Integrative and Analytical Tools

John and Deborah’s company also needs to evaluate its market and consider
technological, political, social, economic, and environmental factors in making decisions.
Additionally, strategic decisions require organizations that consider both internal and external
environments. This report is, therefore, a summary of two analytic tools that the company can
use to analyze the industry and its competition, collect information and provide the decision-
makers with different angles. The tools considered are PESTEL analysis and Porter 5 forces.
PESTEL Analysis
PESTEL is an acronym for Political, Economic, Social, Technological, Environmental,
and Legal environment (Yuksel, 2012). This provides a comprehensive analytic tool that
encompasses essential considerations of the external environment. PESTEL analysis is also
inverted in some instances and referred to as STEEPLE but with an addition of the ethical
environment. This tool is commonly used, especially by businesses venturing into a new market
(Yuksel, 2012). It provides the company with valuable information and is widely applicable in
many global environments. This tool analyzes the environment primarily. The tool that can be
used together with the PESTEL is the Porter five forces analyzed below.
Porters Five forces
Porter’s five forces is an analytical tool that provides a company with information on the
competitors and the industry at large. This school of thought was developed by Michael E. Porter
and recommended that businesses should consider the following forces (Goyal, 2020):
 Competition in the industry
 Threats of new entrants in the industry

 Bargaining power of suppliers.
 Bargaining power of customers.
 Threats of substitute products.
Justification for the use of the two tools
These tools are simple to use, and most of the work involves collecting information. As
such, the company needs to identify credible sources of collecting information and set timelines
within which such information should be collected. The two tools meet the conditions for the
information that the company seeks. The two tools can provide information about the internal
environment, the competition, and the industry. Secondly, the tools allow the company to collect
valuable information that the company can use to make strategic decisions. These tools provide
the company with a method of anticipating future risks. The company can use these tools to
identify trends that it can use to predict the future and avoid pitfalls. Both tools also enable the
company to spot opportunities it could exploit now or in the future. These tools also help the
company understand which companies or entities control the market it is about to venture into
(Goyal, 2020). With this information, the company can know exactly what it needs to do to beat
the competition.
How the tools will be used in the plan
For the company to use the tools, it must first list its objectives. The objectives will
outline precisely what the company intends to find out, and the objectives will determine the
sources from which the company will collect information. The company will then assign the
roles of collecting information, setting timelines, and providing resources that will be required.
After the research has been conducted, the company’s leadership will need to convene and

review the information collected to determine how it will be used to improve corporate strategy
and competitive advantage.
References
Goyal, A. (2020). A critical analysis of Porter’s 5 forces model of competitive advantage. Goyal,
A.(2021). A Critical Analysis of Porter’s, 5. https://www.researchgate.net/profile/Anchit-
Goyal/publication/348550277_A_Critical_Analysis_of_Porter’s_5_Forces_Model_of_Co
mpetitive_Advantage/links/6003480392851c13fe17e878/A-Critical-Analysis-of-Porters-
5-Forces-Model-of-Competitive-Advantage.pdf
Yuksel, I. (2012). Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), 52.