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Competitive Strategies Assignment

   

Added on  2020-03-28

5 Pages1774 Words57 Views
Running head: COMPETITIVE STRATEGIESCompetitive StrategiesName of the StudentName of the UniversityAuthor Note
Competitive Strategies Assignment_1
1COMPETITIVE STRATEGIESOwing to the boon and bane of globalization, profits and competition in marketand business structure has seen immense change in the last decade. Companies and businessorganizations in order to stay competitive in the market makes the use of different kind ofanalytical tool and strategies to chalk out business plans, decide investments and analyzeexpected profits. The analytical tools that the paper would focus upon are Pestle, Swot andPorter’s Five Forces. These tools are used by almost all the small and large-scale businessorganizations in order to evaluate the impact of the macro and microenvironment on theorganizational structure of the company. The essay would be segmented into three partsdiscussing SWOT, Pestle and Porter’s Five Forces respectively. Pestle is the extended form of PEST. PEST howsoever refers to the political,economic, social and the legal factors that affect an organization or a business. PEST was laterextended with the legal and the environmental factors that too, seemed to make a significantimpact on an organizational structure (Zalengera et al., 2014). PESTLE is essentially a tool thatanalyses the external impacts on an organization. Pestle is used and operated by the strategicmanagers and planners of the company. Political factors adhere to the political changes that mayinfluence a company. For instance the change in government bring new trade policies andrevision of price of products, which marks the profit of the company. Economic factors likestrong unemployment rates in a particular area affect a business. Socialfactors are the ever-changing trend that initiates the demand of certain services. For example, work pressureencouraged the spa industry to flourish (Lichten et al., 2015). Technological aspects refers to thefact that how advent of modern technology has made an impact on any organization like theincreased production, hassle free promotion etc. Environmental factors decide the positioningof the company, that is, for example, a business related to information technology would not baseits branch in remote or hilly areas. Apart from that, all organizations owe some responsibilitytowards the environment like the use of green technology, treating waste before dumping etc.Legal factors are related to the laws that business organizations should adhere to like the lawsrelated to employee protection acts, sewage treatment, health and safety acts, acts related to taxpayment issues etc (Aithal 2016). To understand in details when and where PESTLE is used byany company, an example can be taken. PepsiCo used PESTLE to figure out the macroenvironmental factors before launching its products into unknown markets. For example,
Competitive Strategies Assignment_2

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