Strategic Business Analysis: Models, Ethics, and Shareholder Value

This report provides a comprehensive analysis of strategic business models, including PESTLE analysis, Porter's Five Forces, and the Blue Ocean Strategy, evaluating their strengths and weaknesses within an organizational context. It explains how these models contribute to improved strategic decision-making. The report further explores the roles of Corporate Social Responsibility (CSR), shareholders, corporate governance, and business ethics in maximizing company revenue and profit, emphasizing the significance of shareholder roles in achieving long-term organizational vision. The analysis highlights the importance of business ethics in fostering a positive work environment and building a strong organizational culture. The report also delves into how ethical practices, along with corporate governance and CSR, impact shareholder value and contribute to the sustainability and overall success of a business. The report concludes by emphasizing the interconnectedness of these elements in driving strategic business outcomes and enhancing a company's competitive advantage.

Running head: Strategic business analysis
Strategic business analysis

Strategic business analysis
The paper talks about the strengths and weaknesses of the pestle analysis, porter five
forces model and blues ocean strategy within the organization. It explains that how these models
help to improve and enhance the strategic management decisions within the organization.
Further, it tells that how CSR, shareholders, corporate governance and business ethics help to
maximize and increase the revenue and profit of the company. It explains the roles and
responsibilities of the shareholders within the organization to attain its long-term mission and
vision of the firm.
Answer 1
Pestle analysis plays a vital and integral role in every organization to overcome on the
competitors around the world. Pestle includes political, economic, social-cultural factors,
technological, legal and environmental factors. The strengths and weaknesses of the pestle
analysis have been discussed below (Rosenheim et al, 2011).
Strengths
 Pestle analysis helps to the company to understand and evaluate the macro environment
of the country.
 It helps to overcome on the competitors across the world. The company can evaluate and
measure the plans, policies, strategies of the competitors around the world.
 It also helps to reduce the effects and impact of the potential threats of the company in
the global market.
 It also provides a mechanism and framework to identify and evaluate the new
opportunities across the world.
 It also helps to improve cross-functional skills and knowledge of the people across the
world. In this way, the company can also maintain a favorable working environment in
the organization as well as the environment.
 Through pestle analysis, the company can evaluate and identify the risks and challenges
of the market. Therefore, it will also help to attain long-term goals and objectives of the
firm.
 Further, the organization can improve its business plans, management and financial
position of the firm through pestle analysis. The firm evaluates and measures the various
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Strategic business analysis
external factors such as political, social, economic, legal, environmental and
technological factors to beat the competitors in the universal market (Mkude and
Wimmer, 2015).
Weaknesses
 Pestle analysis is time-consuming process which can affect the business activities and
operations adversely. The company needs to focus on the external environment on
regular basis, sometimes the firm is not able to focus and monitors on the macro
environment. It is the biggest weakness for the organization.
 Generally, organizations restrict to conduct pestle analysis due to cost and time
considerations (Gupta, 2013).
 There are numerous people required to conduct pestle analysis in the global market.
Further, the company has to use a lot of resources to conduct pestle analysis.
 In addition, pestle analysis does not provide enough and adequate information to
overcome on the competitors around the world. Thus, it can affect the business activities
and operations negatively.
 The company needs to invest huge amount while conducting pestle analysis. These are
the various weaknesses of the pestle analysis which should be controlled and managed by
the companies to gain competitive advantages in the world (Yüksel, 2012).
Porter five forces: The porter five forces include threats of entry, the power of buyers, threats of
substitutes, the threats of suppliers and competitive rivalry. The strengths and weaknesses of the
porter five forces model have been discussed below.
Strengths
 The porter five forces model helps to identify and evaluate the power of buyers in the
competitive market (Lee, Kim and Park, 2012).
 It also helps to identify and measure the threats of new entrants within the organization.
 The company can analyze the bargaining power of suppliers in the global market through
porter five forces model.
 The firm can also evaluate and analyze the rivalry amongst the existing competitors
around the world.
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Strategic business analysis
Weaknesses
 The porter five forces model is considered undermine industry structure.
 It is time consuming and costly process and it requires experienced analysts.
 Further, innovative and new technologies affect the constantly changing markets around
the world (Kim and Mauborgne, 2014).
