ENVIRONMENTAL

SCANNING:
INTERNAL ANALYSIS
 Physical Societal Industry
Environment Environment Environment
Resources Resources Resources

Forces of Competition
PESTEL analysis Model
Historical data
Environmental forces Competitive forces
gathering
matrix matrix

Materials availability and

Growth of the Industry Business positioning
cost

The business

The Interrelationship among External Environment Forces, Scanning Tools, and

Purpose
INTERNAL OR MICRO ENVIRONMENT

The internal environment in entrepreneurial context refers to the environment

within the business.

Availability of
resouces

Resources provide advantage Business

Capability of
utilization

Availability and Capability Features of Business Resources

Business Resources

• Business Resources are assets or properties owned or controlled by the

business.
• Tangible Resources- assets that have physical appearance and form.
• Current Resources- used, applied, or consumed within a short period or one year.
• Noncurrent or fixed resources- extend beyond one year.

• Intangible Resources- assets that do not have physical appearance or form

Business Culture

• Business Culture or organizational or corporate culture is another major force

in the internal environment.
 Culture of the business or organization
 Individual culture of employees
Cultural Acceptance- degree by which the employees accept the culture of the unit
or business.
Cultural Integration- degree by which all units across the business accept and share a
common culture
 Business Structure

• Business Structure refers to the formal organizational arrangement of the

business in terms of hierarchy of positions, flow of communication,
relationship of functional areas, and production and marketing process.

SCANNING OF THE INTERNAL ENVIRONMENT

1. SWOT ANALYSIS- refers also as TOWS analysis which is a popular tool to

evaluate the internal environment
➢ STRENGTH- strong attributes or capabilities of the business that provide great
advantage in exploiting the business opportunity.
➢ WEAKNESS- poor attributes of deficiencies that give disadvantages to the business.
➢ OPPORTUNITIES- business situations in the form of products or services that must
be exploited because of their potential in terms of profit and growth.
➢ THREATS- possible external events in the environment that may provide harm to
the business.
 Basic SWOT Analysis
ENVIORNMENT ENVIRONMENT
BUSINESS STRENGTH BUSINESS WEAKNESS
OPPORTUNITIES THREATS
Unskilled workers to
Complete and new handle the new New potential Entry of new
processing facilities technological customers competitors
equipment

SWOT Analysis Matrix

2. BCG ANALYSIS MATRIX- is most appropriate when there are several products
or services that are produced or rendered by the business.
➢ STARS- represents products or services that have high market share but low market
growth.
➢ CASH COWS- products or services that have high market share and high market
growth
➢ QUESTION MARKS- products or services that are usually facing a problem.
➢ DOGS- products or services that have low market share and provide poor cash to
the business
BCG Analysis Matrix
BUSINESS COMPETENCY

Competency is a combination of entrepreneurial concepts and principles,

entrepreneurial skills, and entrepreneurial characteristics.
The harmonious coordination of competency in business resources, business
structure, and business culture forms the business core competency.
• Distinctive business competency- a business is able to perform better than its
competitors in the industry due to its core competency.
NATURE AND TYPE OF
ENTREPRENEURIAL
VENTURE
FORMS OF ENTREPRENEURIAL VENTURE
SOLE PROPRIETORSHIP PARTNERSHIP CORPORATION

• SOLE PROPRIETORSHIP- owned by one person only.

• PARTNERSHIP- owned by two or more persons.
• CORPORATION- owned by at least five but not more than fifteen persons.
➢ Stock corporation- when it is authorized to issue shares of stock to stockholders.
➢ Non-stock corporation- not authorized to issue shares of stock to the members.
❑ Stockholder/shareholders- owners of stock corporation
❑ Members- owners of non-stock corporation
❖ Domestic Corporation- organized under the laws of the Philippines
❖ Foreign Corporation- organized under the laws of the foreign country but has the authority to operate in the
Philippines
NATURE OF ENTREPRENEURIAL VENTURE

MERCHANDISING MANUFACTURING HYBRID BUSINESS

SERVICE AGRICULTURE SPECIAL CORPORATION

• MERCHANDISING- engaged in the buying and selling of products or goods.
• SERVICE- provides services to customers.
• MANUFACTURING- producer of goods or products.
• AGRICULTURE- production of agricultural goods and animals.
• HYBRID BUSINESS- possess the characteristics and nature of combined types of business
entities.
• SPECIAL CORPORATION- may include cooperatives, joint ventures, and non-profit
organizations.
PRODUCTION SYSTEM

• INPUT
➢ Manpower
➢ Materials
➢ Machine
➢ Design
➢ Instructions
• PRODUCTION PROCESS
➢ Procurement or acquisition of raw materials and manufacturing supplies
➢ Inspection of materials and supplies upon receipt at the receiving section
• OUTPUT
➢ Final product from the production process and distributed to the customers
FOUR M’s OF PRODUCTION

• MANPOWER- human workforce involved in the manufacture of products.

• METHOD- process or technique of converting raw materials to finished products.
• MACHINE- manufacturing equipment used in the production of goods or delivery of
services.
• MATERIALS- raw materials needed in the production of a product.