PESTEL
Explore political, economic, social, technological, environmental and legal forces.
Context · Portfolio · Capabilities · Choices
Understand the context before defining the strategy.
Tools are useful when they create a shared view of reality, reveal alternatives and lead to explicit choices.
Four complementary lenses
No single tool replaces judgement.
BCG matrix
Review a portfolio through market growth and relative position.
SWOT
Connect internal strengths and weaknesses with opportunities and threats.
Internal assessment
Evaluate purpose, business model, resources, processes, culture, finance, sales and technology.
PESTEL
Read the macro-environment before extrapolating the past.
BCG
StarsInvest and scale
Question marksChoose and test
Cash cowsProtect and fund
DogsTransform or exit
Market growthRelative positionSWOT
Strengths
Distinctive capabilities and assets.
Weaknesses
Internal limitations and vulnerabilities.
Opportunities
External spaces for value creation.
Threats
External forces that can reduce value.
Integrated pathway
Move from observation to choice, then to execution.
PESTEL
Sector & portfolio
Internal assessment
SWOT synthesis
Strategic choices
Execution plan