Analyzing Strategic Tools for Business Environment

Running head: MANAGEMENT
Management
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Introduction
The essay throws light on analyzing the different kinds of strategic tools which play
major role in increasing awareness of the business environment, strategic issues, threats along
with opportunities which assists in reducing the different risks which are involved in
managing essential decisions and providing proper framework for assessing the long-term
success of the business. The different tools which will be used includes SWOT, PESTEL,
Ansoff Matrix and Porter’s Five Forces Model analysis that will be helpful in improving
scenario of the organization.
SWOT Analysis
It is the analytical tool which is utilized in determining characteristics which includes
the following:
Strengths- It helps in describing the different aspects wherein organization excels and
it makes the company different from other competitors such as strong brand image, unique
kind of technology along with strong balance sheet.
Weaknesses- It is the aspect which stops companies from performing to their
optimum level and there are different areas wherein business needs to improve to remain
competitive such as weak brand image and inadequate supply chain activities (Gürel and Tat
2017).
Opportunities- It refers to the different external factors which are favorable and
provides competitive advantage which will be increasing sales of company.
Threats- It refers to the factors which have potential to harm companies such as
increasing competition and rising costs of the different materials.

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For instance- SWOT Analysis of Woolworths
Strengths
Strong Brand image and effective operations
It is the pioneer brand amongst oldest companies
Weaknesses
Limited global presence
Growing presence of online competitors restricted growth
Opportunities
Promoting brand through promotions and sponsorships
Opening new stores in various geographic locations (Woolworths.com.au 2019)
Threats
Huge competition from international players
Rising cost of raw materials will impact growth and profit margins
PESTEL Analysis
Political Factors- It is inclusive of factors which determine extent to which
government that influence the industry inclusive of political stability or taxation policies
(Hernández-Perlines, Moreno-García and Yañez-Araque 2016).
Economic Factors- The respective factors impact the entire economy and
performance that can impact companies and profitability inclusive of interest rates and rates
of foreign exchange.