Strategic Tools for Business Administration

Business Administration

STRATEGY TOOLS 1
Introduction
Strategic management is the formulation and implementation of the plan in order to achieve
the objective and goals. The organisation analyse the environment before implementing the
plan. There are many tools are used by the company to determine the external and internal
environmental factors which affects the business. PESTLE, SWOT, Porter’s Five Forces
Strategic, and many others that can helps to analyse the environment and implement the
appropriate strategy that helps to attain the objective of the organisation. In this report, the
discussion is made on the strategic tools which are used by the company in the process of
strategic management.
Strategic tools
PESTLE Analysis
It is a tool which is used by the company to analyse the macro environmental factors such as
political, economic, social, technological, and legal and environment. The external forces
affect the organisation performance as they are important factor in the organisation
environment. These factors affect the strategic planning of the organisation which is
implemented by analysing the environment. This tool analyse the environment of the
particular country that affects the business. This tool describes the six factors and these
factors include the government, geographical, environment and economic situation of the
country. The business is affected from the external factors as its survival is based on the
condition of the country (Frue, 2016). This tool analyse the opportunity for the company by
evaluating the environment in the terms of expansion in the business. It mostly used in the
process of expansion of business in the other country in order to analyse the factors which
becomes the strength and weakness of the business. The evaluation of entrants the market is

STRATEGY TOOLS 2
also done as per the analysis of the market. The different factors of these tools contain the
different content for analysing the environment such as
Political- It includes the decision of government, rules and regulation developed by the
government on the behalf in the context of import and export. That affects the transfer
business of the company from one place to another.
Economic- It determines the economic condition of the country. It includes the economic
growth, exchange rates, inflation rates, disposable income, unemployment rate and many
others. It affects the demand of consumers towards the services as per their market condition.
Social- This dimension of the PESTLE Analysis represents the demographic characteristics
such as customs, tradition and religion. It also includes the factors of taste, age distribution,
population rate, career attributes and the income of consumers. It also affects as the demand
of consumers is changing with the trends and fashion and as per the generation gap.
Technology- This dimension evaluates the innovation factors and the rate of development in
the technology. Developing technology in the country helps the business to grow in the
market by developing the new products.
Legal-
It includes the acts and laws regarding for the protection of consumers and the company. It
includes the specific laws such as health safety, employment laws, consumer protection laws
and the patent laws.
Environmental-