Distinguish between the following: 'Operational due diligence' and 'strategic due diligence'.

Operational due diligence Operational due diligence aims at the assessment of the functional operations of the target company, connectivity between operations, technological upgradation in operational process, financial impact on operational efficiency etc. It also uncovers aspects on operational weakness, inadequacy of control mechanisms etc. Strategic due diligence Strategic due diligence tests the strategic rationale behind a proposed transaction and analyses whether the deal is commercially viable, whether the targeted value would be realized. It considers factors such as value Creation Opportunities, Competitive Position, Critical Capabilities.