Introduction
SWOT analysis becomes essential regarding the challenges and opportunities that the growing global EV market poses, especially in handling used lithium-ion batteries and dealing with recycling processes. Using a SWOT analysis method, it focuses internally on the strengths and weaknesses of China’s electric vehicle (EV) market, such as skyrocketing demand and technological limitations, while examining externally the opportunities and threats, like increased adaption and risky waste. The article reveals that SWOT is a valuable approach, but some things could be improved in it. Therefore, some statisticians give such refined quantitative versions for high accuracy. On the other hand, there is a need for a new industry model based on Porter’s five forces framework, which argues that it should be adjusted to accommodate the current forces. By combining these two tools, organizations get flexible strategies for handling very complicated situations.
Literature review
SWOT Analysis
The growth of the global EV market also poses a big waste battery management problem and an opportunity for material recycling. SWOT methodology will help analyze this complicated problem and develop relevant strategies. It refers explicitly to skyrocketing disposal demands associated with the rapidly rising number of electric vehicles (EVs) and lithium-ion batteries, with a significant concentration in China, whose toxicity is coupled with valuable recyclable elements such as lithium and cobalt. Nevertheless, EV battery recycling is an embryonic activity that lacks industrial infrastructure or networks. The first step in SWOT analysis identifies strength areas like China’s rising demand and production for EVs while highlighting weaknesses such as no recycling technology or cooperation. The external market for EV expansion is driven by the growing EV market and battery wastes; the internal one—is by untapped unmet recycling needs on a large scale—soil, water, and health are threats to the negligence of accumulated hazardous waste.
As a result, SWOT is currently one of the most essential strategic planning instruments utilized in evaluating their position and market niche within their respective industries, according to Benzaghta et al.’s comprehensive literature survey. Even though there have been studies on scholastic SWOT for about sixty years, it needs to be clarified and clear what people understand. Through their writing efforts in this direction, they merge, summarize, clarify old, and present new theories for practical application of SWOT beyond sectors. Likewise, Teoli et al. (2019) emphasize the relevance of SWOT in unpredictable market situations. They are differentiating and selecting a niche by focusing on internal strengths and weaknesses and external opportunities and threats. SWOT helps determine how an organisation’s competencies compare with those of competitors, hence strategic decision making. In addition, SWOT analysis can be used for self-assessment. It involves a comparison of an individual’s strengths against those of their competitors.
Nevertheless, Phadermrod et al. (2019) state SWOT has its limits. It is not advisable to rely upon subjective inputs from a small number of individuals when establishing the right objectives and priorities or selecting appropriate strategies. Nevertheless, any action without correctly measuring and ranking items can become a mistake, even with a clear mindset.
Unfortunately, in actual life application, SWOT usually does not guarantee efficiency and best decisions. Traditional SWOT is, however, a qualitative method that lacks measurable metrics, making this process prone to subjectivity, where personal biases and assumptions creep into the mix. Lastly, SWOT should involve customer perspectives to remain externally aligned rather than internally aligned.
This, SWOT refinements based on analytics have been proposed to enhance the quantitability. For instance, Wang et al. (2019) created an integrated AHP-SWOT method, using the analytic hierarchy process for objectively weighing every internal and external factor. This provides a more accurate picture of crucial factors than an entirely qualitative approach because it involves quantitative prioritization of the most essential elements. Secondly, Wang et al. (2019) add the SWOT quantification incorporating statistical methods such as multi-criteria decision-making. These mathematically derived priorities help overcome weaknesses associated with the unobjectivity of standard SWOT, making it an imperfect tool for effective management strategies. The development of quantitative SWOT robustness in leading research and practice continuously occurs within every sector, including corporate, public, and non-profit sectors.
Porter’s Five Forces
According to Anastasiu et al. (2020), industrial dynamics require custom strategies, whereas the aerospace sector is an entirely different sector with various customer needs, supply models, innovation levels, etc. In this regard, the competitive strategy must coincide with unique economic circumstances inherent in the particular economy characterized by a specific environment of an organization’s industry, per Michael Porter. Building a competitive advantage for new entrants and established players necessitates strategic plans geared toward industry-specific competition dynamics.
