Business Analysis: SWOT, PESTLE, and Porter's Five Forces Explained

This report provides a detailed analysis of various business strategies and frameworks. It begins with an examination of SWOT analysis, illustrating its application through case studies of different companies, including a general business, McDonald's, Ford Motor Company, and Brand Hilton, to assess their strengths, weaknesses, opportunities, and threats. The report then shifts to PESTLE analysis, evaluating Uber, Tesla, and General Motors, focusing on political, economic, social, technological, legal, and environmental factors. Finally, it delves into Porter's Five Forces model, identifying factors related to the bargaining power of buyers and suppliers, and the threat of substitutes in a given industry. The report offers valuable insights into strategic planning and market analysis, supported by relevant examples and diagrams.

Question 1
A SWOT analysis allows a marketer to examine all the facts associated with the business under a
single diagram. The cumulative impact of SWOT can be adjudged and a marketer can develop an
action plan to mitigate the impacts of the weaknesses and enhance the powers gained by the
strengths. In the diagram below we can see the SWOT analysis diagram of the business.
An overlook on the diagram gives a clear idea that strengths and opportunities are on the higher
side, uncertainty related to the renewal of the lease is a factor that gives us an idea that it can

become a successful business if we try to skim the market with the help of rightful pricing
alternatives (Sarsby, 2016).
Part 2
SWOT Analysis of McDonald Food Industry
Image 2: SWOT analysis of McDonald while moving in an emerging country of the world,
image retrieved from http://tbpaperrugz.joaohasselberg.com/a-swot-analysis-of-mcdonalds-
fast-food-chain-sahazeh8407.html
The above-mentioned diagram is applicable to the McDonald’s whenever they are planning to
move in an emerging country of the world. The values in the four quadrants of the SWOT chart

are going to remain stationary. Under this chart a marketer or an investor can check the
opportunities and threats alongside. When we compare the first two horizontal quadrants, we
find that every opportunity accompanies a threat. When we think about the popularity of the
McDonalds, it draws our attention towards the negative publicity gained by the company during
the course of its journey.
The comparison of the two quadrants in the lower horizontal bracket gives us an idea that the
trend of “healthy eating” is replacing the culture of “binge eating” and McDonald is required to
rethink about its product portfolio if they wish to make an entry in any new market.
Ford Motor Company

Image 3 SWOT analysis of Ford Motor Company under the wake of the sluggish performance of
the Automobile sector. Retrieved from http://wpessaywtnb.rhodesianridgebackclub.com/ford-
swot-qanake6415.html
The exercise of the SWOT analysis of a multinational company like Ford can cover its
international status. In the above-mentioned diagram we can clearly see that Ford’s growth in
China adds strength to their manufacturing facility, whereas their debacle European market can
be considered as a weakness. The values of SWOT variables may change, while comparing the
horizontal quadrants of the chart we can see that Ford’s less exposure to the Asia Pacific region
is a drawback, however, at the same time their performance in China is strength for them. The
current analysis gives them a lead that if they want to support their manufacturing unit in China
then they are required to focus on the Asia Pacific region. The comparison of opportunity and
strength area also presents a different case in front of them. Introduction of new emission norms
and culture of the hybrid cars support them, however at the same time a cut down in the fuel
prices can promote the competitors to market their products more fiercely in the market.
SWOT analysis of the “Brand Hilton”

Image 4: Brand Analysis of Hilton Group, Image retrieved from
http://aeessayyekt.wilsonpickins.com/the-strength-and-weaknesses-of-the-hilton-hotel-
management-ginaso2910.html
The range of SWOT analysis is not confined to a particular industry sector, it can be done on
certain other metrics as well, and for instance, we can take the example of the Brand Hilton, this
company has many products to offer. A SWOT analysis can support them while making a
decision about the diversification of their business. In the present case we need to understand a
few facts first, Hilton group earns its maximum revenue from its hotel business, however, while
looking at a SWOT analysis of the brand Hilton, their focus is more on the “patterns of the
tourism industry.” The case of the SWOT analysis of Brand Hilton while adjudging its position

in China can be studied for the lower two horizontal quadrants, instead of the looking at the
strength of Brand Hilton in the USA and European countries, they are focusing more on local
market and the presence of the brand in that area. Sometimes pointers in the SWOT analysis tally
can be reworked in accordance with the variable nature of the markets. Brand Hilton has a strong
and commendable presence in its native markets, however it requires to change a few things in
the area of the prices and other services with an intention to survive well.
Question 3
The PESTLE analysis of the Uber, Tesla and General Motors
From the point of view of an investor, the PESTAL analysis of UBER, TESLA, and GENERAL
MOTORS can give us a fair idea about the future performances of these companies. All the three
companies are technology-based companies and the market is volatile, prior to going for
comparative analysis. It is important to go for a separate analysis of the company.

Image 6: The PESTAL analysis of UBER, image retrieved from
https://www.allassignmenthelp.com/blog/5-best-and-practical-pestle-analysis-examples-to-know/
From the point of view of an investor, we can analyze image 6 and figure out legal factors and
environment based factors as the key findings of this PESTAL analysis. Both these factors are
depicting a threat for any long term investment in the company.

Image 7: A general PESTAL analysis of Tesla from the point of view of future investments.
Retrieved from
http://study-aids.co.uk/dissertation-blog/tesla-motors-case-study/
Tesla is a well-known name in the field of automobile companies; previously it was catering to a
niche segment by producing sports cars. However, now this company is heavily investing in the
sector of hybrid cars and planning to come up with the technologies of the future companies. The
above-mentioned diagram depicts all the positive pointers associated with the future technologies
and their reception in the various parts of world. We can clearly see that PESTAL analysis
indicates towards a bright future in the long run.
PESTAL of General Motors

As a company General Motors holds a strong position in the market, however, the growth of its
hybrid car segment is relatively sluggish; the current balance sheet of the company shows a
promising picture. But its integrity with the future demands and business environment is under
critical consideration.
Comparative analysis of the three companies
From the point of view of an investor, Tesla is a better investment, since they are a new entrant
in the market of hybrid cars, they cannot charge an additional premium on their units, secondly
they are moving ahead with the technology of future and their focus is sharp. Uber can be the
second-best option because of the participation of unorganized sector. This is a sensitive
business. Recent news articles related to the mishaps that took place with the customers in a
UBER cab makes them a vulnerable company. It is a high profit and a high-risk proposition. The
entry barriers in the segment of app-based cabs are on the lower side this is why it can face stiff
competition. The same can be said about General motors because the market for the fossil fuel-
based cars has already reached to the levels of the saturation and this is a negative factor.
Question 3
Factors like C and E will fall in the category of “threats of the substitutes.”
C. More students have access to the internet than ever before
e. Traditional public educational institutions are adapting their delivery models for online
learning.

Factors like F and H can be considered under the head of the “bargaining power of the
suppliers.”
F. Private companies such as Apollo are offering lower-cost education options.
G. Government legislation is urging faculty to consider lower-cost options.
Factors C will fall under the category of the bargaining power of the buyers.
C. More students have access to the internet than ever before
Factor G can be studied under the subheading of the threat of the substitutes.
Rest of the clauses like factor B and factor D does not qualify to be a part of five-factor models
because they are external factors connected with the production, the validity of the five force
model is related to the market competition scenario (Roy, 2011). It is true that demand and
supply can be considered as an important factor in this model; however, they are not applicable
in the present case scenario of the industry which is in a phase of transition.

Bibliography
Roy, D. (2011). Strategic Foresight and Porter's Five Forces. Munich : Grin Verlag .
Sarsby, A. (2016). SWOT Analysis. New York : Lulu .