Business Analysis and Models

This assignment delves into the realm of business analysis, exploring several key models used to assess a company's internal and external environment. It examines SWOT analysis for identifying strengths, weaknesses, opportunities, and threats; PESTEL for analyzing political, economic, social, technological, environmental, and legal factors; and ratio analysis for evaluating financial health through liquidity, profitability, and solvency ratios. The assignment emphasizes how these models provide insights to guide strategic decision-making, product quality assessment, and operational planning.

Interim Assessment

Table of Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Ratio analysis..........................................................................................................................3
Balance scorecard ..................................................................................................................4
PESTLE- ................................................................................................................................5
SWOT-...................................................................................................................................6
7-S ..........................................................................................................................................7
CONCLUSION................................................................................................................................8
RECOMNDECENS ........................................................................................................................8
REFERENCES ...............................................................................................................................9

ABSTRACT
Interim assessment is help to analysis condition of organization. This report has a purpose
to use tool and techniques in organization and give benefits . In this report analysis such kind of
tools Ratio analysis ,Balance scorecard ,PESTLE, SWOT, 7-S. Those help to identifies internal
and external factor and their effect on business like ration analysis define finical condition and
help in taking decision related to cash. Balance score card techniques is define record can
analysis day to day performance it can through know about requirement and changes any
department and strategy related decisions . PESTEL is define internal and external environment
and how to take change in business according to environment , SWOT a tools is explain
organization internally. It can company see their position in market and know about condition
and take new step.
INTRODUCTION
Every businessman wants to expand their business so they analyze different type of
internal and external environment. There are various tools that are used by them in order to
deliver their objectives in the best possible manner. It is very important to analyze different
factors. Based on it, company take various decisions and make policies and strategies for their
business. An internal analysis will be conducted in the project report with the help of SWOT.
Moreover, internal analysis through ratio analysis and balance score card will also be conducted,
owing to its importance for the business. The present report will further describe factors related
to political, economic and social, technological aspects about organization so that it can further
help in decision making.
Ratio analysis
There are number of benefits of ratio analysis method with respect to measurement of
company’s performance. Some major benefits of using this method are explained below: Measurement of liquidity condition: One of the major benefits of using ratio analysis is
that it helps firm in measuring its liquidity position in better way. Usually, it is assumed
that there must be sufficient amount of cash balance in the business so that liability can
be paid on time (Pant, 2017). It is the ratio analysis technique that help firms in analysing

its current liquidity position and ascertain the methods which helps in improving the
performance of the organization.
 Measurement of cost control capability: Ratio analysis Make this report have a purpose
for analysis of different model and give benfits of organization . uses in organization
and dalso helps firm in measuring its cost control capability through gross and net profit
ratio. In such cases, gross profit ratio value gets increased. It is assumed that firm have
strong control on its expenses. Same thing applied for net profit ratio in terms of control
on indirect expenses in the business as well.
Disadvantage of ratio analysis
Although, there are number of advantages of using ratio analysis method but there are
some disadvantages as well. Some of them are given below.
 Wrong measurement of liquidity issue in business: Ideal ratio for current ratio is 2:1
which means that for every single unit of current liability there must be double amount of
current assets in the business so that current liability can be paid on time. Every time this
standard is used to measure company performance, which is not good. This is because in
case of poor economic condition of the nation then in that situation it is not possible to
maintain 2:1 proportion of the current ratio (Advantage and limitation of financial ratio
analysis, 2013). Hence, in that condition, if current ratio value is below standard then it
must not be assumed that firm has failed to perform decently in its business.
Balance scorecard
It is strategic planning and management system which every organization use in
communicating that what they have achieved which is recorded on day to day basis. It is used by
the management team and they focused on the implementing strategy and managing it wisely.
Advantage of balanced scorecard
One of major advantage of using balance scorecard approach is that by using it in proper
manner, firm’s performance is measured in respect to different areas such as, financial
perspectives, customers, internal business process and learning as well as growth (Seferli and
et.al., 2015).
Limitation of balance score card
In this technique, areas where focus need to be made are required to be clearly
communicated otherwise it can have significant impact on performance measurement techniques.

