Strategy Development Models Assignment 2022

Running head: STRATEGY DEVELOPMENT MODELS
Strategy Development Models
Name of the Students
Name of the University
Authors note

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STRATEGY DEVELOPMENT MODELS
Introduction
Strategies are developed in business to gain desired outcomes that may include
achieving a goal or solving a problem. Increasing competition and market changes has
compelled the organisations to perform out of the box. Strategy setting or planning is
therefore, an integral part of the organisational set up to gain competitive advantage (Phillips
and Moutinho 2018). Experts have developed a number of models and theories for the
strategy setting purposes. Most of the organisations use some of the business strategy setting
models to select their operational standards. The models have been developed to address
different parts of a business decision making prospects. Central concern of these models are
the marketing issues and profit gaining model construction. The theories helps the
organisation to evaluate certain aspects of business markets and environment so that the
procedure of operations could be selected. Strategy development models are important to
judge the different issues in unknown and known markets. This essay will concentrate in
some of these models and try to examine their effectiveness in business context.
PESTEL
PESTEL is the analysis tool that is used to evaluate and monitor macro-environmental
factors that may affect performance of an organisation. PESTEL is specifically useful when a
company decides to enter a foreign market (Anton 2015). The different factors in the
PESTEL model analyses Political, Economic, Socio-cultural, Technological, Environmental
and legal aspects of the market. All these internal and external factors of an organisation is
mostly judged along with other analytical tools such as SWOT and Porter’s Five Force.
Political Factors

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STRATEGY DEVELOPMENT MODELS
This part of the model analyses how much a government or political establishments
influences the business world (Sharma 2016). The political issues are important as they are
different in different countries.
Economic Factors
Company’s economic performance is hugely determined by the economic factors of
the country or market. Consumer’s income, employment rate, recession and GDP casts and
influence on company performance.
Socio-cultural Factors
The organisation have to perform within the social values and characteristics. Trends
of the population, their age, career attitudes, lifestyle attitudes, all are the determinant factors
of a company’s workforce conditions (Pan, Chen and Zhan 2018).
Technological Factors
Technological innovations could affect a market in favourable or unfavourable way.
Level of innovation and automation, R&D, technological awareness and changes are the
issues that can save a lot of money spending for the company in new market conditions.
Environmental Factors
Environmental issues can affect the availability of the raw materials, checking the
carbon foot print and pollution targets. The companies are also giving importance to the CSR
issues that need to evaluate the environmental factors (Wirtz et al. 2016)
Legal Factors