Strategic Management Tools: PESTLE Analysis, SWOT Analysis, Porter's Five Forces, and Generic Strategies

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Competitive Strategy
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Executive summary
The strategy management tools are key criteria for evaluating the internal and
external factors that may affect a business process. The internal factors are those within
the scope of the business and the business can use them for competitive advantage.
Additionally these factors may also be the one impacting negatively to the business
requiring the organization to overhaul them. The PESTLE analysis, and porter’s five
forces evaluate the macro environment. SWOT analysis, and generic strategies gives
an insight of both the micro and macro environment. For the success of a business, it is
important to analyses these factors and understand the position of the organization.
This factors shape the path through which an organization take to achieve business
success.

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
PESTLE analysis.............................................................................................................................4
SWOT analysis................................................................................................................................6
Porter’s five forces...........................................................................................................................8
Generic strategies...........................................................................................................................10
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................12

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Introduction
Strategic management tools are instruments that measures the micro and macro
environment of an organization. They are used to predict the trends that an organization
has to follow for future success. They are the most important thing for a business to
consider during the planning process. Examples include PESTLE analysis, SWOT
analysis, porter’s 5 forces and generic strategies.
PESTLE analysis
PESTLE analysis is often known as PEST analysis and it is marketing principles
that seek to evaluate the external environment of a business. PESTLE is a mnemonic of
political, economic, social, technological, legal and environmental factors. The political
factors involve the government influence on the operations such as fiscal policies, tax
regulations, and trade tariffs, among others (Ho, 2014, pp.6480). Economic factors
include the rates of foreign exchange and inflation, economic situations, and interest
rate. Social factors include all factors that scrutinize the social environment of the
markets such as cultural trends, population and demographics, and customer beliefs
(Aithal, 2017, pp.45) Technological factors involve how the advent of technology such
as automation and innovation affects the organization. Legal factors encompass laws
and policies that organization have to follow in their operating environment. Lastly,
environmental factors involve aspects such as environmental offsets, global changes,
geographical locations, and climate
Apple Inc. is one of the most visible and recognized brand worldwide. In its
PESTLE analysis, Apple is affected by political factors through improved trade policies
and a stable political environment in developed countries. Economically, Apple is
affected by stable economies in developed countries and rapid economic growth in
developing countries. Socially, the increasing use of mobile devices and the use of
social media provides the opportunity for Apple due to the increasing demand for mobile
devices. In the technological facets, the rise of technological integration, cloud
computing, and growth of app markets give Apple the opportunity of growing its product
mix (Khan, Alam and Alam, 2015, pp.960). Legally, Apple is affected by an increase in
privacy and telecommunications regulations. Finally, the environmental factors affecting