Strategic Management - Integrative and Analytical Tools Assignment

Strategic Management - Integrative and Analytical Tools - Assignment Example This is to ensure customers satisfaction is achieved while the profitability of the company remains sustainable throughout its operations. In order to effectively analyze the new markets, several tools and techniques will be employed so get a comprehensive market picture. These tools include the SWOT Analysis and PEST Analysis. A SWOT analysis is a universal tool used for assessing the internal position and capability of a company in relation to the prevailing market environment. SWOT is an acronym for the Strengths, Weaknesses, Opportunities and Threats facing a company. The internal advantages of the company are analyzed and the vulnerable points are analyzed. This can be presented in a matrix form as shown below (Figure 1). The scrutiny of the strengths as well as the weaknesses will focus on the four internal areas of the company including the financials of the company, marketing capability, manufacturing and the organizational structure. The threats and opportunities will however seek to look at the environmental factors such as the markets economic situation, social factors and technological advancements. The value of a SWOT analysis is the ability of the results to determine the value of the company as stated by Neubert (2013). This will therefore assist in maximizing the strengths identified while minimizing the weaknesses to take gain of the opportunities accessible and conquer any looming threats to the business. The major benefits of using SWOT for analysis is the fact that it is simple to use and it requires minimal costs and training. PESTLE Analysis is used solely for analyzing the external factors that might affect a strategic business move. It is an acronym for Political, Economical, Social, Legal and Ecological factors that might affect a strategic move. The analysis of these factors therefore enables a business to formulate the best strategy of approaching global markets