Odetayo Strategic Analysis Models Skill

Last updated: 28 September 2026

Apply PESTEL, Porter's Five Forces, Porter's Diamond, Benchmarking, and SWOT analysis correctly to any business scenario, including knowing which model to use, what to look for, and how to structure your output.

// TL;DR

The Odetayo Strategic Analysis Models Skill teaches you to correctly apply PESTEL, Porter's Five Forces, Porter's Diamond, Benchmarking, and SWOT to any business scenario. It shows you which model to use based on the exam requirement, how to read a case study 'with intention' to spot subtle factors, and how to structure your answer (diagram in appendix, analysis in body). Use it whenever you must analyse a company's external environment, internal environment, or both — especially in case study exams, strategic reports, or business analysis tasks that demand a model-based, evidence-backed answer.

Framework

// When should you use the Odetayo Strategic Analysis Models Skill?

Use this skill whenever you need to analyse the external environment, internal environment, or both for a business — especially in case study exam questions, strategic reports, or business analysis tasks where a model-based structured answer is required.

// What do you need before applying these strategic analysis models?

Business scenario or case study extractrequired
A description of the company, its industry, and any contextual information provided (pre-seen or unseen material, financial data, news about the industry, competitor information, etc.)
Examiner instruction or analytical goalrequired
The specific requirement: e.g. 'assess the external environment', 'use Porter's Five Forces', 'carry out a SWOT analysis', or an open-ended strategic question
Industry context
The sector the company operates in — manufacturing, retail, tech, FMCG, etc. — to allow relevant examples to be drawn

// What core principles guide correct strategic model analysis?

Read with intention

Examiners will not label information for you. They will embed PESTEL factors, Porter forces, or SWOT elements inside ordinary sentences. You must read the scenario with the goal of identifying which concept each piece of information maps to — it is always subtle, always in between the lines.

Only use a model if asked

Even if every piece of information in the scenario maps perfectly onto SWOT or PESTEL, do not include a model unless the requirement explicitly asks for it. Including models when not required is a documented exam pitfall. Focus on your requirements.

External = beyond the control of the business

External analysis covers factors the company cannot control — government policy, supplier power, new entrants, competitor moves, cultural shifts. The company can respond to them, but cannot stop them. This is the 'blue area outside the fence' — it does not belong to the company, but it can still burn down the house if ignored.

SW is internal, OT is external

In SWOT analysis, Strengths and Weaknesses are always internal (inside the company). Opportunities and Threats are always external (outside the company). SWOT is the only model that covers both environments simultaneously, which is why it is the most balanced.

Diagram in appendix, story in body

When including a model in a report, draw the model diagram in the appendix. All the explanation, evidence from the scenario, and analysis goes in the body of the report. No colours needed — simple labelled boxes or circles are sufficient.

The purpose of external analysis is to act, not just observe

Assessing the external environment is not academic box-ticking. It is so the company can see what is happening outside — threats to mitigate, opportunities to exploit — and take urgent steps before those external forces affect internal operations. The fire outside the fence will spread if you ignore it.

Benchmarking goal is always improvement

Regardless of the type of benchmarking used, the purpose is always the same: identify a performance gap and adopt practices that enhance efficiency, quality, or competitiveness. The type of benchmarking simply determines what you are comparing and against whom.

// How do you apply PESTEL, Porter, Benchmarking and SWOT step by step?

