All - Template Chap4 - External Analysis As of January 20 2022

Name of Student/SECTION: (LAST NAME, FIRST NAME / _ OM)
Chapter 4
EXTERNAL ANALYSIS of (WRITE HERE THE NAME OF COMPANY)
(WRITE HERE NATURE OF BUSINESS AND PRODUCT OR SERVICES BEING OFFERED BY THE COMPANY )
General Environment
4.1. Political Forces

(Political Variables: )
1st paragraph [– 3 quality sentences]
(Min of 3 political variables as section, Max of 5 sections)

4.1.1 (President BBMs Administration or Priorities or other equivalent title variable, with 5
sentences in narrative paragraph, with related tables, charts &/or figure, if necessary. .)
4.1.2 (Government Style, Corruption and Bureaucracy in the Country or other

equivalent title variable, with 5 sentences in narrative paragraph, with related tables, charts &/or figure, if
necessary. .)
4.1.3 (Title of Section related to political, with 5 sentences in narrative paragraph, with related tables,
charts &/or figure, if necessary. .)
4.1.6. Other Political and Governmental Forces Variables (Title of Section, with 5 sentences
in narrative paragraph, with tables, charts &/or figure)
(site the source of information gathered for Political Forces)

Relevance of Political Forces (This must be in table format, check format in the details portion with blue font of this
template)
Relevance of Political Forces

-1 or 2 sentence/ phrase of bulleted format of information about political that is worth to be
Monitoring
monitored that can affect the chosen company of the student.
1 or 2 sentence/ phrase of bulleted format of information about political forces that shows trend
Forecasting
that can affect the company. Please check detailed instruction in the detailed outline.
potential O1. (1 sentence)

Major Assessment
potential O2.
potential T1.
potential T2.
4.2. Economic Forces

(Economic Variables: )
(Min of 4 sections as economic variable, Max of 6 sections)

4.2.1 (Level of Economic Growth, with 5 sentences in narrative paragraph, with tables, charts &/or figure)
4.2.2 (Title of Section, with 5 sentences in narrative paragraph, with tables, charts &/or figure)
4.2.6 Other Economic Variables (Title of Section, with 5 sentences in narrative paragraph, with
tables, charts &/or figure)
(site the source of information based on gathered for Economic Forces)
Relevance of the Economic Forces (Table format, check format in the details)
Relevance of Economic Forces
- 1 or 2 sentence/ phrase of bulleted format of information about economics that is worth to be
Monitoring
monitored that can affect the company. Please check detailed instruction in the detailed outline.
-1 or 2 sentence/ phrase of bulleted format of information about economic forces that has trend
Forecasting
that can affect the company. Please check detailed instruction in the detailed outline.
potential O1. (1 short sentence or 1 phrase with complete thought for this 1st potential opportunity)
(Explanation of potential O1. A separate sentence enclosed in parenthesis can be added showing the explanations on how
this O1 become opportunity, but this is optional.)
potential O2. (1 short sentence or 1 phrase with complete thought for this second potential opportunity)
Major Assessment
(Explanation of O2. A separate sentence enclosed in parenthesis can be added showing the explanations on how this O2
become opportunity, but this is optional.)
potential T1. (1 short sentence or 1 phrase with complete thought for this 1st potential threat)
(Explanation of T1. A separate sentence enclosed in parenthesis can be added showing the explanations on how this T1
become a threat, but this is optional.)
potential T2. (1 short sentence or 1 phrase with complete thought for this 2nd potential threat)
(Explanation of T2. A separate sentence enclosed in parenthesis can be added showing the explanations on how this T2
become a threat, but this is optional.)
4.3. Social Forces

(Social Variables: )
(Min of 4 sections as social variable, Max of 6 sections)
4.3.6 Other Social Variables (Title of Section, with 5 sentences in narrative paragraph, with tables,
charts &/or figure)

(site the source of information)
Relevance of the Social Forces

(same format with that of Political and Economic Forces, showing monitoring,
forecasting and assessment which contains 2 potential Ops and 2 potential threats)
Relevance of Social Forces

-1 or 2 sentence/ phrase of bulleted format of information
Monitoring
1 or 2 sentence/ phrase of bulleted format of information

Forecasting
potential O1.
Major Assessment
potential O2.
potential T1.
potential T2.
4.4. Technological Forces

(Technological Variables: )
(Min of 3 sections, Max of 6 sections)

4.4.4 Other Technology Variables

Relevance of Technology Variables (Table format, check format in the details)
(same format with that of Political and Economic Forces, showing monitoring,
forecasting and assessment which contains 2 Ops and 2 Threats)
Relevance of Technology Forces
Monitoring

Forecasting
potential O1.
Major Assessment
potential O2.
potential T1.
potential T2.
4.5. Environmental Forces

(Environment Variables: )
(Min of 2 sections, Max of 6 sections)

4.5.4 Other Technology Variables
Relevance of Technology Variables

Relevance of Technological Forces
Monitoring

Forecasting
potential O1.
Major Assessment
potential O2.
potential T1.
potential T2.
4.6. Legal Forces

(Legal Variables: )
(Min of 3 legal variable as section, Max of 6 sections)

4.6.1 (Title of Section related to legal, with 5 sentences in narrative paragraph, with related tables, charts
&/or figure, if necessary. .)

4.6.6. Other Legal Forces Variables (Title of Section, with 5 sentences in narrative paragraph, with
tables, charts &/or figure)
Relevance of Legal Forces

Monitoring

Forecasting
potential O1.
Major Assessment
potential O2.
potential T1.
potential T2.
4.7. Industry Analysis (Porters Analysis)
Figure __: Key Industry Findings based on the Five Forces of Competition. (The figure’s
standard format be exactly followed based on detailed outline with blue font)
4.7.1. Rivalry among Competing Firms

Table of Industry Description and Intensity (that shows 3 exact variables, 3 sentences per variable,
check the table below) w/ Degree of Threat; The table’s content must be exactly followed based on detailed
outline with blue font
3 Variables Industry Description and Intensity re Rivalry Among Competing Firms

1. Numerous [– 3 quality sentences]
Competitors
2. Price Competition [– 3 quality sentences]
3. (Other Variables: [– 3 quality sentences]
Student must choose and
write the exact name of
their own variable chosen
about rivalry)
Degree of Threat under Rivalry among Competing Firms: (The student must
summarize the industry description and intensity by choosing one from these five status -
Low, Low to Moderate, Moderate, Moderate to High, High)
4.7.2. Potential Entry of New Competitors