Blue ocean strategy: This strategy is developed by W .Chan Kim and Renee Mauborgne. This
strategy creates and generates new market space where competitors are irrelevant that creates
new consumers values and growth while reducing costs within the organization. The strengths
and weaknesses of the blue ocean strategy have been discussed below.
Strengths
 Market penetration is one of the biggest strengths of the blue ocean strategy around the
world. There is no competition exist in the market. Through this strategy, new
technologies are introduced by the companies in the global market.
 Mainly, it is suitable for the small business enterprises as it includes less capital
investment and less risk.
 Further, the firm can evaluate and measure the needs, desires, and requirements of the
customers by using this strategy in the universal market. It is more attractive and unique
strategy (Lindič, Bavdaž, and Kovačič, 2012).
Weaknesses
 It can affect the success and growth of the company. Further, it reduces the profit and
revenue of the organization.
 Further, the company is not able to gain competitive advantages around the world. These
are the limitations of the blue ocean strategy which can affect the growth and success of
the company adversely. Thus, the firm should focus and monitor on the marketing
strategies and competitors policies and plans to gain various long-term benefits across the
world (Parvinen et al, 2011).
Now it is assumed that these entire business models help to increase and maximize the revenue
and profit of the firm. These models also help to improve the strategic decision-making process
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Strategic business analysis
to attain the long-term goals and objectives within the organization. The firm can take right
decision by using these models in the organization as well as the environment. By using PESTLE
analysis and porter five forces model, the firm can evaluate and measure the position and image
of the competitors across the world. The company maintains good working environment and
culture through these models. Through pestle analysis and porter five force model, the
organization can identify and evaluate the various competitors which are existed in the global
market (Wright, Bradfield, and Cairns, 2013). The firm can introduce new and innovative
technologies by using these models within the organization. Through porter five forces model,
the firm can identify and evaluate the products and services of the competitors. Thus, they can
make effective decisions within the organization. The company can enhance and increase the
productivity and efficiency of the organization by using blue ocean strategy within the
organization. This strategy also helps to evaluate and measure policies and approaches of the
competitors around the world. In this way, the company is able to make strategic decisions
within the organization (E. Dobbs, 2014). As a result, the firm can meet its long-term targets and
goals in the global market. The success and growth of the companies depend on these models.
None of the company can expand and explore its business activities and operations without using
Pestle analysis and porter five forces model. Pestle analysis helps to identify the threats to the
market and it provides various growth opportunities to the organization. In this way, the
company can make effective and unique decisions for maximizing the revenue and profit of the
firm. These models are the effective and unique tools for the companies in order to determine the
long-term mission and vision of the firm. Now it can be said that the company could be
improved its strategic decision-making process by analyzing and evaluating the external
environment of the country (Hacklin and Wallnöfer, 2012).
Answer 2
Ethics are considered the more principles that govern and regulate the person behavior
and action within the organization. It is called the system of the moral principles and rules of the
organization in order to attain the long-term targets and goals of the company. It is the study of
moral principles, values and moral judgment to run the business activities and operations easily
and smoothly (Saeidi et al, 2015). The company must maintain business ethics within the
organization to attract and retain more employees within the organization. Business ethics also
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Strategic business analysis
helps to maintain a favorable working environment in the company. Furthermore, it also helps to
develop and build an effective and unique culture in the organization as well as the environment.
Ethics helps to maintain proper rules, regulations, and code of conduct within the organization.
Through ethics, the firm can prevent and reduce the unethical activities and processes within the
organization in order to fulfill long-term mission and goals of the company. Ethics also helps to
maintain sustainability in the global market to attract more customers in the world (Skarmeas and
Leonidou, 2013).
Along with this corporate governance also plays a vital and integral role in order to
determine the long-term success and growth of the firm. The corporate governance maintains a
balance between social and economic goals and communal and individual goals and objectives.
It also encourages and enhances the efficient use of natural resources to gain various competitive
benefits within the organization. It also helps to maintain cooperation and coordination among
the employees within the organization (Aguinis and Glavas, 2012).
Furthermore, corporate social responsibility plays a significant role to provide
satisfaction to the shareholders. CSR may be defined as the business approach and strategy
which contributes to the sustainable development by rendering various economic, environmental
and social advantages for all the stakeholders in the organization. CSR is the wider concept
which is used by the companies to improve the efficiency and productivity of the organization.
