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What are two analysis tools that could be used in this situation? Ferrer Furniture can perform environmental scanning via two tools, PESTLE and SWOT analyses. The PESTLE tool reviews the political, economic, social, technological, environmental, and legal areas that will affect a business decision in strategic planning (PESTLE Analysis, 2019). The SWOT analysis examines a company's internal strengths and weaknesses and the external opportunities and threats (Schooley, 2024). Why do you think these are the best ways to analyze the market? The PESTLE framework organizes categories to succinctly analyze the pros and cons of expanding business internationally. Political factors such as trade control, taxes on corporations, government backing of specific industries influence a company’s interes
t in foreign investment (The Florida State University Libraries, 2022). Economic factors such as inflation rate, unemployment rate, and central bank rates influence company’s decisions also. The social piece of the analysis helps identify target markets via lifestyle choices, education, demographics, and spending habits; to name a few. Technologic considerations include review of social media, innovation in technology, patents etcetera involved in the industry’s success or challenges (The Florida State University Libraries, 2022). Legal analysis is important as different countries will have different regulations that may help or hinder the ability for new product entry. The last category reviewed is the environmental factors involved with product expansion, including climate change, sustainable practices, and geographical location. This brief description of the PESTLE framework provides several perspectives for Ferrer Furniture to examine in their global strategy planning. The SWOT analysis is beneficial as it is a simple tool used in strategic planning. The tool focuses more in-
depth on the company's status to identify strengths and vulnerabilities (Schooley, 2024). Due to its simple format, a company can determine if the benefits outweigh the risks or vice versa when presented with a new business opportunity. How will you use these tools in your plan? Ferrer Furniture may benefit from using the SWOT tool as a preliminary environmental scanning tool due to its simplicity in format. The company may identify areas of opportunity for employee recruitment and retention and how that affects the ability to grow their company. The company may find they have strong brand recognition to carry their influence with foreign consumers. This analysis can also determine if there is an increase in demand for custom furniture. Lastly, potential threats can be identified that may indicate a hard stop for expansion into certain countries. The PESTLE tool is beneficial to serve as a secondary tier or advancement with environmental scanning, due to its lengthy assessment. Ferrer Furniture can use the PESTLE analysis to determine which global strategy direction (international, multinational, global) to choose based on the findings of the tool. It is important to note that both tools are meant to provide continuous surveillance of a business or industry. To stay competitive, companies must be able to adapt to evolving environments. References Schooley, S. (2024). What is a SWOT analysis?(And when to use it). Business news daily. https://www.businessnewsdaily.com/4245-swot-analysis.html PESTLE analysis (2019). . ClickView Pty Limited The Florida State University Libraries. (2022). PESTLE analysis. https://guides.lib.fsu.edu/pestle
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