In order to effectively analyse Luxury Boats Ltd. and the framework of macro-environmental factors affecting the business, two analytical tools will be used; the PEST Analysis and the SWOT Analysis. The PEST Analysis will look at external factors affecting the business as well as giving an overview of the various macro-environmental influences that Luxury Boats Ltd. should take into account. The political circumstances that will be examined include tariffs and political stability.
Economic factors will analyse general economic growth together with changes in exchange rates, inflation rate and interest rates, tax policy, trade restrictions, and employment laws. In the social factors section an examination of cultural conditions and social changes will be undertaken. Technological aspects looks at the rate of technological change. The first step in the SWOT analysis will be to identify the purpose or objectives of the analysis.
The objectives of this SWOT analysis are to pin-point specific issues which affect or could affect Luxury Boats Ltd , determine how the company can counteract any problems, identify ways in which the business can increase profits and to provide for a logical conclusion to the general situation. The Strengths section will be concerned with Luxury Boats Ltd’s positive characteristics, which will aid it in achieving the objectives mentioned above.
Weaknesses will engage the negative areas of the business, which will hinder the general aims. The Opportunities section will concentrate on external factors that may assist and positively influence the attainability of the company goals. Under Threats, the external factors that may cause harm to Luxury Boats Ltd will be examined. The key questions which need answering are; how can the company use each Strength, stop each Weakness, exploit each Opportunity and defend against each Threat?