Trends, Networks, and Critical

Thinking in the 21st Century

(GRADE 12 Second Semester)

MODULE
Definition of a trend
Understanding Local Networks

Prepared by:
Ms.Erika D. General
 Trends, Networks, and Critical Thinking in the

21st Century Culture

_______________________________________________________________________________________

1. Definition of a trend 2. Understanding Local Networks

1.1. The process of identifying a trend
1.2. Differentiating a trend from a fad 2.1 Strategic analysis
1.3. Elements of a trend 2.2 Intuitive thinking
1.4. The characteristics of a trend

I. DEFINITION OF A TREND

 TREND IS DEFINED IN VARIOUS WAYS:

a. In the field of arts, fashion, and music, it is a prevailing style or preference such as realism
movement in art, emergence of the miniskirt, and popularity of jazz music.
b. In economics, it is a general movement registering statistical changes for a long period such as the
increasing cost of living and rate of unemployment.
c. In politics, it refers to a tendency, drift, or bend toward a certain stance, thought, or policy as when
democratic Southeast Asian countries favored authoritarian governments at a certain point in their
histories.
d. In sports (wearable devices that monitor training performance)
e. Food (rise of oatmeal products, inclusion of moringa or malunggay in food products)
f. Cosmetics (whitening supplements)
g. Travel (paperless tickets and online check – in)
h. Manufacturing (3 – D printing)
i. Environmental management (home solar electric system)
 A trend is a pattern of behavior demonstrated by a big number of people within a particular period.
 Trends can also refer to movements, ideologies, concepts, beliefs, and more.

Activity:

SPOTTING A TREND
 Someone or something starts or causes as trend. A person who starts a trend is called Trendsetter.
The individual’s act or the event has attracted attention, earned acceptance, and created strong
interest and influence on people whose number keeps snowballing as days go by. The act or event is
something different from what is currently going on and it becomes “the next big thing.” It
demonstrates an accelerated spread among various sectors and areas and creates a deep and wide
scope of influence on people, sectors, and the environment. It leads to change.
  According to futurists (a futurist is one who studies and predicts the future, especially on the
basis of current trends)
 Trendspotting refers to “the study of trends and the way they develop and affect society,” whereas a
cool – hunting is “a hunt for those things that will become popular before they are popular.” trend
analysis is “based on trendspotting but it extends this into developing future scenarios.”

 Cool – hunting can be understood as looking for things that are going to be popular, while
trendspotting is looking for future trends, generally including those that are less or not obvious, that
ultimately affect society and the way people live. Trendspotting requires more analysis. For
example, discovering what accessories will hit the fashion markets in the next season is cool –
hunting, as well as a record label producer looking for the next singing sensation.
 Trendspotting seeks broader subjects that lead to changes in human perception, say, in clothing and
music imagine how the marketers of the denim jeans, notably Levi’s positioned denim jeans from
being a work wear to being quality wear that exudes individuality and informality. Soon, the denim
jeans became ubiquitous in every country and a must – have. Think of composers and performers of
pop music that help define the taste of a generation of listeners, possibly touching emotions and
upholding attitudes. Original Filipino Music (OPM), which started in the late 1970’s, provided songs
with a uniquely Filipino pop feel different from the previous colonially influenced songs and art
songs.

Trendspotting is the basis for trend analysis, which has applications in several fields.

