Competitive Strategy: Tools for Business Growth and Development

Running Head: COMPETITIVE STRATEGY 0
COMPETITIVE STRATEGY
APRIL 24, 2019

COMPETITIVE STRATEGY 1
Contents
Introduction..............................................................................................................................2
PESTLE MODEL....................................................................................................................2
SWOT MODEL........................................................................................................................3
PORTER FIVE FORCE MODEL.........................................................................................4
Ansoff Matrix...........................................................................................................................5
Conclusion.................................................................................................................................7
References.................................................................................................................................8

COMPETITIVE STRATEGY 2
Introduction
This report outlines various strategy development tools that are based on industry good
practices in relation with the growth of business enterprise. Management in the organisation
use these tools to develop blueprint of future perspectives of enterprise and therefore help in
eliminating various uncertainties in the strategic plan (Jarzabkowski and Kaplan, 2015). To
better understand the implication of these strategic tools, a financial organisation is selected
on which these tools will be applied. The name of the corporation is Common Bank of
Australia whose headquarter is situated in Sydney, Australia.
PESTLE MODEL
In external environment, there are certain macro environment variables that have direct or
indirect impact on the business performance. To analyse these variables, management of the
organisation adopt this model for the purpose of long term planning. In addition, this tool also
widely used by business corporation when they want to expand overseas into new market
segments or country. However, due to dynamic business environment where customers trends
are continuously changing and competitors’ practices are pushing up, several organisations
used this strategic tool to understand market competitiveness and for long term business plan
and growth (Alalwan, Thomas and Weistroffer, 2014). The PESTLE exploration of Common
Bank of Australia is presented below –
1. Political factors – Positive relation with the Asian countries and China. It will help
the business to expand into these markets.
2. Economic factors – The economy of Australia is strong, however, due to the ageing
issue of the Australian population, they may be several negative outcomes having
significant result in business practices (Chand and Tung, 2014).
3. Social factors - Cosmopolitan culture marked by variety.
4. Technological factors - It is very important to invest in financial security technology
as cyber threats are increasing day by day and have huge negative impact on business.
5. Legal Factors – Various accusations of laundering of money and other allegations on
the bank.