Organisational Strategy and Change Management - Benefits of PESTLE and SWOT Analysis

This article discusses the importance of strategy in an organisation and defines the concept of strategy. It also explains the benefits of PESTLE analysis, including cost-effectiveness, deeper understanding, identifying opportunities and threats, and gathering large amounts of data. Additionally, it discusses the SWOT analysis and how it is a blunt tool for strategy management, as it helps identify the strengths, weaknesses, opportunities, and threats of the organisation.

Organisational
strategy and Change
Management

TABLE OF CONTENTS
SECTION 1.....................................................................................................................................3
Answer 1......................................................................................................................................3
SECTION 2.....................................................................................................................................5
Question 3. Benefits of PESTLE analysis-..................................................................................5
Question 4. SWOT Analysis is the blunt tool for the strategy management-..............................7
REFERENCES................................................................................................................................8

SECTION 1
Answer 1.
Strategy can be defined as the knowledge of the goals as well as uncertainty of the any
events as these are taken into the considerations for improving the things within the organisation.
Strategy is considered as the blueprint of the decisions in the organisation which involves the
objectives and the goals, reduction of the key policies, planning for the achievement of the goals
as well as outlines the overall business of the company for carrying on its activities (Johnson and
et.al., 2020). The strategy can be defined as the goals will be achieved by the organisations
which usually means resources. Basically , the stragey emerges in the form of the pattern of the
activity which the organisations adopts within the interanl environment to achieve the
compeitirtve advantage. It includes the activities scuh as the strategic thinking as well as the
strategic planning. It is considered as very important resources which are avaialble for achieving
the goals of the organisation which are very limited. The strategy mainly includes the various
steps such as the setting of the goals and the priorities, determination of the actions which are
achieved as goas as well as the mobilisation of the resrouces for the execution of the actions
(Grant, 2021).
The strategy is is having various definations which are given by the different authors as
strategy is the pattern in the field of the decisions with the constrast witrh having the view that
strategy is basically the planning. The strategy typically includes the two major processes such as
formulation and the implementation. The formulation is ther analysation of the environmemnt or
the situation, making of the diagnosis as well as development of guiding the policies. This
involves activities like strategic planning and the stretgic thinking. On the other hand, the
implementation reffered to as the actions plans which helps the companies to ahcieve the goals
by estabilishing the policies (Teece, Raspin and Cox, 2020). Strategy mainly dependes on the
abiloty of foreseeing the future consequences of the present initiatives which are takebn by the
company. The basic requirements of the strategy are as follows-
 Excessive knowledge about the knowledge
 Knowing abiotu the market competitors

 Abillity for the examination of the knowledge and experience in the highly dyanamic
environement
 The imagination as well as the logic for choosing the alternatives
According to the Military theory, the stragey is basically the utilisation of both the peacer and
the war of the other nations by the large scale, long range planning and the development for
ensurting the security as well as the victory.
As per the Management theory, strategy is the field of the study as well as the practice in the
1960s. Before to this time, the strategy as well as the competition is rarely appears in the most
prominent management of the organisation. According to the Game theiory, the strategy can be
defined as the rules which the player uses for choosing between the available actionable options.
Emergent approach of the strategy is basically that in which it arises from the unplanned
activities as well as the initiatives in the company. Whereas, the prescriptive approach of the
strategy involves the systematic as well as the deterministic processes in which the analysis of
the organisation is done, by evaluating the performance as well as the external environment
which leads to the long term plan (James, 2018). The emergent approach is the one whose the
main objective is not decided as well as these are developed during its life as the strategy is
processed. On the other hand, a prescriptive approach is that whose main objective is defined in
the progress as well as its main aspects are developed before the strategy is commenced. Sokme
of the examples of the emergent strategy are using of the less fabric for making more number of
the clothes.
The emergent strategy has argues that the strategy which the company uses msut be
highly fluid. In this it changes according to the time by considering the internal as well as the
external environment. The proponents of this emergent strategy has argued that the prescriptive
strategy usually brings the binkers within the organisation as this hinders the companies abilty
for reacting to the changes within the businesses external enviroment as well as take the
advantages of the opportunities which are avaialble to them. In the prescrtiptive strategy, the
long term plan are done on the incorrect and the wrong assumptions and this has number of the
negative consequences (Sinha, 2019).
It has been identified that each of the strategy is having the merits as well as the demerits
ands so the most effective strategy which is much common among the companies ihncludes the
aspects of both the strategies that is emregent and prescriptive approaches. Whereas, it has been

