements:

- Customers: Who benefits? Includes individuals or groups.

- Actors: Who is involved? Covers all parties contributing to the system.

- Transformation Process: What is the main process that transforms inputs into outputs?

- World View: What are the beliefs underlying the system?

- Owner: Who owns or is responsible for the system?

- Environment: What external context affects the system?

There you have it—five types of business analysis! By exploring these analyses, it’s time to dig deeper and discover which methods best suit your business. Each analysis, from SWOT to CATWOE, offers unique ways to understand and develop your strategy.