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Application of PEST and SWOT methods in internal and external environment analysis and strategic direction for organization development in the case of SPENGLER & FÜRST GMBH & CO KG

Essay 2018 7 Seiten

BWL - Unternehmensführung, Management, Organisation



Introduction of the company

Determination of the factors (external and internal) that will be analyzed

Applying the PEST method for external environment analysis

Application of the SWOT method for the organization

Defining guidelines for organizational development in the functional areas - production (product), marketing (market), finance and human resources in SPENGLER & FÜRST GMBH & CO KG

Choosing an appropriate strategy for the development or operation of the organization



It has been stated that the field of strategic management is fragmented and lacks consistency and identity. This skepticism, however, lies in the paradoxical contradiction of the discipline. However, what caused this paradox? For some scholars on the impact that strategic management exercise on the organization, or on the way in which certain managers apply the principles in it. Relationship to this discipline, however, is extremely polarized and controversial. On the one hand, it is celebrated as a virtue of capitalism as an accelerator of the market economy and as a factor to enhance consumer welfare. On the other hand, it is being criticized for a number of flaws, which include: promoting and imposing erroneous strategies, manipulation, lack of ethics, and so on.

But whatever points of view to consider, I should say that without it organization as Spengler & Fürst cannot function; namely, without strategic management, the current position of the company would not be real.

Key words: SPENGLER & FÜRST GMBH & CO KG, SWOT, PEST, external, internal, factors.

Introduction of the company

SPENGLER & FÜRST GMBH & CO KG is one of the contemporary weaving companies in Germany. Their main activity is the production of filament yarn and fiber yarn fabrics in the various scope of materials while guaranteeing quality and excellent value. In brief, their main activities include the vehicle industry, textile architecture, functional textiles, protective clothing textiles and special applications (, 2018).

Additionally, a major goal of the company is the ultimate satisfaction of its customers (KG, 2018). The main idea of the strategic management of the company is to create sustainable patterns of quality in the minds of the end user, subject to the change in the extent to which people assess whether they suffered any losses or would benefit from the purchase of the products.

Determination of the factors (external and internal) that will be analyzed

Hence, this research paper will not examine the strategic marketing as part of the company's advertisement, it will focus on the factors of micro and macro environment, namely the political, economic, social, technological and environmental. On the other hand, the analysis aims to explore the strengths and weaknesses of the organization, as well as the opportunities and threats for its development.

The next task that the author poses in front of himself is to try to outline the chaos in this kind of analysis and to give recommendations for the better development of the company.

Applying the PEST method for external environment analysis

PEST analysis of the external environment of a company like SPENGLER & FÜRST GMBH & CO KG focuses on four main aspects:

Political – essentially the attitude of the Government towards business in Germany is favorable. In the first place, VAT rates are 19% standard for some taxable goods and services. However, some foodstuffs, international passenger transport for certain road, rail and inland waterway transportation, admission to cultural events; writers and composers; some agricultural inputs., etc the VAT rate is reduced to 7%. Of course, for the intra-community and international transport (excluding road and rail and some inland waterways transport) the VAT rate is 0% (Avalara VATLive, 2018).

Economic – In 2017, the level of a gross domestic product of Germany has risen to 3,677 trillion USD, resembling in this way 5.93 percent of the world economy (, 2018). In turn, there are positive effects for the textile industry being shown in the way that now everyone is reassessing the effectiveness of their business, the manner in which one's company gains revenue, the manner it spends and borrows it in order to maintain a highly efficient and rational mode.

Social – in the social aspect, we have to consider the rise in birth rates and low levels of unemployment, which are a prerequisite for the ameliorated business climate and increased purchasing power. 2016 was the fifth consecutive year in which the number of newborns in Germany increased (, 2018). The rate of unemployment in the country is 3.5% (, 2018). And the customer is the one whose willingness to pay the price of the good or service became in wealth, resources and objects – in goods. Additionally, what the client considers to have value and buy is not just a product. He, the customer also buys the benefit, i.e. what the product or service will contribute to.

Technology – since the purpose of business is to create customers, any business venture applies technological innovations related to information and communication technologies, which are particularly fashionable these days. Moreover, the new technologies used by SPENGLER & FÜRST GMBH & CO KG change the interaction between customers, suppliers, and employees. They facilitate the production and distribution process, proof of which is the so-called consumer consumption of the products. In general, factory managers are aiming for their products not to be old-fashioned and out of use. That's why they choose new designs and fabrics to meet today's requirements (KG, 2018).

Application of the SWOT method for the organization


- The company has defined competence in the business it is engaged in;

- The company has good competitive abilities. It has its own specific face and organization style.

- On behalf of consumers, the company has a good reputation. The latter is proven by the high attendance of its shops.

- The company is protected from a strong competitive risk because it is systematically updated and able to maintain the interest amongst its consumers.

- The company has proven competitive advantages with its rich assortment, specific environment, and product quality.



ISBN (eBook)
SPENGLER & FÜRST GMBH & CO KG SWOT PEST external internal factors.




Titel: Application of PEST and SWOT methods in internal and external environment analysis and strategic direction for organization development in the case of SPENGLER & FÜRST GMBH & CO KG