Strategy Development Tools - Assignment

Running Head: STRATEGY DEVELOPMENT TOOLS
COMPETITIVE
STRATEGY

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STRATEGY DEVELOPMENT TOOLS
Executive Summary
In this paper, the focus will be given to the three developmental tools which help the
company to sustain in the competitive environment. The three developmental tools which will be
explained are SWOT ANALYSIS, PESTLE, and Porter Five Force model. Also, the discussion
will be based by focusing on the agricultural industry of Australia.

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STRATEGY DEVELOPMENT TOOLS
Table of Contents
Executive Summary................................................................................................... 1
PESTEL Analysis Framework....................................................................................... 3
Pestle analysis of Australian Agricultural Industry...................................................4
Porter's Five Forces Framework..................................................................................4
Porter five force analysis of Australian Agricultural Industry...................................6
SWOT Analysis Framework......................................................................................... 6
SWOT analysis of Australian Agricultural Industry...................................................7
Conclusion.................................................................................................................. 8
References................................................................................................................. 9

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STRATEGY DEVELOPMENT TOOLS
PESTEL Analysis Framework
PESTEL analysis is typically used for the analysis of the external environmental factors
which is based on six governing aspects which are political, economic, social, technological,
environmental and legal. This strategic framework provides the basic idea of how an
organization is operating. The different factors of this framework are important to understand the
operating environment of a company which helps in identifying the potential risks. Each factor
of this framework has its own significant effect on the company. The five governing factors of
PESTLE are
Political factors
It takes into consideration, the governmental factors which have its direct influence on
the organization's operation. It is mainly concerned with the governmental policies formulated
that affects the economy of a country and hence affects the organization and its process. The
trading tariffs, trade restrictions, fiscal policies laid down by the government affects the
organization's process and its operation.
Economic factors
They are dependent on a particular country's economy. A change in the country's
inflation rate, and the exchange rate will have its effect on the products and services which are
offered by the country. This will directly hamper the buying power of the customer and will
affect the organization's revenue.
Social factors
It related to the current social condition of a country. Factors such as gender distribution,
fashion trends, population, age etc. are the major determinants related to this.
Technological factors
Technological factors are directly concerned with the use of innovative ideas and
technologies that are used in the organization's operational process. Automation of a process, use
of advanced technologies like AI are the concerned factors (Camisón and Villar-López, 2014).