Every company has a strategy regarding the objectives they want to achieve, but the difference between a successful and an unsuccessful strategy lies in the steps that are taken when formulating the strategy, more specifically in the first step, the external analysis. In order to facilitate this process, organizations can deploy a number of tools to perform an external analysis thoroughly.
1. SWOT
It is an acronym for Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are used for the internal scan of the company, while Opportunities and Threats are part of the external scan. By analyzing the external environment, the company can better focus its internal resources to reduce the threats and capitalize on its opportunities.
When discussing about management errors, Eleanor Roosevelt said it best: “Learn from the mistakes of others. You can’t live long enough to make them all yourself. ” If we analyze the decision making process in companies all over the world, we find that mistakes are common, but what makes the difference between an excellent and an average manager, is the ability to find solutions for errors and learn from others’ mistakes.
NIKE is the world’s leading footwear, apparel and equipment company, and, as part of their vision, they share a great commitment to inspiring athletes to reach their full potential.
Sustainability has been embraced at NIKE over the past 15 years, being a key driver for their competitiveness on the market. This is why sustainability standards are considered one of their key performance drivers.
When discussing about strategic planning, there are a few effective tools that can be used in order to have an overview of the business environment. In a previous article we have discussed about Porter’s five forces model and today we will discuss about the PESTEL analysis.
Having a strategy in today’s competitive market can dictate the success of a business. Many companies have a business model, which may differ from one company to another. Porter’s business model is used by strategy consultants in order to study the threats and advantages a company has in its respective industry.
