In this episode of Business To You, Lars talks about the PESTEL Analysis (formerly known as PEST factors) and how to use it properly. PESTEL is a framework that helps analyzing the Macro Environment of organizations and is often used when starting a new business or when entering a foreign market. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal factors. Together these factors form a great representation of the general external environment of a business.
Find the corresponding article here: https://www.business-to-you.com/scanning-the-environment-pestel-analysis/
Porter’s Five Forces
In this episode of Business To You, Lars talks about Porter’s Five Forces and how to use it properly with the aid of some examples from the airline industry. The Five Forces model is a framework that helps assessing the industry attractiveness through the relationship between competition and profitability. The five forces are: rivalry among existing competitors, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of buyers. Together these forces form a great overview of the task environment.
Find the corresponding article here: https://www.business-to-you.com/porters-five-forces/
In this episode of Business To You, Lars talks about the BCG Matrix (a.k.a. Growth-Share Matrix) and how to use it properly with Samsung as example. The BCG Matrix is a tool used in corporate strategy to analyse business units or product lines based on two variables: relative market share and the market growth rate. By combining these two variables into a matrix, a corporation can plot their business units accordingly and determine where to allocate extra (financial) resources, where to cash out and where to divest.
Find the corresponding article here: https://www.business-to-you.com/bcg-matrix/
In this episode of Business To You, Lars talks about the internal organization for a change, or more specifically: Firm Resources. The VRIO Framework helps evaluating a firm’s resources and capabilities on the basis of the four qualities: Valuable, Rare, Inimitable and Organization. Resources that meet these four requirements can help companies gain a true sustained competitive advantage.
Find the corresponding article here: https://www.business-to-you.com/vrio-from-firm-resources-to-competitive-advantage/
Value Chain Analysis
In this episode of Business To You, Lars continues to talk about the internal organization by introducing Porter’s Value Chain Analysis. The Value Chain is a great framework to examine the internal organization in addition to the VRIO Framework. It allows a more structured approach of assessing where in the organization true value is created and where costs can be reduced in order to boost the margins. It also allows to improve communication between departments.
Find the corresponding article here: https://www.business-to-you.com/value-chain/