Comprehensive Strategy: PESTEL, SWOT and Porter's Five Forces Analysis

Running head: COMPREHENSIVE STRATEGY
COMPREHENSIVE STRATEGY
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1COMPREHENSIVE STRATEGY
Executive Summary
The given essay will concentrate on the various strategic tools and their analysis. The business
environment is quite dynamic and for this reason it is extremely important for any business
enterprise to ensure that it conducts a research on the external environment of the business such
that it is able to get the relative factors in place to form a comprehensive strategy for the
business. The essay conducts the analysis using PESTEL, SWOT AND Porters Five Forces
Model. The given tools provide comprehensive data on the external factors effecting a business
organization and ways to combat these factors.

2COMPREHENSIVE STRATEGY
Introduction
In the recent complex comprehensive environment, it is a huge challenge for all the
business organization to lay more emphasis on their strategic plan. The firms must have various
analytical tools to identify all those factors that would affect the business environment. This
essay acknowledges the value of strategic analytical tools in relation to the comprehensive
analysis at the firm level, industry level and macro environment al level. PESTEL analysis
framework Porter five forces model and SWOT analysis will be discussed to analyze the
strategic direction of a firm in such comprehensive business environment (Albert and Grzeda
2015).
PESTEL Model
PESTEL model is the strategic tool that is used to analyze the macro environment. It is
one of the most popular and widely used concepts used in comprehensive and strategic analysis
(Shah et al. 2015). The concept of PESTEL model originally came from the PEST model. It is a
significant method that includes all the major factors, which is influenced by the organization
and industry. Initially, the PEST framework encompasses the following four factors as Political,
Economical, Social and Technological. Later on, the framework further considered other two
vital factors, which are Environmental and Legal factors.
Political factors include all the government regulation and policies of the retail industry
that affects its profitability and revenue. Political environment affects supply chain of a business
at an international level and also the economic environment of the nation. In the retail industry,
political issues create a major hindrance to the existing smooth business operation. Economic
factors are also crucial in relation to the business and trade. Better economic scenario showcases
increase in sales and thus leads to complete and effective outcome in the retail industry
(Goncharuk 2016). The labor market and consumers income creates a major impact on boosting
the profit of the industry. Social factors also affect the profitability of the retail industry. Change
in the preferences of the consumers and demographic changes creates a deep impact on the
business.
In the recent times, the demand of the new generation is very different than that from the
older generations. Major focus is recently given on maintaining customer’s engagement and