Tag - frameworks

June 2012

PEST Strategic Analysis Framework

strategy, plan of action, PEST Analysis, SWOT Analysis, Frameworks, Management, Leadership, Competition, Competitive AdvantageIf you know the enemy and know yourself,
you need not fear the result of a hundred battles.
If you know yourself but not the enemy,
for every victory gained you will also suffer a defeat.
If you know neither the enemy nor yourself, 
you will succumb in every battle 
 ~ Sun Tzu, The Art of War, Special Edition

pest analysis, strategy, management, swot, framework, business, competition, competitive advantage, organization,

PEST analysis is a strategic business measurement tool.

PEST is an acronym for Political, Economic, Social and Technological factors.

These factors are primarily external factors which are used prior to doing a SWOT analysis (which is used to assess both internal and external factors).

PEST is used to assess business/strategy planning, marketing positioning, business and product development, product introduction, new idea, business diversification or to review the strategy or position of a organization.

There are variations to the PEST analysis like the PESTLE (includes Legal and Ecological/Environmental)

There are many situations where systematic PEST analysis gives clarity about the external factors which can affect the decisions such as :

  • Brand in relation to a market
  • Product Launch
  • Merger and Acquisition
  • Entering a new market
  • Potential Partnership
  • Investment opportunity
  • Company assessing the market conditions
  • Product versus competition

More Strategic Frameworks here.

January 2012

Porter’s National Diamond – Competitive Advantage of Nations!!!

Porter has an amazing ability to explain complex phenomena in a crystal clear way. The National Diamond framework frames the attributes which explain the competitive advantage of Nations :

Porter National Diamond, MBA, Management Frameworks, Competitive Advantage

1. Factor Conditions. The nation’s position in fac- tors of production, such as skilled labor or infra- structure, necessary to compete in a given industry.

2. Demand Conditions. The nature of home-mar- ket demand for the industry’s product or service.

3. Related and Supporting Industries. The pres- ence or absence in the nation of supplier indus- tries and other related industries that are internationally competitive.

4. Firm Strategy, Structure, and Rivalry. The conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry.

December 2011