Table of Industry Description and Intensity re Potential Entry of New Competitors ( that
shows 3 exact variables, 3 sentences per variable, check the same table) w/ Degree of Threat
3 Variables Table of Industry Description and Intensity re Potential Entry of New Competitors
1. Capital Requirement [– 3 quality sentences]

2. Government Policy [– 3 quality sentences]
about rivalry)
Degree of Threat under Potential Entry of New Competitors: (The student must

4.7.3. Potential Development of Substitute
Table of Industry Description and Intensity re Potential Development of Substitute ( that
shows 3 exact variables, 3 sentences per variable, check the same table) w/ Degree of Threat; The table’s
content must be exactly followed based on detailed outline with blue font. Note that format of table is
same with 4.7.1. Rivalry among Competing Firms and 4.7.2. Potential Entry of New Competitors
4.7.4. Bargaining Power of Suppliers

check the same table format) w/ Degree of Threat; The table’s content must be exactly followed based
on detailed outline with blue font
4.7.5. Bargaining Power of Consumers

check the same table format) w/ Degree of Threat; The table’s content must be exactly
followed based on detailed outline with blue font
Summary of Porter’s Five Forces

Table on Summary of Porter’s 5 Forces. [– 3 quality sentences for Interpretation]
Interpreting Industry Analyses: [– 3 quality sentences for Interpretation]
Relevance of Industry Analysis of the Entire Porters Framework in Table format ( check
table in detailed outline )
Monitoring

Forecasting
potential O1.
Major Assessment
potential O2.
potential T1.
potential T2.
4.8. Competitive Analysis

4.8.1. Competitor 1 (Name of Competitor)

Table for Competitor 1; (The table’s content must be exactly followed based on detailed
outline with blue font)
Description Observation to (Name of Competitor 1)

Products/ List of products and/or services in sentence format. Picture of the products/services should
be pasted here.
Services
(Management) (min of 5 sentences about summary of management function of Competitor 1;
Mention a strength or weakness, if there is.)
(Marketing) (min of 5 sentences about summary of marketing function of Competitor 1;
(Operations) (min of 5 sentences about summary of operations function of Competitor 1;
(Financials) (min of 5 sentences about summary of financial function of Competitor 1; Mention

a strength or weakness, if there is.)
(Human Resource) (min of 5 sentences about summary of human resource function of Competitor 1;
(Sustainability) (min of 5 sentences, this pertains to environment management practices of
Competitor 1)
(Optional: Other (min of 5 sentences about other function of Competitor 1;)
Functional Areas)
4.8.2. Competitor 2 (Name of Competitor)

Table for Competitor 2: (The table’s content must be exactly followed based on detailed
outline with blue font)

be pasted here.
Services

(Sustainability) (min of 5 sentences, this pertains to environment management practices of
Competitor 2)
Functional Areas)
Relevance of Competitive Analysis (check table in detailed outline)

Monitoring

Forecasting
potential O1.
Major Assessment
potential O2.
potential T1.
potential T2.
4.9. Summary of Critical Success Factor

Table of Critical Success Factors and Performance of the 3 Companies
4.10. Competitive Profile Matrix (CPM)

Interpretation of CPM: [– 3 quality sentences for Interpretation of CPM]
4.11. Potential Opportunities and Threats Identified from PESTEL Analysis,

Porters Analysis and Competitive Analysis
Table of List of All Potential Opportunity Factors
Table of List of All Potential Threat Factors
4.12. Summary of Key Opportunities and Threats

Table of Top Key 5 Opportunities
Table of Top Key 5 Threats
(The top Key Opportunities can be 5 or more, while threats can be 4.)
4.13. External Factor Evaluation (EFE)

EFE Matrix (Follow the standard table matrix in the detailed instruction)
Interpretation of EFE: [– 3 quality sentences for Interpretation of EFE]
D E T A I LED OUTLINE
FONT TYPE: ARIAL
FONT SIZE: 12
Name of Student/ Section: (LAST NAME, FIRST NAME / _ OM) SPACING: 1.5
(Delete this)
CHAPTER FOUR:
EXTERNAL ANALYSIS of (WRITE HERE THE NAME OF COMPANY)
(WRITE HERE the PRODUCT OR SERVICES BEING OFFERED BY THE COMPANY)
(Delete this reminder on Chapter 4: Explanation why need to do this External analysis. Chapter 4 has 2
major levels of assessment. Level 1 is General Environment and Level 2 is Industry Analysis. Student
should also explain here the nature and process of performing external audit to be conducted and
external forces (check pages _ to _ of textbook). The external business environment is the external
setting in which organization works and also completely outside the organization’s control. The industry
that the chosen company will serve are also included here. Nowadays, it is an expectation that any
student or fresh graduates should understand and knows how to analyze the external environment.
Presidents, CEOs of companies and managers should hire professionals and fresh graduates who knows
the external opportunities that will benefit the company or will avoid or mitigate the impact of those
threats.)
4. General Environment (PESTEL)
4.1. Political Force

(Political Variables under 4.1: write here the series of variable titles or section titles
here that are separated by comma; Show minimum of 3 up to 6 variables here. Listing
here must be the same with all sections)
The first paragraph must discuss the importance, definition and principles of Political or
Government Forces; Emphasize how this category of the General Environment is
different from the other categories . [– 3 quality sentences] (This introduction paragraph
is very important because this will give a guide, basis or reference on what is to be
discussed.)
Then, the preceding or body of “4.1. Political Forces” will show the explanations or
details of the Political Variables. Remember that political forces pertains to how and to
what degree do government policies affect the economy. Current priorities of the
government can be enumerated here especially peace and orderliness (Anti-Drugs
campaign), Mindanao economic development and other poverty reduction programs.
The student must include standard section President BBM’s Administration as one
political factor, then the student must create a separate section “A.1.1. Pres BBM’s
Admin” under A.1. Political Forces. Also, the student must explain also the political
factor Corruption and Bureaucracy in the Country, then the section “A.1.2. Corruption
and Bureaucracy in the Country” must have separate paragraph discussion. The
Student can consider other political events like priority trust of the government
especially crime and security, free education for state universities and colleges, senate
concern on tax or business registration procedures. The information gathered are
expected to be updated (e.g. year 2022 data), otherwise, the professor and panelist
Delete will
this reminder:
notice, during defense, if the entire paper is copied from old strama paper. It is important for the student to
understand the content of this
PESTEL because during the
defense, panelist will check if you
Discuss other necessary Political Variables to be analyzed (check Tablereally
3-1,did
p.this
__strama
of paper.
textbook) as they appeared in the parenthesis; Minimum of 4 and maximum of defense
Obvious during 6 if
kinopya ng student and strama
sections. The sixth section can be “A.1.6. Other Political and Governmental Variables”.
paper kasi di nya ma-explain.
Narrative discussions (or lay down data and information) and explanations (in
paragraph form) depends on the depth of the situation. It is expected that there will be
supporting tables and figures [– 5 quality sentences for each section; in narrative
paragraph format; together with related tables, charts and/or figures, if necessary. An
operations management student is expected to discuss government rules or article or
trendy issues connected to the industry of the chosen company. Do not write any
analysis on how it will affect your chosen company. Just lay down all information
gathered]
After discussing all variables under this force, Relevance will proceed. In 12this relevance
FONT TYPE INSIDE THIS RELEVANCE ANALYSIS: ARIAL
FONT SIZE:
SPACING: 1.5
(Delete this)
as analysis, the student will analyze by identifying changes, observing trend, developing
projections and assessing the implications that are relevant to the company. Under this
relevance table, this is where the student will connect (or identify opportunites and
threat) the political forces that might affect or currently affecting the company.
Relevance of Political Forces