CHARACTERISTICS THAT A TRENDSPOTTER SHOULD POSSES, BASED AND ADAPTED

FROM REHN AND LINDKVIST (2013)
1. ADOPT A BEGINNER’S MIND – know how to unlearn things. With a beginners mind, you can see
things in a new light, as if everything is new and strange; thus you will be able to detect even small
changes and shifts that field experts tend to ignore.
2. KNOW WHY AND WHAT YOU ARE LOOKING FOR – ascertain first the reason why you are
looking for trends. Only then can you focus on what kinds of trends to spot and how to specifically look
for them. The reasons of a businessman are different from those of an enthusiast or a traveler or a writer.
3. MOVE AND SEARCH IN MANY PLACES – look beyond what and where others are looking for
and searching at. Dare to look for something different and do not remain in your comfort zones. As an
analogy, instead of going where most do not go to or even notice. When you are led to the mostly used
hashtag, for example, you are merely cool – hunting. Learn to take note what is happening now to
imagine and search what will be happening in the future.
4. BEWARE OF THE OBVIOUS – do not join the bandwagon of the obvious – the flashy things (the
peacock). Remember that if something is easy to spot, everyone most likely sees it, too. Things that are
less visible (the pigeons) effect changes in culture and society. Just think about how the mundane plastic
chairs (monoblock chairs) influenced how people gather and how ubiquitous they have been.
5. NEVER JUDGE SOMETHING A GOOD OR BAD – set aside your biases and be objective in
looking for trends. You may not like a topic, but you have to pursue knowing more of it if you are to be
an effective trendspotter. Pay attention to anything related to it and be critical, too. For example, some
may find internet memes as unattractive, tasteless, or ridiculous, but their mere presence and popularity
speak a ton about a kind of Internet user that finds more sense of the world through visual culture.
6. BE SENSITIVE IN LOOKING FOR SIGNALS – study how trends gain momentum. Not all things
new and novel can become a trend, but they sometimes do. Taking note the upsurge and downturn of
phenomena will help you to expect or pick weak signals that become strong.
7. LOOK FOR SHIFTS RATHER THAN NOVELTIES – observe for changes in how things are done
of in people’s behaviors when something new is introduced. Do not delve on the novelty of a gadget ,
for example, per se. an undergoing shift is a good sign of developing trend. At first, the remote –
controlled drone was seen as a fad with many enthusiasts purchasing one. Then we see drones being
used in filmmaking, shooting documentaries, news reporting, taking photographs, and even in delivering
 packages. In photography, the use of drones has given us new perspectives in terms of seeing things,
ushering in a bigger and better understanding or view of the
world, literally and figuratively. Also included in this particular characteristic is the importance of taking
note of what people actually do in contrast with what they say they do.
8. SPOT FOR COMBINATIONS OF THINGS – do not think of trends as a singular evolution or
development of things. They come as a combination of shifts or individual spots. For example, the case
by which we can use social media today has been made possible due to a combination of the following:
internet connection, smartphone technology, apps development, globalization, algorithms, and
emergence of netizens, to name a few.
9. FIND THE REASON FOR SOMETHING – however difficult this may be, seek logical explanations
and causes for everything. By understanding the reasons behind things, behaviors, changes, and shifts,
you can get a better understanding of an emerging trend. Merely looking at the surface is not enough.
Considering something as inexplicable is not enough as well.

NOTE: By spotting a trend, you can think of ways to maintain your lead in your field of specialization,
detect new opportunities to grab, and “invent” a future life for you, your family, and your close friends.

TREND VERSUS FAD (DISTINGUISH)

1. TREND lasts for a longer period of time than a FAD. It may take years before a TREND slows down,
while it only takes a few weeks or months for a FAD to stay. Thus, a FAD is a temporary or short –
lived pattern of group behavior. For instance, the Beatlemania in the 1960s and the hippie TRENDS
lasted for decades whereas the FAD of the song “Gangnam Style” was short – lived.
2. A TREND has a record of occurrence in the past and might continue to the present, something which is
unseen in a FAD. It leaves a long, significant mark in history and could go on to the present. For
instance the rise of One Direction ushered back the boy band trend in music, which recurs intermittently
since the 1960s. The “Trumpets” dance challenge and the mannequin challenge which went viral on
television and social media were FADS that quickly faded away.

NOTE: Trends and Fads can happen in areas of life where change or transformation continuously occurs.
This means that while you are alive, you will encounter and experience various trends and fads.

