11

Organization and
Management
Quarter 1 – Module 3:
Business Environment using
PEST and SWOT Strategies

This instructional material was collaboratively developed and reviewed

by the Accountancy, Business and Management educators from San Jose City
National High School – Senior High School and the Schools Division of San
Jose City. We encourage teachers and other education stakeholders to email
their feedback, comments, and recommendations to the San Jose City
National High School – Senior High School.
We value your feedback and recommendations.

Department of Education • Republic of the Philippines

 What I Know?

Look at the comics below. If you will be the staff in this business, what will you say to the
supervisor. Write your answer in the space provided.

https://www.cartoonstock.com/directory/b/business_costs.asp

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 What is it?
Analyse carefully the scenario in the comics between the boss and his staff in the
company and answer the question below.

https://www.cartoonstock.com/directory/b/business_costs.asp

If you are the staff in the company, how would you respond to the manager’s statement? Why?
Will you continue the business even the company face financial problems?
 Lesson
International and Local
1 Business

Do you often wonder what are the International and local business in the
Philippines? What do you think are the golden key of this enterprise to be well known?
In today’s business in the midst of pandemic crisis, business tycoons are still aiming
for its goal and objective. According to Investopia, business is the defined as an
organization or enterprising entity engaged in commercial, industrial, or
professional activities. It is also refers to the organized efforts and activities of
individuals to produce and sell goods and services for profit
The word business comes from the old english bisignes, meaning "care,
anxiety, occupation, “from bisig “ careful, anxious, busy, occupied, diligent”. The
original sense is obsolete, as is the Middle English sense of “state of being much
occupied or engaged”, the latter replaced by busyness. Johnson’s dictionary also has
busiless “At leisure; without business; unemployed. “Modern two-syllable
pronunciation. (www.etymonline.com/word/business)

This module covers the international and local business using PEST and SWOT
strategies. The sequence of this course is designed to understand and encourage the
learners’ opinion and apply the knowledge they will learn in pursuing and handling a
business for their future career.

What will you do?

Activity 1.1 Acronym of Business
Direction: Write down the meaning of management in your own perspective using
the acronym below

B = Best performance to achieve the company goals and objective

U = _______________________________________________________
S = _______________________________________________________
I = _______________________________________________________
N = _______________________________________________________
E = _______________________________________________________
S =_______________________________________________________
S =_______________________________________________________
 Activity 1.2 Business Apple Tree !
Direction:

Fill up the empty apple by word or words that you can connect to the concept of business.

http://clipart-
library.com/print
able-pictures-of-
trees.html https://www.free-
BUSINESS
largeimages.com/apple
-coloring-pages-1193/
Activity 1.3 Why Oh Why!
Direction: Explain each box (based on Activity 1.2) why this word or words is
connected to Business.

Explanation:
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Explanation:
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Explanation:
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Explanation:
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International Business (https://www.investopedia.com/insights/what-is-international-trade/)

International business is defined by investopedia by allowing countries to

expand their markets for both goods and services that otherwise may not have
been available domestically. As a result of international trade, the market is
more competitive which results in more competitive pricing which brings a
cheaper product home to the consumer.
 International business is the exchange of goods
and services between countries.
 Trading globally gives consumers and countries
the opportunity to be exposed to goods and
services not available in their own countries, or
which would be more expensive domestically.
 The importance of international trade was
recognized early on by political economists like
Adam Smith who introduce the invisible hand
 Other disadvantage of international trade
actually can be bad for smaller nations, putting
them at a greater disadvantage

Local Business (https://www.investopedia.com/insights/what-is-international-trade/)

Local Business or the Small and mid-size enterprises (SMEs) are

businesses that maintain revenues, assets or a number of employees below a
certain threshold. Each country has its own definition of what constitutes a small
and medium-sized enterprise (SME). Certain size criteria must be met and
occasionally the industry in which the company operates in is taken into account
as well
TAKEAWAYS

 Small and mid-size enterprises (SMEs) are businesses that maintain

revenues, assets or a number of employees below a certain
threshold.
 Each country has its own definition of what constitutes a small and
medium-sized enterprise (SME).
 Small and mid-size enterprises (SMEs) play an important role in the
economy, employing vast numbers of people and helping to shape
innovation.
 Governments regularly offer incentives, including favorable tax
treatment and better access to loans, to help keep them in
 What will you do?
Self-Test 1.1

Oops! Before you go on, try this one!

Direction: Answer the following questions based on your

own perspective. Write your answer on a separate sheet of
paper.

1. If you will be given a one million capital to build a businessman here inside or
outside the country, what business will you invest and why?

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2. As a Senior High School Learner, why do you think we must study the local or
international business especially now in our pandemic crisis? What do you think
are the benefits and advantages in studying the said topic?

