Organization and Management (ABM 001)

Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

LESSON TITLE: Summarizing environmental forces using PEST 1.

and SWOT analyses Materials:
SAS

Lesson Objectives: References

At the end of this day, I should be able to: pp. 131 - 145, Management
Principles and Practices. , Griffin,
1. Determine factors influencing organizational environment
Ricky
2. Determine Factors involved in PEST and SWOT Analysis

1.

“Using a calendar, choose 2 days this week when you’ll review the content of this module. Set aside 20-30
minutes for this review.”

Introduction:
Aloha! Dear students, in today’s topic we are going to discuss the two important analysis used by
managers. When planning a project it is important to learn about the internal and external factors that can
affect the project. There are some excellent strategic planning methods that you can use analyze all these
factors. SWOT analysis and PEST analysis are two of the most frequently used planning methods. Below is a
brief introduction to both methods and a comparison of SWOT analysis and PEST analysis

A. LESSON PREVIEW/REVIEW

Group the students and let them discuss to determine the following questions. Let them write the answer on a
piece of paper for sharing.

1. How does a manager achieve success in their organizational objectives?

2. How will their decision making skills lead to a continued growth and success?

3. If good decision are made, What factors are involved to make the company prosper?

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 Organization and Management (ABM 001)
Name: _________________________________________________________________
Section: ____________ Schedule: ________________________________________
Activity 1: What I Know Chart,
I guess you are now ready to list the things you have know about management. Try answering the
questions below by writing your ideas under the first column What I Know. It’s okay if you write key
words or phrases that you think are related to the questions. Go on!
What I Know Questions:
1. What is the importance of
SWOT and PEST analysis?
2. What should be included in a
PEST analysis?
3 Which is better swot or pestle?
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Teachers’ Guide Module #5
Class number: _______
Date: ________________
What I Learned (Activity 4)
SWOT and
PESTLE analyses are used
to make a systematic and
thorough evaluation of a
new business or project.
The process gives decision-
makers a better awareness
and understanding of the
changes that may occur and
the impact that these
changes may have on their
business.
These include: PESTLE/PE
STEL: Political, Economic,
Socio-Cultural,
Technological, Legal,
Environmental. PESTLIED:
Political, Economic, Socio-
Cultural, Technological,
Legal, International,
Environmental,
Demographic. STEEPLE:
Social/Demographic,
Technological, Economic,
Environmental, Political,
Legal, Ethical.
It is good practice to
perform the PEST and then
use the results as the
opportunities and threat
section of the SWOT.
... SWOT analysis is
considered the best
because it focuses on
 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

internal and external factors

both while PEST only
focuses on external factors.

B.MAIN LESSON

Content Notes

Analyzing the Environment

The environment where the organization is situated plays a very significant role in the success of failure of such an
organization. It is very important that an analysis of the environment is undertaken. The objective of
environmental analysis is the identification of constraints which may be spelled out as either internal or external
limitations. the limitations has to be considered since it can be costly later on if a decision has not been
previously identified.

Determining the aspects that cover s the environment and contributes impact and influence can be identified
as follows :

a. Political Influence - business firms are affected by legal and political factors in their environment.
Government issues various laws, ordinances and regulations such as wage laws,
taxation, permits and etc.

b. Economic Aspect - As a business enterprise and being an economic institutions, are directly
influenced by many economic forces in its environment. the growth of economy, levels
of investments and consumer spending, inflation rate and many others.

c. Social - Cultural Aspect - the level of education, attitudes, outlook and economic aspirations of
people can influence working environment. lifestyles, tastes and preferences, age
profile are examples of social-cultural demographic variables.

d. Technological Aspects - development continuously occur in the world. Technological

development lead to new products and new ways of the same products.

SWOT analysis is a careful evaluation of

an organization’s internal strengths and
weaknesses as well as its environmental
opportunities and threats. this is the best
strategy to accomplish organizational
mission.

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 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

PEST is an acronym for

Political, Economic,
Social and
Technological.

PEST analysis helps

you determine how
these factors will affect
the performance and
activities of your business
in the long-term.

This analysis is used to

assess these four external
factors in relation to your
business situation.
Basically

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 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Activity 3: Skill-building Activities

Read the illustration below and analyze :

The President of a new chemical manufacturing company made a decision to locate

his factory in a place adjacent to a thickly populated area. Construction of the
buildings were made with precision that they were finished in a short period. when
the clearance for the commencement of the operation from local authorities, this
could not be given. it turned out that the residents oppose the operation of the firm
and they took steps to make sure that no clearance is given.

Answer the following questions:

Analyze how the

What losses was
What was the mistake of company is designed to Who do you think are
encountered by the
the management ? operate in the affected and displaced?
company?
environment?

Activity 4: What I Know Chart,

In activity No. 1 You answer what you know about the topic. Now, that you have a clearer understanding of
today’s concept, time to complete the chart by answering the last column of this activity This time write what
you have learned.