1
Identify which model is required
Check the requirement carefully. If it says 'assess the external environment' → default to PESTEL. If it names a model explicitly (e.g. 'using Porter's Five Forces') → use that model. If it says 'assess the external and internal environment' → use SWOT. If no model is mentioned, do NOT include one unprompted. The examiners are fair — they will give a hint.
2
Read the scenario with a model-mapping mindset
Go through the scenario sentence by sentence. Tag each piece of information to the relevant model component. Remember: the examiner will not say 'this is a social factor' — they will say something like 'the population of the region has grown significantly.' You must make the connection. Be especially alert to subtle language around government, economics, lifestyle, technology, competition, and customer behaviour.
3
Apply PESTEL if external environment analysis is required
Work through each letter in order — Political (government policies, taxation, trade regulations, political stability), Economic (inflation, interest rates, employment, exchange rates — and their effect on demand, cost, and profitability), Social (population, age distribution, lifestyle changes, cultural factors that influence market demand), Technological (innovation, automation, new production methods that affect efficiency or competitiveness), Environmental (climate change, environmental regulations, sustainability compliance costs), Legal (labour laws, consumer protection laws, company regulations). For each factor, state the specific factor found in the scenario, then explain how it influences the company.
4
Apply Porter's Five Forces if industry competitive analysis is required
Assess all five forces: (1) Threat of New Entrants — how easy is it to enter the industry? Look for signals about capital requirements, economies of scale, government regulations, brand loyalty. High threat = more competition, lower profitability. (2) Bargaining Power of Suppliers — are there few suppliers, limited substitutes, high switching costs, or unique inputs? If yes, suppliers have power to influence price and availability. (3) Bargaining Power of Buyers — are buyers concentrated, purchasing large volumes, and do they have easy alternatives and low switching costs? If yes, buyers can demand better prices and services. (4) Threat of Substitutes — are there alternative products that perform the same function? High availability limits pricing power and reduces profitability. (5) Competitive Rivalry — how intense is existing competition? Look for number of competitors, industry growth rate, product differentiation, fixed costs, and exit barriers. All five forces are external and beyond the company's control.
5
Apply Porter's Diamond if national competitive advantage or industry conditions are being analysed
Assess all four corners: (1) Factor Conditions — availability, quantity, and quality of production factors (skilled labour, infrastructure, technology, capital). Does the scenario mention workforce quality or resource availability? (2) Demand Conditions — nature and size of domestic demand; customer sophistication and quality expectations that push firms to innovate. (3) Related and Supporting Industries — presence of efficient suppliers, distributors, or complementary industries that enhance innovation and efficiency. (4) Firm Strategy, Structure, and Rivalry — how firms are created, organised, and managed, plus the intensity of domestic competition driving efficiency and innovation.
6
Apply Benchmarking if the requirement asks for performance comparison
First identify the type of benchmarking required: Internal (comparing different parts or products within the same firm to identify weak areas), Competitive (comparing the company's products/performance against a successful competitor to enhance competitiveness), Process (comparing specific operational processes with firms in other industries to adopt best practices), Customer (using customer expectations as the benchmark — what do customers want that the company is not yet providing?), Strategic (comparing company strategies with successful competitors to improve overall performance direction), Functional (comparing a specific business function — e.g. logistics, delivery, HR — against a competitor's equivalent function), Product (analysing competitors' products for design, cost, and quality advantages). In every case, the goal is to identify the performance gap and state what improvement action should follow.
7
Apply SWOT if both internal and external analysis are required
Work through all four quadrants: Strengths (internal capabilities, resources, and advantages — what is the company doing well that gives competitive advantage?), Weaknesses (internal limitations or areas where the company is lacking — what internal gaps are holding it back?), Opportunities (external market trends or factors the company can leverage to improve — what is happening outside that works in the company's favour?), Threats (external challenges that could hinder the company's success — what external forces could damage performance?). Remember: SW = internal, OT = external. SWOT is balanced because it looks at both the good and the bad, both inside and outside.
8
Structure the output correctly
In a written report: place the model diagram (simple labelled boxes or circles — no colours required) in the appendix. In the body of the report, explain each component using evidence drawn directly from the scenario. Do not just list the components — apply each one to the specific business situation provided. Each component should have: the factor identified, the evidence from the scenario, and the implication for the company.

// What do worked examples of these strategic models look like?

A manufacturing company in the FMCG sector is asked: 'Assess the external environment of the company using an appropriate model.'

The instruction 'assess the external environment' signals PESTEL as the primary model. Read the scenario and tag each sentence: any mention of government policy or trade regulation → Political; mention of inflation or interest rate changes → Economic; population growth or changing consumer habits → Social; new production technology or automation → Technological; environmental compliance costs or carbon emission rules → Environmental; labour law changes or consumer protection regulation → Legal. Draw the PESTEL circle in the appendix. In the body, explain each factor with the specific scenario evidence and its implication for the company's demand, costs, or operations.

A case study question states: 'Using Porter's Five Forces model, analyse the competitive environment facing the company.' The scenario mentions few raw material suppliers, many competing brands, and low barriers to entry.

Because the model is named explicitly, apply all five forces. Few raw material suppliers → high Bargaining Power of Suppliers (they can influence price and availability). Many competing brands → high Competitive Rivalry (intense competition, likely pressure on margins). Low barriers to entry → high Threat of New Entrants (easy to enter, increasing competition and reducing profitability). Then check the scenario for signals on Bargaining Power of Buyers (are buyers concentrated? Do they have alternatives?) and Threat of Substitutes (are there alternative products that serve the same function?). Place the Five Forces diagram in the appendix; explain each force with scenario evidence in the body.

