Application of Strategy Development Tools

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