ELEMENTS OR COMPONENTS OF A TREND (NPLCC)

1. NUMBER OF PARTICIPANTS
 A trend may be started by an individual but the number of people who follow it becomes bigger as time
goes by. The group grows into a community which, not long after, swells into national and international
societies.
 The prevailing fashion of a period, for example, follows what celebrities are wearing or what fashion
designers offer.
 People often copy the trendsetters and so a new fashion trend develops.
 In the recent century, styles of clothing are usually distinguished by decades.
2. PATTERN OF BEHAVIOR
 A trend is formed from repetitive actions of people.
 The simple act of taking a selfie has now become a cultural trend. It is almost impossible not to see
someone taking a selfie in any place – be it in a tourist spot, in a restaurant, in a hotel lobby, beside a
movie poster in a cinema, in a concert hall, and at an event, among others. Before smartphones and
portable digital cameras, pictures or portraits were taken by another person. The selfie phenomenon
enabled people to construct themselves visually and present it to the public by putting it on social media.
 Others view the taking of selfies with disdain as a symbol of narcissism and superficiality, while others
consider it as an act of self – exploration and a gauge for acceptance.

3. LONG PERIOD OF TIME

 A trend has a long time frame, sometimes running for decades.
 A trend may experience some ups and downs in popularity, may fade away, and may recur. For many
decades, the telephone was the main line of voice communication. It revolutionized modern living and
had great impacts socially, both positive and negative. Soon, it was overtaken by the popularity of
mobile phones in the late 1990s, which is portable and has the text messaging feature.
 The newer technologies allowed smartphones to include many applications and Internet connectivity.
Although telephones are still present in homes and offices, smartphones clearly have gotten ahead in
functionality and usage.
4. CAUSE
 A trend has a starting point which can be an idea, technology, event, or person.
 Portable audio players were popularized when Walkman was introduced in the 1980s, allowing people
to listen to recorded music (cassette tapes) through headphones or earphones. Later, it would evolve in
the form of a portable CD player.
 Then came another revolutionary trend with the advent of digital audio players where the music playlist
could be saved on to the device or be downloaded online.
 Now, mobile phones and smartphones also function as a portable music player. The culture of portable
music has come a long way, from the invention of the transistor radio, and is still evolving depending on
new emerging technologies.
5. CONSEQUENCE
 A trend makes considerable influence or impact. Social networking has become an encompassing trend
that lends to influence behaviors of online users.
 With the popularity of smartphones, users began subscribing to various social networking portals which
enable them to post activity statuses and photos, and even connect with celebrities.
 People could now air their opinions on diverse matters and say almost anything instantly.
 Social networking users have reached billions.

CHARACTERISTICS OF TRENDS
 Rehn and Lindkvist (2013) mention of a so – called hierarchy of trends, which explains why trends
seem to have varying reach, effects, and influences on people.
 This hierarchy is a representation of the scale of the development of a trend.
 MICROTRENDS – are “little things that happen all around us all the time, the tiny shifts that
occur in everything from clothes we wear and the snacks we eat to the way we work, play, and
love.” These trends happen right now and are outright observable. For others, microtrends are
synonymous with fads. The importance of microtrends is that they offer a glimpse about the
future through the clues they possess.

 MACROTRENDS – are “aggregated microtrends or more sweeping changes that are affecting
society.” They provide major changes that are perceptible in the societal level for a longer
period. These are more stable than microtrends, which can quickly fizzle out.
 MEGATRENDS – are “macrotrends that have grown up and moved out. They are big and bold,
and affect the lives of great swathes of the human race.” They can last for decades and are so
pervasive as to be generally known.” Because of this condition, megatrends are regarded as so
obvious and evident. In other words, they have become the prevailing condition that has become
too normal.
  GIGATRENDS – are “trends that are so general that they affect most areas of human life – or,
at least, more than one aspect of life or more than one industry.” Gigatrends are usually
identified to define an era.

