HI6006: Comprehensive Strategic Analysis using PESTLE and Frameworks

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This report provides a strategic analysis of a business environment using various frameworks. It includes a PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors. The resource-based view is applied to assess the company's tangible and intangible assets using the VRIO framework. A SWOT analysis identifies strengths, weaknesses, opportunities, and threats. Finally, Porter’s Five Forces model evaluates competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entry. The report aims to provide a comprehensive understanding of the business's strategic position and competitive landscape, find more resources like this on Desklib.

HI6006 Student Assessment
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Table of Contents
PESTLE analysis............................................................................................................................. 3
Resource-based view.......................................................................................................................4
SWOT analysis................................................................................................................................ 5
Porter’s five forces model................................................................................................................5
References........................................................................................................................................7
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PESTLE analysis
In the business, it is required that all the important factors shall be given the consideration and
for that, they will be required to be identified. In that, both the external and internal aspects will
be considered and this will be undertaken with the help of Pestle analysis (Gupta, 2013). In this,
all of the areas which are involved will be considered and they are provided in the diagram
below:
Political factors: Under this, the evaluation of the government intervention in the economy is
considered. For this, the policies and the regulations which are framed by the government are to
be considered and all the laws which are specified in the context of various areas are to be
implemented in an effective manner.
Economic factors: This will be covering those aspects by which the profitability and success of
the business are affected. The interest rates, inflation, exchange rate and growth of the economy
will be taken into account in this which will be classified in the micro and macro factors.
Social factors: The attitudes and beliefs of people are considered in this which is present in the
society and their impact on the business will be ascertained. This will be including age,
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PESTLEPOLTICAL
ECONOMIC
SOCIAL TECHNOLOGICAL
LEGAL
ENVIRONMENTAL

population, and other health-related issues so that the needs of the consumers are taken into
notice.
Technological factors: In the making of the proper plan it is required that all of the changes
which are taking place in terms of technology are evaluated (Rastogi and Trivedi, 2016). They
will be identified and then new technology will be incorporated so that the best results are
attained.
Environmental factors: The impact which will be made due to the environment is considered in
this. All of the aspects such as the location, climate will be identify as they play important role in
certain businesses such as tourism and agriculture.
Legal factors: The working of the company is affected by the laws which are applicable in the
industry as they are to comply in a compulsory manner. By the help of this, the rights of
consumers will be protected and will be different at different places.
Resource-based view
In the performance of the company, the main role is played by the resources and this is as per the
resource-based view approach. It is considered that if the resources will be managed in the
appropriate manner then the success will be attained and gain above the rivals will be made in
the organization. For this, it is required that evaluation of the sources which are present in the
entity shall be made so that they can be used in the effective manner by which required results
will be achieved (Kellermanns, et. al., 2016). According to this all of the resources which are
available will be classified into two categories and they are tangible and intangible assets. All of
those which can be physically identified are considered tangible and the ones which are owned
but do not have any physical presence will be considered to be intangible. In this, an assumption
is made that all of the resources which are there shall be Immobile and heterogeneous. The
VRIO framework is used in this by which the features of the resources will be evaluated such as
its cost, value and the substitutes in this respect (Bromiley and Rau, 2016). By this, the efficiency
of the resources will be determined and also it is considered that whether the business will be
able to exploit the available resources in aa proper manner.
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All of the areas will be undertaken and response in relation to them will be determined. If they
are considered to be valuable and suitable then are incorporated in the process so that
competitive advantage is gained.
SWOT analysis
The position of the business in the competitive world is considered with the help of this tool in
the competitive environment. All of the strengths, weaknesses, opportunities, and threats which
are present will be analyzed with the use of this technique. The activities which can be
undertaken will be determined so that working is made accordingly. Under this, all of the four
aspects will be given the importance and by that, the further actions will be taken. The strengths
will be telling about the areas in which the entity excels and can do much better and the
weaknesses are the shortcomings which are to be overcome (GÜREL and TAT, 2017). With the
help of the opportunities further expansion will be made possible in such a manner that threats
are eliminated and success is attained.
By the use of this tool, the organization will be attaining more and more benefits. This will be
including the formulation of the proper strategy by which the goals will be attained as all of the
factors which are to be considered are identified. The coming issues will be identified in advance
by this and it will be possible for the company to design the measures which will be taken to deal
with them in the effective manner. This is carried in advance and so the elimination of the
problems will be made possible by which the overall improvement in the performance will be
achieved (Madsen, 2016). All the policies and the steps which are to be undertaken in this
process are identified and provided to all so that it can be carried in the proper manner and the
employees will be aware of the actions which are to be followed by them for the benefit of all.
Porter’s five forces model
This is the tool in which the major aspects in relation to competition are considered and also the
profitability and effectiveness of the strategy are evaluated. Under this, the macro factors which
are present in the environment and will be affecting the profits and working of the business will
be determined. By the help of this strategy will be made accordingly by the inclusion of all of
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them so that best plan is made (Ogutu, 2015). The main elements which are covered in this are as
follows:
Competitive rivalry: Under this, the information about the competitors is gained. It is identified
that who are the major rivals and their numbers. Also, the policies and the strategies which are
followed by them are also analyzed. The products which are provided by them and their quality
will be considered so that production can be made in a better manner.
Supplier power: The data which is required to deal with the suppliers will be ascertained in this.
The number of the suppliers and their strengths will be determined and also the cost which can
be charged by them will be ascertained. So, the alternatives will be evaluated and best among
them will be chosen.
Buyer power: The demand in the market will be analyzed together with the needs and
requirements of the consumers (Kung’u, 2017). By that the services and products will be
provided in accordance with that so that they are satisfied to the highest level.
The threat of substitution: The competitive products which can replace the products of the
company will be identified in this and also the chances that consumers will be willing to choose
the other product will be evaluated. By this, the steps will be taken to make the improvements to
overcome this threat.
The threat of new entry: This will be covering the risk of the new entries which are made in the
industry by which the position of the business will be affected. By the help of this proper plan
will be made so that the position can be strengthened to avoid its impact.
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References
 Bromiley, P. and Rau, D., 2016. Operations management and the resource-based view:
Another view. Journal of Operations Management, 41, pp.95-106.
 Gupta, A., 2013. Environment & PEST analysis: an approach to external business
environment. International Journal of Modern Social Sciences, 2(1), pp.34-43.
 GÜREL, E. and TAT, M., 2017. SWOT ANALYSIS: A THEORETICAL
REVIEW. Journal of International Social Research, 10(51).
 Kellermanns, F., Walter, J., Crook, T.R., Kemmerer, B. and Narayanan, V., 2016. The
resource‐based view of entrepreneurship: A content‐analytical comparison of researchers'
and entrepreneurs' views. Journal of Small Business Management, 54(1), pp.26-48.
 Kung’u, A.M.U., 2017. Effects of Selected Porter’s Five Forces on Competitive
Advantage in Steel Industry: A Case of Flat-Steel Segment (Doctoral dissertation, United
States International University-Africa).
 Madsen, D., 2016. SWOT Analysis: A Management Fashion Perspective.
 Ogutu, F.M.M., 2015. Porter’s five competitive forces framework and other factors that
influence the choice of response strategies adopted by public universities in Kenya.
International Journal of Educational Management, 29(3.)
 Rastogi, N.I.T.A.N.K., and Trivedi, M.K., 2016. PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering
and Technology (IRJET), 3(1), pp.384-388.
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HI6006: Comprehensive Strategic Analysis using PESTLE and Frameworks

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