Module – Introduction to Business Studies

(IBS).
Short Title – IBS.

DATE:

Lecturer:
Macro and Micro environment analysis

▪ Module code – FY021

▪ Level 3
▪ Week 2 lecture - 2
▪ Email:
▪ Office hour:
▪ Pat hour:
Week 1 lecture - Business Environment

▪ Business Environment.
 Learning outcome

▪ At the completion of this topic you will understand:

▪ SWOT analysis.
▪ Components of Swot analysis.
▪ Porter’s five forces with definition
SWOT

SWOT analysis (alternatively SWOT matrix) is an acronym

for strengths, weaknesses, opportunities, and threats and is
a structured planning method that evaluates those four
elements of an organization, project or business venture.
A SWOT analysis can be carried out for a company,
product, place, industry, or person.
SWOT

▪ Content of SWOT:
Elements of SWOT analysis and contribution to
organisation

▪ SWOT analysis was first originated by (Ken Andrews) in the early

1970s. He addressed 4 strategies within which a
company/organisation can gain competitive advantages. This process
has now been referred as a SWOT analysis. The 4 elements identified
are:
▪ SRENGHTS, WEAKNESSES, OPPORTUNITIES AND
▪ THREATS.
Swot analysis and contribution to organisation

▪ Strengths – in the SWOT analysis are an organisation or company’s

capabilities and resources that allows it to engage in activities to
generate economic values and competitive advantages.

▪ The strength in the SWOT analysis is the ability of organisations to

channel their resources into more useful things that would generate
revenue; for example, culture, staffing and training, the quality of its
manager and services rendered. This element helps an organisation to
assess its economic values internally.
Swot analysis and contribution to organisation

▪ Weaknesses – in the SWOT analysis means lack of those things that

would ordinarily generate economic value or gain competitive
advantages over others; for example, a company may have cultural
barriers or bureaucratic structure that limits its ability to compete with
other small or big company.
▪ High labour costs can also limits a company from competing with
other organisations. This element enables an organisation to assess
its limitations internally.
▪
Swot analysis and contribution to organisation

▪ Opportunities – in the SWOT analysis is a chance an organisation

has, to improve its performance and competitive advantage.

▪ Opportunities can arise as planned, unexpectedly or when there is a

need for new products and services; for example, these products
and services can be demanded or required in different location.

▪ Further example, LSST Elephant & Castle (E & C) campus was

brought to central London because there is a need for its services in
that community.
Swot analysis and contribution to organisation

▪ Threat – in the SWOT analysis can be anything outside the

organisation/company that tends to stop or reduce the level of the
company’s performance such as: issues, individual, group or
organisation in the environment it operates. Threat may come from
new products and services from other campus.
Activity – debate in a group of 4-5:

▪ How can companies identify the 4 elements for their own company?

▪ What are the internal factors affecting businesses; identify the

problems first, then answer it using SWOT element which is
suitable.
 Star Bucks SWOT

▪ Choose a UK based company

▪ https://www.youtube.com/watch?v=mR9eICQJLXA
Home work:

1. Consider a UK based company

2. Perform SWOT analysis

3. Present your findings in a one page power point /one page poster
Porter’s Five Forces

▪ Devised by Michael Porter

▪ A model for analysing the

nature of competition
within an industry.
Definition

▪ Porter's Five Forces Framework is a tool for analyzing

competition within an industry. It draws from industrial
organization (IO) economics to derive five forces that
determine the competitive intensity and, therefore, the
attractiveness (or lack of it) of an industry in terms of its
profitability.
How to do it?

Porter’s five forces:

Case of Walmart- 5 forces’ model

▪ https://www.youtube.com/watch?v=rGpW7rXNXIY
Let’s do it together – McDonalds

▪ https://www.youtube.com/watch?v=PeN1pvahsSA
Self evaluation

▪Do you understand the main subject area

in this module?
▪Ask questions?
Thank You!!