Business Strategy: PESTLE and Porter Diamond Model with Stakeholder Analysis

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................................3
P1 PESTLE and Porter diamond model with Stakeholder analysis matrix along with its applicability in
the business.............................................................................................................................................3
CONCLUSION...........................................................................................................................................5
P2 Internal environment by using and applying appropriate theories.....................................................5
CONCLUSION...........................................................................................................................................7
P3 Porter’s five forces for evaluation of competition...............................................................................8
CONCLUSION...........................................................................................................................................9
P4 strategic planning using various theories............................................................................................9
CONCLUSION.........................................................................................................................................10
CONCLUSION.............................................................................................................................................11
REFERENCES...............................................................................................................................................11

INTRODUCTION
Under the study the macroeconomic environment analysis is done with influence over the
strategies of the company and internal environmental analysis is done. Porter’s five forces and
various theories and models are used under the study for strategic planning of the company
(Hsieh, Ma. and Novoselov, 2019). Royal Dutch Shell is the company chosen for the study the
vision of the company is spread over the world and mission of company is to raise its sales by
50% by next 3 years. Royal Dutch Shell has achieved the sales target of 3788 million US dollars
which is a 40% hike compared to last 3 years. The profit made by Royal Dutch Shell in 2019 is
9% of its sales and has raised almost 30% this year. The main competitors for the Royal Dutch
Shell are SABIC, Total, chevron and BP. All these companies are having better machinery and
better infrastructure which is competent to Royal Dutch Shell. All these companies are having
better policies for the workers in which they are allowed to work flexibly. The provide oil and
gas at competitive price. The strategies used for marketing are prominent and their vision and
vision is also great which will help them achieve success in the business.
P1 PESTLE and Porter diamond model with Stakeholder analysis matrix along with its
applicability in the business.
"Strategy is a plan to achieve objective which is of long term taking care of aim of the
company".
"Over all solution and problem is taken under the plan in strategy which includes desired future
of a firm. The plan includes most effective and efficient strategies for achieving the goals of the
company".
Similarity
Both definition focus on achieving the aims and objectives of the company and both
definition focuses on planning.
Dissimilarities
The first definition is considering only aims and objective whereas second definition is
considering effectiveness and efficiency. Second definition is having wide spice whereas it is not
so in the first definition.
PESTEL
It is a analysis which done to find out the external influence over the company and how
they will effect the company in positive and negative manner.
Political factor
Political factor takes into account all the government policies that will affect Royal Dutch
Shell. The change in the government will positively affect Royal Dutch Shell because they are
providing subsidiary to the firm (Eker. and Eker, 2019). Whereas the political factor which will
adversely affect the company is the pollution ban, which the government of UK is planning to
take action by increasing the tax rates.

Economical factor
The economical factor which will affect positively to Royal Dutch Shell is the change in
exchange rate as the price of petrol will fall and the same will increase sales. The economical
factor affecting negatively is the inflation as the cost of the product and refinery will increase and
will result in increase in the price of oil. Like for example after Brexit the economic condition of
country has been hampered. So it can affect the company.
Social factor
Social factor affecting positively is the lifestyle in which the petrol will used for the
fertilization of plant and this is the cheap and best way increase the life of a plant. This is under
trend among the lifestyle and will increase sale of petrol. The negative effect of social factors
over Royal Dutch Shell is the usage of petrol in vehicles is becoming less popular in the lifestyle
the people are using eco-friendly vehicles. This will lead to fall in the sales of the company and
the profit of the company will decline. Like for example company must have an analysis of taste,
preference and culture of the people of UK.
Technology factor
The government engineering has produce a technology which will effect positively by
quickly producing oil and on much cost effective manner. The negative affect over the Royal
Dutch Shell due to Technology will be electronic vehicle emergence and the same will result in
fall in demand of petrol and oil. Company must also make use of advancing technology which is
in trend in United Kingdom.
Legal factor
Legal factor that will affect positively Royal Dutch Shell is the concession will be
provided under law for the advance tax payment and which will help Royal Dutch Shell to save a
lot of tax. The negative affect over the firm will be legal penalty for not taking proper care of
storage area of the oil and gas and this will lead fall in the value of shares and fall in profits of
the company. In this company need to follow the various laws, rules and regulations like Health
and safety act. In this company needs to provide safe and secure working condition.
Environmental factors
The positive affect of environment over the Royal Dutch Shell is usage of petrol in
environmental improvement and the same will lead to creation of eco friendly environment. The
negative affect will be usage of petrol is creating a lot of pollution to the environment and same
is resulting in climate change. All this is not good for environment and the future generation and
the earth will suffer due to this.
Porter Diamond Model
The model focuses on factor which include what is the reason some industries are
compatible whereas other are not.
Firm strategy, rivalry and structure