What I Know Questions: What I Learned (Activity 4)

1. What is the importance of SWOT and
SWOT and PEST analysis? PESTLE analyses are used
to make a systematic and

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 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

2. What should be included in a
PEST analysis?
3 Which is better swot or pestle?
thorough evaluation of a
new business or project.
The process gives decision-
makers a better awareness
and understanding of the
changes that may occur and
the impact that these
changes may have on their
business.
These include: PESTLE/PE
STEL: Political, Economic,
Socio-Cultural,
Technological, Legal,
Environmental. PESTLIED:
Political, Economic, Socio-
Cultural, Technological,
Legal, International,
Environmental,
Demographic. STEEPLE:
Social/Demographic,
Technological, Economic,
Environmental, Political,
Legal, Ethical.
It is good practice to
perform the PEST and then
use the results as the
opportunities and threat
section of the SWOT.
... SWOT analysis is
considered the best
because it focuses on
internal and external factors
both while PEST only
focuses on external factors.

Activity 5: Check for Understanding

. Instruction: Fill in the missing the word.

1. PEST Stands for: Political, ______________ Social, and Technological

2. SWOT Stand for: Strength, Weaknesses, Opportunities and ________________

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 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

3. ____SWOT ANALYSIS__________ is a careful evaluation of an organization’s internal 4.

_____STRENGTH______and 5. ___WEAKNESSES______ as well as its environmental
opportunities and threats

Directions: Read the statement carefully and encircle the letter of your answer which describes best the item
given. ERASURES WILL INVALIDATE YOUR ANSWERS.

1. It is to design and maintain an internal environment in which people working together in groups can perform
effectively towards the attainment of groups goal.
A. Engagement B. Management C. Arrangement

2. A Scientist who states that to manage is to forecast and plan, to organize, to command, to coordinate To
control.

A. Henry Fayol B. Elton Mayo C. Peter Drucker

3. A group of people with common purpose who work together to achieve a shared goal.
A. community B. organization C. company

4. He is considered as the father of Scientific Management, known for time and motion.
A. Henry Fayol B. Frederick Taylor C. Hawthorne

4. Which of the following would relate most to INTERPERSONAL ROLE.

A. Figurehead B. Spokesperson C. Negotiator

6. What does a Decisional Role usually performs in the concept of management ?

A. Monitor B. Liaison C. Resource allocator

7. It consist of conditions and forces within the organization.

A. Internal environment B. global environment C. external environment

8. Everything outside of an organization which affects and influences the operation.

A. internal environment B. global environment C. external environment

9. It is part of the environmental dimension where government regulations may influence the business
operations.
A. economic B. political-legal C. socio-cultural

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

10. It is an organization that competes with the other organizations for resources.
A. customer B. competitor C. supplier

11. The extent to which an organization is involved or affected by business in other countries.
A. international B. local C. global

12. An organization that provides resources for production.

A. supplier B. competitor C. producer

13. it is the overall health and vitality of the economic system in which the organization operates.
A. technological B. political C. economic

14. These are political influence that affects business environment .

A. government laws B. inflation C. lifestyle

15. Levels of investment with the business enterprise influencing growth with environment forces.
A. socio-cultural aspect B. economic aspect C. technological aspects

16. This continuously help to development of new products and news ways of the same products.
A. economic aspect B. political aspect C. technological aspect

17. It is the organization’s fundamental purpose.

A. mission B. plan C. service

18. It formulates strategies to support the mission of the company.

A. Plan and analysis B. SWOT analysis C. Study and analysis

19. What does SWOT stands for:

a. Strength, Weakness, Opportunities and Threats
b. Strength, Weakness, Operational and Threats
c. Strength, Weakness, Opportunities and Training

20. Which of the factors are considered when External Analysis is observed with the environmental forces?
a. strength, weakness
b. Opportunities, threats
c. Weakness, Opportunities

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

C. LESSON WRAP-UP

Activity 6: Thinking about Learning

You have reached the end of this lesson! Congratulations and thank you for working hard to learn this lesson.
As you end this lesson, put a check mark beside the learning target if you have learned it very well.

Self- Evaluation on Achieving the Learning Target

I can determine factors influencing organizational environment. _____

I can determine factors involved in PEST and SWOT analysis _______-

FAQs

1. What is the importance of doing strategic analysis?

The crucial role in strategic decision-making process has strategic analysis. It often brings
the important information about evaluation and development of environment inside and outside the company
and reveals possible opportunities and threats that need to be consider in strategic decision-making

2. What is the similarities between SWOT and PEST analysis?

SWOT and PEST analyses are similar in that both focus on environmental factors that may affect a company.
Both types of analysis use group brainstorming to identifying environmental factors.

KEY TO CORRECTIONS

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 Organization and Management (ABM 001)
Teachers’ Guide Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

{*Teacher lists answers to activities #3 (+) and #5

** Activity no. 5

TEACHER-LED ACTIVITIES
{These are standard instructions for teachers.}
A. If this session happens to be a face-to-face, in-classroom learning session:
1) Collect completed work in the SAS.
2) Allocate your contact time with students to individual or small group mentoring, monitoring, and
student consultations.
3) You may administer summative assessments (quizzes, demonstrations, graded recitation,
presentations, performance tasks) during face-to-face sessions.
4) You may also explore supplementary activities that foster collaboration, provided that social
distancing is observed.
5) You may provide supplementary content via videos, etc.

It is important to remember that students who cannot make it to face-to-face, in-classroom sessions for
health and safety reasons, should not be given lower grades for missing in-class activities and should
be given alternative summative tests.

B. If this session happens to be an at-home learning session for the students:

1) Check and grade collected SAS and other input from students.
2) Schedule phone calls/virtual calls/virtual chats to individual students or small groups of students to
monitor work, provide guidance, answer questions, and check understanding.

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