Key Strategy Development Tools

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Essay – Key Strategy Development Tools

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Table of Contents
PESTLE Strategy Model............................................................................2
Porter’s Five Forces Model.......................................................................4
SWOT Analysis.........................................................................................6
Input / Output..........................................................................................8
References.............................................................................................10

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PESTLE Strategy Model
A PESTLE analysis refers to a tool that is used by the
companies in their business to examine the various external
factors of the environment. PESTLE means Political,
Economic, Social, Technological, Legal, and Environmental.
The strategy tool helps the companies to determine the
political factors, social factors, economic factors, legal
factors or technological factors so that the firm could identify
its effect on its business. The tool is beneficial for a new
company while entering into a new foreign market. PESTLE
is a tool to analyze strategic business planning. The tool
provides an answer to the questions of what factors will
affect the company (Fozer et al., 2017).
Political factors determine the government policies that will
impact the business such as tax rate or fiscal policy.
Economic factors refer to the performance of the economy
which influences the profitability of the business such as the
rate of foreign exchange or rate of interests. Social factors
help in determining the emerging trends of the customers
such as education levels or lifestyles (Kara, 2018).
Technological factors determine the innovation or
development of technologies that may impact the market of
the company. Legal factors help the firm to understand the
legal changes in the country such as customer law.
For example, Nike is an international company that deals in
clothing, footwear or other services. The firm requires to
consider the export and import laws as it impacts the
distribution of the product. It also needs to focus on the
economy to find out the customers easily. Nike produces
high-quality sports shoes which are useful for health
conscious people. The company requires to focus on
technology as it helps in the competitive market (Racz et al.,

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2018). It should follow the rules of health and safety. It also
requires to produce eco-friendly products as it is a leading
brand and environment becomes the major concern in the
world.