Strategy and change: Criticism of a strategic model

Thèmes abordés

Strategy, change, criticism, strategic model, Pestel model, Pest analysis, firm's strategy

Résumé du document

Using a strategic model is usual for companies. Among the distinctive models of strategy, I chose to focus my work on PEST analysis.
But what are the benefits and limitations of using PEST analysis? We will see in a first part that using PEST model provides a lot of benefits to organization, both to make decision on the market and in firm strategy. In a second part we will see how the only use of a PEST analysis give barriers and limitations to performance, and what are the solutions to this issues.

Extraits

[...] (2006). Corporate strategy. 4th edition. Prentice Hall. - Macmillan, H. Tampoe, M. (2001). Strategic Management. Oxford. - Fahey, L. Narayanan, V. (1986). Macroenvironmental Analysis for Strategic Management. West Publishing Company. - Johnson, G. Whittington, K. (2014). Exploring corporate strategy. [...]

[...] Moreover PEST analysis help to make decision in firm strategy. PEST table is a simple tool to study situation of a business in a market. It let anticipate organization issues and help to identify and counter threats. So PEST could be integrate to plan firm's strategy. The first idea here is that PEST is all about identification, identification of key issue and identification of which response firm will choose to counter this problems (Fahey, 1986). Moreover, Fahey argued that it is very important to understand the different changes in the market to schedule future and make good decision to maintain an interesting position in the market. [...]

[...] Pearson. - Parnell, G. Bresnick, T. Tani, S. (2013). Handbook of decision analysis. Wiley. - Mintzberg, H. (1994). Rise and Fall of Strategic planning. Prentice hall: Financial Time. Thesis: - Collins, R. (2010). Is there better way to analyse the business environment? University of reading. Academic articles: - Saavedra - Rivano, N. (1979). A critical analysis of the Mesarovic - Pestel world model. [...]

[...] For example, the SPELIT (same of PESTEL but with intercultural element). And the STEEPLED (adding ethics and demographics factors). But we have to keep in mind that the fact to add more elements to the tool do not respond to the analysis issue. So managers have to, like Collins, cross elements and find relationships between them. References: Books: - Porter, M. (1980). Competitive strategy: Techniques for Analysing Industries and Competitors. Free Press: New-York. - Friend, G. (2004). Guide to business planning. Profile books and The Economist. - Lynch, R. [...]

[...] Strategy and Change: Criticism of a strategic model Using a strategic model is usual for companies. Among the distinctive models of strategy, I chose to focus my work on PEST analysis. But what are the benefits and limitations of using PEST analysis? We will see in a first part that using PEST model provides a lot of benefits to organization, both to make decision on the market and in firm strategy. In a second part we will see how the only use of a PEST analysis give barriers and limitations to performance, and what are the solutions to this issues. [...]