(Balanced scorecard basics, 2017). Hence, by using balanced scorecard approach, performance
of company can be measured but it cannot be guaranteed that such measurements will be
accurate.
PESTLE-
In this, there are 6 elements. It analyse the key outside factors which have strong
influence on the functioning of the entity. These are: Political factor – This includes all government factors, like Govt. policy, foreign trade
police, tax police, labour law, environmental law all things. It doesn’t have much impact
on manager’s and leader’s decision because company take verdict based on laws of the
government. Any change in the political sector can directly influence the decision making
of the entity as well (Powel and et.al., 2014.). Economics factor- These affect every business and assess how profitable they are. It
includes, economic growth, interstate rest exchange rate this factor is also having they
affect the company leader and manger to take decisions. This differences in interest rate
and inflation can have significant impact on demand and supply (Nagar and et.al., 2016). Social factor –It also includes, cultural factors, attitude, trend of population etc. Growth
of population, age, distribution, health, age attributes etc.; these factor directly effect on
the manger and leader because company has to work for the society and minimum
inflation in society can change ever police rule and regulation, strategy can change.
Society can change in demand and supply of the company
 Technology factor – In technology, there have been advancements day-by-day. So, these
can affect every strategy and objective of management like market production,
distribution communication all things use new way. Manger makes the plan and strategy
related to old technology then they do not work properly. So, they also use new and
updated technology to fulfil the requirements.
 Environmental factor- These factors suddenly come in the organization and effect on
the raw material and population, demand and supply such as, heavy rainfall. It affects all
businesses. They do fail in strategy and plan of the manger and spoil target of the leader.
It is affected of making policy of related to the demand and supply of the consumer
(Laban and et.al., 2015).

 Legal factor- It includes law related to consumer rights, product labelling and product
safety, advertising policy, health and employee safety. In this, factor companies know
about regarding all right and legal issue. Manger and leader are making rules and
regulation against the legal write and Govt. change in it company do not follow Then
they spoil company goodwill in the market.
Advantage
 It is providing simple framework for usage of analysis of external environment
 Include cross functional skill
 Reduce impact and effect outside factor in organization
 Development of strategy with organizational
 Easily understand use
 Reduce future business threats (Liu and et.al.,2016)
 Simple tool and easily understand use
Disadvantage
 Easily loss data (Liu and et.al.,2016)
 Need to regularly update
 Required to data and research
 Time taking process and using lots of data
SWOT-
It is very useful method to understand strengths, weakness, opportunities and threat of any
organizational. In looking to the organization and their competitors using the SWOT framework,
you can start to craft a strategy that helps you distinguish yourself from your competitors, so that
you can compete successfully in your market (Chaturvedi and et.al.,2013).
Strength- in this define company having
 Quality of advantage,
 Product differentiation from other Uniqueness in the organization, like services, facilities of other Value of brand and
people see in the market of businesses
Opportunists- In this including, organization has some opportunist and expands their businesses
 Interest aware in market

 Some changes in the business so that f changes give expanded their business
Local events.
Weakness – The company is facing problem due to ongoing conflict in the organization. It
includes marketing process facing product, employee conflict ETC. (Pejmankhah 2014).
Threats - As a result of their analysis, the consultancy may decide to specialize in rapid
response, good value services to local businesses and local government.
Advantage
 In this through know about self-condition
 It can through multi-level analysis
Disadvantage
 It doing only for subjective analysis
 One dimensional model (Arzola and et.al.,2015).
7-S
This model is use in different situation in lots of variety . It can be use to elem,net of a
project as well as team. In this including 7 different type independent factor those are define as
either hard and soft .
Hard elements Soft elements
 Strategy
 structure
 system
 Shared values
 skills
 style
 staff
 Strategy – In this organization make plan maintain it and build for competitive advantage
over competition. Structure – It is way for divided responsibilities and who give information and detail of
working for whom. System – In this record daily activities and procedures for staff member get the job . Shared values – This come core value of organization and define corporate culture and
ethics of work. Skills – Actual and effective competence of worker when working ij company. Style – In this use different type of style who adopt by a leader. For motivate employees.

 Staff- It is general capabilities of business.
Advantage
 Increase performance of organization
 Want to see in future changes effect in company
 How to implement different type of strategy
Disadvantage
 It is having culture barrier
 Remote teams lack community
CONCLUSION
In this report, the report discussed regarding SWOT, PESTEL, ratio analysis and balance
score analysis. In this report, it explained the political, economic, technological, social, culture
that impact the company and its different type of advantages as well. Through this report,
company can easily find their strength, weakness, opportunities and threat. Also, defines swot
analysis benefit and disadvantage. A fine ratio analysis, uses and advantage or disadvantage were
also outlined. The report has helped to conduct overall analysis of the company.
RECOMNDECENS
ever organization should use this models because through these company find different
type of information like Balance of scored model is help to analysis future operation strategy,
changes in mission and give way to align, measuring product quality etc. through ratio analysis
analysis financial condition like in liquidity , profitability solvency etc. SWOT define
organization different strength , in right know opportunities have, weakness and threats it can
through they analysis condition in market, PESTEL is help to give information about
environment and influences effect on business.

REFERENCES
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