Strengths are internal positive factors within organization it includes the The Boston Consulting Group (BCG) Matrix
BCG) Matrix is a portfolio management tool
characteristics of the organization that provides advantage over others, positive
tangible and intangible attributes, and beneficial aspects of an organization.
weaknesses which are the internal negative factors such as characteristics that will
place the organization at a disadvantage relative to others. weaknesses are
controllable. It can be minimized and eliminated.
Opportunities are external attractive factors that represent reasons in an
organization on how it would likely to prosper.
Threats are the external elements in the environment of an organization that cause
troubles for the organization.
PESTEL analysis is a strategic framework commonly used to evaluate the business
environment in which a firm operates. The framework is used by management teams
and boards in their strategic planning processes and enterprise risk management
planning.
STEPS TO CONDUCT PESTEL ANALYSIS
 Identify likely trends under each strategic factor.
 Gather relevant data from reliable sources.
 Assess the probability of occurrence (low, moderate, or high)
 Measure the likely impact and risk to the company (low, moderate, or high).
 Identify possible opportunities and threats brought by strategic factors.
 Formulate strategies.
 Incorporate any proposed action to the business plan.
Political Factors are those driven by government actions and policies
Economic factors relate to the broader economy and tend to be expressly financial
in nature.
Social Factors refer to shifts or evolutions in the ways that stakeholders approach
life and leisure, which in turn can impact commercial activity
Technological Factors changing rapidly.
Environmental factors emerged as a sensible addition to the original PEST
framework as the business community began to recognize that changes to our
physical environment can present material risks and opportunities for
organizations.
Legal factors are those that emerge from changes to the regulatory environment,
which may affect the broader economy, certain industries, or even individual
businesses within a specific sector
created in 1970 by Bruce Henderson. It is also referred to as the BCG growth-share
matrix. It is a simple corporate planning tool, to assess a company’s position in
terms of its product range. The tool can reveal portfolio weaknesses that may
threaten a company’s future cash flow.
The BCG matrix helps in the long-term strategic planning of the company’s
portfolio, as it indicates where to invest, to discontinue or develop products.
The purpose of the BCG Matrix (or growth-share matrix) is to enable companies to
ensure long-term revenues by balancing products requiring investment with
products that should be managed for remaining profits.
Four categories of BCG Matrix
Dogs: It is found in the lower right quadrant of the matrix. These are products with
low market growth and a low market share. referred to as a company products
with no chances of promising growth
Question marks: It is place in the upper right portion of the grid. Products with high
market growth but a low market share. requires closerconsideration because it
usually holds low market share and it consume large amount of company
resources.
Stars: It is found in the upper left quadrant of the matrix.These are products
withhigh market growth and a high market share. provides a substantial revenue
stream.
Cash cows: It is found in the lower left grid. These are products with low market
growth but a high market share. cash cow is a business division or product with a
significant market share in a mature market that guarantees substantially high
returns on investment.
PORTER'S VALUE CHAIN ANALYSIS Back in 1985, Michael Porter, a Harvard
Business School professor, introduced a basic value chain model in his book The
Competitive Advantage: Creating and Sustaining Superior Performance.
value chain refers to the various business activities and processes involved in
creating a product or performing a service.
Cost reduction, by making each activity in the value chain more efficient and,
therefore, less expensive. • Product differentiation, by investing more time and
resources into activities like research and development, design, or marketing that
can help your product stand out.
Inbound logistics is where purchased inputs such as raw materials are often taken Michael E. Porter of the Harvard Company School created Porter's Five Forces of
care of. Because of this function, it is also in contact with external companies such Competitive Position Analysis in 1979 as a straightforward framework for
as suppliers. determining the competitive strength and position of a business organization.

operations can convert the inputs in the desired product. This phase is typically
where the factory conveyor belts are being used.
outbound logistics are collecting, storing and physically distributing the product to
buyers. After the final product is finished it still needs to find its way to the
customer.
marketing and sales provide a means by which buyers can purchase the product
and induce them.
marketeers and sales agents to make sure that potential customers are aware of
the product and are seriously considering purchasing them.
service is just as important as promotional activities. to enhance or maintain the
value of the product after it has been sold and delivered.
The VRIO Framework or VRIO VALUABLE analysis is a business tool used to
examine an organization’s internal resources to achieve sustained competitive
advantage. It was first introduced to us by strategic management professor, James
Barney, in his 1991 paper Firm Resources and Sustained Competitive Advantage.
A resource is considered valuable if it helps a business implement strategies that
increase effectiveness or improve efficiency.
Rare resources can give companies a significant edge over the competition. They’re
able to deploy them and implement value-creating strategies not available to
competitors.
Inimitable resources that are both valuable and rare allows companies to engage in
strategies competitors can neither conceive nor pursue,

Procurement refers to the function of purchasing inputs used in the firm’s value
chain, not the purchased inputs themselves.

Technology development activities can be grouped into efforts to improve the

product and the process.

HRM consists of activities involved in the recruiting, hiring (and firing), training,
development and compensation of all types of personnel. HRM affects the
competitive advantage in any firm through its role in determining the skills and
motivation of employees and the cost of hiring and training them.

Firm infrastructure consists of a number of activities including general (strategic)

management, planning, finance, accounting, legal, government affairs and quality
management. Infrastructure usually supports the entire value chain, and not
individual activities.

What does value chain analysis measure?

It measures and evaluates internal activities of the company when producing goods
and delivering services. By analyzing and evaluating product quality and the
effectiveness of services, along with reducing company costs, your business can
find strategies to improve its value proposition and stand out in the marketplace.