Introduction
In today’s developed world, many factors play a determining role and affect people’s lives. Both local and global changes and processes force people to analyze and adapt to the situation using various tools. When defining the strategy of a business, company, or organization, such tools are SWOT and PESTLE analysis. It is essential to highlight that SWOT and PESTLE analysis are the most effective approaches for investigating internal and external business factors to create a successful global strategy.
Usefulness of The Selected Tools for a Global Strategy
The tools that I selected in my previous work were SWOT and PESTLE analysis. I still believe these two research types are best for a global strategy. When describing SWOT analysis, it is important to note that the study of the internal processes of a company or organization characterizes it. The main aspects studied are advantages, capabilities, resources, and chances (Calicchio, 2020). However, the main advantage of this type of analysis is the study of possible disadvantages and risks that may occur in the business. Therefore, this approach makes SWOT a versatile tool that can identify positive and negative factors of the business’s internal processes.
On the other hand, PESTLE analysis aims to investigate external factors that can significantly affect the object. Among the main priorities in using PESTLE is the consideration of such factors as government, economic, international influence, climate change, regional laws, and others (Perera, 2017). Therefore, by combining the two types of analysis, SWOT and PESTLE, the person gets a powerful tool that can thoroughly study the market conditions for competent global strategy creation.
Evidence that Supports My Decision
As an example of the effectiveness of my decision, it will be important to mention the words of Nazrum Islam and Bartell Steven. As Islam and Bartell (2022) state, “the PESTLE analysis is often used in combination with the SWOT analysis because it enables the determination of internal parameters related to the project and its organization into the different PESTLE categories” (p. 1906). It confirms the effectiveness of each method individually and the utility of combining them.
Refute The People from Choosing an Additional Tool
SWOT and PESTLE analysis are versatile tools, as they cover consideration of internal and external circumstances and analyze a wide range of factors in each area. Moreover, my choice of these two types of analysis also depends on the possibility of complementing each other. According to Perera (2017), “PESTLE analysis forms the basis for the identification of the opportunities and threats that help in the SWOT analysis” (p. 3). Therefore, it is essential to say that when using these two tools, the individual can comprehensively analyze a wide range of factors and increase their effectiveness due to their complementarity. This conclusion suggests that these are the only tools that are needed.
Analysis of Market, using SWOT and PESTLE Analysis
As an example of market analysis, it will be useful to consider the market of technologies, particularly smartphones. In this market, many players occupy different niches and have distinctive characteristics. Using the PESTLE tool, we first identify external factors for the market, such as laws, finance, global policy, international influence, and others. It will help to understand what will affect the production from outside and what risks and benefits follow. Then, having this information, the manager begins to develop a strategy using SWOT analysis, which will evaluate the internal market factors, considering the data obtained from PESTLE analysis. After assessing the advantages of the situation and the possible risks, the comprehensive analysis with the help of SWOT and PESTLE allowed the manager to investigate various market factors and identify possible ways for its development.
Conclusion
In conclusion, many methods allow the analysis of the market and internal and external factors relative to the business. However, an intelligent choice of specific tools will increase the analysis’s effectiveness and reduce the costs and time for its conduct. This essay proved the effectiveness of SWOT and PESTLE analysis and their importance for forming a quality global strategy.
References
Calicchio, S. (2020). Swot analysis in 4 steps: How to use the SWOT matrix to make a difference in career and business. Stefano Calicchio.
Islam, M. N., & Bartell, S. M. (2022). Global blue economy: Analysis, developments, and challenges. CRC Press.
Perera, R. (2017). The PESTLE analysis. Nerdynaut.