Strategic Frameworks: SWOT, Porter's, PESTEL, 7S, VRIO, SAFE Models

This report provides a comprehensive overview of various strategy management frameworks and models. It delves into SWOT analysis, Porter's Five Forces, PESTEL analysis, the 7S framework, VRIO, SAFE criteria, Balanced Scorecard, Value Chain Analysis, Bowman’s Strategy Clock and Strategic Canvas providing theories, strategy frameworks, models, tools, and formulas for each. The analysis aims to equip readers with a thorough understanding of strategic planning and decision-making processes within organizations, referencing Starbucks as an example where applicable. Desklib offers more resources for students seeking assistance with similar assignments.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Table of Contents
1.0 SWOT..................................................................................................................................4
1. Theories..............................................................................................................................4
2. Strategy framework............................................................................................................4
3. Strategy models..................................................................................................................4
4. Strategy tools......................................................................................................................5
5. Formulas.............................................................................................................................5
2.0 Porter’s five forces...............................................................................................................6
1. Theories..............................................................................................................................6
2. Strategy framework............................................................................................................6
3. Strategy models..................................................................................................................7
4. Strategy tools......................................................................................................................7
5. Formulas.............................................................................................................................7
3.0 PESTEL................................................................................................................................7
1. Theories..............................................................................................................................7
2. Strategy framework............................................................................................................8
3. Strategy models..................................................................................................................8
4. Strategy tools......................................................................................................................9
5. Formulas.............................................................................................................................9
4.0 7S Framework....................................................................................................................10
1. Theories............................................................................................................................10

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2. Strategy framework..........................................................................................................10
3. Strategy models................................................................................................................10
4. Strategy tools....................................................................................................................11
5. Formulas...........................................................................................................................11
5.0 VRIO..................................................................................................................................11
1. Theories............................................................................................................................11
2. Strategy framework..........................................................................................................12
3. Strategy models................................................................................................................12
4. Strategy tools....................................................................................................................13
5. Formulas...........................................................................................................................13
6.0 SAFE..................................................................................................................................13
1. Theories............................................................................................................................13
2. Strategy framework..........................................................................................................13
3. Strategy models................................................................................................................14
4. Strategy tools....................................................................................................................14
5. Formulas...........................................................................................................................14
7.0 Balanced Scorecard............................................................................................................14
1. Theories............................................................................................................................14
2. Strategy framework..........................................................................................................15
3. Strategy models................................................................................................................15
4. Strategy tools....................................................................................................................16

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5. Formulas...........................................................................................................................16
8.0 Value chain analysis...........................................................................................................16
1. Theories............................................................................................................................16
2. Strategy framework..........................................................................................................16
3. Strategy models................................................................................................................17
4. Strategy tools....................................................................................................................17
5. Formulas...........................................................................................................................17
9.0 Bowman’s strategy.............................................................................................................18
1. Theories............................................................................................................................18
2. Strategy framework..........................................................................................................18
3. Strategy tools....................................................................................................................18
4. Formulas...........................................................................................................................19
10.0 Strategic canvas................................................................................................................19
1. Theories............................................................................................................................19
2. Strategy framework..........................................................................................................19
3. Strategy models................................................................................................................20
4. Strategy tools....................................................................................................................20
5. Formulas...........................................................................................................................20
11.0 Generic strategy...............................................................................................................21
1. Theories............................................................................................................................21
2. Strategy framework..........................................................................................................21

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3. Strategy tools....................................................................................................................21
4. Formulas...........................................................................................................................22
Bibliography.............................................................................................................................23

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1.0 SWOT
1. Theories
SWOT analysis is used as a planning model that bases the strategies of an
organisation based on its strength, weakness, opportunities and threats that exist. In the case
of Starbucks, the application of SWOT can help to understand the competency of the
organisation (Starbucks.com 2018).
2. Strategy framework
Strength
 Brand image
 Product innovation
Weakness
 High price
 Distribution channels
Opportunities
 Speed of service
 Retail expansion
Threats
 Competitors
 Economic instability
Table 1: SWOT framework
(Source: Bull et al. 2016)
3. Strategy models
The correct strategy model that can be provided for the analysis of the capabilities of
Starbucks can be addressed based on the internal as well as the external factors that affect the
company. Based on the case study the strategy model that can be made includes:
Internal factors Useful Harmful
Strength
 Number of employees
Weakness
 Distribution channels

