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Management subspecialties:
Related topics:
strategy, strategic planning, corporate planning, long range planning, long term planning
Business strategy often utilizes frameworks as a way to approach complex decisions. Below are brief explanations of three often-used frameworks.
Five Forces: Michael Porter outlined this strategic model in his article, "How competitive forces shape strategy" (see PDF below). The framework examines five forces that affect business strategy: rivalry between firms within the industry; threat of new entrants, threat of substitute products, bargaining power of suppliers, and bargaining power of buyers. Management students may have assignments to study an industry and identify components within the five forces within the industry. Five Forces analyses may be included in licensed reports from publishers such as GlobalData.
PESTLE (sometimes PEST): PESTLE is framework used to analyze the macro environmental factors that can affect an industry, company or organization often in a specific country or region. It examines the Political, Economic, Social, Technological, Legal and Environmental factors of an environment.
SWOT: SWOT's analyze a company's Strengths, Weaknesses, Opportunities, and Threats. Management and marketing students often study a company or organization and perform their own SWOT analysis. SWOT analyses are included in some company reports, such as those included in D&B Hoover's. They can be extremely helpful for students evaluating potential employers or analyzing a company's strategy.
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