Organizations and Management

Grade Level: Grade 11

SLA No. 3: SWOT AND PEST ANALYSIS

Subject Code/Number: ABM/GAS 01
Subject Title: Organization Management
Teacher: Lorelie Buitrago

I. Introduction
Hello everyone. Today we are going to uncover how can we use PEST and SWOT Analysis in the
improvement of every businesses or the one you are planning to create.

A. Learning Competency

Analyze various forces/elements influencing local and international business environment using
PEST and SWOT strategies.

B. Learning Outcomes

1. This topic will introduce two well-known business models, SWOT AND PEST where
students learn how to use it in creating a business.
2. Students will learn how to use the SWOT & PEST ANALYSIS in different businesses in
Cebu City.

II. Learning Content

What are the things you need to check in order to answer the questions given? Kindly read this
for you to be able to understand the meaning of each topic.

When planning a project, it is important to learn about the internal and external factors that can
affect the project. There are some excellent strategic planning methods that you can use analyze all
these factors. SWOT analysis and PEST analysis are two of the most frequently used planning
methods. Below is a brief introduction to both methods and a comparison of SWOT analysis and
PEST analysis.

SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for
identifying both the Opportunities open to you and the Threats you face.
Organizations and Management
Grade Level: Grade 11

Business SWOT Analysis

What makes SWOT particularly powerful is that, with a little thought, it can help you uncover
opportunities that you are well-placed to exploit. And by understanding the weaknesses of your
business, you can manage and eliminate threats that would otherwise catch you unawares.

More than this, by looking at yourself and your competitors using the SWOT framework, you can
start to craft a strategy that helps you distinguish yourself from your competitors, so that you can
compete successfully in your market.

Strengths - the advantages you have over the competition concerning this project

 What advantages does your organization have?

 What do you do better than anyone else?
 What unique or lowest-cost resources can you draw upon that others can't?
 What do people in your market see as your strengths?
 What factors mean that you "get the sale"?
 What is your organization's Unique Selling Proposition (USP)?

(A unique selling proposition (USP, also seen as unique selling point) is a factor that differentiates
a product from its competitors, such as the lowest cost, the highest quality or the first-ever
product of its kind. A USP could be thought of as “what you have that competitors don't.”)

Also, if you're having any difficulty identifying strengths, try writing down a list of your organization's
characteristics. Some of these will hopefully be strengths!

When looking at your strengths, think about them in relation to your competitors. For example, if all
of your competitors provide high quality products, then a high-quality production process is not a
strength in your organization's market, it's a necessity.

Weaknesses - the disadvantages you have internally compared with your competitors.

 What could you improve?

 What should you avoid?
 What are people in your market likely to see as weaknesses?
 What factors lose you sales?
Organizations and Management
Grade Level: Grade 11

Opportunities - current external trends which are waiting to be taken advantage of.

 What good opportunities can you spot?

 What interesting trends are you aware of?

Useful opportunities can come from such things as:

a) Changes in technology and markets on both a broad and narrow scale.

b) Changes in government policy related to your field.
c) Changes in social patterns, population profiles, lifestyle changes, and so on.
d) Local events.

Threats - External movements which may cause a problem and have a negative impact on your
business.

 What obstacles do you face?

 What are your competitors doing?
 Are quality standards or specifications for your job, products or services changing?
 Is changing technology threatening your position?
 Do you have bad debt or cash-flow problems?
 Could any of your weaknesses seriously threaten your business?

SWOT ANAYSIS EXAMPLE OF A RESTAURANT

Organizations and Management
Grade Level: Grade 11

Key Points

SWOT Analysis is a simple but useful framework for analyzing your organization's strengths
and weaknesses, and the opportunities and threats that you face. It helps you focus on your strengths,
minimize threats, and take the greatest possible advantage of opportunities available to you.

It can be used to "kick off" strategy formulation, or in a more sophisticated way as a serious
strategy tool. You can also use it to get an understanding of your competitors, which can give you the
insights you need to craft a coherent and successful competitive position.

When carrying out your analysis, be realistic and rigorous. Apply it at the right level, and
supplement it with other option-generation tools where appropriate.
Organizations and Management
Grade Level: Grade 11

Factors of PEST Analysis

Political - Laws, global issues, legislation and regulations which may have an effect on your business
either immediately or in the future.

