Strategic Development Tools for Management and Organization in Global Environment

MANAGEMENT AND ORGANIZATION IN
GLOBAL ENVIRONMENT – 713747

Table of Contents
Executive Summary............................................................................................................3
Strategic Development Tools..............................................................................................3
SWOT Analysis...........................................................................................................................3
PESTEL Analysis..........................................................................................................................4
5F Model....................................................................................................................................4
Conclusion.........................................................................................................................5
References.........................................................................................................................6

Executive Summary
The business world is changing at a rapid pace, which is forcing business organisations to
continuously assess their existing strategies, develop new strategies and implement them in
the workplace, so that they can remain competitive. Formulating strong strategies that are
aligned with the mission and vision statement can help business organisations in achieving
their goals and objectives with ease. Therefore, business organisations use a number of
strategic development tools, in order to check the effectiveness of their existing strategies and
to develop new strategies, which would enable them to grab a greater share in the market.
This report has been prepared to gain a deeper insight into three strategic development tools.
Strategic Development Tools
Strategic development tools are methods or techniques that are used to analyse an
organisation’s strategy by assessing various factors that affect its business (Kunc & Bhandari,
2011). Some of the widely used strategic development tools are discussed below:
SWOT Analysis
SWOT Analysis, designed by Albert S. Humphrey in the 1960s, is the most widely used
strategic development tool throughout the world and is defined as Strengths, Weaknesses,
Opportunities and Threats. SWOT Analysis is prepared in a tabular form, i.e. in a 2*2 table
where strengths are written against weaknesses while the opportunities are listed against the
threats.
SWOT Analysis can help a company in assessing its internal as well as the external
environment because strengths and weaknesses are internal factors while opportunities and
threats are external factors that affect a company. Based on the results of a SWOT analysis, it
becomes easier for an organisation to develop a sustainable strategy in the market, which is
based on reliable and accurate information (G.Dyson, 2004). The usage of SWOT analysis
can vary from one organisation to another. Certain organisations use SWOT analysis as a tool
that helps them in kick starting the development of a strategy by analysing their internal
position and the prevailing market conditions whereas certain companies can use it in an
advance way to formulate important strategies that are imperative for the success of their
business. SWOT Analysis has also gained a lot of popularity amongst strategy developers