Understanding PESTEL and SWOT Analysis in Strategic Management

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Understanding PESTEL Analysis in the context of Strategic Management...............................2
PESTEL Analysis to analyse external environment of Kathmandu Holdings Limited, New
Zealand........................................................................................................................................3
Understanding SWOT Analysis in the context of Strategic Management..................................6
SWOT Analysis of Kathmandu Holdings Limited in New Zealand...........................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
Appendix........................................................................................................................................14

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Introduction
Strategic management is the continuous planning, supervising, monitoring, evaluation
and assessment of all that is essential for an organization to accomplish goals and objectives.
Rapid-paced innovation, advanced technologies and consumer expectations compel
organizations to think and undertake decision-making judgements to remain effective. Authors
have noted that strategic management process facilitate organizational leaders measure their
company’s current situation, develop strategies, efficiently develop them and analyse the
efficiency of implemented strategies and approaches (Villar, Alegre & Pla-Barber, 2014). The
strategic management process mainly entails measuring functional business decisions before
implementing them. According to Bailey et al. (2015), strategic management requires an
assurance to strategic planning, which corresponds to an organization's capacity to establish short
as well as continuing goals and objectives and subsequently establishing the decisions and
actions that must be implemented in order to attain those goals. The aim of the report is to
analyse external and internal analysis of Kathmandu Holdings Limited, operating their
businesses as online outdoor and camping store and providing services of Outdoor Supplies,
Clothing & Equipment. The report will analyse internal and external analysis environment of the
company and evaluate concepts, model and techniques of Kathmandu Holding’s strategy.
Discussion
Understanding PESTEL Analysis in the context of Strategic Management
PESTEL Analysis is identified as a method used to comprehend business environment
from a broader perspective. This incorporates understanding external and internal factors that

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have the implications of affecting the business. PEST analysis partially covers the distant
environment and the results which must be considered in combination with other
fundamental factors. PESTEL is amalgamation of establishments of a range of factors that not
only influence Kathmandu Holdings Limited but the entire industry as a whole. Kathmandu
operates its business as a primary retailer of quality clothing as well as equipment designed for
travel and exploration in New Zealand as well as Australia (Samuel, 2015). According to
reports, the company established its first retail channels in Australia whereas the company
manufactures majority of its original clothing collection in New Zealand
(Kathmanduholdings.com, 2019). Kathmandu at present comprises of around 137 stores; 45
in New Zealand, 87 in Australia in addition to 5 in the United Kingdom.
PESTEL Analysis to analyse external environment of Kathmandu Holdings
Limited, New Zealand
Political Factors
In order to accurately evaluate the regular political risk which Kathmandu Holdings have
the propensity to be exposed to, the following factors must be taken into account prior to any
business investments. Reports of Buchan (2014) have revealed that the uprightness of the
selected officials and their readiness to involve in illegal or corruption cases due to consequential
ramifications tend to result to potential accusations or resignations of government officials
positioned in top hierarchies.
The regulations and laws such as contract law and employment agreements are enforced
in New Zealand particularly in accordance to business. These agreements primarily state types of
business operations and laws Kathmandu Holdings Limited must adhere to. Furthermore, trade