Strategic Management Tools: PESTLE, Porter's Five Force Model, and SWOT Analysis

Running Head: Competitive Strategy
Competitive Strategy

Competitive Strategy 1
Introduction
The aim of this essay is to inform the reader about the strategic management tools that helps an
organization to succeed in the target market. There are various strategic management tools and
techniques that help a business in managing their external activities. Further, the below-
mentioned essay provides detailed analysis of three strategic development tools that helps the
marketers to help an organization take strategic decisions for the betterment of the company.
Three tools explained in this report are PESTEL, Porter and resource based view. More details
about the task are discussed below
Strategic development tools
Strategic development tools are those tools that help a business in taking strategic decision for
the organization. These tools are made to support the research results of the marketers. They
helps in enhancing the decision making process of an organization by helping to understand the
market capabilities. The PESTEL and Porter are macro environmental analysis whereas resource
based view is micro environmental analysis. The external analysis tells about the external
environmental features that affect the activities of business whereas the internal analysis talks
about the internal ability of the business to perform certain functions. As the environment is
becoming difficult for business to predict, so these tool helps in understanding the market
attributes and taking positive strategic decision (Rothaermel 2015). Further, the three tools are
discussed below,

Competitive Strategy 2
Source: (https://christiandunca.wordpress.com/2014/11/09/portfolio-3/)
Beginning with PESTEL analysis, it is a framework utilized by the marketers to simplify the
large scale environmental viewpoints that can influence the activities of an association. This
framework computes the outside natural component identified with the organization. The full
type of this instrument is Political, Economic, Social, Technological, Environmental and
ultimately Legal. Further, explainying the political factors it should be noted that this aspect
includes details about the government actions and the political relations between different parties
in the environment. The economic analysis talks about the economic stability present in the
environment. The economic aspect also includes conditions of the buyers to purchase certain
products in the environment (Yüksel 2012). Further, the social factor talks about the socio-
cultural aspects present in environment that affects the strategic decision of an organization. It
includes the taste, preference, religion etc. of the people of a region. The technological factor
includes the ability of an environment to adopt technology use it in their business process.
Environmental factors talks about the aspects related to the nature of the country. And lastly
legal factors include the rules and regulations implied by the government on the business
industry (Bivolaru, Andrei, and Purcaroiu 2009).