Business Assessment Tools for Success

This assignment examines the importance of assessment tools for business success. It discusses several tools, including SWOT analysis, PEST analysis, and Porter's Five Forces model, explaining how they help organizations identify strengths, weaknesses, opportunities, threats, external factors, and competitive forces. The paper concludes by emphasizing the value of these tools in formulating effective strategies and achieving growth.

Research

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Different tools available to provide Company analysis .............................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Assessment tools are important for every business organization to analyze performance
of company and improve its success rate. Mainly, it refers to the wide variety of methods that are
use to evaluate the progress of company at market place (Kościelniak, 2014). Present report is
based on Island Company which operate its business in retail industry and offer variety of
products ranging from women's swimwear to lifestyle brand to customers. This project covers
various assessment tools that available for company analysis along with their advantages and
disadvantages. At last, combination of tools that would be best for business is defined in this
project.
MAIN BODY
In today's business world, every company operate its activities with the aim of
maintaining sustainability in market for longer period of time. Along with this, firm needs to use
various assessment tools to provides analysis to the company for making their brand image
competitive. Island Company is a famous retail organization which provide clothing to
customers in various countries. For improving company success next CEO wants to recommend
certain view points in order to change and improve company success in market. In this context,
there are some assessment tools which can be used by company to evaluate as well as analysis
the company growth.
Different tools available to provide Company analysis
Business experts and CEO have various number of assessment tools which helps in
analyzing the overall performance of the company. With the help of this, business organization
can easily analyses its overall performance at market place. Different assessment tools that can
be use by company are defined as follows:
SWOT analysis: It is important assessment tool which help company to evaluate their
overall performance at market place. Island company is famous retail organization that operate
their business in clothing sector.
Strength:
 Good brand image and effective marketing is the main strength of Cayman Island.
 Company has an amazing design team for making designer clothes which distinguish it
from other street retailers.
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 Island company has strong customers base, as they offer men's, women's sunglasses,
beach Accessories and many more in market.
Weakness:
 The main weakness of company is that collection of fashion products are continuously
change and per market trends.
 Island Company may not effectively cope with seasonal products in retail industry.
Opportunities:
 The main opportunity for Island is to expand business by adding new and unique
collection of fashion clothes that attract customers more.
Threats: in Increase in minimum wages is a major threat for company as it results in high staff
turnover if firm not pay them minimum amount of money for their work.
 Economy issue such as recession directly affect the customer's income level and
spending power which pose a threat for company.
Furthermore, this assessment tool plays an important role because it helps business
organization to identify the its actual strength and weakness. The main purpose of using this
tools is to determine the important factors that helps in attaining the goals.
The main advantage of using this tool is to effectively understand the strengths of
business and also address weakness. Along with this, it also provide support to Island to take
advantage of their strengths which may contribute in developing strategies for attaining business
goals appropriately.
On the other hand, the main disadvantage of this tool is that it doesn't provide priorities
issues. Along with this, it also produce a lot of information but not all the data is useful.
PEST analysis: It is an effective strategic framework which help in evaluating the
external environment of company. Application of this tools helps company in assessing market
for its product at a given time frame. By determining macro environment factor, firm enables to
formulate effective plan and strategies that helps in attaining success and growth in market
place. With the helps is PEST analysis, Island company can easily enhance their market share
and increase their brand image as well.
Political: The factors which are considered under this includes political stability, labour
laws, tax policy and government laws. As the Britain has its control over Cayman Island, the
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implied rules and regulations are govern by UK government (Rastogi and Trivedi, 2016).
stability in UK politics positively impact upon Island company operations.
Economic: Cayman Island is a small continent which is under control of British
government. The economic condition and flow of cash persist in the Island is not quite strong as
