Tools for Global Strategy: PEST, Porter's 5 Forces and SWOT Analysis

This report discusses the strategies that are required to be implemented for better analysis of the productive strategy. PEST, Porter’s 5 forces and the SWOT analysis tools are chosen for the analysis of the business functioning.

Running head: TOOLS FOR GLOBAL STRATEGY
TOOLS FOR GLOBAL STRATEGY
Name of the Student
Name of the University
Author note

1
TOOLS FOR GLOBAL STRATEGY
Analysis of the report
This report discusses about the strategies that are required to be implemented for better
analysis of the productive strategy. John Ferrer and Deborah has been exploring the global
market and checking the function of different companies. Hence they found that the platform of
analysis that is needed to be chosen requires proper management of the aspects regarding the
political, socio-economic and the technology that is being used for commencing of the duties that
are being performed by the business organization. This report mainly focuses on analysis of the
analytical tools that are to be used I the prosecution of the tools that will help in better
prosecution of the tasks that will be performed with the help of the management of the business
that is to be performed. PEST, Porter’s 5 forces and the SWOT analysis tools are chosen for the
analysis of the business functioning.
I still believe that the usage of the PEST analysis, Porter’s 5 forces and the SWOT
analysis are still the best analysis tool that are present in the global market. With the help of this
tools proper analysis can be performed.
The main reasons why I will stick to the usage of the PEST analysis are as follows: -
 The cost effectiveness of the PEST analysis is very high. This ensures the fact that
commencing of the process gets easier. With the help of the PEST analysis the main
advantage that will be enjoyed is that a deeper knowledge of the business functioning.
PEST will also help in better determining the influential causes that might affect the
cause of product launching and sustaining of the product. With the help of the PEST
analysis better understanding of the political issues that might affect the product and the
business organization can be determined. This is the main reason that the commencement

2
TOOLS FOR GLOBAL STRATEGY
of the project. Economic analysis of the business organization will help in understanding
whether the project is viable too perform or not. In case the economic sustainability is not
present then commencement of the project will not be of not much effect. PEST analysis
will also help in understanding the social acceptance of the product that is being focused
on. This enables the business organization to decide whether to invest on the product or
not as per the social demands. PEST also helps in understanding of the technology that
must be used and the circumstances that might arise due to the use of the technology. For
evidence the success of brand like Nike can be used. Nike uses PEST analysis as the
prime data analysis tool. An evidence of Starbucks using the PEST for a roper and
efficient global strategy analysis.
 The main advantages of implementing Porter’s 5 forces model, that made me chose this
model is that the proper estimation of the threats of new entrants in the field. With the
help of the analysis the main advantage is that recognition of the competition acts
beneficial in completion of the project. Understanding of the Supplier power is also
important and hence better commencing of the project can be performed. With the help of
the supplier power a basic estimation of demand can be estimated. With the help of the
understanding of the buyer power the advantage that is enjoyed includes better
procurement of understanding the stature of the business organization in the global
market. Threats of new substitution helps in understanding of the features that has been
omitting the business and demeaning them form staying in the top level.
 SWOT analysis is also one of the best tool that can be used for the better analysis of the
projects. SWOT analysis takes into consideration the analysis of the Strength,
Weaknesses, Opportunities and the Threats the business organization might be facing.

3
TOOLS FOR GLOBAL STRATEGY
This analysis of the stated aspect help in understanding of the strengths that the product
might be having. This is the main reason that the prosecution of the viability of the
project that is to be undertaken can be calculated (Idris & Abdul Wahab 2015). With
proper calculation of the strengths of the project, planning can be made accordingly that
will affect the launching of the project. By understanding the strengths of the product that
is under analysis, marketing strategies can be built around it (Gürel & Tat 2017).
Weakness of the products are also well analyzed. With the help of the better
understanding of the properties of the products. With the help of the understanding of the
weaknesses that are present in the product the main advantage that is present in the
processing of understanding of the issues that might effect of the functioning of the
business organization. With the help of the SWOT analysis, understanding of the
opportunities that are present in the completion of the project will be well termed. With
the help of the better understanding of opportunities the business organization might
explore those areas. Threat management can also be performed with the help of the
SWOT analysis. With the help of the SWOT analysis the threats that are present in the
commencing of the projects can be analyzed. By analyzing the threats, preventing steps
can be taken as per the requirement. This is the main reason that the projection of the
entire system can be performed with higher intensity (Beausoleil & Mellor 2015). For
evidence of the high success rate of the analysis tool, Amazon will be one of the best
example of a successful organization that uses SWOT analysis for analyzing their project
functioning. Coca Cola is also one of the major brand that uses the SWOT analysis as
their prime data analysis tool (Shabanova et al., 20015).
Reason to refute other tools are as follows: -

4
TOOLS FOR GLOBAL STRATEGY
 As per other methodologies few methods get used for performing the internal analysis of
the business organization. This is one of the main reason that the management of the
business that will be using these terminology will not be overall accepted. This analysis
of the entire system will not be much efficient but in case of using the SWOT and PEST
analysis a combination of both internal and external analysis will get performed.
 Some tool might just provide the external analysis of the business organization. But
provisioning of both internal and external aspect will be one of the major issue.
Business Analysis
With the help of the tools that have been selected in the process, PEST will help in better
understanding of the political and environmental issues that might be present. In that case the
company will be benefitted and a better understanding of the entire business management can be
performed in a better manner. Again with the help of the SWOT analysis proper management of
the internal issues can be performed. With the help of the Porter’s 5 forces model better
understanding of the business standing can be well analyzed and hence steps can be taken to
regain the lost stature.
I still believe that PESTLE and Porter’s 5 forces are the best tools for performing better
market analysis. Despite this tools implementation of SWOT analysis can be acting proficient in
completion of the task.

5
TOOLS FOR GLOBAL STRATEGY
References
Beausoleil, N. J., & Mellor, D. J. (2015). Advantages and limitations of the Five Domains model
for assessing welfare impacts associated with vertebrate pest control. New Zealand
Veterinary Journal, 63(1), 37-43.
Gürel, E., & Tat, M. (2017). SWOT ANALYSIS: A THEORETICAL REVIEW. Journal of
International Social Research, 10(51).
Idris, J., & Abdul Wahab, N. (2015). The competitive advantages of Sharia-compliant hotel
concept in Malaysia: SWOT analysis. Fakulti Pengurusan & Muamalah.
Shabanova, L. B., Ismagilova, G. N., Salimov, L. N., & Akhmadeev, M. G. (2015). PEST-
Analysis and SWOT-Analysis as the most important tools to strengthen the competitive
advantages of commercial enterprises. Mediterranean Journal of Social Sciences, 6(3),
705.