MGMT690 Unit 2: Strategic Tools Analysis for Business Decisions

This report delves into the application of integrative and analytical tools, specifically Porter's Five Forces and PESTLE analysis, to evaluate a company's potential for entering a foreign market. The analysis begins by identifying the need for strategic tools to assess the competitive landscape and macro-environmental factors. Porter's Five Forces is presented as a model to understand the internal competitive environment, evaluating supplier power, customer power, threats of new entrants, threats of substitutes, and industry rivalry. PESTLE analysis is then introduced as a tool to assess the macro-environmental factors, including political, economic, social, technological, legal, and environmental influences. The report emphasizes the interconnectedness of these tools, highlighting how they provide a comprehensive view for decision-making. The implementation of these tools is discussed, emphasizing their role in determining the feasibility of market expansion and guiding strategic decisions. The report concludes by underscoring the importance of these tools in formulating effective global strategies and ensuring a company's success in foreign markets.

Running Head: Integrative and Analytical Tools
Integrative and Analytical Tools
Name of the Student:
Name of the University:
Author’s Note

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INTEGRATIVE AND ANALYTICAL TOOL
With the context of company’s revenue system it has been noted that the organization is
facing a deficit. The company is aiming to formularizing a new strategy that will help them to
generate those profits by moving into the foreign market. It should be the aim of the company to
set its strategies, which would facilitate the moving of the business into a foreign market, which
will generate revenue, will not strain the company financially by entering into the foreign
market, and will not make the company face deficit from the starting point. There are few tools
that is required to do the research analysis for the industry and for the rival competitive market
present in the economy. The tools will enhance the knowledge for the company when it enters
the foreign market (Song, Sun & Jin, 2017).
What is the best tool used in this situation? Identify and analyze the tools.
There are two types of tools that have been implemented for this company that is, Porters
Five-Force Analysis and PESTLE analysis (Indiatsy et al., 2014). The first factor that is used is
Porters Five-Force Analysis which helps in understanding the internal competitive environment.
It helps to identify the steps in the competition that is prevalent within the organization. It
formularizes the strength and weakness of the company. It consists of five forces including
supplier’s power, customer’s power, the threat of new entrants, the threat of identical products
and competition prevailing in the industry. A risk factor is associated with the business that is the
threat of new entry in the market (Aithal, 2016). The rival competitors create a barrier for the
entry in the market. The cause of threat in the market is because of the identical products, which
is available in the market. On the other hand the other tool that is used is PESTLE Analysis. This
tool is a strategic tool which helps to analyze the macro environment of the new venture.
PESTLE is an abbreviation that stands for Political, Economic factors determine the financial
performance of the country. The factors that are included are GDP rate, unemployment level and

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inflation rate. The social factors that are included are the customer, norms, social behavior and
distribution of income that is prevailed in the country. On the other hand the technological
factors are included to up-grade the level pof technology and the innovation involved in the
development of the country. The political factors are same like the legal factors that gives light to
the regulation, laws, government rules and policies of a country. Lastly, the for of environmental
cause determines the climatic change of the country (Dälken, 2014).
Why are these tools analyzed to be the best in the market?
The reason why these tools are considered the best because they cover two different
fields in the market space. Both the tools are often linked to each other. By utilizing both the
tools for the market, we will be certain that all the aspects are covered from the analysis. Hence,
two different tools have two different areas to cater to. The decision, potential business and
market are the big picture factor that is taken into consideration. When a new venture is created,
it is an important factor to take every aspect seriously (Aithal, 2017).
How will the tools be implemented in the plan?
The way and technique that is used to analyze the tools like PESTEL and Porter’s Five
Factors Force is to determine the plan that will be taken as a good luck for the data that both the
model is covering. However both the different models caters with two different distinct areas for
the same situation in the birth of a new venture. These models cover the requirement of the
business and assist all the areas of the company that is required for the developmental purpose.

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Ultimately, these tools are covered to determine the factor that the business can expand its share
in the foreign market or not. The tools are treated as the driving force for the company because
its expansion in the market will finalize its existence in the operational market. The utilization of
the tool facilitates in the market about the initials of the business in the global platform (Mkude
& Wimmer, 2015).
Hence it can said that the analysis of these tools is not compulsory for the management to
put not practice but yes its acts efficiently once these tools are implemented in the positive
source of environment that gives access to the opportunities which has the authority to prevail in
the market.

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Reference
Aithal, P. S. (2016). Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and Social
Science, 4(1).
Aithal, P. S. (2017). ABCD Analysis as Research Methodology in Company Case
Studies. International Journal of Management, Technology, and Social Sciences
(IJMTS), 2(2), 40-54.
Dälken, F. (2014). Are Porter’s five competitive forces still applicable? A critical examination
concerning the relevance for today’s business (Bachelor's thesis, University of Twente).
Indiatsy, C. M., Mwangi, M. S., Mandere, E. N., Bichanga, J. M., & George, G. E. (2014). The
application of Porter’s five forces model on organization performance: A case of
cooperative bank of Kenya Ltd. European Journal of Business and Management, 6(16),
75-85.
Mkude, C. G., & Wimmer, M. A. (2015). Studying interdependencies of e-government
challenges in Tanzania along a PESTEL analysis.
Song, J., Sun, Y., & Jin, L. (2017). PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews, 80, 276-289.