Bruijl argues that the prime strategy in Porter’s model is still to compete within established industry boundaries. Nevertheless, technology changes frequently, and some strategy elements, such as customer orientation and sustenance, may no longer be applicable. We are yet to reach a stage characterized by chaos as some incumbent organizations remain clung to conventional markets but refuse to try out the new domains. On the other hand, Isabelle et al. analyze the relevance of Porter’s model for the mining and information sector in the 21^{st} century. Although Porter’s models remain valid, they are concerned about the generalizability of those classics for today’s fast-paced world of digital and internationally spread enterprises with less traditional features. Therefore, their research proposes a new perspective concerning modern drivers concerning digitalization, internationalization orientations, regulatory regimes, and innovation enclaves. The enlarged framework is an extended version of what was developed by Porter but is applicable in different sectors with capital- and labor-intensive characteristics. As such, no pre-designed analytical model can fully explore the complex interactions associated with emerging organizational strategic challenges of the current days. Despite industries rapidly changing, Porter’s basic theory that strategy is created by competition remains evergreen. Wise managers know the bottom line of Porter’s theory, but these are approached from the viewpoint of altering policy makers who redraw fundamental market principles. Structured strategic analysis combined with creativity will give the best long run competitiveness as compared to the application of fixed frameworks.
Although Porter’s principles remain current, modern-day strategists must undertake multi-dimensional solutions for multi-faceted, complex, and fast-moving issues. Leaders are expected to go deeper and broader for any potential emerging competition source, collaborator, innovation, and shifts of power balances across interrelated systems. Resilience and optionality in unstable scenarios facilitate flexible adjustments according to circumstances. In summary, by combining time-honored and cutting edge principles, managers can construct the best strategies aligned to special sector features yet open for more global potentials outside industry boundaries where they previously operated within narrow constraints.
STEP Analysis
STEP analysis, or PEST or PESTLE analysis, is a strategic planning instrument used by organizations in reviewing external variables that influence their environment. Aguilar (1967) initially referred to this method as ETPS (economic, technical, political, and social). Later on, this approach was popularized. Companies obtain information on the external operating environment through interviews, surveys, and discussions. PESTLE analysis assumes that continuous assessment of the macroenvironment leads to a competitive edge based on sound judgment. This technique considers the present state of affairs and also employs predictive analysis. PESTLE is commonly used as a tool in the broader context of analyzing a firm’s marketplace’s internal and weak position. It is mainly concerned with highlighting the chances and risks arising from the external political, economic, sociological, legal, technological, and environmental factors.
Secondly, a given tool also unveils critical stakeholders such as regulators, partners, and activists influencing an organization’s strategic latitude. Companies should, therefore, map interest groups and their agendas so that they constantly know which external entities are affecting their operations. The assessment by PESTLE provides readiness for the future while allowing short-term changes during the introduction of such ventures. It typically goes up to this stage of high-level strategy formulations, where it identifies the point of matching/mismatching of the prevailing capabilities and emerging external realities.
Essentially, PESTLE analysis involves performing environmental scans and forecasts to improve strategic foresight. By looking at existing and likely upcoming scenarios, organizations will respond to what has happened and prepare ahead of trends. In addition to providing information for decision purposes, a well-defined PESTLE report can trigger an improvement program through various internal functions like research and development, marketing, and the supply chain. This enables business executives with a view for the future to exploit the opportunities while at the same time protecting themselves against the impending risks in a very hostile external environment. Additionally, PESTLE constitutes an integral organizational competence for three significant grounds. The first point shows the data-based suggestions supporting goal setting, plan generation, and operational activities aligned with the organization’s vision and mission. For instance, it provides a detailed perspective on political, social, and technological, among other changes guiding targeted functions such as those for novel merchandise aligned with dynamic consumer tastes. In addition, through proper external scanning, PESTLE analysis helps companies make wiser investment decisions for better achievement of strategic priorities and, thus higher performance.
Overall, PESTLE analysis enables companies to collect data and make decisions on outside perceptions systematically. The Leaders should scan essential things that affect politics, the economy, society, technology, and environment to see if they are threats or opportunities. As disruption continues to spread rapidly in different sectors, this analysis becomes more critical for a company or organization to stay adaptable and use the changing environment. In the future, using technological devices during continuous real-time PESTLE scans will become a prerequisite for maintaining the rapid tempo in business.