NOTE: To illustrate this hierarchy of trends, study the following examples.

a. Internet connection is now considered a gigatrend as its functions are now tied up to the everyday
activities of people all around the world. It has become too normal such that it is now the base of several
vital activities like banking, business, online communication, information gathering and dissemination,
research, entertainment, transactions, gaming, shopping, and more.
b. Smartphones can be considered a megatrend (if not bordering on being a gigatrend itself). They have
affected many lives and industries. In fact, many check their smartphones first thing in the morning to
read text or private messages, surf the Net, and so on. Many human activities also depend on
smartphones, whether directly or indirectly. Texting, likewise, has changed how people communicate. In
the past, communication was done through audio signals care of the telephone. With texting, which
traces its roots to a mobile phone function, communication can now be done through digitally written
words sent instantly.
c. Social media can be considered as a macrotrend, but it can arguably turn into a megatrend considering
how common it is nowadays. The continuous development of platforms and apps made the concept of
social media pervasive across computer and smartphone users. While social media would not have been
a trend without the overall influence of the Internet has, nonetheless, given many people a venue to be
heard and to exchange thoughts, opinions, and ideas.
d. Popular games and apps on smartphones are examples of microtrends. One game can create a mania
that later wanes to give way to another. A few games have attained a higher level in the trends hierarchy,
like Super Mario, which actually started in the 1980s but has resurfaced through different gaming
platforms. For some, this particular game is a representation of an era to which they belong.

NOTE: The important thing in studying trends is to observe them closely for subtle and sudden shifts that
ultimately affect people, cultures, and societies in general.

IDENTIFYING PARTS OF A WHOLE

 Trends are formed from the combination of things. Thus a trend has constituent parts of portions that
are interrelated. Their confluence, as well as how the people adopt them, makes the trend viable,
especially the megatrends and gigatrends

EXAMPLE: The Japanese animation (anime) trend that is associated with several generations spanning
decades. In retrospect, the popularity of anime was brought about by a number of developments.

ANIME
 Emergence of otaku (enthusiasts), Japanese pop music, Manga (Japanese comics) and other
adaptations, home video availability, artistic experimentation and stylistic expansion, movie
industry, electronic subtitling, digital piracy, popularity of seiyuu (voice actors), television
industry, English dubbing, animation technology and innovation, rise of animation studios,
widespread syndication, information sharing through the internet, development of subcultures,
influences from Walt Disney films, penetration of international market, and cosplaying.
THE VISUAL CULTURE
 It was developed from various trends – digital camera, smartphone, Internet, Wi-fi technology,
social media, mobile apps, computer, fashion, art, and photography.
 Internet memes, infographics, and sharable videos seemed to be a microtrend only, but they
eventually became a mainstay in disseminating information. Even large news organizations and
government Web sites use them.
  This visual culture trend (can be considered a megatrend) has evolved further with the advent of
the Internet. The smartphone and Wi-fi access greatly helped the new form of visual culture
which is subscribed to by many social media users, if not all.

NOTE: Remember that microtrends can become macrotrends if they affect more lives and societies. Then
macrotrends can become a megatrend if it can affect a much larger group for a longer period like a decade.
Megatrends can become gigatrends if they have ever – lasting effects and influences. Therefore, it is evident
that a larger thing (the whole) consists of smaller things or parts.

IDENTIFYING EMERGING PATTERNS

A pattern is a design, shape, form or configuration that emerges from repetitious appearance of lines,
curves, and behavior. In the study of trends, repetitive behavior that gives rise to an emerging pattern is the
main interest.
In order to follow and observe if a pattern emerges out of various events and phenomena, one should
have tools necessary to detect it. The tools that a trendspotter should find handy to use are categorized into
four activities. According to Rehn and Lindkvist (2013), these activities are the following:

