STRATEGIC SWOT & PEST

PLANNING ANALYSIS
 IN ORDER TO MINIMIZE THE CHORES OF
THE WORKERS/EMPLOYEES, MANAGERS
AND DECISION-MAKERS ARE MAKING
SOME STRATEGIES. EXAMPLES OF
STRATEGIC PLANNING ARE SWOT AND
PEST. THIS STRATEGIES WILL HELP ALL
THE WORKERS/EMPLOYEES TO LESSEN
THEIR WORK AND MAKING THEM MORE
PRODUCTIVE.
FIRST UP 2
CONSULTANTS
 SWOT
ANALYSIS
FIRST UP 3
CONSULTANTS
 SWOT ANALYSIS

SWOT analysis is a technique that identifies the

Strengths and Weaknesses of a company, as well as
the Opportunities and Threats it faces.

It is imperative to note that strengths and weaknesses

are part of the company’s internal environment, while
opportunities and threats are part of its external
environment.

FIRST UP 4
CONSULTANTS
STRENGTHS

Strengths include the company’s

attributes that give a competitive
edge over others. The strength of
a company contribute to its good
performance and a positive
reputation in the business scene.

FIRST UP 5
CONSULTANTS
STRENGTH
Strength may include:
Being a market leader
Having good brand image
Providing quality products and services
Having good reputation in the business
Good credit standing
Component and highly skilled staff
Excellent distribution channels
Outstanding communication and network systems
Good number of patents FIRST UP 6
CONSULTANTS
WEAKNESSES

Weaknesses are the attributes of a

company that need to be
improved or changed.
These attributes may hinder the
company’s growth and
performance.

FIRST UP 7
CONSULTANTS
WEAKNESSES

Example of weaknesses:
Lack of access to technology
Limited distribution channels
Poor location
Lack of facilities and equipment
Poor transportation system

FIRST UP 8
CONSULTANTS
OPPORTUNITIES
SLIDE TITLE

Opportunities are
factors or events
that can give a
positive impact to
the company if
properly addresses.
.
FIRST UP 9
CONSULTANTS
OPPORTUNITIES

Opportunities come in different factors:

 New markets
 Potential profits
 Additional sources of raw materials
 Increased purchasing power of consumers
 Better location
 New users or customers

FIRST UP 10
CONSULTANTS
THREATS
SLIDE TITLE

Threats are external factors which

may negatively impact on the
company. These are trends,
changes, or movements over which
the company has no control but
should be addressed to maintain its
status in business
.
FIRST UP 11
CONSULTANTS
THREATS

Examples of threats:
 Increase in the price of resources
 Entry of new competitors
 High inflation rates

FIRST UP 12
CONSULTANTS
 SWOT analysis is a quick and easy technique in
analyzing business situations. It is a versatile tool that
can be applied at the different levels of the company.
 One can conduct SWOT analysis for the entire company,
or just focus on one department or business operation. Its
main advantage is that it enables managers to understand
their business better, particularly in terms of how the
company's internal environment aligns with the external
environment. This technique, however, is not very
effective when dealing with more complicated issues and
factors that cannot be clearly assigned to only one
category. Such factors may be both considered a strength
and a weakness of the company.km
 PEST
ANALYSIS
FIRST UP 14
CONSULTANTS
 PEST ANALYSIS

PEST analysis is a method used in

analyzing the Political, Economic, Social and
Technological forces affecting the company.
This technique focuses on the factors that
define the macroenvironment of the
business.

FIRST UP 15
CONSULTANTS
POLITICAL FACTORS
Political Factors include laws, regulations, and
restrictions that may intervene or affect the company's
business course.

Significant political factors include:

 tax policies
 labor laws
 environmental laws
 trade restriction
 tariffs.
 POLITICAL FACTORS
 Businesses must comply with rules and regulations
imposed by the government, and compliance
requires manager to adjust their operations
accordingly. Companies are required by the
government to comply with the Minimum Wage
Law in determining the wages of their employees.
 Business also have to comply with the required
legal documents, pay fees and secure permits
before they begin their operations. Another
significant factor for business are zoning
restrictions.
FIRST UP 17
CONSULTANTS
 POLITICAL FACTORS
For instance, the Makati Business District does not
allow manufacturing plants in its area to prevent
pollution. Manufacturers, therefore, construct their
facilities and plants in designated industrial areas
away from the metropolis, such as in Canlubang,
Laguna. Additionally, factories in Laguna, especially
those near Laguna Lake have to comply with
regulations imposed by the Laguna lake Development
Authority to avoid emission of pollutants into the
lake.
ECONOMIC FACTORS

Economic factors directly affect the capability of

business to generate profits.

These include:
 economic growth
 interest rates
 exchange rates
 inflation rate

FIRST UP 19
CONSULTANTS
ECONOMIC FACTORS

For example, a high inflation rate affects the

acquisition of raw materials of a restaurant.
Therefore, if one of the restaurant’s prime
commodities are burgers, an increase in the price
of beef may cause the restaurants to the its price.
The increase in the prices of raw materials and
basic commodities is also an important factor that
affects business.

FIRST UP 20
CONSULTANTS
ECONOMIC FACTORS

The increase in the prices of raw materials and

basic commodities is also an important factor
that affects business. The price of oil in the
world market affects the prices of basic goods
in the local market. Increased oil prices also
result in increased cost of transporting good
such as vegetables and fruits from the farms to
the urban areas.
FIRST UP 21
CONSULTANTS
SOCIAL FACTORS

Social factors include demographic aspects such

as age, group affiliation, religion, civil status, and
the economic status of consumers. Companies
focus on information regarding their target
market particularly its buying habits, attitudes,
ethics, personalities, and values.
Analyzing social factors can also help a company
implement changes and improvements in its
operations, product, and services.
FIRST UP 22
CONSULTANTS
 TECHNOLOGICAL
FACTORS

Technological factors include research and

development activities, automation, licensing,
patenting, technological shifts, and outsourcing
decisions. An important technological factor at
present is the Internet, which has greatly
improved the way business functions are done.
Socail media has introduced new venues for
promoting and marketing products and services.

FIRST UP 23
CONSULTANTS
 THE BENEFITS OF STRATEGIC PLANNING
USING SWOT AND PEST ANALYSIS
SWOT analysis and PEST analysis help companies in
formulating strategies and aligning their vision and mission to
the general direction of the business environment where they
operate. One major similarity between the two techniques is
their focus on aspects of the external environment. SWOT
analysis focuses on the external environment through the
threats and opportunities, while all aspects of PEST analysis
consider the external environment of the business firm. It is
recommended that the information gained from PEST
analysis be used in identifying the opportunities and threats in
SWOT analysis
 SWOT ANALYSIS VS PEST ANALYSIS

STRENGTHS POLITICAL

WEAKNESSES ECONOMIC

OPPORTUNITIES SOCIAL

THREATS TECHNOLOGICAL