(Instructions: The student must carefully read again those political information gathered under each of the political
sections or variables. Next, there is a need to identify and write here under Monitoring the important political changes that
are emerging, which is/are spotted under the political variable (This is somehow, summarizing the scanned information
above). Business students must learn how to identify the most important information from the mountain of data. Do not write
Monitoring
recommendations or proposed solution here. This monitoring here portion is just anticipation on political event that the company must
consider. Or just answer the question on what alarming political news must be monitored. )
-1 or 2 sentence/ phrase of bulleted format of information about political that is

worth to watch out
(Instructions: The Student must see the future or develop feasible projections of what might happen and how quickly, as a result of the
changes and trends. Student must give their own prediction based on the scanned information, which can be things that will go right and go
Forecasting
wrong in the future pertaining to political. Do not write proposed political solution here. This forecasting portion is just anticipation on what the company must
anticipate in the future. Strategy recommendation must be written in Chapter 7 later. )

1 or 2 sentence/ phrase of bulleted format of information about political that is worth to watch out
(Instructions: Major Assessment here pertains to specifying the relevance or implications if the revealed changes from
the scanning part of political forces, or trend emerges from the monitoring or feasible projections from the political
forecasting is favorable or hindrance to the company. It is important that the student must summarize the information by
declaring 2 political potential opportunities and 2 political potential threats here.)
Potential O1. (If the relevance is favorable, classify it as Opportunity; Opportunity

(DELETE this additional instruction)
factor must be a declarative sentence meaning it must declare anDoinformation

not explain here that
why this
opportunities or threats are
important. The explanation portion
helps or will help the company and/or the industry; T his should be written
should in
be1written
short in the later part of
sentence, or phrase with complete thought. WE ARE STRICT ON THIS 1 SENTENCEthis
or 1chapter
phrase4. with
complete thought per opportunity) (DELETE this additional instruction)
(A separate sentence enclosed in parenthesis can beThe format of the opportunity and threat sentence must be
added
“CAUSE”, showing
not the
“CAUSE-EFFECT”.
explanations on how this O1 become opportunity, butExample

this is optional.)
Do not write “More foreign investors and tourist are
Potential O2. (1 short sentence or 1 phrase with complete thought coming
for this in
second opportunity
the Philippine )
because of action
orientation of President Duterte”.
(A separate sentence enclosed in parenthesis can be added showing the
Instead just simply write here “Action orientation of
explanations on how this O2 become opportunity, butPresident
this is optional.)
Duterte in his Administration”
Potential T1. (If the relevance is hindrance, classify it as Threat; Threat factors
must be a declarative complete sentence meaning it must declare an information
that hinders or will hinder the company; Meaning it must declare an information
that this factor is an obstacle or bad news to the company. This should be written in 1
Major Assessment
short sentence, or phrase with complete thought. WE ARE STRICT ON THIS 1 SENTENCE or 1 phrase with
complete thought per opportunity)

explanations on how this T1 become a threat, but this is optional.)
Potential T2. (1 short sentence or 1 phrase with complete thought for this 2nd threat)
explanations on how this T2 become a threat, but this is optional.)
Reminder (delete this explanation under relevance): In the “Major Assessment” portion,
it is important to identify two (2) potential opportunities and two (2) potential threat
factors. The student must think comprehensively on the potential opportunities and
threats. The student might be tempted to think that there is NO opportunities and no
threats identified or the opportunities and threats has little relevance, the student must
think deeply on this, they can consult the professor, adviser or classmates if the
opportunity or threat is worth it. Here in Chapter 4, the student must NOT focus on the
solutions or should not recommended any solution strategies for each opportunity
factors and threat factors. Again, the format of the opportunity sentence and threat must be reason or
cause, meaning to say, the thought must be declaring a cause. Example, do not write “More foreign investors and
tourist are coming in the Philippine because of action orientation of President Duterte”. Instead just simply write here
“Action orientation of President Duterte.”)
4.2. Economic Forces

(Economic Variables under 4.2: write the series variable titles or section titles here that
are separated by comma; Show minimum of 4 up to 6 Economic variables here.)
The first paragraph must discuss the importance, definition and principles of Economic
Forces; Emphasize how this category of the General Environment is different from the
other categories. [– 3 quality sentences] (This introduction paragraph is very important
because this will give a guide, basis or reference on what is to be discussed)
Then, the preceding or body of “4.2. Economic Forces” will present or discuss the
details of the Economic Variables and other related findings. The student must include
Level of Economic Growth as one economic variable to be discussed, then the student
Delete this reminder:
must create a separate section “4.2.1. Level of Economic Growth” under 4.2. Economic
Content of this economic portion
Forces. This “4.2.1. Level of Economic Growth” is a standard economic is
variable
importantfor all this will
because
show the maturity of the student
strama paper, other economic variables is based on the decision of the student. If the
in terms of understanding
economic performance of the
student want to explain also the price fluctuations, then the sectionPhilippines.
“4.2.2. Price
Fluctuation” must have separate paragraph discussions. Section “4.1.3. Unemployment
Trend” must be explained. The information gathered are expected to be updated,
otherwise, the professor and panelist will notice, during defense, if the entire paper is
copied from old strama paper. Especially economic data must be gathered in 2017.
Discuss other necessary Economic Variables to be scanned, monitored or forecasted