fousdn that many of the executievs as well as the business owners believes that it is very
necessary for the companies to have the detailed and comprehensive strategic plan. This enables
the company to have the effective move towards the success at which they wants to be. This type
of the strategic plan is typically considered as the prescriptive strategy. The main reaosn due to
which the companies uses this type of the strategy is that when the company does not know
where they are going it enables them to get at right place and at the right time (Lepenioti and
et.al., 2020). This allows the executives as well as the managers for the effective understanding
of the resotuces which will be required by them to achieve the goals effectively. It has been
found that using this type of the strategy enables to incrase the level of the motivation as well as
helps in improving the clear undertsanding of the goals which are to be achieved by them as
compared to the emergent appraoch or the strategy.
SECTION 2
Question 3. Benefits of PESTLE analysis-
PESTLE analysis is the frameowrk or the model which enables the company to identify as
well as analyse the external enviroenmnt of the business. It is found that it is very braod activity
which is practices by the companies to know which all factors will affect the performance of the
organisation (Frue, 2020). The PESTLE stands for the Poltical, Economic, Social,
Technological, Legal as well as the environmental factors. By analysing these factors, helps the
company to assess the risks within the particular industry and the company as well as enables the
companies to take the effective decisions. By conducting the PESTLE analysis, helps the
companies to detect as well as understand the long term imapcts of the external factors. This
helps the company for supperting the various kinds of the plannings within the organisation such
as
 Strategic Business Planning
 Workforce Planning
 Marketing Planning
 Product Development
 Organisational Change
 People stratgies, projects as well as the reports (Setyadi and Wahyudin, 2020)
There are various benefits of using the PESTLE Analysis for analysing the external
environment of the organisation are such as-

Cost effective: The PESTLE analysis only costs the companies time and nothing other than this.
The additional programs enables the company to organise the inputs as well as trhe feedabakcs.
This is very simple process which can be completed through the document as well as the paper.
It is very simple and easy model or framework and the straightforward as this requires time only
for researching the factors which may affect the working and performance of the organisation. It
has been found that any individual can conduct the PESTLE abnalysis as this does not require
any kind of the specialisation.
Deeper and thorough understanding: The PESTLE analysis is used by the companies to
identify the external environment which may directly and indirectly affect the performmnace of
the business. Such as the company overlooking towarsd the safety and the consumer laws while
developing the prototype of their products, or when the company does not realise about the
technological barriers customers within the rural face. In short, PESTLE analysis enables the
companies to look at the various influential factors which can affect the success of the
company’s products as this promotes the development of the strategic thinking for the depper
and the thorough understanding of the overall straetgic planning (Pathak, 2020).
Knowing the opportunities: Opportunities are basically used by the companies for studying the
external environements. These are very imporatnt for the companies to know as this helps them
in growing by getting the competitive advantage. As this It helps the companies to understand
the wider environment of the business as well as It promotes the development of the strategic
thinking as well as the external environment. The company when performs the PESTLE analysis,
this helps the company to plan the stratgeis effectively which will help them in mitigating the
risks which has been identifiesd by using this model or the framework. It allows the company to
understand the opportunities and take advantage of them (Bush, 2020).
Determining the threats: This is one of the most significant thing for the company to identify the
threats, It helps the company to analyse the threats to the organisation and formulate the
strategies to overcome them. These threats unable the company to achieve the organisational
goals effectively that means it hinders the success of the company. The threats are the aspectys
which are to be addressed by the company to be successful. The companies using such analysis
will help them in efective understanding of the threats and helps them in formulating the ways
through which they will be able to formulate the effective strategies.

