Monday 7th October 2019
Business Analysis Tools.
·
SWOT and
PEST(EL) analyses - what are they and how can they be used?
·
PEST(EL)
analysis - what current factors are impacting businesses and ventures in the
UK?
·
What
does / might Brexit mean for the creative industries?
·
Cultural
policy - what is currently happening in the UK?
Extension tasks:
·
Think
about a logo for your creative enterprise - if you are drawing a blank (ha!)
then Google some examples and identify what you like about them
·
Design a
logo for your CE and gather feedback
SWOT Analysis.
A SWOT
analysis helps a business look at their strengths, weakness, opportunities and
threats. A SWOT is particularly helpful because with little thought businesses
can look in depth at their strengths and weaknesses and ensure they understand
them fully. A SWOT analysis also helps them uncover different opportunities
available as well as threats that could arise. It is important for business to
understand that strengths and weaknesses are often internal, and opportunities
and threats are often external.
To
complete a successful SWOT analysis businesses need to ensure they are asking
the right questions. They are:
Strengths.
§
What advantages
does your business have?
§
What do you do
better than anyone else?
§
What unique or
low-cost resources can you draw upon that others can’t?
§
What do people in
your markets see as your strengths?
§
What factors mean
that you ‘get the scale’?
§
What is your
businesses USP (Unique Selling Point)?
Businesses
need to ensure they look from the perspective of both the business and the
customer. And also the others in your market. It is also important to consider
the businesses competitors as well because it is important to understand who it
is you are up against.
Weaknesses.
§
What could you
improve?
§
What should you
avoid?
§
What are people
in your market likely to see as a weakness?
§
What factors lose
you sales?
Opportunities.
§ What good opportunities can you spot?
§ What interesting trends are you aware of?
Useful opportunities can come from such
things as:
§ Changes in technology and markets on both a
broad and narrow scale.
§ Changes in government policy related to your
market.
§ Changes in social patterns, population
profiles, lifestyle changes, etc.
Threats.
§ What obstacles do you face?
§ What are your competitors doing?
§ Are quality standards or specifications for
your job, products or services changing?
§ Is changing technology threatening your
position?
§ Do you have bad debt or cash-flow problems?
§ Could any of your weaknesses seriously
threaten your business?
-
Mind Tools,
(2019), SWOT Analysis, https://www.mindtools.com/pages/article/newTMC_05.htm, [07/10/2019]
PESTEL Analysis.
A PESTAL
analysis is a tool used by business marketers to analyse the external marketing
environment that will affect the organisation.
PESTEL
stands for:
§
Political
§
Economic
§
Social
§
Technological
§
Environmental
§
Legal
Political Factors.
Political
factors are all about how much the government intervenes with the economy. Ways
in which the government can intervene are listed; Government policy, political
stability or instability in the overseas markets, foreign trade policy, tax
policy, labour laws, environmental laws trade restrictions, etc. Each of the
things listed, when changed, affect businesses. Therefore it is important for
businesses to be aware of possible changes.
Economic Factors.
Economic
factors have a significant impact on the success of a business. Things like;
economic growth, intreats rates, exchange rates, inflation and the disposable
income of consumers and businesses affect business operations. This means that
it is important for a business to saty ahead of the changes in the economic
environment to ensure that they are prepared for any economic changes that
might come around in the future.
Social Factors.
Social
factors include; population growth, age distribution, health consciousness,
career attitudes and so on. These factors can affect the everyday operations of
a business and it likeliness to succeed. It is important for a business to be
aware of these factor when they set up their business and they have to continue
to monitor these factors while the business is operating because a change in
social factors can affect a business target market.
Technological Factors.
Technology
has come a long way in the last 15 years, and will no doubt continue to develop
in the coming years. But technological factors are affecting business daily. If
a business can’t keep up with the technological changes then they probably
won’t succeed. Technological factors are affect businesses in three ways. They
are:
-
New ways of
producing goods and services
-
New ways of
distributing goods and services
-
New ways of
communicating with target markets
Environmental Factors.
These
factors have only begun to be recognised over the last fifteen year or so. They
have become very important due to the rapid use of raw materials, pollution
targets, carbon footprints set by the governments, and the ethical and
sustainable business operations of companies. These are just a few of the
environmental factors that business have to abide by. Its important that
business follow these environmental factors because more and more consumers are
demanding that the products that they are purchasing as sourced ethically and
from sustainable sources.
Legal Factors.
Health and
Safety, equal opportunities, advertising standards, consumer rights and laws,
product labelling and product safety are just a few of the legal factors that
business have to follow now days. It is important for business to know these
legal factors otherwise they could be closed down. International business have
it even harder because they then have to abide by the legal factors of other
countries too.
- Professional Academy, (2019), Marketing theories
– PESTEL Analysis, https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-analysis,
[09/10/2019]
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