Finance Analysis
Modern finance as a new discipline was established in the 1950s. It experienced unprecedented growth between the 70s and 80s. As Roszkowska (2021) states, China’s financial research is moving in the right direction. However, there are some challenges, such as China’s financial research still needs to catch up to other developed nations of the world even with increased economic integration during these few past decades. Comparative international advances and priorities may offer insight into China’s domestic financial research agenda and evolution. China has moved high in the political, economic, and sociocultural scenes since it opened up and implemented the reform policy. However, it has entailed huge environmental expenses under rapid development that is conventionally high-energy consumptive and massively pollutive. As the country’s economy enters a “new normal” stage, innovative strategies of good and environmentally friendly green finance create room for balancing success with environmental sustainability in China’s regions. Examining the relationship between green finance in China and the resultant inclusive economic growth associated with improved environmental conditions (a win-win shared prosperity and livelihoods, Wang & Wang (2020). More specifically, the study presents the result of their regression analysis of panel data from eastern provinces, where they find a positive 0.0891 coefficient for green finance and inclusive growth. The Western region’s results also resonate with green finance and its capacity to further enable economic activities, alleviate inequalities, and preserve the environment from destruction. Therefore, more lavish spending on environmental governance will help bring about fair, green national growth.
Nevertheless, Meng (2020) points out that industrial-financial integration may pose risks for Chinese enterprises, outlining adverse effects on innovations. Empirical tests of non-listed financial institutions held by public companies show that industrial-finance combinations substantially restrain corporate innovation, particularly for capital-constrained, high-agency-cost firms. Additionally, analysis shows that such integration may further be associated with increased business risks, which may limit research and development within the company. As a result, there needs to be a strategic fitment between industry operations and entry into the finance sector to boost the national productive capacity over the long run. These lead to an improved understanding of how economic activities in China are affected by the nature of combined financial instruments and salient policy recommendations. While integration initiatives are designed to enhance sustainability and stability, such processes still threaten corporate viability in cases where they yield more negative impacts, such as growth hampering than beneficial effects. Hence, an integrating perspective on finance and industry is required. Unless it provides solid, lasting ties with financial operations and real economy outputs aimed at achieving equally spread welfare growth that considers environmental and social concerns, China will not be able to move along a path of high-tech, quality-driven development.
In addition to its impact on stability and innovation, the phenomenon of financial development has extensive consumer profile implications in China and outside its borders. For instance, Hoang & Wiegratz (2023) use machine-learning methods to establish the impact of financial development on luxury buying patterns. Analyzing big data in more than 300 Chinese cities, they found strong correlations between several indicators of finances and lavishness tendencies. Specifically, the relationship between growth in private lending, banking penetration, and luxury consumption shows city-by-city differences. Similarly, Aj et al. (2023) explored their impact on consumers’ behavior patterns by considering natural experiments in sequential launches from different companies in various regions of China. Surprisingly, the increased availability of digital financial services diminished retail volume transactions through physical and online outlets and concentrated on mobile platforms. Empirically, it draws attention to mixed consequences of financial modernization that, in some respect, simplify payments while at times reducing consumption volumes. Financial development weaves together the growth trajectory of China in economic, social, and environmental aspects, comparatively worldwide. In addition, it synthesizes conclusions from the real economy, company strategy, and buyer behavior. Any project includes trade-offs, so China’s growing financial system must match the national development strategy based on a sustainable approach. To construct an ideal image of the Chinese economy, China should also engage in joint policy-making initiatives and corporate citizenship for sustainable development, enduring inclusive, innovative, fair, and job-creating growth.
Conclusion
Finally, the strategic planning principles and financial determinants also help restructure organizations or institutions in various economic sectors. Old analytical methods like SWOT and PESTLE remain relevant; however, they deserve rigorous reviewing, updating, and development aimed at modern problems. On the other hand, some issues come up with financial innovation, hence the need for uniform policies and appropriate strategies for sustainable, fair green development.
Ultimately, managers find themselves balancing between the two processes while integrating peculiar effects on every aspect and shared opportunities. Even mindful growth, which is supposed to happen evenly in these aspects, is included. Transformation is also required to change strategic approaches and the financial systems, which make the right long-term decisions rather than seeking to seek benefits. Leaders make their paths to victory by absorbing through the expanded examination fields/competitive focus.
References
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Bruijl, D. G. H. T. (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.
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Meng, Y. (2020). Industry-finance Integration and Corporate Innovation. Modern Economy, 11(02), 292.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International journal of information management, 44, 194-203.
Roszkowska, P. (2021). Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments. Journal of Accounting & Organizational Change, 17(2), 164-196.
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Wang, X., & Wang, S. (2020). The impact of green finance on inclusive economic growth—Empirical Analysis Based on Spatial Panel. Open Journal of Business and Management, 8(05), 2093.
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