Question

What type of tools are available to help you evalute analyze strategic factors? What would you be looking for?

Answer 1

Strategic factors are the relevant principles or the factors that exists in the market to help you analyse the industrial situation in which your company is working, how effective your company could become and thus to analyse the competitive forces to provide your company a differentiable factor to stand out in the market as a leader. The tools that can be used for an effective analysation of the strategic factors are:

1. SWOT Analysis: The most effective used by most of the organisation is the SWOT analysis to determine the firm's strength, weakness, opportunities and threats to work in this dynamic environment. Thus, strengths tells the efficiency, weakness tells the areas to work upon, opportunities tell what things are to be grabbed for better growth and threats are to be avoided for the working ot the organisation.

2. PESTLE Analysis: Pestle Analysis is a Market based or external analysis of all the general or specific forces present in the business environment which targets the company and affects its performance. The political, economical, social, technological, environmental and legal factors are the basic factors studied under this for a better performance.

3. Porter's 5 Forces:Porter's 5 forces works on the basis of how the company can survive in the competition and industry by analysing the various elements surrounding inside and outside of the firm. The analysis of the buyers, sellers, existing competitors, nee entrants and substitute goods are being analysed to study the working of the organisation.

4.Value Chain Analysis: The value chain analysis works on the basis of providing the differential value to the firm for the competitive advantage that the organisation can effectively enjoys in the organisation. Thus value chain provides and helps the company to add value to each and every element of its working dimension and deliver the effective and efficient value to customers for sustainability.

5. Business Motivation Model: At last, Strategic factors can also be determined by the business motivation model which outlines and works on the basis of the working operations of the business, the people, resources and different elements of the organisation. Every firm had to ensure to keep its employees motivated and lead them with guidance for the effective working of the organisation.