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PEST Analysis
Macroenvironment and the PESTEL Analysis
When we talk about the 'macroenvironment', we talk about the external elements that
may influence an organization.  A useful acronym to remember is PESTEL - the political,
economic, socio-cultural/social, technological, environmental/natural, and legal elements
that can affect the opportunities and threats an organization must be aware of.  Watch
the video to learn more.
Related terms and concepts to external/PESTEL analysis may refer to 'industry analysis'.
As a bonus (especially when you take up strategic management courses in the future), a
more in-depth version of external analysis can cover Porter's Five Forces.  You may
Google search for yourselves if you want to know more.

VIDEO: PESTEL Model

- Tool for auditing the marketing environment
Political
- Revolves around the current government in a particular country
- Looks at laws and legeslations
Economic
- Direct influence on all businesses
- Things like: employment models, inflations, interest rates
Sociocultural
- Everything social and cultural
- Consumer behavior
- Culture: religion, national, local, dialect
Technological
- Sorts of technology you come in contact
- Example: Having access to information through the internet
Environmental
- Green issues that surround marketing
- Where marketing may affect the environment when serving customers with
products and services
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Legal
- Take account laws in the local market
- Example: (For cars) countries with Left hand drive
- Requirement different countries have

Business Models, Context, and properly doing a SWOT Analysis

One of the most common tools or frameworks that everyone uses is the SWOT analysis
- you are familiar with what the acronym stands for - strengths, weaknesses,
opportunities, and threats.  Over the years, I have noticed that one of the common
confusions of students and even practitioners when using SWOT is the difference
between strength/opportunity and weakness/threat. 
Remember that SW (strengths and weaknesses) discuss the INTERNAL characteristics of
the organization.  A general question you may ask is: "What are the POSITIVE (strengths)
and NEGATIVE (weaknesses) characteristics of the organization I am studying?" To
advance things further, in discussing strengths and weaknesses, you may describe the
positive and negative characteristics of a business model.  A useful technique I do is to
visualize an organization's business model canvas then describe where it is good at (e.g.
marketing/right side of the canvas; operations/left side of the canvas).  Using SW
analysis by describing the business model is very powerful and intuitive.
On the other hand, OT (opportunities and threats) discuss the EXTERNAL elements
OUTSIDE of the organization.  After describing the PESTEL factors relevant to the
organization you are looking at, a useful set of questions you may ask are the following:
"Per PESTEL element (political, economic...), is it an opportunity (positive, in the sense
that the organization can benefit from the PESTEL element) or threat (negative, in the
sense that the organization is exposed to risks or harm if exposed to the PESTEL
element)?"
To sum, effective organizations (whether FBL, TBL or SET) continuously align and realign
their business models to the context (macroenvironment, PESTEL) - watch the second
video.  

VIDEO: How to SWOT Analysis

SWOT Analysis
- Strengths, weaknesses, opportunities and threats that a business faces at a given
point in time
Strengths and Weaknesses
- Internal: things that you have some control over
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Opportunities and Threats

- External: outside of the business’ direct ability to control
Build on your STRENGTHS
Address your WEAKNESSES
Consider the OPPORTUNITIES
and Guard against THREATS

Regional and International Environment

We are living in an increasingly borderless world, wherein businesses, organizations, and
countries heed the call for interdependent collaboration.
Specific to the Philippines, its regional role is to collaborate with ASEAN countries
(Association of Southeast Asian Nations) towards economic integration. That means
lessening tariffs, incentivizing joint initiatives, and finding mutual benefits among nations.
For managers and organizations, the ASEAN Economic Community (AEC) poses
opportunities and threats. Just as there are now opportunities to tap new markets, there
are now threats of competitors that transcend geographical limitations. For future job-
seekers and job creators such as yourselves, you must now be aware that your fellow job
applicants go beyond your fellow nationals.
What are you doing to prepare yourself?
Some tips:
1) Memorize the members of ASEAN. My mnemonic is SMIT-VP-BruCaMyaLa, which
stands for Singapore, Malaysia, Indonesia, Thailand, Vietnam, Philippines, Brunei,
Cambodia, Myanmar, and Laos. 
2) Master English. Filipinos have advantages in terms of communication skills due to our
proficiency of the English language, which is widely considered as the preferred business
language.
3) Familiarize yourself with the different ways of international collaboration. Check the
attached slides. In summary, they are direct imports/exports, franchising, licensing
distributors, foreign direct investments, and joint ventures.
4) Be aware of the impact of currency/foreign exchange. Assess the volatility of peso-
ASEAN exchange rates.
5) Be mindful of cultural differences between countries. Remember that each country
has its own PESTEL considerations.
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6) Consider challenges in logistics especially if your products are physical (vs digital).