Utility of Strategic Development Tools for Long-term Success
Added on 2023-06-10
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Running head: UTILITY OF STRATEGIC DEVELOPMENT TOOLS
Utility of Strategic Development Tools
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Utility of Strategic Development Tools
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Name of the student
Author note
1UTILITY OF STRATEGIC DEVELOPMENT TOOLS
The essay is going to discuss effective strategy development procedure in order to
assure long-term success for a certain organisation. There are specific activities and factors
practiced by managers, which work together to form a process that leads an organisation
towards its goal. Strategy development tools are an integral part of managerial practice as it
directly contributes to the organisations’ profit and accomplishment. These tools help the
managers to take significant business decisions as well as enable them to frame effective
business strategy for the firms. Several strategic models and frameworks have been
developed based on years of experience and learning; hence, with the purpose of guiding the
organisations to attain their objectives, this essay will focus on four major strategic
development tools and its function. As described in an article of Wirtz et al. (2016), these
tools are designed to cooperate with the managers to frame and practice their strategic ideas
both in predictable and unusual situations confronting an organisation.
It is difficult to define strategy, as it does not carry a single definition. However,
Management is able to make essential alterations in both business strategy and operations by
accessing necessary information and they should have the potential to understand the ways to
make best use of the resources. Strategic tools are framed by evaluating some essential
aspects of business operations. Before defining any business strategy, external environment
and internal capability of the firm should be analysed and after that management can
implement the strategies whatever have been framed (Achtenhagen, Melin and Naldi 2013).
The purpose of this essay is to elaborate four strategic development tools as follows, in order
to make the development process easier and enable the managers to be more productive.
The most trusted and one of the widely used strategic development tools, is porter’s
five forces model, which deals with competitive position of a certain organisation in the
market. Following the theory of Michael Porter, management should recognise the areas of
The essay is going to discuss effective strategy development procedure in order to
assure long-term success for a certain organisation. There are specific activities and factors
practiced by managers, which work together to form a process that leads an organisation
towards its goal. Strategy development tools are an integral part of managerial practice as it
directly contributes to the organisations’ profit and accomplishment. These tools help the
managers to take significant business decisions as well as enable them to frame effective
business strategy for the firms. Several strategic models and frameworks have been
developed based on years of experience and learning; hence, with the purpose of guiding the
organisations to attain their objectives, this essay will focus on four major strategic
development tools and its function. As described in an article of Wirtz et al. (2016), these
tools are designed to cooperate with the managers to frame and practice their strategic ideas
both in predictable and unusual situations confronting an organisation.
It is difficult to define strategy, as it does not carry a single definition. However,
Management is able to make essential alterations in both business strategy and operations by
accessing necessary information and they should have the potential to understand the ways to
make best use of the resources. Strategic tools are framed by evaluating some essential
aspects of business operations. Before defining any business strategy, external environment
and internal capability of the firm should be analysed and after that management can
implement the strategies whatever have been framed (Achtenhagen, Melin and Naldi 2013).
The purpose of this essay is to elaborate four strategic development tools as follows, in order
to make the development process easier and enable the managers to be more productive.
The most trusted and one of the widely used strategic development tools, is porter’s
five forces model, which deals with competitive position of a certain organisation in the
market. Following the theory of Michael Porter, management should recognise the areas of
2UTILITY OF STRATEGIC DEVELOPMENT TOOLS
competition to understand the position of their company and react accordingly. Moreover, his
theory suggests that several influencing aspects work behind while framing business
strategies. Besides, according to Nagle and Müller (2017), the responsible management
behind strategy analysis explores this model to understand new scopes that are related to
profitable product and service. Realising the centre of power, the model is used to identify
strength of an organisation as well as areas of improvement. Briefly, a detail reading of
Jarzabkowski and Kaplan (2015), the model of five forces delivers a perception of industry
rivalry and helps the organisations to recognise the opportunities recovering the threat of
competitors. The five forces are, 1) it is easy for suppliers to increase the price of the product.
The power of suppliers is driven by specific factors. The number of suppliers, the unique
characteristics of their service, strength and size; all these aspects influence the suppliers to
increase the price. It can happen if buyers are frequently switching from one supplier to
another, as well. 2) Buyers hold the power to bargain and drive down the prices of the
products of their choice. Again, various factors can be found which determine the intensity
of their power, such as, number of buyers and significance of them to the suppliers. It will be
expensive if the buyer is switching frequently among suppliers. The buyers will be powerful
and able to operate business in their own terms if they have very few competitors (Hesping
and Schiele 2015). 3) Threat of new competitors can trouble the existing company’s market
position if the business is profitable. 4) The fourth one is the threat of substitution. When
there are similar or better substitute products exist in the market, buyers tend to switch
between products to find out the best suitable one according to their requirement. This, not
only reduces the power of suppliers but also the price of the service is increased in this
course. 5) The rivalry is determined by the capability and number of business organisations
dealing with same service.
competition to understand the position of their company and react accordingly. Moreover, his
theory suggests that several influencing aspects work behind while framing business
strategies. Besides, according to Nagle and Müller (2017), the responsible management
behind strategy analysis explores this model to understand new scopes that are related to
profitable product and service. Realising the centre of power, the model is used to identify
strength of an organisation as well as areas of improvement. Briefly, a detail reading of
Jarzabkowski and Kaplan (2015), the model of five forces delivers a perception of industry
rivalry and helps the organisations to recognise the opportunities recovering the threat of
competitors. The five forces are, 1) it is easy for suppliers to increase the price of the product.
The power of suppliers is driven by specific factors. The number of suppliers, the unique
characteristics of their service, strength and size; all these aspects influence the suppliers to
increase the price. It can happen if buyers are frequently switching from one supplier to
another, as well. 2) Buyers hold the power to bargain and drive down the prices of the
products of their choice. Again, various factors can be found which determine the intensity
of their power, such as, number of buyers and significance of them to the suppliers. It will be
expensive if the buyer is switching frequently among suppliers. The buyers will be powerful
and able to operate business in their own terms if they have very few competitors (Hesping
and Schiele 2015). 3) Threat of new competitors can trouble the existing company’s market
position if the business is profitable. 4) The fourth one is the threat of substitution. When
there are similar or better substitute products exist in the market, buyers tend to switch
between products to find out the best suitable one according to their requirement. This, not
only reduces the power of suppliers but also the price of the service is increased in this
course. 5) The rivalry is determined by the capability and number of business organisations
dealing with same service.
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