TOOLS FOR GLOBAL STRATEGY 1
Tools for Global Strategy Analysis
Colorado Technical University
TOOLS FOR GLOBAL STRATEGY 2
I completely support the tools that I have selected will work efficiently for a global strategy. Building and growing your business involves finding ways to expand upon your strengths take advantage of your opportunities and minimize your weaknesses. The SWOT analysis is a beneficial tool that will assist with the process of identifying your strengths, weaknesses, opportunities, and threats; giving you an overall understanding of the state that your business is in. Identifying these are crucial to a business when forming a strategy. Porter’s 5 Forces model works extremely well with SWOT. Porter has successfully identified all the forces that basically shape every industry and market. A successful strategy will ultimately limit the affect and change the impact that these forces have on the business. (Spadaro, 2018).
Conducting and implementing the SWOT analysis will enable businesses to identify the positive and negative facets and then implement research. Conducting this analysis once a month or at least once a year will help businesses understand their current situation, evaluate their current state, and overcome the barriers and factors that hinder them from achieving their full potential. This method is the most widely used method for analysis. The importance of this method can be judged by the following: the analysis shows the businesses current standing position, it informs businesses about both internal and external factors affecting success or failure, helps with the assessment and counter measures to take for improvement and the analysis of threats. The SWOT analysis: forecasts the future while shedding light on the current state of the business, evaluates business environment, and allows businesses to make strategic decisions, prevents failure by creating a system for continuous success. The SWOT analysis helps businesses to understand the market and economy for expansion. It provides a system for
TOOLS FOR GLOBAL STRATEGY 3
identifying threats and business opportunities. Lastly, it helps businesses to learn about markets, and promotes the entrance to new markets nationally or globally. (PESTLE Analysis Contributor, 2016).
Michael Porter’s 5 Forces model is a crucial elucidation of the five forces that will ultimately shape and dictates the long-term efficiency of any industry and market. These five forces dictate the earnings framework of an industry by deciding how the industrial value it creates is allocated. That value created can be depleted through the opposition among competitors, it can be...