Political Factors to Consider

1. When is the country's next local, state, or national election? How could this change government
or regional policy?
2. Who are the most likely contenders for power? What are their views on business policy, and on
other policies that affect your organization?
3. Depending on the country, how well developed are property rights and the rule of law, and how
widespread are corruption and organized crime? How are these situations likely to change, and
how is this likely to affect you?
4. Could any pending legislation or taxation changes affect your business, either positively or
negatively?
5. How will business regulation, along with any planned changes to it, affect your business? And is
there a trend towards regulation or deregulation?
6. How does government approach corporate policy, corporate social responsibility, environmental
issues, and customer protection legislation? What impact does this have, and is it likely to
change?
7. What is the likely timescale of proposed legislative changes?
8. Are there any other political factors that are likely to change?
Organizations and Management
Grade Level: Grade 11
Examples include:

Government policy, political stability or instability, bureaucracy, corruption, competition regulation,

foreign trade policy, tax policy, trade restrictions, labor/environmental/copyright/consumer protection
laws, funding grants & initiatives, etc.

Economic - Taxes, interest rates, inflation, the stock markets and consumer confidence all need to be
taken into account.

Economic Factors to Consider

1. How stable is the current economy? Is it growing, stagnating, or declining?
2. Are key exchange rates stable, or do they tend to vary significantly?
3. Are customers' levels of disposable income rising or falling? How is this likely to change in the
next few years?
4. What is the unemployment rate? Will it be easy to build a skilled workforce? Or will it be
expensive to hire skilled labor?
5. Do consumers and businesses have easy access to credit? If not, how will this affect your
organization?
6. How is globalization affecting the economic environment?
7. Are there any other economic factors that you should consider?

Examples include:

Economic trends, growth rates, industry growth, seasonal factors, international exchange rates,
International trade, labor costs, consumer disposable income, unemployment rates, taxation, inflation,
interest rates, availability of credit, monetary policies, raw material costs, etc.

Social - Social attitudes, behaviors, and trends that impact on your organization and target market.

1. What is the population's growth rate and age profile? How is this likely to change?
2. Are generational shifts in attitude likely to affect what you're doing?
3. What are your society's levels of health, education, and social mobility? How are these changing,
and what impact does this have?
4. What employment patterns, job market trends, and attitudes toward work can you observe?
Are these different for different age groups?
5. What social attitudes and social taboos could affect your business? Have there been
recent socio-cultural changes that might affect this?
6. How do religious beliefs and lifestyle choices affect the population?
7. Are any other socio-cultural factors likely to drive change for your business?
Organizations and Management
Grade Level: Grade 11
Examples include:

Attitudes and shared beliefs about a range of factors including money, customer service, imports,
religion, cultural taboos, health, work, leisure, the environment; population growth and demographics,
immigration/emigration, family size/structure, lifestyle trends, etc.

Technological - that can affect the way you make, distribute, and market your products and services.

Examples include:

Technology and communications infrastructure, legislation around technology, consumer access to

technology, competitor technology and development, emerging technologies, automation, research and
innovation, intellectual property regulation, technology incentives, etc.

Technological Factors to Consider

1. Are there any new technologies that you could be using?
2. Are there any new technologies on the horizon that could radically affect your work or your
industry?
3. Do any of your competitors have access to new technologies that could redefine their products?
4. In which areas do governments and educational institutions focus their research? Is there
anything you can do to take advantage of this?
5. How have infrastructure changes affected work patterns (for example, levels of remote
working)?
6. Are there existing technological hubs that you could work with or learn from?
7. Are there any other technological factors that you should consider?

Toy Industry | PEST Analysis Sample

Organizations and Management
Grade Level: Grade 11

III. Self-Learning Activities

Activity 1. Business Analysis Models

1. Develop a matrix to identify strengths, opportunities, weaknesses, and threats of Cebu City
Medical Center during the COVID19 PANDEMIC. Give at least five (5) examples in each
analysis.
2. Using PEST ANALYSIS, give at least five (5) examples in each macro environmental factors of
Philippine Airlines.

REFERENCES

https://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/
https://www.groupmap.com/map-templates/pest-analysis/
https://www.youtube.com/watch?v=7qrahnx94nc
https://www.youtube.com/watch?v=_YhEpBvlO2M