THE

ENVIRONMENT
OF THE
ENTREPRENEURIAL
VENTURE
A. NATURAL ENVIRONMENT
B. SOCIETAL ENVIRONMENT
C. INDUSTRIAL
ENVIRONMENT
THE PHYSICAL ENVIRONMENT

A. CLIMATE
B. PHYSICAL RESOURCES
C. WILDLIFE
THE SOCIETAL ENVIRONMENT

A. SOCIAL FORCES
B. POLITICAL FORCES
C. CULTURAL FORCES
D. ECONOMIC FORCES
E. LEGAL FORCES
F. TECHNOLOGICAL FORCES
 SOCIAL FORCES

 ARE ELEMENTS IN SOCIETY RESULTING FROM HUMAN

INTERACTIONS THAT CAN INFLUENCE THE THOUGHTS,
BEHAVIOR, ATTITUDE, ACTIONS, AND EVEN THE
BELIEFS AND CUTOMS OF THE PEOPLE.
 VALUES
 TRADITIONS
 LITERACY LEVEL
 CONSUMER PSYCHOLOGY
 TIME ORIENTATION
 LIFESTYLE PATTERN
 PROFESSIONAL CAREER ROLES.
 POLITICAL FORCES

 ARE THE VARIOUS ELEMENTS USUALLY COMPRISING

OF THE POLITICAL PARTIES, POLITICAL SYSTEMS, AND
OTHER RELATED POLITICAL GROUPS THAT
SUBSTANTIALLY INFLUENCE THE POLITICAL STABILITY
OF A COUNTRY.
 TRADE REGULATIONS
 TAXATION
 GOVERNMENT STABILITY
 UNEMPLOYMENT
 WORKER’S BENEFITS
 ELECTION PRACTICES
 CULTURAL FORCE

 BASICALLY REFERS TO THE INTEGRATED

CHARACTERISTICS OF A GROUP OF PEOPLE OR
ETHNIC GROUP IN A PARTICULAR SOCIETY.
 RELIGION
 LANGUAGE
 BELIEFS
 CUSTOMS
 EDUCATION
 ECONOMIC FORCES

 ARE FACTORS WHICH ARE PRIMARILY CAUSED BY

CHANGES OR MOVEMENTS IN THE PHILIPPINES
ECONOMY THAT HAVE DIRECT OR INDIRECT EFFECTS
ON THE ENTREPRENEURIAL VENTURE.
 INTEREST RATES
 INFLATION RATES
 FISCAL POLICIES
 MONETARY POLICIES
 INCOME
 EXCHANGE RATES EMPLOYMENT
 CONSUMER CONFIDENCE
 LEGAL FORCES

 ARE ELEMENTS AND BODIES THAT ARE DIRECTLY

INVOLVED IN THE LEGISLATION AND
INTERPRETATION OF LAWS AND ORDINANCES
DIRECTLY AFFECTING THE BUSINESS
 PRODUCT CONTROL, PRICING, AND LABELING
 HEALTH AND SAFETY OF THE WORKERS
 ADMINISTRATION OF ELECTION PROCESS
 ADVERTISING AND PROMOTION
 EXERCISE OF PROFESSION
 EDUCTION ADMINISTRATION AND FEES.
 TECHNOLOGICAL FORCES

 BASICALLY REFERS TO THE TRENDS AND

DEVELOPMENTS IN COMPUTER AND
INFORMATION TECHNOLOGY THAT HAVE IMPACT
ON BUSINESS. THESE OCCUR EVERYDAY
 INTERNET
 SOCIAL MEDIA
 E-COMMERCE
 TECHNOLOGICAL ADVANCEMENT
 TECHNOLOGICAL INFRASTRUCTURE
 ENVIRONMENTAL SCANNING

- REFERS TO THE GATHERING,

CRITICAL EVALUATION, AND
UTILIZATION OF INFORMATIONON
EVENTS AND ACTIVITIES AND
THEIR RELATIONSHIPS WITH THE
PHYSICAL, SOCIETAL, AND
INDUSTRY ENVIRONMENTS
SIGNIFICANCE OF ENVIRONMENTAL
SCANNING
A. IT IDENTIFIES THE EXPECTED THREATS AND
OPPORTUNITIES EXISTING IN THE
ENVIRONMENT.
B. IT POINTS OUT THE POSSIBLE FACTORS THAT
WILL DETERMINE THE SUCCESS OF THE
BUSINESS.
C. IT HELPS TO DEFINE THE FUTURE PATH OF THE
BUSINESS
D. IT ASSISTS IN THE FORMULATION OF THE MOST
APPROPRIATE ENTREPRENEURIAL
STRATEGIES.
 PESTEL ANALYSIS

- THE PESTEL ANALYSIS IS THE MOST

WIDELY ACCEPTED AND COMMONLY
USED ENVIRONMENTAL SCANNING TOOL
TODAY.
- PESTEL – POLITICAL, ECONOMIC,
SOCIOCULTURAL, TECHNOLOGICAL,
ECOLOGICAL, AND LEGAL FORCES.
PESTEL ANALYSIS
THE INDUSTRY ENVIRONMENT

A. GOVERNMENT
B. SUPPLIERS
C. CUSTOMERS
D. COMPETITORS
E. EMPLOYEES
F. CREDITORS