similar to UK. This will impacts negatively on operations of Island organisation as it have to
struggle in the process of expansing business operations due to the fact of shortage of funds
(Barba and et. al., 2016).
Social: The factors which are considered under this includes consumer behaviour,
lifestyle, age etc. As the Island organisation deals in clothing segment, any change in behaviour
and lifestyle has impact negatively upon its operations As the needs and preferences of
customers are changing very frequently, which poses a threat for company of loosing customers.
Technological: This is most important factor which aid organisation to improve their
efficiencies if applied effectively (Torres‐Rouff and et. al., 2015). There are many technological
advancements are happen which has positive impact upon the operations of an Island company
as this will provides the opportunity to improve the quality of their products and minimisation of
cost too. This will improve the profit margin of an organisation and have direct impact upon
revenues of an organisation.
Advantages and Disadvantages of pestle analysis
One advantage of PESTLE analysis is that it helps in identifying the impact of external
factors on business and developing strategies according to it. The disadvantages can be
understood from the point that information can be easily miss interpreted which impacts
negatively.
Porter's five model: It is also an effective assessment tool which helps in understanding the
forces that evaluate the competition in industry and market as well. With the help of this,
company can easily improve their profitability level by developing effective strategy that suits
with competitive environment.
 Competitive Rivalries: It defines the number and strength of the competitors, the quality
and service that they provide and how they impact the business. As Island company deals
in clothing industry which has many competitors so it is important for it to recognise its
rivals and how they impact them (Bradford, Quinton, Myhill and Porter, 2014).
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 Supplier power: It is defined as how easy it is for the supplier of company to increase
their prices. In the case of Island company it is important to have command over their
supplier as it largely depends on suppliers for their product.
 Buyer power: It refers to how easy it is for buyer of the product to decrease the price. As
Island company deals in clothing industry so the buyers of the goods have some
bargaining power. The main reason behind this is high competition in market place.
 Threat of Substitution: In market place various companies are offer same products at
cheapest rate to its customers which may negatively affect on the Island company. Thus
company needs to produce unique and quality clothes for customers to enhance their
sales.
 Threat of new entry: In market place, new companies are enter which give high
competition to Island company (Burns and Dewhurst, 2016). So that it is important for
company to make strong brand image by serving quality products and services.
The main advantage of using this tool is that company can easily gain competitive
advantage and also tries to capture larger market share from its rivals at market place. On the
other side, this tools doesn't cope up with synergies and also inter-dependencies on large
corporations.
In this context, the best assessment tools is SWOT analysis as it help business
organization in determining its internal strengths and weaknesses and external opportunities and
threats that prevails in market. It also helps Island Company to formulate their future plan to
attain success at market place.
CONCLUSION
From the above mentioned report, it has been concluded that every business organization
wants to attain success in market place. For this, company can use assessment tools with the aim
of enhancing the performance at market place. Various tools are there such as SWOT analysis,
PEST analysis and Porter's five forces model that helps company in assessing its position. These
tools helps firm in formulating appropriate strategies and making decisions that leads firm
towards success and growth.
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REFERENCES
Books and journals
Torres‐Rouff, C. and et. al., 2015. Tiwanaku influence and social inequality: A
bioarchaeological, biogeochemical, and contextual analysis of the Larache cemetery,
San Pedro de Atacama, Northern Chile. American journal of physical anthropology.
158(4). pp.592-606.
Rastogi, N. I. T. A. N. K. and Trivedi, M. K., 2016. PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering
and Technology (IRJET). 3(1). pp.384-388.
Barba, F. C. and et. al., 2016. A technical evaluation, performance analysis and risk assessment
of multiple novel oxy-turbine power cycles with complete CO2 capture. Journal of
cleaner production. 133. pp.971-985.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Bradford, B., Quinton, P., Myhill, A. and Porter, G., 2014. Why do ‘the law’comply? Procedural
justice, group identification and officer motivation in police organizations. European
Journal of Criminology. 11(1). pp.110-131.
Kościelniak, H., 2014. An improvement of information processes in enterprises: the analysis of
sales profitability in the manufacturing company using ERP systems. Polish Journal of
Management Studies. 10(2). pp.65-72.
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