Business – 6.2 Business strategy – Developing business strategy | e-Consult
6.2 Business strategy – Developing business strategy (1 questions)
Login to see all questions.
Click on a question to view the answer
Answer:
Integration process:
- Conduct a PEST analysis to identify external macro‑environmental forces (Political, Economic, Social, Technological).
- Feed the PEST findings into a SWOT analysis to classify them as Opportunities or Threats, while internal strengths and weaknesses are added.
- Use the combined SWOT outcomes to develop a set of plausible future scenarios (optimistic, pessimistic, status‑quo) in Scenario Planning.
- Derive strategic options that are viable across multiple scenarios, ensuring flexibility and resilience.
| Tool | Key Output | Linkage |
| PEST | List of macro‑environmental factors | Feeds into SWOT as Opportunities/Threats |
| SWOT | Strengths, Weaknesses, Opportunities, Threats matrix | Provides content for scenario narratives |
| Scenario Planning | Set of coherent future stories and strategic options | Tests SWOT‑derived strategies against varied futures |
By linking the tools in this way, the firm ensures that its strategic options are grounded in a thorough external scan, an internal capability assessment, and are stress‑tested against multiple plausible futures.