(check Table 3-1, p. _ _ of textbook) as they appeared as variable; Minimum of 4 and
maximum of 6 sections. The 4 th or sixth subsection can be “A.1.6. Other Economic
Variables”. Narrative discussions (or lay down or reveal data and information) and
explanations (in paragraph form) depends on the depth of the situation. Business
students are expected to discuss and relate to Globalization or create a variable to
discuss globalization since globalization will mean access to new market, or growing
competitors and more sources of lower-cost labor. They are expected to discuss
updated issues such as inflation, price of fuels, importation, peso dollar exchange rate.
It is expected that there will be supporting tables, charts, figures and organized
narrative. [– 5 quality sentences for each section; in narrative paragraph format;
together with tables, charts and/or figures]
After discussing all variables under this Economic force, Relevance will proceed. In this
relevance section, the student will analyze by identifying changes, observing trend,
developing projections and assessing the implications that are relevant to the company.
Relevance of Economic Force

(Instructions: The Student must carefully read again those information under each economic
sections. Please identify and write here the important changes and trends that are emerging from
among these spotted through scanning. Student must realize the recent changes in the economy
and/or urgent information that must be brought up for the chosen strama company. Student must
Monitoring
ready to write here those inflation control, increase of worker’s pay, poverty reduction; Students
are expected to mention notable laws connected to economics such as RA 265 connected to peso
dollar exchange or RA 509 connected to inflation. Do not write recommendations or proposed solution
here. This monitoring here portion is just anticipation on economic event that the company must anticipate)
-1 or 2 sentence/ phrase of bulleted information that is worth to watch out in the economics of the
Philippines.
(Instructions: The Student must see the future or develop feasible projections of what might
happen and how quickly, as a result of the changes and trends. Student must give their own
prediction based on the scanning, which can be things that will go right and go wrong in the future
Forecasting
pertaining to economics. Do not write proposed economic solution here. This forecasting portion is just
anticipation on what the company must anticipate in the future. Strategy recommendation must be written in
Chapter 7 later.)
-1 or 2 sentence/ phrase of bulleted information that is being forecasted by student
(Instructions: Assessment is specifying the relevance or implications if the revealed changes from
the scanning part, a trend emerges from the monitoring or feasible projections from the
forecasting is favorable or hindrance to the company. It is important that there must be 2
opportunities and 2 threats here.)
Major Assessment
Potential O1. (If the relevance is favorable, classify it as Opportunity;

(DeleteOpportunity factor must be a
this additional instruction)
declarative sentence meaning it must declare an information that

Thehelps
format or willopportunity
of the help the and
company;
threat sentence must be
“CAUSE”, not “CAUSE-EFFECT”.
Tip in Opportunity writing under economics, GDP increase must be justified other information such
Example
as investment or production increase of certain industry or factories. T his“The
Do not write increase
should ofinmicrochips
be written 1 short production (with/
GDP of 6.8%) for the past 2 years will result to more foreign
sentence, or phrase with complete thought. WE ARE STRICT ON THIS 1 SENTENCE
investorsor 1 phrase
that will comewith complete
in the Philippines”.
thought per opportunity) Instead just simply write here “Increasing microchips
production with GDP of 6.8% for the past 2 years will result
Potential O2. (1 short sentence or phrase with complete thought for the 2nd opportunity
to more ) that will come in the Philippines”
foreign investors
Potential T1. (If the relevance is hindrance, classify it as Threat; Threat factors must
be a declarative complete sentence meaning it must declare an information that
hinders or will hinder the company; Meaning it must declare an information that
this factor is an obstacle or bad news to the company. This should be written in 1 short
sentence, or phrase with complete thought. WE ARE STRICT ON THIS 1 SENTENCE or 1 phrase with
complete thought per threat)
Potential T2. (1 short sentence or 1 phrase with complete thought for the second threat)
(Delete this additional instruction)

The student might be tempted to think that there is NO
opportunities and no threats identified or the opportunities and
Reminder (delete this explanation under relevance):threats
In the Assessment
has little portion,
relevance, the student it isdeeply on this,
must think
they can consult the professor or classmates if the opportunity or
important to identify two (2) opportunities and two (2) threats
threat is worth itfactor.
to considerHere in Chapter 4,
the student must NOT focus on the solutions or recommended strategies for each
opportunity factors and threat factors. Again, the format of the opportunity sentence and threat must
be reason or cause, meaning to say the thought must be declaring a cause. Example, do not write “More foreign
investors are coming in the Philippine because of good GDP growth of 6.4%”. Instead just write here “Increasing
FONT TYPE FOR REGULAR TEXT
GDP for the past 2 years.”) DISCUSSION: ARIAL
FONT SIZE: 12
SPACING: 1.5
(Delete this)
4.3. Social Forces

(Social Variables under 4.3: write the series variable titles or section titles here that are
separated by comma; Show minimum of 4 up to 6 Social variables here.)
The first paragraph must discuss the importance, definition and principles of
Social Forces; Emphasize how this category of the General Environment is
different from the other categories. [– 3 quality sentences] (This introduction
paragraph is very important because this will give a guide, basis or reference on
what is to be discussed. The approach here is discussion of the General
Environment of the social, not yet Market Analysis)
Then, the preceding or body of “A.3. Social” will show the explanations or details of the
Key Social, Cultural and Demographic Findings. Discuss other necessary Social,
Cultural and Demographic Variables to be monitored (check Table __, p. __ of
textbook); Minimum of 4 and maximum of 6 sections. The sixth section can be “A.2.6.
Other Social, Cultural and Demographic Variables”. Narrative discussions (or lay down
data and information) and explanations (in paragraph form) depends on the depth of the
situation. It is expected that there will be supporting tables and figures [– 5 quality
sentences for each section; in narrative paragraph format; together with tables, charts
and/or figures]
TIP. Example of social force variables: lifestyles, buying habits, education level, emphasis on
safety, religion and beliefs, health consciousness, sex distribution, average disposable income
level, social classes, family size and structure, minorities, attitudes toward saving and investing,
attitudes toward green or ecological products, attitudes toward for renewable energy, population
growth rate, immigration and emigration rates, age distribution and life expectancy rates,
attitudes toward imported products and services, attitudes toward work, career, leisure and
retirement and attitudes toward customer service and product quality. Student must be aware of
the latest consumer trend such as the seek for value for money on the product. Consumers
want transparency – those behind the scenes in the creation of the product, like compliance of
the company to labor standard, workers rights issue, environmental compliance, political
affiliations.
TIP. Consumers are an external part of the chosen strama company. It falls under Social. Student must
describe the existing target market of the company. One of the interesting consumer group are the
middle income people. Be careful on this because some companies are not targeting the middle income
people. Example Honda Philippines is targeting the upper class. Rolex is targeting the affluent people.
Century Pacific are targeting the Class A and B health conscious market.
After discussing all variables under this force, Relevance will proceed. In this relevance
section, the student will analyze by identifying changes, observing trend, developing
projections and assessing the implications that are relevant to the company.
Relevance of Social Forces

