The document discusses strategic analysis tools for enterprise management. It covers external analysis including PESTEL and DEEPLIST frameworks to analyze political, economic, social, technological, environmental, and legal factors. Porter's Five Forces model is also discussed to analyze competitive rivalry, threat of substitution and new entry, supplier power, and buyer power. Internal analysis tools covered include resource audit and identifying core competencies. Porter's Value Chain model is presented for analyzing primary and support activities.

1. ENTERPRISE
MANAGEMENT
Strategic Analysis

2. Topics Covered
External Analysis
PESTEL Analysis
DEEPLIST analysis
Porter’s Five Forces
Internal Analysis
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3. External Analysis
The External Analysis examines opportunities and threats that exist in the
environment.
External factors includes political, legal , economic , social factors.
PEST(EL) can be helpful in analyzing the external factors.
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4. PEST(EL) Analysis
• There are many factors in the macro-environment that will effect the
decisions of the managers of any organisation. Tax changes, new laws, trade
barriers, demographic change and government policy changes are all
examples of macro change. To help analyse these factors managers can
categorise them using the PESTEL model.
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5. PEST(EL) Analysis
Political factors.- legislation, government policies etc.
Economic factors-International situation, population growth , GDP.
Social factors-change in lifestyle, education , values.
Technological factors-Change in material supply, new product development.
Environmental factors-impact on pollution.
Legal factors-change in laws and regulation, patents, etc.
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6. DEEPLIST analysis
In DEEPLIST the factors to be explored are:
 Demographics
 Economic
 Environmental/ Ecological
 Political
 Legal
 Informational
 Social
 Technological
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7. Porter’s Five Forces
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8. Porter’s Five Forces
 Supplier Power- to charge higher prices.
 Buyer Power-powerful buyers can force price cuts / quality
 Competitive Rivalry-existing competition.
 Threat of Substitution- alternatives available.
 Threat of New Entry-new entrant brings extra capacity and intensify the
competition.
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9. Internal Analysis
The Internal Analysis of strengths and weaknesses focuses on internal factors
that give an organization certain advantages and disadvantages in meeting the
needs of its target market. Strengths refer to core competencies that give the
firm an advantage in meeting the needs of its target markets.
Key Resources:
1. Resource and Competence
2. Porter’s value chain model.
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10. Resource Audit
• Resources:
Physical or operational
Human resources
Financial Resources
Intangibles
• Basic: Similar to those of competitors
• Unique –Different from competitors and difficult to attain.
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11. Competence
• Threshold competence-the processes, procedures and product characteristics
which are necessary to enter a particular market.
• Core competence- which gives the competitive advantage over within that
market.
In long run core competence becomes the threshold competence
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12. Porter’s Value Chain
• The sequences of the processes through which value is added to an organization’s
products and services.
Primary
Support Activities
Activities
Receiving Purchasing of
material, handling , raw material,
warehousing etc. capital items.
Converting inputs Technology
into output development
Finished goods
warehousing, order HR Management
processing etc.
Accounting and
Marketing finance, quality
management etc.
After sale services
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13. KAPP EDGE SOLUTIONS
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