Competitive Strategy: Key Strategy Development Tools

This essay provides a comprehensive overview of key strategy development tools essential for effective business management. It delves into four primary tools: PESTEL analysis, Input-Output model, Porter's Five Forces, and the Resource-Based View model. The essay explains how PESTEL analysis helps businesses understand external influences such as political, economic, social, technological, environmental, and legal factors. It also discusses the Input-Output model's role in identifying inputs and outputs within business operations and analyzing regional financial interdependence. Porter's Five Forces model is examined for its role in analyzing competitive forces and industry structures, while the Resource-Based View model is explored for its emphasis on leveraging strategic resources to achieve competitive advantages. The essay highlights the practical applications of each tool, emphasizing their significance in enhancing productivity, competitiveness, and overall business performance. The conclusion underscores the importance of utilizing these strategic tools to improve management and generate higher returns for investors and better products for customers.

Key Strategy Development Tools in Business 1
KEY STRATEGY DEVELOPMENT TOOLS IN BUSINESS
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Key Strategy Development Tools in Business 2
Introduction
Effective planning in every organization is an essential factor that aims at improving the
operations and the output of every sector. Therefore strategy planning refers to the manner of
describing how the management of the organization aims at getting different operations done
efficiently (Liu and Li 2017). The idea is less particular than the action plan as it tries to answer
the question concerning how operators can move from one operation to the next. Strategic
management devices comprise of different instruments that consist of SWOT Analysis, PESTEL
analysis, Porter’s Five Forces, VRIO Framework, Cost-benefit analysis, Balanced Scorecard, and
Strategy map. Other strategy development tools comprise of Input or Output, Ghemawat, Ansoff,
and PROFIT among other essential tools used for strategy development in most business
operations. In most operations within business society, strategic development devices are always
concerned with the wants of a diverse culture of customers, competitive aspects, together with
organization merits to compete in the competitive business society (Li 2014). Therefore, the
primary target of this paper is to focus on four major strategy development devices along with
their applications in business operations. The four tools that are examined in this research paper
consist of Input or Output, analysis, PESTEL analysis, analysis of Resource-Based, together with
Model of Five Forces by Porter.
Strategy development tools along with how they are applied in business operations
PESTEL analysis
This type of strategic development tool in business operations refers to the technique
used to understand several external influences on the smooth operations of the business. It
concentrates on analyzing various factors such as social, political, financial or economical,

Key Strategy Development Tools in Business 3
alongside technological with business society. It is a tool that business operators use to set
different priorities, allocate operational resources, and align workers with the company’s mission
as well as a vision during their operations. It assists the business organization in understanding
how to exploit its strength, neutralize their weaknesses, as they focus on taking advantage of the
opportunities presented to them regularly (Kara 2018). Additionally, this analysis can be used in
business to aid in the process of collaborating operations with diverse analytics business devices
that comprise of Porter’s Five Forces and SWOT analysis to offer a clear understanding of major
circumstances that can impact operations of business sectors. The tool helps in understanding
different government regulations, environmental laws, and political issues that have diverse
influence in business operations. For example, this tool can be used to assess how various
regulations by different authorities together with legal views are evaluated in circumstances of
their capabilities to affect the setting of marketplaces and business where operations take place.
Therefore, through the application of PESTEL analysis, business operators can be capable to
examine different financial status that is the major factors that affect operations f trade (Liu and
Li 2017). Therefore, with the analysis of different social concerns through the use of PESTEL
analysis as a tool for strategic enhancement, a business can be capable of analyzing the socio-
financial settings of different concerns in the market.
Input-output model
This strategic tool in business operations refers to the quantitative financial structure that
represents the interdependence that exists between branches of the national economy of different
regional finances. It is an essential tool in business operations as it helps management to identify
different outputs and inputs that they need to process different tasks that are needed to transform
outputs and inputs in their operations (Dejuan 2015). The model can improve operations of the