Thus, CSR is important for the non-profit organization as well as multinational companies. Now
it is assumed that CSR is an important concept for all the enterprises in the global market. CSR
helps to generate and increase the profit and revenue of the firm. It also provides various growth
opportunities to the organization. By using CSR approach, the firm can maintain sustainability
within the organization as well as the environment (Homburg, Stierl, and Bornemann, 2013).
In addition, the stakeholders can influence and be influenced by the organization
objectives, goals, actions and policies. The stakeholders include creditors, shareholders,
government, communities, supplier, and unions. The firm can carry the business activities and
operations on regular basis. Apart from this, shareholders are a group of person and institution
that legally owns one or more share of stock in a private or public corporation (Barker and Chiu,
2014). The company is accountable to provide profits and revenue to the shareholders within the
organization. The corporate social responsibility and sustainability help to increase the revenue
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Strategic business analysis
of the shareholders. The firm is accountable to increase the profit of the shareholders. Further,
many companies must prefer value maximization for the shareholders and they should protect
the rights of the stakeholders within the organization. The main aim of the company is to
maximize the shareholder value within the organization. If the company increase and maximize
the shareholder's value then it can help to increase the revenue and profit of the company. Along
with this, the company is responsible to provide favorable working environment and culture to
the shareholders (Saeed et al, 2014). It will help to provide satisfaction and morale to the
shareholders. In this way, shareholders will do work with more productivity and efficiency to
maximize the revenue of the company. It will also help to increase and enhance the efficiency
and effectiveness of the business. The company can easily overcome on its competitors by
protecting the rights of the shareholders. The shareholders make effective rules and policies to
maximize the profit of the firm and it will also help to attain long-term success and growth
within the organization. The company is accountable to provide performance dividend to
shareholders. Apart from this, it is the duty of the company to distribute the profit to the
shareholders in the organization with maintaining sustainability (Larcker, Ormazabal and Taylor,
2011).
The success and growth of the company depend on the performance and efficiency of the
shareholders. None of the company can increase its profit and revenue without shareholders.
They play a vital and integral role to manage and control the operations of the company. They
are called the owner of the company. Shareholders provide a good platform to the organization.
Along with this, they direct and guide to the employees to do work effectively and efficiently. In
addition, they maintain control over the company for achieving its long-term goals and
objectives within the organization. Furthermore, the shareholders have the options to buy the
share of the company. They have right to appoint and nominate the director to the board of the
company. They provide confidential information to the company to attain long-term mission and
vision of the firm. They maintain privacy and they do not share confidential and private
information to the competitors. They determine the capital growth and success of the firm by
receiving dividends. They also control and manage the future risks and challenges. In this way,
they provide various benefits to the company. So the company increases the revenue and profit
of the shareholders. The company protects the interest of the shareholders by providing various
benefits to them (Jo, and Harjoto, 2011).
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Strategic business analysis
CSR and sustainability are important to provide profit and revenue to the shareholders in
the organization. Many companies follows CSR and sustainability approaches within the
organization to expand and flourish its business globally. For example, BHP Billiton and
Starbucks Corporation maintain corporate social responsibility and sustainability within the
organization to provide various benefits to the environment and shareholders. Apart from these
companies, many other companies also maintain sustainability and CSR within the organization
to accomplish the goals and objectives of the firm. In this way, these companies understand and
evaluate the needs, requirements, and desires of the shareholders. The revenue and profit of the
company depend on the shareholder's value and net worth. The company can make a good and
strong image in the market by providing various benefits to the shareholders in the global
market. Shareholders help to reduce the financial and operational risks and barriers of the
company by evaluating and analyzing the activities and operations of the firm. After the various
researchers, it has been analyzed that the company cannot run the business activities smoothly
without providing profits to the shareholders. Therefore, it is the duty and foremost responsibility
of the company to increase and maximize the returns and profit of the shareholders. In this way,
the organization can meet and achieve its long-term targets and goals within the organization
(Masulis, Wang, and Xie, 2012).
On the above discussion, it has been concluded that Pestle analysis, porter five forces
model, and blue ocean strategy play a vital role to evaluate and analyze the strengths and
weaknesses of the competitors. It will also help to reduce the risks and challenges of the market.
Through these models, the company can take effective and unique decisions to improve and
enhance the productivity and efficiency of the employees. Along with this, shareholders and
stakeholders play a significant role to maximize and increase the revenue and profit of the
company. In addition, the company should maintain business ethics and code of conducts within
the organization.
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