Business Analysis Models

Topics: Strategic management, Management, SWOT analysis Pages: 8 (2099 words) Published: November 12, 2012

Purpose – The aim of this paper is to provide a critique on the models of business analysis by considering two companies as examples, with the objective of understanding their key success factors and future opportunities. Design/Methodology/Approach – Applying the SWOT, PESTEL and Porter models of strategic framework, and this paper identifies the current situation, power holdings, competitive rivalries and future movements of Starbucks Corporation (Starbucks), United Parcel Service Inc. (UPS), Federal Express (FedEx). Findings

In the process of analysing factors for business growth, it is imperative to study the internal and external environments of the company. This can take the form of reviewing the internal value model to understanding the industry influences on the business. The models of business analysis are deemed to be useful in determining the key strengths of the business while also pinpointing outstanding opportunities where further investments; resources, people, time, must be made. The SWOT analysis is used to analyse the internal environment of the company and the PESTEL, PORTER’S methods help in examining the external forces that impact organizational operations and long term sustainability. Keywords – Business Strategy, SWOT, PESTEL, PORTER, Business Analysis


In the current scenario of the business world, the analysis of the business has become a core aspect for any company. The strategic approach by the companies in the industry made the competition to be at the peak. In spite of heavy competition, the companies got to change their strategy to survive in the business and to see the profits. A clear understanding of the models in the business analysis and their application in the business success is needed. There are different business analysis models such as value chain, VRIO, PORTER’S and PESTEL, SWOT analysis to evaluate the performance of the firm and also to explore the possibilities in making the business which cannot be imitate able by the competitors. Though these models of business analysis are older in usage, they are the basic and key measures to analyse both the industry and a firm. In this paper, we discuss the approach of SWOT analysis to Starbucks and, PESTEL and PORTER’S analysis by applying them to the multi-national companies like UPS and FEDERAL EXPRESS. Research Methodology

The core element of this work is to provide the comparative approach of the models used in the business analysis. As well as describe the progress seen by execution of these models in the real time business environment. Models of Business Analysis – Overview

1. SWOT Analysis
SWOT analysis is considered to be the basic measuring tool and model in the business analysis. But, theoretically it has many criticisms as well. Critics say that it depends on the subjective perceptions and has less predictive power. It is notable that managers still use it in the primary analysis of the business practice.

The basic idea behind SWOT analysis is to perceive the internal resources of the company as well as the external environment that means the industry trends and threats to the firm. Therefore, though it has got many critics the SWOT analysis has got more rigid and re-designed making itself the basic approach in the business analysis processes. This paper takes the rigidness in the SWOT analysis by applying the approach over the strategy of STARBUCKS.

STARBUCKS started its operations in 1971 in Seattle with an intention to create a substitute between home and work. They position their each store to create an imitable atmosphere, matching the location. Here we will analyse the Starbucks current and International marketing strategy through SWOT analysis.

The main goal of Starbucks is to hold...
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