SWOT analysis
The strengths of a SWOT analysis are that it enables a business or organisation to identify and understand the important areas and factors which has an effect on them. They’re able to analyse their strengths to find out what really makes them stand out from their competitors and also capitalise on new found opportunities. Also, the business can also analyse where they have weaknesses and then work on solutions to help improve these areas, therefore SWOT analysis helps to reverse the weaknesses of a business.
Furthermore, SWOT analyses can be carried out by anyone within an organisation, as it requires minimal knowledge or training. It is also quite cost effective and businesses of different sizes can all carry it out. Therefore, SWOT analysis can help any business to develop business goals and objectives as well as the strategic methods of achieving them, these goals and objectives can also apply to different areas of the business, such as; improving brand images and recognition, a specific product or service as well as increasing market share.
However, the weaknesses of a SWOT analysis is that you can come up with a lot of useful ideas for your business, however a SWOT analysis doesn’t help you to choose the best effective idea for your business. Also, SWOT analysis doesn’t provide a detailed and in-depth evaluation and also lacks in research, therefore it doesn’t really help a business to resolve its complex problems. With a SWOT analysis, a business is able to identify its strengths, weaknesses, threats and opportunities, however it does not prioritise any of these areas or any issues that may arise, therefore it makes it harder for a business to know which element will have the most effect on their business.
PESTLE analysis
Pestle analysis is a strategic planning method that is used to reduce the threats to a business, it examines the political, economic, social, technological, legal and environment factors that affect a business. One of the advantages of a PESTLE analysis is that it is straight forward and cost effective and the only cost is how much time you put into it. A PESTLE analysis helps a business gain a deeper understanding of the environment it is operating in, for instance when developing a prototype product, with PESTLE analysis, a business can overlook the consumer and safety laws that govern that environment which affects your prototype. PESTLE analysis also helps to identify and analyse the different factors that can affect how successful the launch of the product or services of a business, it encourages strategic thinking and planning.
However, PESTLE analysis is only based on the external the assessment of the external environment, therefore results gained from PESTLE analysis are not complete or always useful. Additionally, PESTLE analysis does not prioritise the different factors or issues that may arise, therefore it makes it more difficult for a business to know which element will have the most effect on their business operations and objectives.
