Business

Enterprise
simulation
 LESSON 2
Analyzing the
Market
Specific Objectives:
1. define environmental scanning,
2. enumerate and discuss the SWOT
analysis and Porter’s Five forces of
competitive analysis,
3. develop a SWOT analysis.
 Environmental Scanning
Bautista (2014) defined environmental
scanning as the process of gathering,
analyzing, and dispensing information for
tactical or strategic purposes. The
environmental scanning process entails
obtaining both factual and subjective
information on the business environments in
which a company is operating (Bautista,
2014).
 The SWOT Analysis
SWOT, which stands for Strengths, Weaknesses,
Opportunities, and Threats, analysis is an analytical
framework that can help a company meet its
challenges and identify new markets. This framework
can help identify the business’s risks and rewards. It
is also a means of identifying the internal and external
forces that may affect the business. It is helpful in
assessing new business ventures.
Strengths and Weaknesses: These refer
to the internal factors, and these are the
resources and experiences readily
available to the business proponent.
Strengths refers to the strong attributes or
capabilities of the business that provide great
advantage in exploiting the business.

Qualified complete and Democratic

working new physical leadership
force facilities style

Motivated valuable
workers intangible
assets
Weakness are poor attributes or
deficiencies that give disadvantages to the
business.
autocratic Demoralized Unskilled
form of employees workers
leadership
poor and Poor
dilapidated technological
equipment and structures
machineries
Opportunities and Threats: These are
the external forces that affect a
company, an organization, an
individual, and those outside their
control.
Opportunities are business situation in the
form of products or services that must be
exploited because of their potential in terms
of profit or growth.
innovative new programs of
products the government
introduced to the
market
Threats are possible external events in the
environment that may provide harm to the
business.
Possible entry Stiff government
of competitors regulations

Higher Entry of cheaper

interest rates products
Porter’s Five Forces of Competitive Analysis

1.Number of 2. Potential 3. Power of

Competitors New Entrants Suppliers

4. Power of 5. Threats of
Customers Substitutes
Products