(Instructions: The Student must carefully read again those information gathered under each of the
sections or variables. Next, there is a need to identify and write here under Monitoring the
important changes and trends that are emerging, which is/are spotted under the variable.
Business students must learn how to identify the most important information from the mountain of
Monitoring
data especially a specific market segment or customer; Include market segment in a specific
geographical areas)
-1 or 2 sentence/ phrase of bulleted format of information about the social environment that is
worth to watch out
Forecasting
prediction based on the scanned information, which can be things that will go right and go wrong
in the future)
1 or 2 sentence/ phrase of bulleted format of information about social that is worth to watch out
(Instructions: Major Assessment is specifying the relevance or implications if the revealed

changes from the scanning part, a trend emerges from the monitoring or feasible projections from
the forecasting is favorable or hindrance to the company. It is important that the student must
summarize the information by declaring 2 political opportunities and 2 political threats here.)
Potential O1. (If the relevance is favorable, classify it as Opportunity; Opportunity
factor must be a declarative sentence meaning it must declare an information that
helps or will help the company; This should be written in 1 short sentence, or phrase with
Major Assessment
complete thought. WE ARE STRICT ON THIS 1 SENTENCE or 1 phrase with complete thought per
opportunity)
Potential O2. (1 short sentence or phrase with complete thought for this O#2.)
Potential T1. (If the relevance is hindrance, classify it as Threat; Threat factors must
Potential T2. (1 short sentence or 1 phrase with complete thought for this threat#2)
(Delete this additional instruction)
Reminder (delete this explanation under relevance analysis):

The format of In the Assessment
the opportunity and threat sentence must be
“CAUSE”, not “CAUSE-EFFECT”.
portion, it is important to identify two (2) opportunities and two (2) threat factors. Here in
Example
Do not write “More foreign investors and tourist are
coming in the Philippine because of action orientation
of President Duterte”.
(Delete this additional instruction) Instead just simply write here “President Duterte provides
The student might be tempted to think that there is NO opportunities action in the government”
and no threats identified or the opportunities and threats has little
Chapter 4, the student must NOT focus on the solutions or should not recommended
solution strategies for each opportunity factors and threat factors. Again, the format of the
opportunity sentence and threat must be reason or cause, meaning to say the thought must be declaring a cause.
A.4. Technological Forces

(Technological Variables under A4: write the series variable titles or section titles
here that are separated by comma; Show minimum of 3 up to 6 technological variables
here.)
Technology Forces; Emphasize how this category of the General Environment is
different from the other categories. This component of General Environment is the most
crucial because technology are fast changing. This category is very important because
the student must apply modern technology in the business world. [– 3 quality
sentences] (This introduction paragraph is very important because this will give a guide,
basis or reference on what is to be discussed)
Then, the preceding or body of “A.4. Technology Forces” will show the explanations or
details of the Key Technological Findings. For a beer company, for example, if the
student decided to explain the details of the process technology, the student may create
a separate section “A.4.1. Brewing Process” under A.4. Technology Forces. If the
student want to explain also the roasting process, then the section “A.4.2. Roasting”
must have separate paragraph discussions. Section “A.4.3. Low Calorie Sweetener”
must be present also, because it appears in the Key Technological Findings. Please
remember that technology is not just Computer information technology, Internet,
facebook or Microsoft software. Technologies can be simply tools and machines that
are available in the market that can be recommended for the chosen strama company.
Technologies here can be connected to the industry. The sixth section can be “A.4.6.
Other Technology Variables”. Narrative discussions (or lay down data and information)
and explanations (in paragraph form) depends on the depth of the situation. It is
expected that there will be supporting tables and figures. [– 5 quality sentences for each
section; in narrative paragraph format; together with tables, charts and/or figures]
Suggested sections of Technological Forces

A.4.1 Raw Material or Materials Management (Inputs connected)
A.4.2. Process or Equipment
A.4.3. IT connected or software
A.4.4. Trends in Coffee Resto
A.4.5 Other Technology Variables
or
A.4.1 Inputs (etc. quality control and selection of coffee beans)
A.4.2. Coffee Brewing
A.4.3. Computer Aided Design
A.4.3. Trends in Coffee Business
A.4.4 Other Technology Variables
This section is not just about discussing internet technology and facebook. The Student
must think of all relevant technology that will make the business better, faster, effective
and accurate. Or more environment friendly or consumes less electricity. Technology
also includes better materials.
After discussion of each variable, Relevance will proceed. In this relevance section, the
student will analyze by identifying changes, observing trend, developing projections and
assessing the implications that are relevant to the company.
Relevance of Technology Forces

Monitoring
data. A specific technology, equipment or raw materials that can be useful for the company must
be monitored)
-1 or 2 sentence/ phrase of bulleted format of information about technology that is worth to watch
out
Forecasting
in the future)
1 or 2 sentence/ phrase of bulleted format of information about technology that is worth to
consider by the company

potentialO1. (If the relevance is favorable, classify it as Opportunity; Opportunity
Major Assessment
opportunity)
potentialO2. (1 short sentence or phrase with complete thought)
potentialT1. (If the relevance is hindrance, classify it as Threat; Threat factors must
potentialT2. (1 short sentence or phrase with thought)

Reminder (delete this explanation under relevance analysis): In the Assessment
4.5. Environmental Forces

(Environmental Variables: write the series variable titles or section titles here that are
separated by comma; Show minimum of 2 up to 6 environmental variables here.)
Environment Forces; Emphasize how this category of the General Environment is
different from the other categories. [– 3 quality sentences] (This introduction
paragraph is very important because this will give a guide, basis or reference on
what is to be discussed. The approach here is discussion of the General
Environment, not yet Market Analysis)
Then, the preceding or body of “4.5. Environmental Forces” will show the explanations
or details of the Natural Environmental Findings. Discuss other necessary Natural
Environment Variables to be monitored (check Table __, p. __ of textbook); Minimum of
4 and maximum of 6 sections. The sixth section can be “A.2.6. Other Natural
Environmental Variables”. Narrative discussions (or lay down data and information) and
explanations (in paragraph form) depends on the depth of the situation. It is expected
that there will be supporting tables and figures [– 5 quality sentences for each section;
in narrative paragraph format; together with tables, charts and/or figures]
After discussing all variables under this Envi force, Relevance will proceed. In this
relevance section, the student will analyze by identifying changes, observing trend,
developing projections and assessing the implications that are relevant to the company.
Relevance of Environment Forces

