PESTEL Theory – management tool used to access and analyze major external factors relating to

operation.

- Political factors: regulations, policies, or operating laws

- Economic factors: inflation, interest rates, or consumer spending
- Social factors: attitudes or lifestyle preferences on a business as trends, cultural norms, …
- Technology factors: innovations or new tech as AI or integrated blockchain
- Environment factors: environmental issues as carbon footprint or climate change
- Legal factors: data privacy or intellectual property

Five Forces model – tool used to identify and evaluate root causes of profitability in an industry.

- Competitive rivalry: the intensity of competitions in the industry

- Threat of new entrants: barriers for newcoming to join in the brand-new market.
- Threat of substitute products or services: concerns about availability of substitute products or
services
- Bargaining power of suppliers: the power of the company’s suppliers in controlling the price and
profit margin so that they can raise the price or reduce the quality of purchased goods or
services.
- Bargaining power of buyers: the power of the company’s customers in demanding better quality
in goods or services and controlling a suitable price.

SWOT analysis – analyzes internal and external factors of a company or a specific project.

- Strengths: advantages or uniqueness of a company

- Weaknesses: disadvantages or errors of a company
- Opportunities: near future benefits or advantages that a company might have or improve
- Threats: near future or expected upcoming obstacle that a company will confront