International Journal of Management and Economics

International Journal of Management and Economics


International Journal of Management and Economics
International Journal of Management and Economics
2019, Vol. 1, Issue 2
Pestel framework and porter’s five forces model

Nwokwu Tochukwu Christian

The objective of the study is to carry out a strategic review of a medium sized organization in the Financial Service Sector. The Company under consideration is ABC Finance PLC is a financial service provider in Sri Lanka. Information for the analysis is based on the discussion had with and information provided by the Management, published annual reports and financial statements of the Company, press releases and other publically available information. It was identified that the competitive scope of ABC Finance PLC is “Broad” and source of competitive advantage is “Differentiation”. A review and an evaluation of the current business strategy followed by the ABC Finance were then carried out in order to identify the sustainability of the strategy. The PESTEL framework helps to determine ABC Finance’s success or failure strategies, putting in consideration the government of the day (i.e. politics), the state of the country’s economy, sociocultural indices, technological changes, environmental factors and legal restrictions. The company should analyze their industry in a way that takes ABC competitor’s activities in to account. This is crucial part of creating strategy, and it is important that managers understand how it works and how to contribute to it. Five force analysis identified the threats of substitutes are low impact and all the remaining forces are high impact on the ABC’s competitive forces.
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