Monitoring
data.)
-1 or 2 sentence/ phrase of bulleted format of information about environment that is worth to watch
out
Forecasting
in the future)
1 or 2 sentence/ phrase of bulleted format of information about environment that is worth to watch
out

Major Assessment
opportunity)

4.6. Legal Force

(Legal Variables: write the series variable titles or section titles here that are separated
by comma; Show minimum of 3 up to 6 variables here.)
The first paragraph must discuss the importance, definition and principles of Legal
Forces; Emphasize how this category of the General Environment is different from the
other categories especially political force. Political factors do cross over with legal
factors; however, the key difference is that political factors are led by government
policy, whereas legal factors must be complied with. [– 3 quality sentences] (This
introduction paragraph is very important because this will give a guide, basis or
reference on what is to be discussed.)
Then, the preceding or body of “4.6. Legal Forces” will show the explanations or details
of the Legal Variables. Legal force pertains to how the laws of a country can affect how
the companies adopt policies as to its operations, cost structure, and the demand for its
products. Example of Legal variables are current legislation, future legislation,
international legislation, regulatory bodies and processes, discrimination laws
employment law, consumer protection, health and safety regulations, money laundering
regulations, tax regulations, competitive regulations, industry-specific regulations.
Discuss other necessary Political variables to be analyze (check Table 3-1, p. __ of
textbook) as they appeared in the parenthesis; Minimum of 4 and maximum of 6
sections. The sixth section can be “A.1.6. Other Political and Governmental Variables”.
Narrative discussions (or lay down data and information) and explanations (in
paragraph form) depends on the depth of the situation. It is expected that there will be
supporting tables and figures [– 5 quality sentences for each section; in narrative
paragraph format; together with related tables, charts and/or figures, if necessary. An
operations management student is expected to discuss government rules or articles or
trendy issues connected to the industry of the chosen company]
After discussion of each variable, Relevance will proceed. In this relevance section, the
student must identify changes, observe a trend, develop projections and assess the
implications that are relevant to the company.

(Instructions: The Student must carefully read again those legal information gathered under each
of the sections or variables. Next, there is a need to identify and write here under Monitoring the
important changes and trends that are emerging, which is/are spotted. Business students must
Monitoring
learn how to identify the most important information from the discussion of legal matters. New
rulings or policies of government agency that is recently released must be monitored.)
-1 or 2 sentence/ phrase of bulleted format of information about political that is worth to watch out
Forecasting
in the future pertaining to legal. Do not write proposed solution here. This forecasting portion is just
anticipation on what the company must anticipate in the future. Strategy recommendation must be written in
Chapter 7 later.)
1 or 2 sentence/ phrase of bulleted format of information about political that is worth to watch out
Major Assessment
opportunity)

solution strategies for each opportunity factors and threat factors. Remember again:
FONT TYPE: ARIAL
FONT SIZE: 12
SPACING: 1.5
(Delete this)
4.7. Industry Analysis (Porters Analysis)
(DELETE this reminder. Porter’s analysis will be used here (Check pages _ _ to _ _ of
textbook). Information in this level helps students or strategist analyze the
unattractiveness of the market from the profit making standpoint. Thus revenue and
profitability can be forecasted.)
Figure __ : Key Industry Findings based on the Five Forces of Competition

Potential new entrants to the
market – [HIGH, MEDIUM or LOW]
- (write here key words that describes this

force; bulleted)
-(write here key words that describes this
force; bulleted)
-
Suppliers of Key Resources – Industry Competitors – [HIGH, Customers - – [HIGH, MEDIUM or

[HIGH, MEDIUM or LOW] MEDIUM or LOW] LOW]
- (write here key words that describes this - (write here key words that describes this - (write here key words that describes this
force; bulleted) force; bulleted) force; bulleted)
-(write here key words that describes this -(write here key words that describes this -(write here key words that describes this
force; bulleted) force; bulleted) force; bulleted)
- - -
Substitute products from

organization in other industries -
[HIGH, MEDIUM or LOW]
- (write here key words that describes this

force; bulleted)
-(write here key words that describes this
force; bulleted)
4.7.1. Rivalry among Competing Firms
Importance, definition and principles of Rivalry among Competing Firms; Emphasize

how this category in Industry Analysis is different from the other categories. [– 1 quality
sentence about this force concerning existing competitors] (This paragraph is very
important because this will give a guide or reference on what is to be discussed)
3 Variables Industry Description and Intensity re Rivalry Among Competing Firms
1. Numerous Write here the name of competitors; Mention atleast 3 or 4

Competitors competitors. The intensity of rivalry among competing firms
tends to increase (it means threat is High) as the number of
competitors increases; If there are few competitors, then threat
FONT TYPE INSIDE THIS INDUSTRY DESCRIPTION AND
INTENSITY: ARIAL
is Low. As competitors become more equal in size and

FONT SIZE: 12
SPACING: 1.5
(Delete this)
Delete this instruction: capability and as demand for the industry’s products declines,
The student must follow these 3
variables (2 standard variables indicated
and as price cutting becomes common (intensity of rivalry is
in the table and 1 variable of his own
choice under competing firms. increasing as well) [– 3 quality sentences about description of
the competing firms and their intensity of competition]
2. Price Competition If competitors are driving down of prices and inflation, then
threat is becoming High. The student must show sample price
range of products here.
Free-flowing information on the Internet is driving down prices

and inflation worldwide. The Internet, enables consumers to
make price comparisons easily across different brands. Just for
a moment, consider the implications for car dealers who used to
know everything about a new car’s pricing, while you, the
consumer, knew very little. You could bargain, but being in the
dark, you rarely could win. Now you can shop online in a few
hours at every dealership within 500 miles to find the best price
and terms. So the consumer, can win. This is true in many, if
not most, business-to-consumer and business-to-business
sales transactions today.
[– 3 quality sentences about description of the prices]
about rivalry)
Degree of Threat under Rivalry among Competing Firms: (The student must
4.7.2. Potential Entry of New Competitors
Importance, definition and principles of Potential Entry of New Competitors; Emphasize

sentence about this force concerning entry of potential competitors] (This paragraph is
very important because this will give a guide or reference on what is to be discussed)
3 Variables Industry Description and Intensity regarding potential entry of

