Comprehensive Essay On PESTEL, 5F, SWOT, And Cross Impact Analysis.

Individual Comprehensive discussion of any 4 of the following:

PESTEL, 5F, PROFIT, SWOT, Generic, Ansoff, Ghemawat, with academic references and practical examples.

The foremost determination of this essay is to focus on the different aspects of the strategy development tools such as PESTEL Analysis, 5F, SWOT Analysis and Cross impact analysis. The business applications of each of those tools will be discussed in the paper in a detailed manner. These discussed strategic tools is very much beneficial for the organization to understand the position of the company from the business perspective.

PESTEL

It is defined as the type of marketing tool which is used in most of the business organizations. The macro environmental factors which have an impact on the growth and development of the business organization. The different aspects of the PESTEL Analysis are  Political, Economic, Social, Technological, Environmental and Legal aspects. The performance and the activities of the business can be affected with the help of the PESTEL analysis. This marketing tool can be used on a long-term basis (Song, Sun & Jin 2017). The different types of external factors which can affect the business can be identified with the help of this marketing tool. PESTEL analysis is a very significant aspect of the strategic management for any business organization.

The growth and decline of the business conditions can be analyzed with the help of this marketing tool.  The most important business application of this marketing tool is its role in the analysis management. The PESTEL analysis would help business organizations to understand the macro-environmental factors which affects the growth of the organizations such as the political factors such as the governmental rules and regulations (Jha, Dhanaraj & Krishan, 2015). The adverse market conditions such as inflation and recession can be handled in a better way with the help of this strategic tool. The difficulties of the technological advancements can be solved purposefully with this analysis. Demographic of the organization can be understood in s better way with the help of this macro environmental analysis (Benzaquen et al., 2017). Recycling of the products and services is done if this analysis is performed considering the environmental factors.

 It is defined as the type of analytical tool which is used by different types of business organizations to understand the position of the organization in the competitive market (Zhao et al., 2016). This forecasting tool can be actively used for establishing the competitive situation of the business. Established in the market by Michael E Porter this strategic development tool can be actively used by most of the business organization in their marketing department.  

Rivalry among existing firms: The fluctuation in the prices offered by different organizations are considered in this business model. The rivalry among the existing firms can be better understood with the help of this strategic tool.

• Potential Entrants: The business strategies adopted by the new organization should be also considered as those innovative ways may be very much effective in nature. The threats coming from the new products and services can be identified in a better way with the help of this strategic analysis tool.
  
  
• Suppliers: The quantity of necessary inputs can be significantly impacted with the help of this aspect of the Porters 5 forces.
  
  
• Buyers: The ability to affect the prices of the goods and services offered by business organization can be impacted with the help of this aspect of the five forces model. Best offering which can be given to the buyers of organization can be identified with the help of this strategic tools. Special offers and discounts can reduce the bargain power of the buyers of business organizations
  
  
• Substitute: The new substitute products which are already there in the market can be properly analyzed with the help of this aspect of the model. This aspect of the model is very much useful for business organizations to understand the effectiveness of the products and services offered by the organization.

It is defined as the type of tool which is very much required for monitoring the strengths and weaknesses of the business organization. The main aspect of this type of strategic development tool are Strength, Weakness, Opportunities and Threat (David et al., 2016). This is a very slow and time-consuming process. This type of internal analysis tool can be successfully applied across organizations to understand the different factors which helps the organization to understand the opportunities and threats of the organization so that they can develop new strategies which can give competitive advantage to the organization compared with the other similar organizations.

Business Use of PESTEL Analysis

Strength: It is very much important for every business organization to know about its own strength as this would help them to form strategies (Villacorta et al., 2014). The core competencies of the organization can be understood with this aspect of the SWOT analysis.

Weakness: The weakness of the business organization is very much important to be understood so that they can cover up all the reasons which are pulling things down for them. The threats coming from the substitute products can be understood so that better strategies can be created and implemented in the working environment of organizations.

Opportunities: Identification of the business opportunities is very much important for attaining sustainable growth of the organization. The opportunities of every business organization keeps on changing every moment, so it is very important for the business organization to know their opportunities (Tavana et al., 2016). The importance of the leadership qualities and the innovation leadership can be understood with the help of this aspect of SWOT.

Threats: The different types of internal and external threats which are faced by this business organization should be successfully understood so that specific strategies can be developed and implemented in the business environment. Competitiveness of the organization can be understood in a better way with the help of this aspect of the SWOT analysis.

The factors which are found from the SWOT analysis can be can be interrelated with the use of the Cross Impact Analysis. Adapting to the business scenarios is possible with the help of the cross-impact analysis. The breeding elements of the virtual organizations can be effectively managed with the help of the cross-impact analysis technique. The partnership from other business organization can be impacted significantly with the help of the cross-impact analysis.

 Most of the business organisations involve the application of different kinds of external stakeholders such as the distributors and the marketing team (Blockeel et al., 2016). There are subsidiary organization also for these business organization, hence there are different types of management issues, these issues can be effectively minimized with the help of the cross-impact analysis. The business opportunities associated with the subsidiary organization can be impacted effectively with the application of the cross-impact analysis (Schlegelmilch, 2016). The cross impact analysis helps organizations to manage their internal and external stakeholders in a professional manner so that the mission and the vision of the organization can be achieved.

Conclusion

The paper helps in concluding the impact of the different type of strategy developmental tools used by the business organization. The utility of the different types of development tools such as the Porters five forces model and SWOT analysis which help the organization to achieve their desired organizational goals. It can be also concluded that this strategy developmental tool can be successfully implemented in any business organization as those tools can be very much useful to understand the risks and challenges associated with the organization as well as help those organizations to grow in a competitive market.

References

Benzaquen, M., Mastromatteo, I., Eisler, Z., & Bouchaud, J. P. (2017). Dissecting cross-impact on stock markets: An empirical analysis. Journal of Statistical Mechanics: Theory and Experiment, 2017(2), 023406.

Blockeel, C., Drakopoulos, P., Santos-Ribeiro, S., Polyzos, N. P., & Tournaye, H. (2016). A fresh look at the freeze-all protocol: a SWOT analysis. Human reproduction, 31(3), 491-497.

David, C., Andreadis, K., Beighley, E., Famiglietti, J., Boone, A., Yamazaki, D., ... & Gaborit, E. (2016, April). Preparing for the ingestion of SWOT data into continental-scale river models. In EGU General Assembly Conference Abstracts (Vol. 18, p. 11068).

Jha, S., Dhanaraj, C., & Krishan, R. (2015). How does multinational R&D evolve in emerging markets. Lausanne: IMD.

Schlegelmilch, B. B. (2016). Marketing: A Global Discipline. In Global Marketing Strategy (pp. 1-19). Springer, Cham.

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.

Tavana, M., Zareinejad, M., Di Caprio, D., & Kaviani, M. A. (2016). An integrated intuitionistic fuzzy AHP and SWOT method for outsourcing reverse logistics. Applied Soft Computing, 40, 544-557.

Villacorta, P. J., Masegosa, A. D., Castellanos, D., & Lamata, M. T. (2014). A new fuzzy linguistic approach to qualitative Cross Impact Analysis. Applied Soft Computing, 24, 19-30.

Zhao, Z. Y., Zuo, J., Wu, P. H., Yan, H., & Zillante, G. (2016). Competitiveness assessment of the biomass power generation industry in China: A five forces model study. Renewable Energy, 89, 144-153.