Large amount of the data: This analysis helps rthe company to gather the large amount of ther
data which enables them in effectively identification of the factors which will affect the
companies performance (Damean, 2020). This analysis is very beneficial for the organisations as
this helps them in staying ahead of the competitive advanatage by gathering the data by
conducting the research of the market.
From the above benefits of the PESTLE analysis it can be identified that it is very
imporatnt for the companies to use this as this will alow them to effectively know the impacts of
the factors on the performance of the overall organisation. Using such analysis is very beneficial
for the companies as makes them competent in the higly competitive market. It is highly
significabnt aspect which must be considered by the companies while growing their business as
well. The above such benefits provuided by the PESTLE analysis will enable the company to
stay ahead in the highly compeititve market.
Question 4. SWOT Analysis is the blunt tool for the strategy management-
The SWOT analysis is basically the framework which enables the company to understand
its internal capabilities. The SWOT stands for the Strengths, weaknesses, opportunities as well as
the threats. This analysis is considered as the blunt tool due to the reason that SWOT analysis
provides the position to the company which understand and know their company's opportunities
and then helps them in preparing the effective strategies for taking advantage from them
(Benzaghta and et.al., 2021). When the company gets the realistic view of the overall internal
environment, it helps them in identifying the ways which will effectively satisfy the customers as
well as enables them to achieve the objectives and improve the weaker areas which impacts the
performance of the company. The SWOT analysis is known as blunt tool because this framework
is very having the points which helps the company to achieve the success by knowing the
opportunities and improving the areas due to which the company's performance is getting
affected. Using such framework will allow the company to improve the effectiveness of the
overall organisation.
The swot analysis is a blunt tool because it delivers the insights of the company due to
which the organisation is able to grow faster and deliver values in domestic as well as
international marketplace. Basically it delivers the idea that the company is working in the right
direction in order to accomplish the goal of the company in effective as well as efficient manner.
With the assistance of the soot analysis the company is able to determine the strength which

acknowledges that the company has the capability to increase the sales of the company and lead
the marketplace in an appropriate manner. Along with that the strength of the company allows
the manager of the organisation to form certain activates the plans of action for the welfare of the
company. The strength of the organisation elaborates and allows the organisation to segregate the
audience as per their choice or taste and preferences. Furthermore by considering the elements of
the swot analysis the organisation is able to grow faster and able to satisfy the large numbers of
the customers in effective as well as efficient manner.
It is considered as the plans of action which the organisation allows to form strategies for
the development of the business and increase the value of the company in short period of time.
Along with that the utilization of the swot analysis the company has the opportunity to determine
the weakness which is important task for increasing the capability of the company and determine
the area of improvement. Due to that the organisation is able to increase the brand value of the
company and make changes in the association. The changes are as per the requirement of the
customers or the employees of the organisation. For the survival and success of the business it is
important to satisfy the people who are associated with the organisation (Janiah, S., 2019). The
satisfied employees of the organisation deliver their efforts in the positive manner and willing to
complete their work. With the assistance of weakness the organisation is able to bring the
innovation in the production and services of the company. In current period of time it is
significant to bring the innovation and determine the lack of skills in the organisation. Because
the weakness highlight the skills which the company need to adopt in order to increase the scale
of growth. Basically the strength and weakness of the company elaborate the position of the
company in the marketplace and they are interlinked with each other as well as objective or goals
of the company.
It delivers the idea that the company is working in the right direction or not for satisfying
the buyers and increasing the experiences of the large numbers of the customers. They are the
internal factor of the company that deliver the information of the required which is necessary for
the survival of the company. Due to the utilization of this model or the framework it is easy for
the manger to determine the requirement of the resources and capabilities of the association.
Due to identification of this factor the company has power to make the changes and form new
plans of action for the bright future of the company. The company has power to operate the
business and make changes in the function and operation of the association. The laments

