Environmental and Pest Analysis System †MyAssignmenthelp.com

Question: Discuss about the Environmental and Pest Analysis System. Answer: Introduction: Development tools are important to be considered by the company so that growth can be achieved in the market. In this paper, the discussion will be made on the SWOT, PESTLE, and Porter five force models. If these tools are considered by the company then it can be possible to achieve competitive advantage. This tool is considered as a framework which can help to evaluate the external environment analysis of a company. There are six factors in this analysis like political, economic, legal, social, technological, environmental and legal. It is analyzed that this tool offers a proper analysis of the environment in which the company conducts the activities. It is seen that it is important for the company to consider these aspects so that growth can be achieved in an effective manner. The first factor is related to the political factor in which the activities related to government are considered. It is seen that in this there are policies which are related to trade tariffs and fiscal policies that give overall impact on the activities of the company (Grant, 2016). These factors give impact on the business and economic environment of many countries. Next is an economic factor in which is related to the determinants of the overall performance of the economy of a specific country. It is seen that the major effect is seen in the economy of the country in which the organization conducts the routine activities. Also when the rises in the inflation rate takes place it gives direct impact on the prices of the products and services given by the company (Yksel, 2012). The social factor is the next factors that come under pestle analysis. It is seen that it is considered so that proper analysis of the major determinants of cultural trends and age can be made. The technological factor is also concerned with the innovation that takes place with the help of latest technology (Gupta, 2013). When the company focuses on latest technology then it can be possible to accomplish overall goals and objectives. Next factor is a legal factor in which the laws are considered that give impact on the overall activities of the company (Obeidat et al., 2015). The last factor is an environmental factor in which it is concerned with the surrounding of the company. It is an important factor that directly gives impact on the operations of the environment (Ho, 2014). For example: By considering the PESTEL analysis of Apple it is seen that the policies of the government give direct impact on the cost which has a connection with labor, manufacturing, and taxes. It is seen that economy of the country is also affected by considering the buying decision of the customers. The technological factor also affects the innovation of the company in reference to its products and services. It is seen that rules and regulations give impact on the overall policy formation of the company. Also, it is seen that the company is facing environmental issue which is related to the disposal of the used products that can impact on the overall activities in the countries. This concept is used by the managers who are giving direction to their employees. Analysis of SWOT framework SWOT analysis is considered as a framework that offers details information of the internal environment of the companies. In this framework, there are four parts strength, weakness, opportunities, and threats. It is essential so that strategic planning can be done effectively. It is seen that this concept is used by the top management of the organization so that proper evaluation of the environment can be done (Bell and Rochford, 2016). In this section strength of the company is related to various aspects of the marketing mix and also the market share of the company. In strength, proper evaluation is done of the brand value and the overall demand for the products (Shin and Dess, 2017). Next aspect is the weakness in which the relation is with proper utilization of the resources in an effective manner. The weakness of the company is related to lack of loyalty and weak distribution channel (Menga et al., 2015). Opportunities are related with the chance to enhance the market share and also to the new introduction of the products so that the activities can be conducted smoothly. Next factor is related to the threats. The level of competition and also he outdated technologies considered by the company can be a major threat. Example- if Toyota is taken into consideration than it is seen that one of the major strength of the company is the goodwill in the market. It is seen that leading position is one of the strengths of the company in the market. The company can gain good position by advertising and promotion of the activities. The weakness of the company is related to the ineffective advertising and also the information is leaked. Opportunities are related to the expansion of the products in the market with the help of diversification. The threat of the company is related to the competitors prevailing in the market. This tool is used by the top management of the company so that activities can be conducted in a smooth manner. Porter five forces This tool is taken into consideration so that proper understanding of the competitive environment of the company can be there. In this first factor is related to the competitive rivalry which states the strength of the competitors and also it directly gives impact on the overall prices of the products given by the company in the market. Next factor is related with the supplier power in which the analyzes is made of the number of suppliers in a country and also if there are many suppliers then it can be seen that the power reduces and if there are few suppliers then demand increases (Hill, Jones, and Schilling, 2014). Power of the buyer is also one of the factors in which the analysis is made of the buyers present for the company. If there are many buyers then the price of the products will be considered by the buyers and if numbers of buyers are low then it is seen that company decides the price of the products. The threat of substitute is another factor in which the options that are available in the market are considered and also if there are more substitute then the direct impact is seen on the prices. The last factor is related to the threat which is related to the new entry in the overall market. It is seen that this force has a connection with the high cost which is related to the entry into the market (Porter and Kramer, 2018). For example, Cadbury is the largest brand in the market and it is seen that the threat of new entry is high and also the substitution of the products can be done easily. The power of suppliers is low and also the power of buyer is high. If the focus is given to the rivalry then it is seen that it is high as there are many competitors present in the market. So, every organization should focus on considering the development tools so that growth can be achieved in a proper manner. Reference Bell, G.G. and Rochford, L., 2016. Rediscovering SWOTs integrative nature: A new understanding of an old framework.The International Journal of Management Education,14(3), pp.310-326. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. Gupta, A., 2013. Environmental and pest analysis: An approach to external business environment.Merit Research Journal of Art, Social Science and Humanities,1(2), pp.13-17. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning. Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), pp.6478-6492. Menga, E., Dan, A., Lu, J. and Liu, X., 2015. Ranking alternative strategies by SWOT analysis in the framework of the axiomatic fuzzy set theory and the ER approach.Journal of Intelligent Fuzzy Systems,28(4), pp.1775-1784. Obeidat, M., North, M., Richardson, R., Rattanak, V. and North, S., 2015. Business intelligence technology, applications, and trends.International Management Review,11(2), p.47. Porter, M.E. and Kramer, M.R., 2018. Creating shared value. InManaging Sustainable Business(pp. 327-350). Springer, Dordrecht. Shin, H. and Dess, G.G., 2017. From Swot to Value Appropriation: Career Implications.Academy of Strategic Management Journal,16(1), pp.165A-168A. Yksel, ?., 2012. Developing a multi-criteria decision making model for PESTEL analysis.International Journal of Business and Management,7(24), p.52.