The work of any enterprise should be carefully monitored - this truth has long been an axiom of business. However, control should not only consist in verifying the fulfillment of management tasks and calculating financial performance indicators, but should also include a thorough analysis of the situation and development of ways to improve the current state of affairs. This procedure is known as management analysis.
No enterprise can exist for a sufficiently long time without making any changes to the scheme of its work, organizational structure, scheme of subordination and conduct of business operations. Management analysis aims to compile a complete picture of the state of the enterprise at a certain point, and based on the data obtained to make recommendations on how to improve the efficiency of the company. It is thanks to the analysis data that it becomes possible to draw up long-term perspective strategies for the development of the organization, which means that it becomes possible to plan and predict future results of activities. In addition, timely monitoring of the situation allows you to timely detect any problems in the life of the company, which subsequently may cause serious crisis situations.
Of course, it is worth paying attention to the fact that, depending on the scope of the company, the tools and features of the analysis can vary significantly. Thus, managerial analysis in trade will have little in common with the analysis, say, of an agricultural firm. However, the main areas of research are still common to all areas of economic activity.
So, management analysis involves the study of the following aspects:
- Analysis of the external and internal environment of the enterprise - involves identifying the main factors affecting the company both from the outside and from the inside. In fact, the analysis of the internal and external environments is there the very SWOT analysis, where SW is the analysis of the internal environment, and OT is the analysis of the external environment.
- Analysis of the organizational structure of the company is part of the analysis of the internal environment, but most often it is submitted as a separate item. A management analysis conducted without understanding how the firm works cannot be effective
- Analysis of the use of fixed assets, current assets and labor resources - these types of analysis make it possible to assess the overall performance of the enterprise. Thanks to these types of analysis, it becomes possible to identify hidden resources that will help to significantly increase the efficiency of the enterprise. Thus, management analysis helps to move from an extensive path to an intensive one.
- Analysis of financial results and accounting documentation - helps to identify weaknesses and errors in the construction and functioning of the accounting system in the company. Thanks to this, it becomes possible to detect errors in displaying a real situation in documents.
Note that in this article we gave only the most general information about the analysis of the company’s activities, but in fact the topic is extremely extensive - students who pass management analysis in industries, spurs consider the only way to pass this discipline. We do not recommend using spurs, but reference books and other specialized literature are not only possible, but necessary, as it will greatly facilitate your work. In these literary sources, readers will find both general information regarding the areas of analysis, as well as specific methods for carrying out various types of analysis and interpretation of their results. We wish readers a successful analysis and making the right decisions regarding the development of the enterprises entrusted to them!