Business Strategy - Internal and External Analysis for Aarete Consultancy Firm

Unit 32 – Business Strategy

Table of Content
Introduction 3
Part A: An internal and external analysis that provides a platform
for strategic decision making: 3-10
1. PESTLE and SWOT of the organization and an evaluation of the
organization’s resources and capabilities 3
2. Competitive environment analysis using Porter’s Five Forces model
6
3. Identification and justification of the organization’s existing and/or potential
competitive advantage 8
4. Valid strategies and tactical objectives to achieve overall strategic objectives
10
Part B: On the basis of this analysis critically evaluate and justify
strategic options for the organization: 10-15
1. Critical evaluation of the different types of strategic directions available to
the organization 10
2. Justification and recommendation of the most appropriate growth platform/s
and strategies 13
3. Evaluate ways and means by which the chosen strategy can be monitored in
order to ensure success 14
5.0 Conclusions 15
References 15

Introduction
Business Strategy is a process to achieve the organizational goals and missions. The set of
plans, goals, and action that set framework for business how to process in particular market
with their product or services. This process is to identify planning, controlling, evaluating of all
the requirements of the businesses. The organization have to evaluate its action so it can
compare with the plans sets (Ahmed, 2018). This report includes the strategies which are
carried out by the consultancy firm Aarete. It’s a fast growing consulting firm growing with
huge financial turnovers. They provide services such as Auditing, advise services, taxation,
legal and interim management consultancy. Report talks about various strategies that company
can use to reach their goals. The strategy they adopted is explained in the report beneath.
Part A: An internal and external analysis that provides a platform for
strategic decision making:
1. PESTLE and SWOT of the organization and an evaluation of the
organization’s resources and capabilities
Aarete is an international management and technology consulting firm specialize in strategic
profitability betterment, digital transformation, and advisory services. Aarete is tier 2
consultancy firm of the globe while they have a vision to make their footprint all over the
world and be in tier 1. Using Pestle analysis, we will analysis the external environment which
is an important factor for the business and its operation, Aarete companies wants to see impact,
as they most deal with government and public. wants to analyze their related external
environment which will make huge implication. Their plan of market action and innovation
growth is by evaluating their external environment, company able to decreased their threats
while increase chances of better opportunities. All of the factor of Pestle analysis are discussed
below:
Political factors This factor critically asses, how a business sector is
influenced by this element which help them in ascertaining
the enterprise's long term sustainability. Some of the
political factors are trade tariffs, fiscal policy, trade
policies, taxation scheme and political instability.
With citation to Aarete company,
which operates in multiple countries which are affected
poorly by political situation and restriction on trade in UK.
Because of a change in the government, Aarete aims to

ensure that the new policies of new government, will help
them to grab the opportunities. Aarete has update its plans
as there has been change in taxation schemes of country
like in India their taxation policy is changed from VAT to
GST, so Aarete Pune India has to work accordingly. This
might leads to a reduced in attracting new foreign direct
investment(forex).
Economic factors This factor directly influenced and determine the economic
performance that affects business sector and its long term
effects. The economic factors included, interest rate,
inflation, exchange rate, GDP and change in demand and
supply of goods. In reference to Aarete, they operate in
only those nation which have high efficiency financial
markets and growing economy (Zhao, 2018).
Social factors This factor of Pestle analysis scrutinizes the culture and
social environment. The organization is highly influenced
by societal measures, cultural trends, political analytics and
demographics. Some examples of social factors are
consumption pattern, demographic and cultural standard.
Aarete did an in depth research about their client needs of
social norms and to increase their goodwill.
Technological factors As per the recent development in market, there is a need of
constant innovation and huge amount of investment in
technologies. This affect the operation of industry
favorably or unfavorably. It is required for companies in
tier 2 like Aarete in order to increase their quality of audit
and use audit software which assist in enhance their
operation and increase productivity. Technological factors
are development, infrastructure, innovation and research.
Legal Factors This factor affects external as well as internal affects.
Legal factors are broader concept than political factor, it
provides in-depth idea of regulation about different laws,
regulatory requirements and laws related to employees and