Key Strategy Development Tools

Running head: KEY STRATEGY DEVELOPMENT TOOLS
KEY STRATEGY DEVELOPMENT TOOLS
Name of the Student
Name of the University
Author Note

1KEY STRATEGY DEVELOPMENT TOOLS
Introduction
The following essay sheds light on the four major approaches towards strategic
management. The essay opens with a discussion on the Ansoff Matrix that is implemented by the
business organization to devise the strategies that would assist the future growth of the business
organizations. the essay thereafter discusses the PESTEL Analysis model that is used to analyze
the macroenvironment of a business. The essay proceeds further to discuss the Porter’s Five
Forces Framework and the SWOT Analysis model used for analyzing the microenvironment of a
business firm.
Ansoff Matrix
Figure 1: Ansoff Matrix
Source: (Author note)
Ansoff matrix is a tool that is used for the strategic planning within the business
organizations. The tool is helpful for devising the strategies that would assist the future growth of

2KEY STRATEGY DEVELOPMENT TOOLS
the business organizations. The major people who have been benefitting from the utilization of
the model are those who have been serving in the managerial levels within the organization. The
concept of the Ansoff Matrix was introduced by the celebrated Russian American business
manager and applied mathematician Igor Ansoff (Dmitrieva, Ilinova and Kraslawski 2017). He
had described four major growth strategies that are generally followed by the business
organizations in order to depict a proper growth of the business organization in the given market.
The four major growth alternatives are market penetration, market development, product
development and diversification. The market penetration strategy helps the concerned company
to put forth an increment in the market share of the company in the given markets. The market
development is helpful in the expansion of the company in the newer markets with the help of
the products that the company has been manufacturing. The third step involves the development
of the products in order to improve the market hold of the company in the given markets
(Neykov, Antov and Brezin 2017). The fourth style refers to the ways wherein the company
attempts an entry into the newer markets through the introduction of the newer products. This
strategy is found to have been adopted by the ANZ Bank for growing into the international
markets.
PESTEL Analysis