Reference no: EM132902740

If we were to consider starting a business domestically, or even in a foreign country - after the business plan, we need to put together a set of pro forma financial statements and provide relevant analysis. This leads to a topic that a few of our classmates noted in earlier discussions when considering analysis tools.

Class, what analysis tool would be extremely beneficial in this process if we were actually doing this in a real business setting. Why would it be beneficial in determining where to set up our new operation? As a hint - the acronym may make you think about law enforcement (the police) and a few of our classmates have noted the concept in previous weeks.

Is there any additional information I could add to the post below?

Using a SWOT Analysis provides a valuable snapshot to a company of their strengths, weaknesses, opportunities, and threats which enables them to assess their current position before making a change or decision. This tool enables a business to look at not only the internal strengths and weaknesses of the organization but also external opportunities and threats that they need to consider and how they might navigate those. Having this would provide them with an idea of where they have gaps that would need to be filled and allow them the opportunity to put a strategic plan in place using the information they have learned from the exercise. Some factors that may be considered are the ability to secure funding, the potential share of the market they have an opportunity to gain, staffing demand, and which might be changeable (Ward, 2020).

Another tool that would prove beneficial for the process of business location consideration is a PEST Analysis. A PEST (political, economic, sociocultural, and technological) analysis is similar to a SWOT but focuses more on the big picture of the situation. This analysis will take the market into consideration. In doing this the company may find an understanding of how their product or service might be received in different climates.

Using either or both tools would lend to understanding the different factors internally and externally, controlled, or uncontrolled, that can help or hinder a business's profitability in different locations, whether domestically or internationally.