Description
Assessment 1
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Length and Marks |
Criteria |
1. Individual Assignment Write an essay explaining the main strategy development tools and how they are used | 1200 words; 20 Marks Individual | Comprehensive discussion of any 4 of the following: PESTEL, 5F, PROFIT, SWOT, Generic, Ansoff, Ghemawat, with academic references and practical examples. |
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Strategic Development Tools1
Strategy Development Tools
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Strategic Development Tools 2
PESTEL Analysis
PESTEL analysis tools are used by businesses to look at the external environment of
marketing and look at various factors that affect the organization in one way or another. The
analysis seeks to identify any weaknesses or challenges the organization experiences in the
external environment (Rastogi & Trivedi, 2016, p. 385). The word PESTEL stands for political,
economic, social, technological, environmental, and legal context of the business.
Political Environment
It is the environment surrounding politics in a given country. The political state of a
government has an impact on the context of the business. Politics can affect the economy, thus
changing the market (Rastogi & Trivedi, 2016, p. 385). The company may be affected by the
laws surrounding the environment, labor, tax policy and policies surrounding foreign trade,
political instability, political stability, and overall government policies on businesses. Therefore,
the political climate affects the company.
Economic Environment
The economic environment is very vital to the success of a business. How the industry
can stand amidst changes in the economy determines its survival. The firm has to make
considerable profits to survive. Factors in the economic environment include inflation rate,
exchange rate, interest rates, economic growth, and business and consumer income. The
organization also has to be able to manage demand. How people spend their salary also affects
the market (Rastogi & Trivedi, 2016, p. 385).
Strategic Development Tools 3
Social Environment
The social environment is also the socio-cultural environment. It mainly deals with how
an organization relates to the population surrounding it. The factors include people’s careers,
health awareness, age distribution, population distribution and population growth. The
information is vi...