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BUS 2002 Strategic Business Analysis

   

Added on  2020-04-21

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Running head: Strategic business analysis Strategic business analysis
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Strategic business analysis The paper talks about the strengths and weaknesses of the pestle analysis, porter fiveforces model and blues ocean strategy within the organization. It explains that how these modelshelp to improve and enhance the strategic management decisions within the organization.Further, it tells that how CSR, shareholders, corporate governance and business ethics help tomaximize and increase the revenue and profit of the company. It explains the roles andresponsibilities of the shareholders within the organization to attain its long-term mission andvision of the firm. Answer 1Pestle analysis plays a vital and integral role in every organization to overcome on the competitors around the world. Pestle includes political, economic, social-cultural factors, technological, legal and environmental factors. The strengths and weaknesses of the pestle analysis have been discussed below (Rosenheim et al, 2011). Strengths Pestle analysis helps to the company to understand and evaluate the macro environment of the country. It helps to overcome on the competitors across the world. The company can evaluate and measure the plans, policies, strategies of the competitors around the world. It also helps to reduce the effects and impact of the potential threats of the company in the global market. It also provides a mechanism and framework to identify and evaluate the new opportunities across the world. It also helps to improve cross-functional skills and knowledge of the people across the world. In this way, the company can also maintain a favorable working environment in the organization as well as the environment. Through pestle analysis, the company can evaluate and identify the risks and challenges of the market. Therefore, it will also help to attain long-term goals and objectives of the firm. Further, the organization can improve its business plans, management and financial position of the firm through pestle analysis. The firm evaluates and measures the various 2
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Strategic business analysis external factors such as political, social, economic, legal, environmental and technological factors to beat the competitors in the universal market (Mkude and Wimmer, 2015). Weaknesses Pestle analysis is time-consuming process which can affect the business activities and operations adversely. The company needs to focus on the external environment on regular basis, sometimes the firm is not able to focus and monitors on the macro environment. It is the biggest weakness for the organization. Generally, organizations restrict to conduct pestle analysis due to cost and time considerations (Gupta, 2013). There are numerous people required to conduct pestle analysis in the global market. Further, the company has to use a lot of resources to conduct pestle analysis. In addition, pestle analysis does not provide enough and adequate information to overcome on the competitors around the world. Thus, it can affect the business activities and operations negatively. The company needs to invest huge amount while conducting pestle analysis. These are the various weaknesses of the pestle analysis which should be controlled and managed bythe companies to gain competitive advantages in the world (Yüksel, 2012). Porter five forces: The porter five forces include threats of entry, the power of buyers, threats ofsubstitutes, the threats of suppliers and competitive rivalry. The strengths and weaknesses of the porter five forces model have been discussed below. StrengthsThe porter five forces model helps to identify and evaluate the power of buyers in the competitive market (Lee, Kim and Park, 2012). It also helps to identify and measure the threats of new entrants within the organization. The company can analyze the bargaining power of suppliers in the global market through porter five forces model. The firm can also evaluate and analyze the rivalry amongst the existing competitors around the world. 3
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