Untitled HI6006 COMPETITIVE STRATEGY . ASSIGNMENT 1 Assessment Details and Submission Guidelines Trimester T1 2020 Unit Code HI6006 Unit Title Competitive Strategy Assessment Type Individual...

COMPETITIVE STRATEGY
ESSAY – KEY STRATEGY DEVELOPMENT TOOLS
Table of Contents
Introduction    3
PESTLE as a Strategic Tool    3
Porter’s Five Forces as a Strategic Tool    4
SWOT as a Strategic Tool    5
Conclusion    6
References    7
Introduction
Management, in a broad spectrum, is the study of the market, based on which the entire organisation works on. The first and foremost task that the management of the company undertakes is the planning and creation of strategies, which are required to move forward in the market. The strategy that is applied by the management comprises several tools based on the industry the business belongs to, the type of the targeted customers and the area the business is operating.
The strategic tool is the key feature, which serves two purposes: it gives the clear idea of the market to the management at the same time it allows to make strategy based on the current scenario, which will be beneficial for the companies. In this essay the importance of the strategic tools are described by using three major strategic tools. The essay is also enriched with the impacts of using strategic tools especially these three strategic tools to improve the businesses.
PESTLE as a Strategic Tool
Among the several strategic tools, the PESTLE analysis is the basic structure more like a practical framework of the entire market, which is important for the management to understand before venturing into the new market. When establishing a business in the native land too requires collecting the data of the current scenario of the market to understand the various aspects and to identify the way of business approach in the market. The environmental factor affects the growth of the business tremendously, the environmental factors comprises both internal and external factors. To understand the external factors that have the potential to impact the business, PESTLE analysis is done (Rastogi & Trivedi, 2016).
PESTLE stands for Political, Economic, Sociological, Technological, Legal and Environmental factors. These six forces influence the growth and development of the business. The first factor is the political factor, which comprises the vital portion of the business. The political scenario of the country is important as the policies that are made by the governing party have a large influence in the business. The unstable political condition is the risk factor for the establishment of the business.
The second factor that is being checked by the management is the economic background of the market. Business is simply based on the amount of profit one makes when in the market, the target customers of the business need to be wealthy enough to effort their services and products. The economic strategy determines the way of the approach and the quality of the products and service that the business will serve.
Sociological factors also play a vital role in business. The recent trend of business consists of hiring people of diverse cultures. This is due to meeting the demand of the global customers. The countries where the social cultural barrier is stiffened the internal atmosphere of the business can be at risk, which will eventually hinder the growth of the business.
Modernisation has given an ample of...