MGT 499 WK 2: Strategic Management and Competitiveness

MGT 499 Week 2 Discussion Assignments: Strategic Management and Competitiveness
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Strategic management focused on planning and using resources to meet goals and objectives. The strategic analysis tools such as PESTLE, the Porter’s Five Forces and SWOT analysis are utilized. The PEST analysis stands for political, economical, sociocultural and technological factors that affect business. These are external environmental factors that affect the organization and the industry. The general environmental factors affect strategy mostly among the medium sized retailers who are affected by the external factors, and the tool is ideal for small and medium enterprises and big businesses (Williamson, Cooke, Jenkins & Moreton, 2013). The political factors include taxation laws, employment laws and political changes that affect the performance of a business. Additionally, the economic environment including the GDP levels, employment and interest rates, affect business operations as is cultural changes and technology use cannot be ignored while analyzing the external environment.
The Porter’s 5 forces model supplier power, buyer power, and competitive rivalry, threat of substitution and threat of new entrants as the five forces that influence the competitiveness of a business, product or service. The tool is applicable to a mom and pop computer repair store and medium sized retailers, as managers and owners shoul...