Importance of Strategic Tools for Organizations: PESTEL, SWOT, Ansoff, and Five Forces Analysis

Running head: MBA
MBA
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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
PESTEL analysis....................................................................................................................2
SWOT analysis.......................................................................................................................2
Five Forces analysis...............................................................................................................3
Ansoff matrix.........................................................................................................................4
Conclusion..................................................................................................................................4
Reference List............................................................................................................................5

2MBA
Introduction
The main purpose of this essay is to understand the importance of the strategic tools
taken up by the organizations so that it can earn an advantage in the market. It helps the
companies in assessing the environment internally and externally so that the products and
services can add value to its customers. The essay will focus on the importance of PESTEL,
SWOT, Ansoff and Porter’s Five Forces analysis with respect to Aldi as a company so that it
can help in understanding it in a better manner.
Discussion
PESTEL analysis
This strategy helps in understanding the external environment in which the company
is operating. It is an abbreviation for Political, Economic, Social, Technological,
Environmental and Legal. The political factors help in understanding the policies and
procedures that are present in the country in which the company is operating its business
(Bocken 2017). The economic conditions are also important as it helps in understanding the
financial position of the market in the world and the opportunities present to Aldi that will
help them in growing globally. The social factors help in understanding the society in which
the products and services will be provided so that Aldi can understand the needs and demands
of the customers (Mayo 2016).
The technological factors will allow the company in adopting the latest technologies
that are present in the place so that the goods and services can be manufactured and delivered
efficiently to the customers and maintain a lower operating cost. The legal factors need to be
assessed by Aldi so that it can help in understanding the rules and regulations that they need
to follow so that the business can continue in an ethical manner (Tanaka 2013). The
environmental factors will help the company in understanding the effects of pollution that can
hamper the surrounding environment. Aldi needs to take up certain Corporate Social
Responsibility (CSR) activities that will allow them in maintaining the trust among the
customers with respect to protecting the environment and making the business sustainable in
nature (Bocken 2017).
SWOT analysis
This strategical tool allows the company to measure its internal strengths so that it can
be capable to compete in the market within the rival companies. It stands for strengths,
weakness, opportunities and threats that Aldi needs to assess so that it can help in gaining a