FACTS Activity 1.

1 Match the conditions with the kind of environment it is associated with and the
 Environmental scanning is the actual monitoring and evaluation of information for type of factor it is classified as in SWOT analysis. (20pts)
the external and internal environment of a business organization. Three modes of
SWOT
environmental scanning: ENVIRONMENT
CONDITIONS (strength, weakness,
1. Ad hoc environmental scanning is not often done and is usually (external or internal)
opportunities, and threat)
applicable only during a crisis situation. 1. High inflation rate
2. Regular scanning is usually done at least once a year or at regular 2. Lack of management
E
skills of middle
intervals.
management
3. Continuous scanning refers to the continuous collection of data on a 3. Good corporate integrity
broad range of environmental factors. 4. Eco-friendly products
 SWOT analysis is primarily used to analyze the microenvironment of the firm. 5. More sources of new
 It is a technique that identifies the Strength, Weaknesses of a company, as well as materials
6. New competition
the Opportunities and Threats.
7. Lack of advertisement
 It is imperative to note that strengths and weaknesses are part of the company’s and other forms of
internal environment, while opportunities and threats are part of its external promotion
environment. 8. Poor brand image
 Strengths include the company’s attributes that give a competitive edge over 9. Unpredictable weather
conditions
others.
10. Poor customer service
 Weaknesses are the attributes of a company that need to be improved or changed.
 Opportunities are factors or events that can give a positive impact to the company Activity 2.1 Write the word(s) which best describe the following statement on the blank
if properly addressed. space provided before the number. (10 pts)
 Threats are external factors which may negatively impact the company.
_____________ 1. This technique focuses on the factors that define the
 PEST analysis is conducted to address the firm’s macroenvironment.
macroenvironment of the business.
 It is a method used in analyzing the Political, Economic, Social, and Technological _____________ 2. It is usually done at least once a year or at regular intervals.
forces affecting the company. _____________ 3. It contribute to company’s good performance and a positive
 Political factors includes laws, regulations, and restrictions that may intervene or reputation in the business scene.
affect the company’s business course. _____________ 4. It is also known as the “general environment.”
 Economic factors directly affect the capability of business to generate profits. _____________ 5. Consists of elements that have a direct impact on the business
 Social factors include demographic aspects such as age, group affiliation, religion, operations.
_____________ 6. Directly affect the capability of business to generate profits.
civil status, and the economic status of the consumers.
_____________ 7. Refers to the conditions and elements that define its operations
 Technological factors include research and development automation, licensing, and determine its success.
parenting, technological shifts, and outsourcing decisions. _____________ 8. These are attributes of a company that need to be improved or
 The SWOT analysis and the PEST analysis provide companies with a more objective changed.
view of the business environment and enable managers to recognize opportunities 2 _____________ 9. It is not often done and is usually applicable only during a crisis
situation. 3
and effectively address threats.
_____________ 10. Also known as the “operating environment.”
GRADE 12 FABM2 TEACHERS
Activity 3.1 Answer the following briefly and concisely. (35 pts. each)

1. What is the purpose of conducting SWOT analysis? How does it benefit the business firm?
(10 pts.)

Organization &
2. What is the purpose of conducting PEST analysis? How does it benefit the business firm? Management
(10 pts.)

3. What similarities can you find between SWOT and PEST analyses? Week # 3 Inclusive Dates: Oct. 04 - 08, 2021 Quarter: Quarter I Score: _______
Competencies: 1. Analyze various forces/elements influencing local and international
business environment using PEST and SWOT.

PERFORMANCE TASK: FACTS

Activity 4.1 Application of the Lesson in Everyday Life.  The business firm’s environment refers to the conditions and elements that define its
operations and determine its success.
Assess your personal strengths, weaknesses, opportunities, and threats. Jot down your greatest
 Two types of firm’s environment: internal environment and external environment.
strength and weakness, and your biggest opportunity and threat involving the former. Develop a
 The internal environment consists of elements that have a direct impact on the
stragy using the SWOT matrix.
business operations The elements of the internal environment are directly controlled
and can be freely modified by the firm itself. These include the employees, the board
of directors, and the managers.
Opportunity Threat  The external environment consists of factors that have indirect but significant influence
on the operations of the business. These factors, however, cannot be controlled by the
firm. Two types of external environment:
Strength Strength – Opportunity Strength – Threat  Microenvironment is also known as the “operating environment.” It consists
of the customers, suppliers, regulatory agencies, and competitors.
 Macroenvironment is also known as the “general environment.” It consists of
Weakness Weakness – Opportunity Weakness-Threat economic, political, social, legal and technical environment of the business
organization.
1
4

GRADE 12 FABM2 TEACHERS