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 Innovative vision  Excessive price
External factors Opportunities
 Retail expansion
 Innovation
Threats
 Competitor strength
 High bargain price
Table 2: Strategy model
(Source: Phadermrod, Crowder and Wills 2019)
4. Strategy tools
The application of SWOT can provide certain benefits for Starbucks. One such
benefit can be the fact that the company can access future goals such as retail expansion
based on the analysis of the strength of the employees and the weakness that the company
have.
5. Formulas
Aggressive strategy Strength
 Brand image
 Product innovation
 Number of employees
Opportunities
 Speed of service
 Retail expansion
 Innovation
Defensive strategy Weakness
 High price
 Distribution channels
 Excessive price
Threats
 Competitor strength
 High bargain price
 Economic instability
Table 3: SWOT matrix
(Source: Blockeel et al. 2016)

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2.0 Porter’s five forces
1. Theories
For Starbucks, the threat of new entrants is less as the quality of the coffee provided
by Starbucks is high. The bargaining power or buyers and suppliers can be considered as
moderate threat for the company as competitors such as Caribou Coffee or Pete’s Coffee and
Tea provide have a low amount in terms of prices of the product and the requirements
purchased from the suppliers. Hence, the threat from competitors is high in the industry. The
threat of substitutes can be considered as medium as the independent coffee shops offer
opportunities for the customers to enjoy beer, wine and other liquor.
2. Strategy framework
Figure 1: Porter’s five force analysis of Starbucks
(Source: Starbucks.com 2018)

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3. Strategy models
As stated by Grünig and Kühn (2015) the significance of the five forces analysis is
that it can help to determine the structure and strength of the industries and analyse the threats
that need to be mitigated on a high priority.
4. Strategy tools
The benefit of the five forces analysis as a strategic tool is that help in analysing the
competitive position in which an organisation exists. At the same time, the relationship of
Starbucks with that of the buyers and suppliers can be analysed with the model
5. Formulas
An example of the formula is that Starbucks can analyse the competitive strength it
possess while engaging in product innovation to satisfy the customers. The results can be
evaluated and based on the evaluation strategies for innovation of the products and services
can be made by the company.
3.0 PESTEL
1. Theories
The application of PESTEL is done to analyse the situation that exists in the macro
environmental factor of an organisation (Pan, Chen and Zhan 2018). It affects the strategic
planning of an organisation.

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2. Strategy framework
Figure 2: PESTEL framework
(Source: Schuetz and Schrefl 2017)
3. Strategy models
Category Political Economic Social Technologica
l
Legal Environment
Factors Policies of
Governmen
t
Taxes
Inflation
Interest rate
Demograph
y
Culture
Life style
Technical
advancement
Innovation
Legislations
Laws related
to
employment
and
sustainabilit
y
Environmenta
l regulations
Management
of wastes
Impact on
business
Unfriendly
political
Difficulty
to cope
Customer Technical Legality of Effects of
pollution and

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ties leading
to loss of
business
with
internationa
l market
satisfaction innovations the product wastes
Time
frame
Indefinite Maximum
for 3
months
About 3-5
months
Till technical
update
6-12 months Cannot be
applied
Type of
impact
High High Medium High Medium Medium
Rate of
impact
Increasing As per
overall
economy of
country
Cannot be
determined
May cause
damage
Undesirable Harm
Importanc
e
Unfamiliar Important Critical Essential Severe Unknown
Table 4: PESTEL of Starbucks
(Source: Starbucks.com 2018)
4. Strategy tools
The advantage that Starbucks can gain from the analysis is that it can analyse the
factors that affect the expansion of the company in foreign lands. Solution to the external
issues can be identified and developed based on the analysis.
5. Formulas
Example of PESTEL can be the fact that while trying to understand the manner in
which customer delivery can be made as a success, Starbucks can analyse the environmental
factors that influence the purchase of the product offered by the company.

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4.0 7S Framework
1. Theories
McKinsey’s 7S model help managers to manage the hard and soft skills that exist in
an organisation. It can help in improving the condition of an organisation based on the skills.
The hard and soft skills portray the development an organisation can have in a competitive
industry.
2. Strategy framework
Figure 3: 7S framework
(Source: Aithal 2017)
3. Strategy models
Framework Application Aligned
Strategy Increase service delivery to customers Yes
Structure Hierarchical structure Yes
System Systems are concerned with support for Yes