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If you think you answer the Self-Test correctly– Congratulations! You may now
proceed to the next lesson. If not, you need to go back and read the lesson again!
 Lesson
SWOT Analysis
2
Business does not just decide and build a business. Strategies and techniques
is needed to attain success to achieve tangible result. One of the strategies they use
is SWOT (strengths, weaknesses, opportunities, and threats) analysis. According to
Investopedia it is a framework used to evaluate a company's competitive position and
to develop strategic planning. SWOT analysis assesses internal and external factors,
as well as current and future potential.

Business people has a very important role in the organization to decide

regarding the business they pursue. The basic rule for every business is to achieve
its plan into tangible result using different strategies like SWOT Analysis. According
to the Stanford Research Institute, Albert Humphrey a management consultant
invented the SWOT analysis in 1960s and describe the four strategies of business
namely : strengths, weaknesses, opportunities, and threats.

Humphrey SWOT Analysis

ANALYSIS Responsibilities

1. Strength It define what an organization excels at and what separates

it from the competition: a strong market brand, loyal
customer, a strong balance income statement and balance
sheet, modern technology, and so on. It must then decide
how to use those results to attract new projects.

2. Weakness
It is the challenge of an organization from performing at its
optimum level. They are the parts where the business
needs to improve to remain competitive: a challenge brand,
higher-than-average turnover, increasing levels of debt, an
undetermine supply chain or low capital
3. Opportunities
It refer to bright future of external factors that could give an
organization a competitive advantage. For example, of it
are increasing market, new development of products, new
prospects in business exports and tariff trades and up to
date technology in the country.
4. Threats It refer to factors that have the potential to danger to the
organization. For example, increasing product cost,
minimum level of inventory from suppliers, increasing
government tax and competition and tight labor supply.
 What will you do?
Activity 2.1 SWOT Analysis of Yourself
Direction: Write down your answer base on your own perspective using the
box below.
Now you know the meaning of SWOT Analysis and I believe you can analyze
yourself. Create your own personalize SWOT Analysis. Use the empty box below.

STRENGTH

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WEAKNESS

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OPPORTUNITIES

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THREATS

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 Activity 2.2 What is it Ma’am?

Direction:

Read and analyse the scenario between a senior high school learner and his teacher
and answer the question below.

Teacher: John, it seems you are studying well about our lesson regarding SWOT
Analysis in Organization and Management.
John: Of course Ma’am! I want to be a Business Analyst someday!
Teacher: So, John if you will evaluate the Jollibee Corporation, what specific part
of SWOT Analysis you will concentrate and why?

If you were John, how would you respond to your teacher’s

question? Why?

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Activity 2.3 Roles! Roles! Roles!

Direction:
Write down your answer based on your own perspective using the SWOT Analysis of
Albert Humphrey
Which do you think is the most and least important part of SWOT Analysis must be
used in any business and why?

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 Lesson
Skills of a Manager in
3 PEST & SWOT
You now have the idea of functions and roles of a Manager. Now let us study the Skills
of a Manager in which it plays a very important role in the organization in developing
specific competencies of the staff and managers. Some people say that not everyone
is born like a leader or a manager but crystallizing a certain skills or abilities to achieve
a desired performance and action can help everyone to be more competent or
productive inside the firm. Here are the following skills that a manager must possess
to achieve its goals and objective in the company:
Skills of Manager Definition
1. Conceptual
Skills It is also called analytical skills in which manager clearly sees
the problem holistically and checks each connection to
recognize the root of the problem. As the manager, he always
think one step ahead and give long-term goals to the
problems and give corrective action in the company. He also
need high formal education, up to date seminars and training
and competent job experience. It also stated that high level
of management is needed in this type of skills in which they
usually deal with the decision making and planning process
of the organization.

2. Interpersonal
Skills It is also called the human skills in which the manager
demonstrates the ability in dealing with different people and
tapping the information with one person to another inside or
outside the organization. These skills deal with the
relationship in the company that needs loyalty, trust,
discipline, respect and self-awareness to the feelings of
others. These skills are needed by middle level management
in which the manager deals between the level of top and lower
management.

3. Technical This skill requires the ability to use a special expertise to

Skills perform a particular job. Managers1 acquire these skills
through trainings, seminar and job experience. It is needed
mostly at lower levels of management as they serve more in
the production and technical department like sales
researcher, accountants, computer technicians and
engineers.

1
 What will you do?
Activity 3.1 Spot your Skills!
Objectives:
1. Identify the difference of Interpersonal and Technical Skills in your own
opinion.
2. To give input and explanation regarding the Skills of a Manager.
Materials: Booklet
Procedure:
Get your booklet and identify the difference of Interpersonal and Technical skills
of a Manager and give specific examples of each skills..

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Activity 3.2 Draw Me a Comic Scenario!

Direction:

Inside the box, draw a scenario in a company which show Interpersonal skill of a
Manager and explain how this concept affect the business operation.

EXPLANATION:

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