A requirement states: 'Carry out a competitive benchmarking exercise for the company against the market leader described in the case.'

Competitive benchmarking compares the company's products or performance against a successful competitor. Extract what the market leader is doing well from the scenario — pricing strategy, product features, distribution reach, customer service. Then compare each area against the company's current position. Identify the performance gap and recommend what the company should adopt or adapt from the market leader to improve its own competitiveness. The goal is always improvement.

A question asks: 'Assess the internal and external environment of the company.' No specific model is named.

The instruction to assess both internal and external environments signals SWOT analysis. Tag scenario information into four buckets: internal positives (Strengths), internal negatives (Weaknesses), external positives (Opportunities), external negatives (Threats). Draw the simple 2x2 SWOT grid in the appendix. In the body, explain each quadrant using scenario-specific evidence. Do not apply PESTEL or Porter's Five Forces here unless explicitly requested — SWOT covers both environments and is what the examiner is signalling.

// What mistakes should you avoid when applying strategic models?

Including a model in your answer when the requirement does not ask for one — this is a documented exam error. If the examiner does not request a model, do not use it, even if all the information maps neatly onto one.
Labelling SWOT components incorrectly: Strengths and Weaknesses are always internal; Opportunities and Threats are always external. Mixing these up undermines the entire analysis.
Reading the scenario passively instead of with intention — the examiner will never tell you 'this is a social factor' or 'this is a threat of new entrants.' You must actively map each sentence to the correct model component.
Treating external factors as irrelevant because they are outside the company's control. External factors cannot be controlled, but they can spread into the business like fire. The purpose of analysis is to act before they do harm.
Confusing Bargaining Power of Buyers with Threat of Substitutes — both relate to customer switching, but Bargaining Power of Buyers means customers actively influence price and terms, while Threat of Substitutes means alternative products limit the supplier's pricing power without buyers necessarily having direct negotiating leverage.
Skipping the diagram in the appendix or attempting to colour-code it elaborately — a simple labelled diagram is all that is required. No colours, no artistic effort needed.
Using only one benchmarking type when the requirement specifies another — read the requirement carefully to identify whether internal, competitive, process, customer, strategic, functional, or product benchmarking is being asked for.
Interpreting financial ratios in isolation without comparing to industry averages when industry data is provided — this is a form of benchmarking, and failing to compare against the industry benchmark misses a key part of the analysis.

// What key terms should you know for strategic analysis models?

PESTEL: A model for external (environmental) analysis covering six macro-level factors: Political, Economic, Social, Technological, Environmental, and Legal. It is the primary tool used whenever an examiner asks you to 'assess the external environment'.
Porter's Five Forces: A model for analysing the competitive dynamics of an industry through five external forces: Threat of New Entrants, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitutes, and Competitive Rivalry.
Porter's Diamond: A model for analysing the conditions that create national or industry-level competitive advantage, covering four factors: Factor Conditions, Demand Conditions, Related and Supporting Industries, and Firm Strategy, Structure, and Rivalry.
Benchmarking: A process of comparing an organisation's processes, performance, or products with those of best-in-class organisations, in order to identify performance gaps and adopt practices that improve efficiency, quality, and competitiveness.
Internal Benchmarking: Comparing different parts or product lines within the same firm to identify gaps and weak areas.
Competitive Benchmarking: Comparing the company's products or performance against a successful competitor to enhance competitive positioning.
Process Benchmarking: Comparing specific operational processes with firms in other industries to adopt best practices and improve operations.
Customer Benchmarking: Using customer expectations as the benchmark — measuring the gap between what is currently provided and what customers desire.
Strategic Benchmarking: Comparing the company's overall strategies with those of successful competitors or firms to improve performance direction.
Functional Benchmarking: Comparing the performance of a specific core business function (e.g. logistics, delivery) against a competitor's equivalent function.
Product Benchmarking: Analysing competitors' products to identify design, cost, and quality advantages that can be adopted or adapted.
SWOT Analysis: A model that assesses both the internal environment (Strengths and Weaknesses) and the external environment (Opportunities and Threats) of a company. SW = internal; OT = external.
External Analysis: The evaluation of factors beyond the control of the business — the macro environment and the industry — to identify changes that may influence the company. Also called environmental analysis.
Wider context: The external environment of a company — the industry in which it operates and the macro-level forces surrounding it. Factors here cannot be directly controlled by the company but can significantly affect it.
Pre-seen and unseen: Terms used in professional case study examinations: the pre-seen is background material issued before the exam; the unseen is additional scenario information revealed on exam day. Both may contain information that maps to strategic analysis models.
Read with intention: The practice of reading a case study scenario with the active goal of identifying which model component each piece of information belongs to — recognising subtle signals rather than waiting for explicit labels.
Diagram in appendix, story in body: The structural rule for including models in a report: the model diagram goes in the appendix, while the detailed explanation and scenario-specific analysis goes in the body of the report.