new competitors
1.Capital Requirement Whenever new firms can easily enter a particular industry, the
intensity of competitiveness among firms increases. Students
Delete this instruction:
can estimate qualitatively the costs needed to establish a new
Again the student must follow these 3
variable (2 standard variables indicated business in this industry.
in the table and 1 variable of his own
choice under competing firms.
Firms choosing to enter in this industry must commit resources

for facilities. Student must mention examples of purchase
inventory, to pay salaries and benefits, technology, machines
needed, rental expense, fixtures and equipment, raw materials,
license fee, etc. If the capital requirement is high this is a strong
barrier to entry.
[– 3 quality sentences]
2.Government Policy Governments (at all levels) are able to control entry into an
industry through licensing and permit requirements. For
example, at the firm level, entry into the banking industry is
regulated at both the national levels, whereas liquor sales are
regulated at the state and local levels. In some cases, state
and/or federal licensing requirements limit entry into the
personal services industry (securities sales and law), while in
others only state requirements may limit entry (barbers and
beauticians).
If there are so many government regulations or it is difficult to

comply to the government regulations, then threat is HIGH.
Mention example of government policty
Student must choose and write
the exact name of their own
variable chosen)
Example of variable is product differentiation
Product Differentiation
Customers may perceive that products offered by existing firms
in the industry are unique as a result of service offered,
effective advertising campaigns, or being first to offer a product
of service to the market. If customers perceive a product or
service as unique, they generally are loyal to that brand. Thus,
new entrants may be required to spend a great deal of money
over a long period of time to overcome customer loyalty to
existing products.
Though new entrants may be able to overcome perceived
uniqueness and brand loyalty, the cost of such strategies
generally will be high: offering lower prices, adding additional
features, or allocating significant funds to a major advertising
and promotion campaign. In the short run, new entrants that try
to overcome uniqueness and brand loyalty may suffer lower
profits or may be forced to operate at a loss.
Students must understand why a high threat of entry is an unattractive thing
Degree of Threat under Potential Entry of New Competitors: (Choose 1 from these 5
status - Low, Low to Moderate, Moderate, Moderate to High, High)
4.7.3. Potential Development of Substitute
Importance, definition and principles of Potential Development of Substitute; Emphasize

sentence about this force concerning substitute] (This paragraph is very important
because this will give a guide or reference on what is to be discussed)
3 Variables Industry Description and Intensity re potential development of

substitute
1. Price of product [– 3 quality sentences]
substitute
2. Identification/ [– 3 quality sentences]
Number of Substitute Mention and explain thoroughly an example of substitute
their own variable chosen)
Degree of Threat under Potential Development of Substitute: (Choose 1 from these 5
4.7.4. Bargaining Power of Suppliers
Importance, definition and principles of Potential Power of Suppliers; Emphasize how

this category in Industry Analysis is different from the other categories. [– 1 quality
sentence about this force concerning suppliers] (This paragraph is very important
3 Variables Industry Description and Intensity re Bargaining power of

Suppliers
1.Number of suppliers Mention the suppliers and their products; Firms may pursue a
and their quality backward integration strategy to gain control or ownership of
performance suppliers. This strategy is especially effective when suppliers
are unreliable, too costly, or not capable of meeting a firm’s
needs on a consistent basis. Firms generally can negotiate
more favorable terms with suppliers when backward integration
is a commonly used strategy among rival firms in an industry.
2. Presence of Mention those substitute here. If the product being supplied is
unique or highly differentiated a supplier with a unique or highly
substitute
differentiated product is not subject to the pricing pressure of a
perfectly competitive market—if a focal firm wants the product, it will
have to pay the supplier’s price
3. (Other Variables:
Student must choose and write [– 3 quality sentences]
the exact name of their own
variable chosen)
Degree of Threat under Bargaining Power of Suppliers: (Choose 1 from these 5

4.7.5. Bargaining Power of Consumers
Importance, definition and principles of Bargaining Power of Consumer; Emphasize how

this category in Industry Analysis is different from the other categories. [– 1 quality
sentence about this force concerning consumers] (This paragraph is very important
3 Variables Industry Description and Intensity regarding bargaining power

of consumers
1. Price sensitivity of If consumers are bargaining for low price, the treat is high
Consumers
2. Product Suppliers‟ products are undifferentiated and standardized, and
Differentiation the buyers represent a real threat to integrate backward into the
suppliers‟ industry using resources or expertise.
Student must choose and Student can choose a variable pertaining to “changing consumer
Delete this demand” write here
instruction:
write the exact name of that the consumer are becoming more demanding. Check
Again if there
the student is afollow
must market shift
these 3 variables
(2 for
happening. Of the trending demand is the search standard
all in- variables
one shop,indicated
buyinginofthe table and
their own variable chosen) 1 variable of his own choice under bargaining
experience (just like starbucks customers that need both
power ambiance, relaxing place
of suppliers
and hot brewed coffee). They want convenience.
Degree of Threat under Bargaining Power of Suppliers: (Choose 1 from these 5

Summary of Porter’s Five Forces
(Delete this instruction: the student must synthesize (or combine) data and information
derived from the five forces; Show the overall status of the industry and its effect to the
company’s performance.)
Show and fill up the table of Summary below
Porter Five Forces Degree of Threat

4.7.1. Rivalry among Competing Firms Low, Low to Moderate, Moderate,
Moderate to High, High
4.7.2. Potential Entry of New Competitors Low, Low to Moderate, Moderate,

4.7.3. Potential Development of Substitute Low, Low to Moderate, Moderate,

4.7.4. Bargaining Power of Suppliers Low, Low to Moderate, Moderate,

4.7.5. Bargaining Power of Consumers Low, Low to Moderate, Moderate,

OVERALL RATE Low, Moderate or High
Interpreting Industry Analyses:

(Delete this instruction: Overall Interpretation of the Porter Five Forces must be
reflected here. The student or strategist will use the information here in financial
forecasting in Strategy Implementation. Following a study of the 5 industry forces, the company
has the insights required to determine an industry’s attractiveness in terms of the potential to earn
adequate or superior returns on its invested capital. In general, the stronger the competitive forces, the
lower the profit potential for an industry’s firms. An unattractive industry has low entry barriers, suppliers
and buyers with strong bargaining positions, strong competitive threats from product substitutes, and
intense rivalry among competitors, which make it difficult for firms to achieve strategic competitiveness
and earn above-average returns. An attractive industry has the mirror image of these features and offers
little potential for favorable performance.) [– 3 quality sentences for Interpretation]
Relevance of Industry Analysis of the Entire Porters 5 Forces Framework

