Portfolio Assessment - Assignment Example

It first involves determining the actual existent state of a company of business. External and internal audits should be carried out to clearly bring out an understanding of an organization’s actual competency and the existing competitive environment. It will then become necessary to determine the most important goals for the company (Porter 2008, p. 89). Priorities should be set at this stage and it should be ensured that the strategic plan focuses on these priorities. Objectives should then be set in order to address any priority issues that may be existent.

Accountabilities should then set so that communication becomes easier and the objectives are addressed at individual levels. The plan should then be reviewed over and over again due to the dynamic nature of the market. Strategic tools are the essential and most applied business solution tools that companies apply so as to achieve sustainable competitive advantage. Innovations and new developments only become successful if the resulting products and services can sell well. These tools are instrumental in analyzing the existing market, be it a niche, so as to create opportunities for serving clients with a wide variety of products that are more competitive and adapted to a dynamic market development as compared to the other competitors.

Some of these tools include Porter’s 5 forces Model, The BCG Matrix, The SWOT Matrix, and The 4 P’s of the Marketing mix, Life Cycle Analysis, Ansoff Matrix, Maslow’s Pyramid and the 7-S McKinsey method. All these strategies are aimed at analyzing different aspects and levels of existence in an organization (Simerson 2011, p. 123). As such, not all these tools are applicable to any situations, thereby their effectiveness is limited to specific situations. The political factors of analysis involve government controls and rules in the effort of the company to keep up with the Environmental and Corporate Social