// FREQUENTLY ASKED QUESTIONS

What is the difference between PESTEL, Porter's Five Forces and SWOT?

PESTEL analyses the macro external environment (Political, Economic, Social, Technological, Environmental, Legal). Porter's Five Forces analyses the competitive dynamics of an industry (new entrants, supplier power, buyer power, substitutes, rivalry). SWOT covers both environments at once — Strengths and Weaknesses are internal, Opportunities and Threats are external. Use PESTEL for macro factors, Porter for industry competition, and SWOT when both internal and external analysis is required.

How do I know which strategic model to use in an exam question?

Read the requirement carefully — examiners give a hint. 'Assess the external environment' signals PESTEL. A named model like 'using Porter's Five Forces' means use that model. 'Assess the internal and external environment' signals SWOT. If no model is mentioned, do not include one unprompted. Adding a model when it wasn't requested is a documented exam error that costs marks.

How do I apply PESTEL to a case study step by step?

Work through each letter in order: Political (government policy, tax, trade regulation), Economic (inflation, interest rates, exchange rates), Social (population, lifestyle, culture), Technological (innovation, automation), Environmental (climate, sustainability compliance), Legal (labour and consumer laws). For each, state the specific factor found in the scenario, then explain how it influences the company's demand, costs, or operations. Never just list — always apply the factor to the business.

Why do examiners hide PESTEL and Porter factors inside ordinary sentences?

Examiners test whether you can 'read with intention' — they will never label information as 'this is a social factor.' Instead they write things like 'the population of the region has grown significantly,' expecting you to map it to Social. You must actively tag each sentence to the correct model component. Passive reading misses these subtle signals and loses easy marks.

How does SWOT compare to a generic list of pros and cons?

SWOT is more disciplined than a pros-and-cons list because it separates internal from external factors — Strengths and Weaknesses are always inside the company, Opportunities and Threats are always outside. This structure forces balanced analysis of both environments and links directly to strategic action. A generic pros/cons list blurs what the company can control versus what it can only respond to.

When should I use benchmarking instead of PESTEL or Porter's Five Forces?

Use benchmarking when the requirement asks for a performance comparison — measuring the company against a competitor, another industry, customer expectations, or internal units. PESTEL and Porter analyse environments and industry structure; benchmarking measures a specific performance gap and recommends improvement. If industry-average financial data is provided, comparing ratios against it is also a form of benchmarking.

What is the correct way to structure a model in a written report?

Place the model diagram — simple labelled boxes or circles, no colours needed — in the appendix. Put all explanation, scenario evidence and analysis in the body of the report. For each component, state the factor identified, the evidence from the scenario, and the implication for the company. This 'diagram in appendix, story in body' rule keeps the report clean and analytical.

What results can I expect from applying these strategic models correctly?

You'll produce structured, evidence-backed answers that map scenario information to the right model, apply each component to the specific business, and avoid the most common exam pitfalls. This typically means higher case study marks, clearer strategic reports, and the ability to identify threats to mitigate and opportunities to exploit before external forces damage the business.

What is the difference between Bargaining Power of Buyers and Threat of Substitutes?

Both relate to customers, but they work differently. Bargaining Power of Buyers means customers actively influence price and terms — usually because they're concentrated, buy in volume, or have low switching costs. Threat of Substitutes means alternative products that perform the same function limit the supplier's pricing power, without buyers necessarily having direct negotiating leverage. Confusing them is a common Porter's Five Forces error.

Should I include a model even if all the scenario information maps perfectly onto it?

No. Only include a model if the requirement explicitly asks for it. Even if every piece of information maps neatly onto SWOT or PESTEL, adding an unrequested model is a documented exam pitfall that wastes time and can lose marks. Focus strictly on what the requirement asks — the examiner will give a hint when a model is wanted.

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