The rapidly changing business environment of the 1990＇s forced the oil and gas industry to develop new corporate and regional strategies to remain competitive. To support strategy development, much attention has been given to such analytical tools as decision and risk analysis and probabilistic modeling. Often overlooked, however, is that a solid foundation of information and a thorough understanding of the underlying business environment are required for these tools to be effective. The business-analysis process provides this understanding and serves as a "hotbed" for new strategic ideas. This paper presents several business-analysis tools that enhance awareness of the business environment and provide the foundation of information necessary for sound strategic modeling. Examples from a recent study show how tools, such as influence diagrams, value-chain analysis, benchmarking, competitor analysis, scenario development, and strength and weakness analysis, are used.