Application of Strategy Development Tools

The essay discusses the different types of strategy development tools such as PESTEL Analysis, 5F, SWOT Analysis and Cross impact analysis and their business applications. It explains how these tools can help organizations understand their position in the market and develop strategies to achieve their goals.

Running head: APPLICATION OF STRATEGY DEVELOPMENT TOOLS
Application of strategy development tools
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APPLICATION OF STRATEGY DEVELOPMENT TOOLS
Introduction
The foremost determination of this essay is to focus on the different aspects of the
strategy development tools such as PESTEL Analysis, 5F, SWOT Analysis and Cross impact
analysis. The business applications of each of those tools will be discussed in the paper in a
detailed manner. These discussed strategic tools is very much beneficial for the organization to
understand the position of the company from the business perspective.
Discussion
PESTEL
It is defined as the type of marketing tool which is used in most of the business
organizations. The macro environmental factors which have an impact on the growth and
development of the business organization. The different aspects of the PESTEL Analysis are
Political, Economic, Social, Technological, Environmental and Legal aspects. The performance
and the activities of the business can be affected with the help of the PESTEL analysis. This
marketing tool can be used on a long-term basis (Song, Sun & Jin 2017). The different types of
external factors which can affect the business can be identified with the help of this marketing
tool. PESTEL analysis is a very significant aspect of the strategic management for any business
organization.
Business use
The growth and decline of the business conditions can be analyzed with the help of this
marketing tool. The most important business application of this marketing tool is its role in the
analysis management. The PESTEL analysis would help business organizations to understand
the macro-environmental factors which affects the growth of the organizations such as the
political factors such as the governmental rules and regulations (Jha, Dhanaraj & Krishan, 2015).
The adverse market conditions such as inflation and recession can be handled in a better way
with the help of this strategic tool. The difficulties of the technological advancements can be
solved purposefully with this analysis. Demographic of the organization can be understood in s
better way with the help of this macro environmental analysis (Benzaquen et al., 2017).
Recycling of the products and services is done if this analysis is performed considering the
environmental factors.

APPLICATION OF STRATEGY DEVELOPMENT TOOLS
5 Forces model
It is defined as the type of analytical tool which is used by different types of business
organizations to understand the position of the organization in the competitive market (Zhao et
al., 2016). This forecasting tool can be actively used for establishing the competitive situation of
the business. Established in the market by Michael E Porter this strategic development tool can
be actively used by most of the business organization in their marketing department.
Application of the model considering the business aspects
Rivalry among existing firms: The fluctuation in the prices offered by different
organizations are considered in this business model. The rivalry among the existing firms can be
better understood with the help of this strategic tool.
o Potential Entrants: The business strategies adopted by the new organization should be
also considered as those innovative ways may be very much effective in nature. The
threats coming from the new products and services can be identified in a better way with
the help of this strategic analysis tool.
o Suppliers: The quantity of necessary inputs can be significantly impacted with the help
of this aspect of the Porters 5 forces.
o Buyers: The ability to affect the prices of the goods and services offered by business
organization can be impacted with the help of this aspect of the five forces model. Best
offering which can be given to the buyers of organization can be identified with the help
of this strategic tools. Special offers and discounts can reduce the bargain power of the
buyers of business organizations
o Substitute: The new substitute products which are already there in the market can be
properly analyzed with the help of this aspect of the model. This aspect of the model is
very much useful for business organizations to understand the effectiveness of the
products and services offered by the organization.
SWOT Analysis
It is defined as the type of tool which is very much required for monitoring the strengths
and weaknesses of the business organization. The main aspect of this type of strategic
development tool are Strength, Weakness, Opportunities and Threat (David et al., 2016). This is

APPLICATION OF STRATEGY DEVELOPMENT TOOLS
a very slow and time-consuming process. This type of internal analysis tool can be successfully
applied across organizations to understand the different factors which helps the organization to
understand the opportunities and threats of the organization so that they can develop new
strategies which can give competitive advantage to the organization compared with the other
similar organizations.
SWOT analysis considering the business aspects
Strength: It is very much important for every business organization to know about its
own strength as this would help them to form strategies (Villacorta et al., 2014). The core
competencies of the organization can be understood with this aspect of the SWOT analysis.
Weakness: The weakness of the business organization is very much important to be
understood so that they can cover up all the reasons which are pulling things down for them. The
threats coming from the substitute products can be understood so that better strategies can be
created and implemented in the working environment of organizations.
Opportunities: Identification of the business opportunities is very much important for
attaining sustainable growth of the organization. The opportunities of every business
organization keeps on changing every moment, so it is very important for the business
organization to know their opportunities (Tavana et al., 2016). The importance of the leadership
qualities and the innovation leadership can be understood with the help of this aspect of SWOT.
Threats: The different types of internal and external threats which are faced by this
business organization should be successfully understood so that specific strategies can be
developed and implemented in the business environment. Competitiveness of the organization
can be understood in a better way with the help of this aspect of the SWOT analysis.
Cross Impact Analysis
The factors which are found from the SWOT analysis can be can be interrelated with the
use of the Cross Impact Analysis. Adapting to the business scenarios is possible with the help of
the cross-impact analysis. The breeding elements of the virtual organizations can be effectively
managed with the help of the cross-impact analysis technique. The partnership from other
business organization can be impacted significantly with the help of the cross-impact analysis.

APPLICATION OF STRATEGY DEVELOPMENT TOOLS
Business use
Most of the business organisations involve the application of different kinds of external
stakeholders such as the distributors and the marketing team (Blockeel et al., 2016). There are
subsidiary organization also for these business organization, hence there are different types of
management issues, these issues can be effectively minimized with the help of the cross-impact
analysis. The business opportunities associated with the subsidiary organization can be impacted
effectively with the application of the cross-impact analysis (Schlegelmilch, 2016). The cross
impact analysis helps organizations to manage their internal and external stakeholders in a
professional manner so that the mission and the vision of the organization can be achieved.
Conclusion
The paper helps in concluding the impact of the different type of strategy developmental
tools used by the business organization. The utility of the different types of development tools
such as the Porters five forces model and SWOT analysis which help the organization to achieve
their desired organizational goals. It can be also concluded that this strategy developmental tool
can be successfully implemented in any business organization as those tools can be very much
useful to understand the risks and challenges associated with the organization as well as help
those organizations to grow in a competitive market.

APPLICATION OF STRATEGY DEVELOPMENT TOOLS
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APPLICATION OF STRATEGY DEVELOPMENT TOOLS
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