considered in the swot analysis deliver the positive as well as negative points of that the
association which deliver huge support in making predication of the company. In general it
allows the stakeholder of the company to take imitative steps and prepare themselves for the
forthcoming challenges. On the basis of that the company has the opportunity to compare the
position with the other members of the company and form the decision.
The decision making process drive the success in an appropriate manner. Therefore it is
renowned the swot is one of the effective tool for the movement and welfare of the association.
On the other hand the elment of the company that is opportunity which is also effective for
determining the posbility of the company to lead the association. The oopprtunity deliver the
idea that the company can expend the business in the gfollowing manner. In the opportunity
element make sure that the company can inter in different marketplace and incesease the sales of
the company or build the relationship with the other peoples for the further growth of the
company. Moreover it is helpful in targeting the right audiences to deliver the right product and
services to the right buyers for the long period of time. It delivers the insight to the company for
being more profitable and increase or boost the productivity of the company. For instance the
Tesco company has the opprrtunity to enter in new marketplace with the assistance of innovative
product. It means the company can modified the product as per the requirement of the customers
of new marketplace. So the company will focus on that in context to increase the capabilities of
the company. With the support of that the organisation is able to gain or acquire the competitive
advantages Lurati, and Zamparini, 2018).
In genral it is the sources which deliver the information and data for the planning and
organising the strategies for the development of the association. Due to the support of that the
organisation is able to determine and for the objectives and goals for the further progress of the
association. On the basis of swot analysis the individual person, manager or the organisation id
able to identify the past, future as well as present of the company as it includes the current data
of the company. The last elements f the swot is threat which is also play essential role in the
success of the company as the manager of the company identified the threat and mange to
overcome with the threats. Apart from that the workers of the company is able to know more
about the company and the values in inadequate manner. Therefore the SWOT is considered as
the blurt tool for the strategic management.

REFERENCES
Books and journals
Benzaghta, M.A., and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights, 6(1), pp.55-73.
Bush, T., 2020. Time Series Analysis: Definition, Benefits, Models.
Damean, X., 2020. Metoda PESTLE-strategie importantă în identificarea avantajelor
comparative și competitive a sectorului vinicol în diverse economii naționale.
Frue, K., 2020. PEST analysis ultimate guide: Definition, template, examples. PESTLE
Analysis.
Grant, R.M., 2021. Contemporary strategy analysis. John Wiley & Sons.
James, M., 2018. Emergent Strategy. The international encyclopedia of strategic communication,
pp.1-10.
Janiah, S., 2019. STRATEGIC MANAGEMENT EFE-IFE MATRIX, SWOT ANALYSIS,
COMPETITIVE PROFIL MATRIX (CPM) DAN BCG MATRIX PADA PT
YAMAHA. Jurnal Ekonomi Manajemen Sistem Informasi, 1(2), pp.188-196.
Johnson, G., and et.al., 2020. Exploring strategy. Pearson UK.
Lepenioti, K., and et.al., 2020. Prescriptive analytics: Literature review and research
challenges. International Journal of Information Management, 50, pp.57-70.
Lurati, F. and Zamparini, A., 2018. Communication SWOT analysis. The International
encyclopedia of strategic communication, pp.1-8.
Pathak, R., 2020. What is PESTLE Analysis. Factors, Advantages and Importance. Retrieved
from Analytic Steps: https://www. analyticssteps. com/blogs/what-pestle-analysis.
Setyadi, A. and Wahyudin, E.R., 2020. Pestle Analysis Management Risk Iso 31000: 2018
Toward Integrated Management System (Iso 9001: 2015, Iso 14001: 2015, Iso 45001:
2018) For The Construction Services Industry In Indonesia. Solid State
Technology, 63(6), pp.6222-6281.
Sinha, S., 2019. The emergent-strategy process of initiating organizational
ambidexterity. Journal of Strategy and Management.
Teece, D.J., Raspin, P.G. and Cox, D.R., 2020. Plotting strategy in a dynamic world. MIT Sloan
Management Review, 62(1), pp.28-33.
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