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business as it can times be configured to include any storage that might occur in the operation
process as well. The inputs within this strategic tool represent the flow of information and the
flow of materials into the process outside operations. Due to its linearity of the model in nature,
it can be used in businesses to be linked together to help in the process of investigating the
effects of different trade within the regions to make the necessary adjustment to improve
business dominance in the specified markets. Additionally, input-output analysis in business
operations acts as a significant device that is useful in the process of evaluating impacts of
business set within the interdependent economic systems (Mokrišová and Horváthová 2018). The
device can be used to connect high employment to employment generators in a particular
organization. Hence, the model has been utilized to look at the distribution of income for
socioeconomic forecasting, to map population dangers in portions of organization, and to
effectively improve organization designs.
Model of Porter’s Five Forces
It refers to the model that is useful in business operations. It is useful in the process of
identification as well as an analysis of five different competitive forces that tend to shape every
operation of the business. It also helps in the process of determination of weaknesses as well as
strengths that can enable operators of organizations to improve their operations (Göral 2015).
However, this tool is always used to boost the process that deals with the identification of the
structure of the industry by determining corporate strategy within the business setting.
Additionally, the model can apply to any economy segment of a company to aid in the process of
searching for profitability as well as attractiveness that make the business to be appealing in the
face of consumers. Therefore, the major function n of this strategic tool is to analyze the
competition of the business (Arnaud, Mills, Legrand, and Maton 2015). It draws from the

Key Strategy Development Tools in Business 5
economics of industrial organization to derive five different forces that determine the intensity of
competition. The ideas drawn from this strategic development device can offer the best setting
for an organization to focus on the process of engagement in tactical planning to believe in
essential aspects that affect business (Göral 2015). Therefore, through the application of this
model in business operations, most operators can be capable of creating the best strategy to
remain ahead of their competitors and different influences that impacts their operations such as
bargaining force of different buyers and suppliers
Resource-Based View Model
It is a strategic enhancement model that deals with the managerial framework. The
structure is useful as it acts as the process that is essential in the determination of different
strategic resources with the prosperity to deliver a competitive advantage to the business sector
(Lockett and Wild 2013). Besides, this model act to be the tool that is used in exploitation by
management to achieve sustainable competitive merit in the present uses that faces stiff
competitions from other businesses. Furthermore, this model focuses on different approaches
that managers can use to improve the manner how they identify tea sets, competencies, alongside
capabilities with the potential to offer businesses superior competitive merits in different
marketplaces. It is an important device in business as it can be used to assess the existing
portfolio of resources present in the business sector (Li 2014). Besides, in the business sector,
this model provides that much-needed direction for the strategy of the corporation. It acts as the
vital source of revenue for operations of the corporation. I several instances, this tool help in
improving management of operational skills, data usage, and improving how managers manager
operations about available resources for operations.
Conclusion

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From the examination of the four different strategic development tools, it is clear that
every tool is useful in business operations and management. These tools are essential in
enhancing the management of businesses and improving their revenues. Therefore, there is a
need for every business manager to focus on the effective use of these strategic development
tools as they can aid in improving the productivity and competitiveness of a company. These
tools are useful in the generation of higher outputs for various investors thus leading to huge
returns and quality products presented to customers in markets.

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List of References
Arnaud, N., Mills, C., Legrand, C. and Maton, E. (2015). Materializing Strategy in Mundane
Tools: the Key to Coupling Global Strategy and Local Strategy Practice?. British Journal of
Management, 27(1), pp.38-57.
Dejuan, O. (2015). Forecasting energy demand through a dynamic input-output model.
Economics and Business Letters, 4(2), p.108.
Göral, R. (2015). Competitive Analysis of the Hotel Industry in Konya by Using Porter’s Five
Forces Model. European Journal of Economics and Business Studies, 3(1), p.106.
Kara, E. (2018). A Contemporary Approach For Strategic Management in Tourism Sector:
PESTEL Analysis on The City Muğla, Turkey. Journal of Business Research - Turk, 10(2),
pp.598-608.
Li, Y. (2014). International Strategic Alliance and Its Performance in China: The Resource-
Based View. International Journal of Business and Management, 9(11).
Liu, X. and Li, J. (2017). SWOT and PESTEL Analysis on the Coordinated Development of
New Urbanization and Agricultural Modernization in Heilongjiang Reclamation Area. DEStech
Transactions on Economics, Business and Management, (eced).
Lockett, A. and Wild, A. (2013). Bringing history (back) into the resource-based view. Business
History, 56(3), pp.372-390.

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Mokrišová, M. and Horváthová, J. (2018). The Application of Model of Input and Output
Transformations in Measuring Business Performance. Research in Applied Economics, 10(1),
p.1.