1. DOCUMENTATION
 This means being able to record your observations which you consider related to any trend.
 The primary tools for documentation, however simple, are notebook and pen. Some opt to use note –
taking features or apps on a smartphone or tablet. The camera has also become necessary in
providing visuals. Others bring a voice recorder which is best for saving audio.
 Whatever tool one uses, the important thing in documentation is the ability to physically keep
information and data wherever and whenever you may be.
2. ARCHIVE OR MEMORY
 This means being able to easily retrieve any documentation you have kept.
 Nowadays, the most space – saving way of archiving in turning the physical into digital. Notes can
be scanned or converted to a portable document format (PDF) while digital pictures can be easily
saved.
 Physical archiving can, of course, still be used. There are various digital archiving systems that are
available, too. Tagging and cross – indexing are helpful in labeling files.
3. ANALYSIS
 This is the stage where examination and combination happens.
 Looking for patterns on prospective trends can be achieved through these methods: brainstorming,
grouping, and crafting combinations.
 In brainstorming, you decide which from your data is important and which can be discarded. Here
you can confirm emerging patterns like events more frequent and things following a cycle.
 In grouping, you create headings where observations and data can fall under.
 In crafting combinations, you begin to link one thing to another and think what could happen if
these are taken a step further, more like imagining or generating new ideas.
4. PRESENTATION
 This is representing your findings for easy understanding as a way of analysis. You can represent
your findings through, among others, a mood board and a storyboard.
 A mood board is a collage of images, text, and object samples. This is used to “capture your intuition
and stimulate creative discussions about trends.”
 A storyboard presents a narrative of possible scenarios. It functions to “to connect trends to a
timeline and to different contexts, something that can enable you and others to see interesting new
things.”

 A slideshow is also another option. In presentation, you do not merely present your ideas but use it
as an analytical technique. Sometimes, new trends are labeled with new names or terms in the hope
of popularizing a phenomenon.
Activity :
Use the KWL Chart to answer. The 3 column chart captures the before (what you already
knows), during (what you wants to learn) and after (what you have learned) about the topic.   

Step 1: write down everything you know about the topic in the K column. 

Step 2: list of questions about what you want to know more about the topic in the W column of
the chart. 

Step 3: answer these questions (step 2) in the L column.

 Activity:

Trends, Networks, and Critical Thinking in the

21st Century Culture
______________________________________________________________________________________________

II. UNDERSTANDING LOCAL NETWORKS

NETWORK – is a particular type of relation that links certain sets of people, events, or objects.
LOCAL NETWORK – refers to interconnected processes internal to the individual person’s mind, mental
faculty, or thoughts such as strategic analysis and intuitive thinking that are ultimately demonstrated in
decision – making.

STRATEGIC ANALYSIS AND INTUITIVE THINKING

STRATEGIC ANALYSIS is the process of examining, using one’s rationality or reason, the organizations
surroundings and resources, and how they relate with each other to formulate a strategy to meet objectives
and improve performance. It is the understanding of an organization’s external and internal environments to
create a strategy for better utilization of resources in the pursuit of the organization’s objectives and
priorities. Such understanding is drawn from facts, data, and instructions at hand.
EXAMPLE:
Strategic analysis can be done by an organization to analyze its losing performance based on data and
information about the internal profile of its employees and their capabilities and work attitudes. It can also
be done by the organization to investigate the external profile of its surroundings, opportunities, and
possible rivals.

INTUITIVE THINKING is sensing or knowing without using rational processes such as reading facts and
instructions. According to the dictionary, INTUITION is “something that is known or understood without
proof or evidence.” Simply put, intuitive thinking is making choices and decisions according to one’s hunch
and gut feeling without knowing the reason why. Good intuition results from long years of knowledge and
experience which enable you to comprehend how people think, act and react, perceive and interpret, and
interact with one another.

ACTIVITY:
Which do you practice more often: strategic analysis or intuitive thinking? Explain your answer.
Activity:

Use the Venn Diagram below to show the similarities and differences between strategic analysis and
intuitive thinking.

The conduct of strategic analysis involves identifying and evaluation necessary data for formulating
strategy, description of the organization’s internal and external environment, and identification and use of
certain analytical tools or methods. Basically it involves reviewing the strengths, weaknesses, opportunities,
and threats found in both the organization’s and external environments.
In doing conducting strategic analysis, one must employ rationality and critical and logical thinking in
arriving at certain decisions. The strategy will be used to solve problems, utilize human and material
resources, and attain objectives of the organization in accordance with its mission and vision. MISSION
refers to the organization’s main
 task that it wants to perform, while VISION refers to what the organization foresees itself to be (for
example, a school’s mission is to provide world – class education for all its students, while its vision is to
become a leader in academic excellence among other schools).
A person who performs strategic analysis is usually systematic and analytical and takes time to arrive
at decisions. A manager, for example, simplifies a complicated problem by breaking it down into smaller
components then solving them in a logical and integrated way. The manager formulates a plan or strategy
before plunging into action and gathers sufficient information before making a decision.

