Essay about Management 2022

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Introduction
The essay helps in analyzing the different strategic development tools which
plays a vital role in managing the different activities in the companies suitably.
Strategic development tools include the different aspects which includes SWOT
Analysis, PESTEL Analysis and Ansoff Matrix which are the major components
which are required to identify the different internal and external strengths and
weaknesses of the firms for providing them with insight to solve the issues and gain
competitive advantage in the market (Yin 2016). Through proper strategic planning, it
can be beneficial in setting the different priorities and strengthen the different
operations which will be successful for achieving the common goals and establish
the agreement around the different results which are intended in nature. The main
utilization of the strategic planning includes gathering of the information, formation of
the strategy as well as points related to decision-making which will be capable of
gaining proper insight on managing the different activities appropriately and it will be
beneficial in managing the activities appropriately.

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SWOT Analysis
SWOT Analysis is defined as the framework which is utilized in evaluating the
competitive position of the company in contrast to the other competitors which are
present in the market. It will be suitable for development of the strategic planning and
SWOT analysis helps in assessing the external and internal factors along with
current along with future potential of the company (Widya Yudha, Tjahjono and
Kolios 2018). SWOT Analysis is being designed to facilitate the realistic along with
data driven look for identifying strengths as well as weaknesses of the company
which can be suitable for receiving a proper and brief overview on the company.
Strengths- It includes the different kinds of aspects which are performed well
by the company and the different qualities which separate them from competitors.
Weaknesses- It discusses the different kinds of aspects which are lacking in the
company along with the unclear unique characteristics of the company. Threats- It
includes changing regulatory environment and there are emerging competitors
(Gurcaylilar-Yenidogan and Aksoy 2018). Moreover, there is changing attitudes of
customers towards company is the other aspect that can affect effectiveness.
Opportunities- There can be different strategic alliances which can be suitable for
becoming opportunity.
For instance- SWOT Analysis of Nestle can be helpful for understanding the
respective aspect. Strengths- It is the world-renowned brand and the extensive
system of distribution is the most suitable aspect that makes Nestle competitive.
Weaknesses- There are different kinds of controversies related to Maggi and it has
been harmful for brand. The structure of brand can create huge conflict among the
other companies which fall under same brand. Opportunities- There are different
inclusion of healthy breakfast items which is suitable for the success of company.
Threats- There is huge competition in the market and the price of commodities are
the other threat that can affect the growth of the company (Nestle.com 2019).

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PESTEL Analysis
It is defined as the framework which is required for monitoring the macro-
environmental factors which can create profound impact on the performance of the
company (Rastogi and Trivedi 2016). It is suitable for the different companies which
are starting their business in different other countries which will be playing a suitable
role in providing a clear understanding of the situation in the respective country.
PESTEL analysis if the acronym which stands for political, Economic, Social,
Technological, Environmental and Legal factors.
Political- It is inclusive of the different factors such as the intervention of the
government along with the stability of the political economy. Economic- It is
inclusive of the different economic growth, rate of inflation and disposable income of
the different customers in the economy. Social- It is inclusive of the different factors
such as demographic related characteristics, customs as well as norms which play a
vital role in which the company operates successfully (Phadermrod, Crowder and
Wills 2019). Environmental- There are different environmental aspects which
includes weather, climate along with change in the ecological aspects which can
create huge impact on the company’s management. Technological- It is inclusive of
the different factors that includes the technological incentives as well as level of
innovation and automation that can affect growth of the company. Legal- It is
inclusive of the different legal norms and obligations which needs to be improved
(Fozer et al. 2017).
For instance- PESTEL Analysis of Tesco helps in understanding external
environment. Political- It is inclusion of the political instability which affects the
growth of the company negatively and impact of Brexit on the supermarkets of
United Kingdom. Economic- The main concern is inclusive of leverage costs or
profits which affects accessibility of the finance. Social- The social conditioning is
suitable for Tesco as they are trying to meet different demands of the customers
successfully. Technological- Advancements in the technology can create new
opportunities for Tesco which has helped them in improving the overall growth of the
company successfully. Legal- There are different government policies which affects

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growth of the company negatively and due to the same, they had to lower prices of
the products. Environmental- There is increased environment rules and regulations
which are required to be followed by Tesco which affects their growth (Tesco.com
2019).
Ansoff Matrix
It is considered as the strategic planning initiative and it is considered to be
the communication tool which assists in analyzing the possible growth strategies for
the company effectively. The respective tool is being used by the different
companies as it will be suitable for them in identifying which overarching strategy the
business should be using and the tactics which can be implemented which can be
beneficial in growth of the company in competitive business environment (Bohari,
Hin and Fuad, 2017). The respective model is the most suitable aspect which can be
incorporated by the different companies for understanding their position in the
market and whether they can expand their business operations in the other markets
in the different countries and become successful.
Market Penetration- It is the aspect in which the existing kind of goods and
services are being sold to the existing base of the customers in the market. Market
Development- It is the aspect which can be adopted by the different companies for
entering in the new market appropriately (Barba et al. 2016). Product
Development- It is inclusive of the factors wherein the development of the existing
products and services are done by the company. Diversification- It is inclusive of
the fact that the companies will be moving into the new market with the brand-new
products and services which increases their sales (Bamford et al. 2018).
For instance- Ansoff Matrix of Nestle can be helpful in understanding the
respective scenario in an appropriate manner. Market Penetration- Nestle sells the
different kinds of beverages along with snacks to the different customers in the
market which includes Maggi or Nan baby food products. Market Development- It is
inclusive of the different healthy breakfast food items which can be adopted by
Nestle for entering in the new markets and gain competitiveness in the market
(Nestle.com 2019). Product Development- It is inclusive of the different products
which are existing such as baby products or Maggi which can be improvised by

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Nestle for attracting the different kinds of customers appropriately. Diversification- It
includes the different kinds of other items rather than the food items which can be
sold by them as it will be suitable for improving their customer base and gaining
competitiveness.

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Conclusion
Therefore, from the analysis of the different strategic development tools such
as SWOT, PESTLE and Ansoff Matrix, it can be concluded that these are the most
appropriate strategic development tools which can play a major role in strategic
planning of the company and the growth can be managed appropriately. It has
helped in providing a sense of the direction and it helped in outlining the different
measurable goals which helped in managing effectiveness of the company. Strategic
planning is the other key element which created a major focus in understanding the
various kinds of day to day decisions which evaluates the progress and changing
approaches that helped in moving forward. The strategic planning of the business
environment is the important key for solving the various strategic issues which can
play a vital role in maintaining strategic balance between the organizational goals as
well as resources in the market and maintain competitive advantage in the
competitive business environment successfully. Through the proper implementation
of strategic development tools and planning, it allows the organizations in becoming
more proactive rather than reactive and it helped in creating sense of the direction
which helped the individuals in managing their growth-related procedures which will
be suitable for their success in the market. In addition, it helped the companies in
increasing their share in the market which is suitable for gaining huge level of
profitability and revenues in the market. Through the implementation of SWOT,
PESTLE and Ansoff Matrix, it can be inferred that there has been proper discussion
on the different internal and external aspects which can affect their growth
procedures in a negative or positive manner.

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