PESTEL FACTORS

What is PESTEL? It is an analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. It is a shortform of 

• Political factors
• Economic factors
• Socio-cultural factors
• Technological factors
• Ecological factors
• Legal factors

This is the elements of each factor: 

BREAKEVEN GRAPH

In the internal factor analysis, there are 4 functions that is used to be monitor to build strategies. it is management, marketing, production and financial. In the production factor, there is a thing must be observed. It is breakeven graph. We must ensure that we are reaching the breakeven point. breakeven point is total cost and total revenue are equal. There is no net loss or gain, and one has "broken even," though opportunity costs have been paid and capital has received the risk-adjusted, expected return.

PRODUCT LIFE CYCLE

In the internal factor analysis, there are 4 functions that is used to be monitor to build strategies. it is management, marketing, production and financial.In the marketing factor, there is a thing must be observed. It is called Product Life Cycle. The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage.

We build strategies suitable according to each stage and phase. 

MARKETING MIX

The marketing mix is a foundation model in marketing. The marketing mix has been defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target. Marketing mix is the tactical or operational part of a marketing plan. The marketing mix is also called the 4Ps. It is:,

How they use this 4Ps to build strategies?

Secondary Level Strategies

In the corperate level strategies, there are divided into 3 stages, which are Grand Strategies, Secondary Level Strategies and Tactical Level Strategies. Corporate level strategies related to top management level, for the benefit of the whole organization, for the welfare of corporations in future and to bring it at higher position. 

In Secondary Level Strategies, there are 4 subdivided:

• EXPANSION- increase existing activies. ( Giant, Tesco, KFC)
• INTEGRATION - Control operations. it is divided into vertical and orizontal strategy. Vertical includes backward and forward integration strategies.
• DIVERSIFICATION - increase output. It has Concentric, Conglomerate, Horizontal and Geographical diversification strategies.
• TURNAROUND - actions to face some difficulties.

GRAND STRATEGIES

In the corperate level strategies, there are divided into 3 stages, which are Grand Strategies, Secondary Level Strategies and Tactical Level Strategies. Corporate level strategies related to top management level, for the benefit of the whole organization, for the welfare of corporations in future and to bring it at higher position. 

This post is going to share with you about Grand Strategies. Grand Strategies is divided by 4:

• Growth Strategy

                 To ensure next year’s growth rate is higher than the previous year

• Stable Growth Strategy

       To target a growth rate similar to that as achieved in the previous year 

• Turnaround Strategy

             A choice when the company has been experiencing a bad spell and at a certain time decides that it needs to do a turnaround

• Combination Strategy

      some of the components will have to go down in order for its other components to go up. 

EXTERNAL & INTERNAL ENVIRONMENTAL ANALYSIS

EXTERNAL & INTERNAL ENVIRONMENTAL ANALYSIS provides information to managers regarding the key trends and changes in the external and external environment. Here I prepare a note/summary on external and internal factor analysis chapter.