A critical or analytical mind usually exercises strategic thinking. Samantha Howland (2013) identified
six elements of strategic thinking.

1. The ability to anticipate enables the executive to not only focus on the current situation but also to look
at the future. They should monitor the environment to foresee significant changes in the industry to
prepare them for possible threats as well as opportunities.
EXAMPLE:
a.An executive who keeps abreast with trends and engages in trendspotting is more likely to be open to
product changes or to beef up the company’s product strength in anticipation of a trend. When a
garment executive spots a consumer preference for plaid print, he or she gradually reduces the
production of apparels with floral design and shifts to plaid print.
2. The ability to challenge involves raising questions instead of merely accepting information as it comes.
The purpose of raising questions is to trace the root causes of problems, to challenge existing beliefs, and
to find out biases and possible manipulation of the situation. Probing and investigation may also be
employed.
3. The ability to interpret is shown by testing a variety of hypotheses as well as comparing and
contrasting certain data prior to making decisions on particular issues. The executive avoids jumping into
conclusions without sound biases.
4. The ability to decide enables the executive to make a stand with courage and conviction despite
incomplete information at hand. The executive combines speed and quality in doing this, and avoids
indecision or “analysis paralysis” which prevents a leader from acting fast, thereby missing chances of
opportunities.
5. The ability to align enables the executive to have different divergent viewpoints, opinions, and agenda
to attain common goals and to pursue mutual interests. Open communication and dialogue will help
address the problem of misalignment and build trust leading to consensus and agreements.
6. The ability to learn is demonstrated by an executive who accepts feedback, constructive criticism, and
even failure which are altogether viewed as sources of critical and valuable insights. He or she shows
willingness to immediately return to the right course when going off track. Failures are considered
lessons for success.

Intuitive thinking involve a more spontaneous, instinctive, and unplanned processes of solving a problem.
Evaluation of the situation and the perceived alternative course of action are quick and broad. Actions and
decisions spring from hunches and gut feeling based on unpremeditated ideas or experiences rather than from
facts and hard data. Intuitive thinking tends to be imaginative and more applicable in situations where facts
are insufficient and previous related decisions are not readily available.

Intuitive thinkers do certain things which others do not. Carolyn Gregorie (2014), provided in her
article “10 Things Highly Intuitive People Do Differently” some activities that intuitive thinkers do.
1. Listening to an inner voice. They pay attention to intuition and allow it to guide them.
2. Taking time to be alone and to reflect. Spending time to in solitude is their wayof engaging in deeper
thoughts and creative thinking. It is also called “mindfulness” which is looking into one’s current
experience without making judgment.
3. Listening to their bodies. They tune in to their bodies for gut feeling and physical sensation or emotion
associated with intuition.
4. Observing everything. They take note of occurrence of odd things and keep an eye on the frequency of
coincidences, unexpected connections, and instantaneous decisions or actions done.
5. Paying attention to their dreams. It is their way of getting in touch with their “unconscious thinking
process” and of capturing information on how to live their lives.
6. Connecting deeply with others and staying in a positive mood. They can read a person’s mind through
his or her words, feelings, and actions. Avoiding negative emotions helps boost their intuitive judgment.

.
ANALYTICAL TOOLS
 A variety of analytical tools can be employed in the conduct of strategic analysis. The purpose of an
analytical tool is to sharpen the focus of the analysis and to ensure a methodical and balanced
approach. This means that the analysis will center only on the questions being raised by the
organization and will follow step – by – step, logical, and integrated procedures.
 The tools are also used in making strategic decisions.

