Strategic Management: PESTEL, SWOT and Porter's Five Forces Analysis

This article discusses the strategies that organizations undertake for sustenance through PESTEL, SWOT and Porter's Five Forces analysis. It explains how these analyses help in understanding the factors that affect marketing and profitability. The article also discusses the importance of meeting the requirements of the people and the chief stakeholders of the organization.

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STRATEGIC MANAGEMENT
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The strategies that are being implemented by the management of the organizations are
based on the modifications that are required by the organization for sustenance. The most
important steps that are being undertaken by the organization are based on the requirements of
the people and the chief stakeholders of the organization. Therefore, in order to bring in the
changes, the organization is required to undertake certain strategies, which is implemented in
order to bring about the change in the organizational structure. the strategies that must be
undertaken by the organizations are being discussed in this context.
PESTEL
The PESTEL analysis of an organization helps in the understanding of the political,
environmental, social, technological, economic and environmental factors. The most important
phenomenon that is being undertaken by the analysis is to determine the availability of the
resources in the different factors and the limitations that are being faced by the organization
while marketing the product. The external factor that affects the marketing of the product is
being determined through the assessment of the factors.
The political factors are based on the determination of the norms and the regulations that
are being enforced by the governments of the nation and their influence on the marketing of the
product. The most important step that is being undertaken by the organization while assessing
the factors is the risk that the organization might face in the political environment of the region,
and the manner in which the product can be placed in the market (Dockalikova and Klozikova
2014). On the other hand, the environmental factors definers the changes in the environment
and their effects on the availability of the products in the market. The most important concern

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that the organizations holds in this connection is based on the longevity of the products that are
being produced by the organization.
The economic factor that supports the availability of the resources is based on the
economic conditions of the nation and the people. It is through the determination of the
demography that the organization places its products. It helps in determining the availability of
the resources in the market. On the other hand, social and legal factors also determines the
marketing the product of the organization. The social factors help in supporting the cause of the
product in the market (Sun et al. 2014). The acceptance of the product in the society is an
important step that helps in then placements of the product in the concerned market where the
potential consumers can make a buy. The technological advancements that are being
undertaken by the organization help the organization in modifying the products and bringing in
innovations in the product range.
SWOT Analysis
The SWOT analysis that is being undertaken by the organization helps in determining the
comparative strengths and weaknesses of the organization in the given market. It also enumerates
the opportunities and risks of the organization in a given market structure. It helps the
organization in understanding the discrepancies in the organizational structure and thereby
bringing modifications. The most important steps that are being undertaken by the organizations
are based on the changes that the organization must undertake in order to sustain in the market.
The sustainable approach of the organizations has helped in the proper manipulation of the factor
faced by the organization to bring in the changes (Görener, Toker and Ulucay 2012). The
analysis helps the organization in making note of the changes that are required to be undertaken

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and thereby implement the same on their organizational structure. The determination of the
strengths and the weaknesses helps the organizations in understanding the delicate flaws of the
organization where modifications are required to be undertaken. On the other hand, the
opportunities help in determining the points of expansion, which the company might undertake
for the progress. It also determines the threat that the organization might face while undertaking
the change. The SWOT helps in determining the situation of the organization and thereby
enumerates steps as to which the organizations can bring in the change in order to improve their
market situation (Yuan 2013). The analysis also helps the organization in undertaking the growth
and expansion and thereby makes assumptions in order to face the discrepancies that the
organization might face while undertaking the change.
PORTER’s five forces
The porter’s five forces help in determining the market considerations of the
organization, which the concerned organization must undertake in order to understand the
market. The most important steps that are being undertaken by the organizations helps in
determining the market of the organization. The most important steps that the organization
undertakes are based on the requirements of the people and thereby make significant changes in
the system. The factors that are being undertaken by the organization are based on the
identification of the market factors that affects the availability of the products manufactured by
the company (E. Dobbs 2014). It helps in determining the market rivalry; therefore, the steps that
are being undertaken by the organization is based on the preferences of the people. The analysis
helps in measuring the market competition of the organization and thereby undertakes steps in
order to examine the suitability of the functions that are being undertaken by the organization. it

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helps in determining the profitability of the firm in the market based on the competition that is
being faced by the concerned company.
The threat that the organization faces due to the substitute products is an important
consideration that is being undertaken by the organization. It helps in determining the
availability of the products manufactured by the organization and the marketing of the same. It
affects the placement of the products due to the competitiveness that the product has to face in
the market. On the other hand, the new entrants in the market also pose an important threat for
the concerned organization. It determines the market availability of the organization and the
proper allocation of the resources in order to ensure that the organization holds on to the market.
The new entrants also affect the demand of the consumers. The improvements that are being
brought in the products create a serious impact on the availability of the resources. Bargaining
power of the buyers and the suppliers is again an important factor that helps in determining the
market of the organization (Lee, Kim and Park 2012). The most important steps that are being
undertaken by the organization while making use of the analysis is based on the requirements of
the organization to make the sustainable in the market. The sustenance in the market helps the
organization in bringing in modifications in the system. The consumer-oriented approach of the
organizations and the other factors that is being analyzed by the strategies helps in determining
the position of the organization. The organization undertakes steps in order to understand the
requirements of the organization through which the proper functioning of the firms can be
controlled and evaluated.
The most important consideration undertaken by the organization is based on meeting the
requirements of the people. It therefore helps the organization in taking the most important steps
based on the strategies that are being implemented by the organizations in order to bring about

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the change. The organizations change based on the requirements of the market. Therefore, the
analysis helps in understanding the key flaws and thereby helps the organizations in working
over the flaws to bring in modifications in the system. The modifications helps in bringing in
improvements in the organizational structure and the market and results to the growth and
expansion of the organizations.

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References
Dockalikova, I. and Klozikova, J., 2014, November. MCDM Methods in Practice: Determining
the Significance of PESTEL Analysis Criteria. In European Conference on Management,
Leadership & Governance (p. 418). Academic Conferences International Limited.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Görener, A., Toker, K. and Ulucay, K., 2012. Application of combined SWOT and AHP: a case
study for a manufacturing firm. Procedia-social and behavioral sciences, 58, pp.1525-1534.
Lee, H., Kim, M.S. and Park, Y., 2012. An analytic network process approach to
operationalization of five forces model. Applied Mathematical Modelling, 36(4), pp.1783-1795.
Sun, Y., Guo, P., Ma, Z., Li, T. and Dang, S., 2014, November. UK-based external business
environment analysis of outdoor adventure clothing using the PESTEL tool and its future
outlook. In Information Technology Systems and Innovation (ICITSI), 2014 International
Conference on (pp. 306-309). IEEE.
Yuan, H., 2013. A SWOT analysis of successful construction waste management. Journal of
Cleaner Production, 39, pp.1-8.