An Analysis of Strategic Tools: Application in Business Strategy

This essay provides a detailed overview of strategic development tools used in business, focusing on PESTEL analysis, SWOT analysis, and Porter's Five Forces model. It explains how PESTEL analysis helps in analyzing macro-environmental factors (Political, Economic, Social, Technological, Environmental, and Legal) affecting an organization. The SWOT analysis is discussed as a tool for evaluating internal strengths and weaknesses, as well as external opportunities and threats. Furthermore, the essay elaborates on Porter's Five Forces model, which assesses industry rivalry, bargaining power of buyers and suppliers, and the threat of new entrants and substitute products. The essay concludes that these strategic tools are essential for effective planning and fostering positive growth for businesses, providing a framework for informed decision-making and strategic implementation.

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COMPETITIVE STRATEGIES IN BUSINESS
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The various strategic development tools that might be implemented in a given business
scenario might help the concerned business organization to consider the various potential
external and internal factors that might affect the concerned organization. This in turn might
assist in the mapping out of the numerous approaches that are considered to be necessary in the
matters that are required to put up with the impacts of the various factors that might have been
affecting the concerned business organization (Rothaermel 2015). These are a number of the
strategic development tools that might have helped ensuring the fact that the appropriateness of
the strategic implementations and the various consequent plans that are to be implemented in
order to implement the various action plans. The following essay deals with the discussion of
three different strategic development tools that might help in the development and
implementation of the numerous strategic developmental tools that assists in the overall growth
of the concerned business organizations.
One of the popular strategic developmental tools used by the various business
organizations is the PESTEL analysis tool. The PESEL analysis helps in analyzing the various
elements belonging to the macro-environment of the concerned organization that might have an
effect on the concerned business organization. This tool takes into consideration a number of
factors that might have an effect on the various functionalities of the organization. These factors
majorly include the Political factors, the Economic factors, the Social factors, the Technological
factors, the Environmental factors and the Legal factors that have been playing in the external
environment of the concerned business organization (Kolios and Read 2013). The PESTEL
analysis is an acronym that is used to refer to all the afore-mentioned factors that are needed to
be analyzed in order to deal with the effects that these factors might have on the concerned
automobile organization. The political factors that are highlighted in this analysis refer to the

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major political issues and policies that are maintained within the given country. These factors
generally highlight the various areas of the economy wherein one might find the intervention of
the government of the concerned state. The political stability of the global markets of the given
company might also be considered to be one of the major political factors that might affect the
automobile company. The company of Ford and General Motors, as for example, had fallen over
by 10% after the Brexit legislation in United Kingdom (Goodhart and Schoenmaker 2016). The
economic factors affecting the automobile company might refer to the economic growth that the
concerned organization is facing. The other economic factors that might affect the organization
are the inflation rates, the interests that the automobile company might have earned, the rates of
exchange that are followed by the concerned automobile company and the impact pf the same on
the concerned society of the state wherein the concerned automobile company has been located.
The social factors that affect the society are the attitudes and the shared interests of the people
who have been serving the given automobile organization. The technological factors that affect
the concerned automobile organization might refer to the various new ways that deal with the
production and the distribution of the various products and services that are provided to the
clients of the concerned automobile organization (Cairns et al. 2013). The technological factors
affecting the concern might refer to the various ways that are used for communicating with the
various clients of the concerned automobile organization. The environmental factors affecting
the automobile organization refer to the scarce conditions that the automobile company might be
facing in terms of the raw materials that are needed by the company and the other ethical and
sustainable factors that might affect the concerned company (Zalengera et al. 2014). The legal
factors that might affect the company deal with the various factors that deal with the safety and
the security of the concerned employees of the automobile organization and might pertain to the

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health and the safety measures, the equality in the various opportunities that are provided to the
concerned employees, the advertising standards that the concerned automobile company abides
by and the laws and the rights that the concerned company extends to the various clients of the
same.
The strengths and the weaknesses of the concerned company might be evaluated from the
results that are obtained from the PESTEL analysis of the concerned automobile organization.
Thus, it can safely be concluded that the SWOT analysis of the concerned organization might
follow from the PESTEL analysis of the concerned organization. The SWOT analysis of the
organization is generally conducted on the micro-environmental factors that might affect the
concerned company and is known to be another useful strategic development tool. The Strengths
of the organization, the Weaknesses of the organization, the Opportunities that the organization
might have and the Threats that the organization might face are brought together under one
group heading which is formed as an acronym for all the four groups, SWOT analysis (Shahabi
et al. 2014). This strategic development tool helps in the identification and the prioritization of
the various strengths of the organization, the weaknesses of the organization, the opportunities
that might be availed by the organization and the threats that are faced by the organization (Yuan
2013). The strengths of the organization often refer to the areas wherein the concerned
organization might deal with the various features of the company that enhance the growth of the
automobile company. The weaknesses of the company are generally the factors that deal with the
hinder the growth of the concerned organization (Xingang, Jiaoli and Bei 2013). The
opportunities of the organization generally refer to the sectors of the industry wherein the
company might find the areas of growth either in the same market or in markets of the foreign
lands. The threats of the concerned organization refer to the areas that the company needs to put

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a special look out for in order to bring about an overall growth of the automobile organization.
The SWOT analysis of the organization helps the concerned organization to identify the various
area wherein the concerned automobile company might need to improve in order to bring about
an overall growth in the growth of the concerned company.
The Five Forces Model as proposed by Michael Porter is considered to be yet another
tool that is used for the strategic development and planning of the policies that might need to be
implemented by the concerned organizations in order to analyze the concerned market on the
basis of the five factors that are proposed in the framework by Michael Porter. The five factors
that are put forth in the book Competitive Strategy, by Michael Porter include the industry rivalry
that exists among the various competitors in the market (Rothaermel 2015). The bargaining
power of the buyers also tend to be one of the major factors that affect the various businesses.
The bargaining power of the potential suppliers of the concerned automobile organization should
also be taken into consideration while analyzing the concerned market wherein the concerned
organization desires to expand (Yunna and Yisheng 2014). The company might also face the
threats due to the new automobile organizations that have been entering the market as well as the
companies and the products and services that have already been existent in the market. The Five
Forces analysis of the environment might help the concerned automobile company to form an
overview of the environment wherein the company operates and thereby helps the company to
plan the strategies that they might implement in the future (Aithal 2016).
Thus, in lieu of the above discussion it might safely be concluded that the tools employed
for the strategic development and planning help in the careful planning of the strategies that need
to be implemented and thus help in fostering the future positive growth of the concerned
company.

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