What Analysis Tools Should I Use?
There are tons of business analysis models that can help you better understand your business, but some of the most effective ones are the SWOT and PESTLE strategic analysis models.
SWOT stands for:
- Strengths - maintain
- Weakness - remedy
- Opportunities - exploit
- Threats - counter
INTERNAL FACTORS
Strengths and weaknesses represent your company's internal environment—things that are happening now. They represent things that you have control over and can change.
EXTERNAL FACTORS
Opportunities and threats represent your company's external environment—things that are happening in the future. They are things going on outside of your company and are not something you can control or change.
A PESTLE analysis can be done in conjunction with a SWOT to more deeply analyze the external section in the SWOT. It is more valuable than SWOT for longer term strategic plans. PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental.
- POLITICAL: Government policy, corruption levels, trade controls, import and export restrictions, taxation changes
- ECONOMIC: Exchange rates, disposable income levels, interest rates, unemployment rates, wealth distribution
- SOCIAL: Education levels, population growth rate, religious harmony, attitude towards health, social welfare programs, generational shifts
- TECHNOLOGICAL: New technology considerations, internet penetration, access to basic infrastructure, software privacy, technology competency of workforce
- LEGAL: Tax laws and regulations, labor laws and firing policies, copyright and anti-piracy laws
- ENVIRONMENTAL: Weather patterns, attitude towards recycling, attitude towards organic and green products