TWO MOST COMMONLY USED ANALYTICAL TOOLS

1. SWOT Analysis
2. PEST Analysis
ANOTHER POPULAR ANALYTICAL TOOL
1. Value Chain Analysis

SWOT Analysis is applied particularly in phase I where situational scanning is undertaken. The
internal and external factors which are favorable and unfavorable for the attainment of objectives and
priorities are identified. It focuses on the organization’s strengths and weaknesses and the opportunities and
threats it faces.

 STRENGTHS – these are the internal attributes of the organization that can contribute to the
attainment of its objectives and priorities.
 WEAKNESSES – these are the internal attributes of the organization that can obstruct the attainment of
its objectives and priorities.

 OPPORTUNITIES – these are external factors that can contribute to the attainment of its objectives
and priorities.
 THREATS – there are external factors that can obstruct the attainment of the organization’s objectives
and priorities.

EXAMPLE:
Alyssa inherited his family’s business of silkscreen T – shirt printing. Being a young entrepreneur,
Alyssa wanted to introduce digital T – shirt printing through heat transfer. In the planning stage, she had to
answer the following framework questions:
STRENGHTS: The strengths of the business included the equipment and manpower the shop already
has. Alyssa has contacts with various visual artists, mostly her friends, to help him with the new designs
that he wants. The shop has regular patrons who can be its customer base.
WEAKNESSES: To pursue the digital printing side of the business, the shop has to invest in buying new
equipment like computers, printers, and heat press machines.
OPPORTUNITIES: The opportunity of online shopping gives the shop a venue to market its services,
designs, and new apparel line to more customers. The shop can expand its silk screen printing services,
which means it is not only limited to customers visiting the physical shop. It can take orders from many
parts of the country, provided that it sets up an easy cashless payment scheme.
THREATS: This new venture is a huge risk in itself, as much as being a success. It is up to the marketing
arm to get a considerable number of new customers to keep the business running smoothly. Additionally,
there are many competitors offering the same services.

PEST ANALYSIS surveys the bigger environment where the organization operates. It scans the
political, economic, sociocultural, and technological factors in the environment affecting the existence of the
organization. For a business enterprise, PEST Analysis conducted to evaluate its standing in the market,
whether it experiences growth or decline and what direction the business is heading to.
 POLITICAL FACTORS include the rules, regulations, laws, and policies imposed by a government
which all affect the organization. Political factors also include political stability and peace and order
in the area where the organization operates.
 ECONOMIC FACTORS cover purchasing power, capital outlay, interest rates, tariff rates, inflation,
currency, currency exchange rates, and employment – unemployment rates, among others.
 SOCIOCULTURAL FACTORS include people’s preferences, needs, demographics, attitudes toward
using a product or service, and cultural backgrounds and diversity, among others.
 TECHNOLOGICAL FACTORS cover those related to technological innovation as well as their
positive and negative impacts on the organization. Technological factors also include incentives for
investments and pace of technological transformation.

EXAMPLE: Newspaper publishing company

P The newspaper company advocates truth, justice, and responsible journalism. Since democracy is valued
in the
country, the newspaper is generally free to report even the corrupt practices of government officials.

E The newspaper company experiences higher production cost due to inflation. Competition with other
newspapers,
still, is healthy.
S Readers seem to allot less time in reading the articles. They have been exposed to visual culture, meaning
they
prefer information presented more visually.
T Smartphones and connectivity allow people to access news content anywhere, anytime without buying a
printed
newspaper.

The PEST factors can be classified as opportunities or threats in SWOT Analysis. For a better
understanding of a situation, it is recommended to accomplish the PEST Analysis first before conducting the
SWOT Analysis.
Activity:

Explain the quotation below about the intuition.

“We keep moving forward, opening new doors, and doing new things, because we’re curious
and curiosity keeps leading us down new paths.” - Walt Disney
Activity:

Use the Swot Analysis in the idea below. Give the strength ,weaknesses, opportunities and
the threats of this business.

Business: MILKTEA SHOP