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Macroenvironmental (PEST) Analysis
Macroenvironmental (PEST) Analysis
SWOT analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses,Opportunities, and Threats involved in a
project or in a business venture.
D efinition and Scope
Involves specifying the objective of the business venture or
project and identifying theinternal and external factors that are
favorable and unfavorable to achieve that objective.
Answers two questions: "Where are we?" and "Where do we want to
be?"
Used in any decision-making situation when a desired end-state
(objective) has beendefined.
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Macroenvironmental (PEST) Analysis
Macroenvironmental (PEST) Analysis
M onopolies legislation
Political FactorsPolitical Factors
Environmental protection laws
Taxation policies
Foreign trade regulations
Employment/labor laws
Government stability
Business cycles
Economic FactorsEconomic Factors
GNP trends
Interest rates
M oney supply and inflation
Employment levels
Energy availability and cost
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Population demographics
SocioculturalSociocultural FactorsFactors
Income distribution
Social mobility
Lifestyle changes
Attitudes to work and leisure
Consumerism
Government spending onresearch
Technological FactorsTechnological Factors
Government and industry focus on
technological infrastructure
New discoveries/development
Speed of technology transfer
Rates of obsolescence
Levels of education
Macroenvironmental (PEST) Analysis
Macroenvironmental (PEST) Analysis
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SWOT Analysis
SWOT Analysis
PositivePositive NegativeNegative
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Porters Five Forces Industry Analysis
Porters Five Forces Industry Analysis
A framework for the industry analysis and business strategy
development. Three of the fiveforces refer to competition from
external sources. The remainder are internal threats.
D efinition and Scope
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Porters Five Forces Industry Analysis
Porters Five Forces Industry Analysis
Profitable markets that yield high returns will attract new
firms. This results in many newentrants, which eventually will
decrease profitability for all firms in the industry.
The threat of the entry of new competitors
The intensity of competitive rivalry is the major determinant of
the competitiveness of the
industry; i.e. sustainable competitive advantage through
innovation, level of advertisingexpense, powerful competitive
strategy, etc.
The intensity of competitive rivalry
Existence of products/services outside of the realm of the
common product boundariesincreases the propensity of customers to
switch to alternatives.
The threat of substitute products or services
The ability of customers to put the firm under pressure, which
also affects the customer'ssensitivity to price changes, volume,
obsolescence, etc.
The bargaining power of customers (buyers)
M arket of inputs, suppliers of raw materials, components,
labor, and services (such asexpertise) to the firm can be a source
of power over the firm, when there are few substitutes.
The bargaining power of suppliers
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V alue Chain AnalysisV alue Chain Analysis
A powerful analysis tool for strategic planning, a value chain
is a chain of activities for a firmoperating in a specific
industry.
D efinition and Scope
The described value chain and the documentation of processes,
assessment and auditing of adherence to the process routines are at
the core of the quality certification of the business, e.g.ISO
9001.
Capturing the value generated along the chain is the new
approach taken by many managementstrategists.
By exploiting the upstream and downstream information flowing
along the value chain, the firmsmay try to bypass the
intermediaries creating new business models, or in other ways
createimprovements in its value system.
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V alue Chain AnalysisV alue Chain Analysis
