The Strategic Analysis The development of a strategic analysis guides all decisions made regarding your compensation systems throughout the project. The strategic analysis reveals firm-specific challenges, objectives, and initiatives that allow you to align the goals of a compensation system effectively with those of the company strategy. The strategic analysis allows you to better understand the external market challenges e-sonic faces in addition to its internal capabilities. As a consultant, a thorough understanding of e-sonic’s business environment allows you to better align your competitive system design with e-sonic’s goals, challenges, and objectives. Follow the outline below when completing this portion of the project. Strategic Analysis Outline: 1. Executive Summary (Concisely conveys the project objectives and main findings. The executive summary is completed last, but included first in the strategic analysis.) 2. Strategic Analysis a) Identification of e-sonic’s industry based on the North American Industry Classification System (NAICS) b) Analysis of e-sonic’s external market environment i. Industry Profile ii. Competition iii. Foreign Demand iv. Long-Term Industry Prospects v. Labor-Market Assessment c) Analysis of Internal Capabilities i. Functional Capabilities ii. Human Resource Capabilities