(Observe all the changes to see if an important trend is emerging from among these spotted through
Monitoring scanning)
-1 or 2 sentence/ phrase of bulleted information that is worth to watch out. Write here significant
information that needs close monitoring in this industry.
(Develop feasible projections of what might happen and how quickly, as a result of the changes and
Forecastin
trends)
g
-1 or 2 sentence/ phrase of bulleted information that is being forecasted by student/s
(Assessment is specifying the implications if the revealed changes from the scanning part, a trend
emerges from the monitoring or feasible projections from the forecasting is favorable or hindrance to
the company. It is important that there must be 2 opportunities and 2 threats here.)
potentialO1. (If favorable, classify it as Opportunity; Opportunity factors must be in
declarative complete sentence meaning it must declare an information. If a certain
variable has low threat, then write this as opportunity
Major Assessment
WE ARE STRICT ON THIS 1
SENTENCE or 1 phrase with complete thought per opportunity)
potentialO2. (1 short sentence)

potentialT1. (If hindrance, classify it as Threat; Threat factors must be in declarative
complete sentence; Meaning it must declare an information that this factor is a
hindrance. If a certain variable is very very high, then declare this as threat. AGAIN,
WE ARE STRICT ON THIS 1 SENTENCE or 1 phrase with complete thought per threat )
potentialT2. (1 short sentence)
In the Assessment, it is important to identify two (2) potential opportunity factors and
two (2) potential threat factors from the 5 Sections of the Porter’s Analysis. These 4
factors should have high implication for the company.
4.8. Competitive Analysis
Importance, definition and principles of Competitive Analysis; Emphasize how this

category of the General Environment is different from the other categories. [– 3 quality
sentences] (This paragraph is very important because this will give a guide or reference
on what is to be discussed)
4.8.1 Competitor 1 (Name of Competitor, put logo here)

be pasted here.
Services

a strength or weakness, if there is. ts s hghly suggested to study atleast
qualitatively the revenue of compettor)
Functional Areas)
(DELETE this instruction. Discuss in the table above about what the student have research about the
competitor 1, describe what competitor 1 is doing now and what they are likely to do in the future, what
are their products, facilities, brandname, describe their characteristics, identify also their operations,
marketing, financials and HR and other strategies which can be all be classified as STRENGTH AND
WEAKNESS.
4.8.2 Competitor 2 (Name of Competitor 2, put logo here)

be pasted here.
Services

Functional Areas)
(DELETE this instruction. Discuss in the table above about what the student have
research of competitor 2, describe what competitor 1 is doing now and what they are
likely to do in the future, what are their products, describe their characteristics, identify
also their operations and strategies which can be all be classified as STRENGTH AND
WEAKNESS.
(Delete this. Note that 2 competitors are requested in this paper. During defense,
panelist might require the student to consider 3rd or 4th competitor)
After discussion of each variable, Relevance will proceed. In the relevance analysis, the
student must identify changes, observe a trend, develop projections and assess the
implications that are relevant to the company.
Relevance of the Competitive Analysis

(Monitor the strengths and weaknesses of the competitors. Observe changes to see if an important
trend is emerging from among these spotted through scanning; Student here is free to mention a law
Monitoring
that the competitor is violating or law that is difficult for them to comply, but this has to be confidential)
-1 or 2 sentence/ phrase of bulleted information that is worth to watch out from the competitor/s
(Develop feasible projections of what might happen and how quickly, as a result of the changes and
trends)
Forecasting
-1 or 2 sentence/ phrase of bulleted information that is being forecasted by student/s
(Assessment is specifying the implications if the revealed changes from the scanning part, a trend
emerges from the monitoring or feasible projections from the forecasting is favorable or hindrance to
the company. It is important that there must be 2 opportunities and 2 threats here.)
potentialO1. (If favorable, classify it as Opportunity; Opportunity factors must be in
declarative complete sentence meaning it must declare an information. Opportunity
Major Assessment
here can be a weakness of the competitor)

potentialO2. (1 short sentence)
potentialT1. (If hindrance, classify it as Threat; Threat factors must be in declarative
complete sentence; Meaning it must declare an information that this factor is a
hindrance. Threat here must be the MAJOR STRENGTH OF THE COMPETITOR)
potentialT2. (1 short sentence)
Again in the Major Assessment, it is important to identify two (2) potential opportunities
and two (2) potential threat factor.
4.9 Summary of Critical Success Factors
Under 4.8. Competitive Analysis here, the student must enumerate the critical success
factors (check page __, __ and __ of textbook) that determine the performance of the
chosen company and the 2 competitors.
Table: Critical Success Factors and Performance of the 3 Companies
Critical Success Definition, Importance and Rating of the Company, Competitor 1 and Competitor 2.
Factor (CSF)
CSF1. 1st sentence definition. The student must define, explain and also write here why this CSF is
important. Write here the % weight importance of the company. In explaining the definition
here, the student can also write how this factor can help the company attain the objective/s.
Mention if these is the most important CSF for this industry. [– 1 quality sentence for the
definition and explanation of the weight]
2nd sentence. (Your Chosen Company) Then write also here the response rating (1 - 4);
Explain how the company is performing based on this CSF. [– 1 quality sentence for this
CSF]
3rd sentence. (Competitor 1). Then write also here the response rating (1 - 4); Explain how
(Delete this instruction about RESPONSE RATING)
the competitor 1 is performing based on this CSF. [– 1 quality43 ==sentence

Minor strength wherefor thisisCSF]
Major strength where the response is superior,
the response above average,
2 = Minor weakness where response is average,
1 = Major weakness where the response is poor.
4 sentence. (Competitor 2). Then write also here the response rating (1 - 4); Explain how
th
the competitor 2 is performing based on this CSF. [– 1 quality sentence for this CSF]
CSF 2. 1st sentence definition. [– 1 quality sentence for the definition of this CSF2 and explanation of
the weight]
2nd sentence. (Your Chosen Company) [– 1 quality sentence for the response of this
company relative to CSF2]
3rd sentence. (Competitor 1). [– 1 quality sentence for the response of this company relative
to CSF2]
4th sentence. (Competitor 2). [– 1 quality sentence for the response of this company relative
to CSF2]
CSF 3. 1st sentence definition. [– 1 quality sentence for the definition of this CSF3 and explanation of
the weight]
2nd sentence. (Your Chosen Company) [– 1 quality sentence for this]
3rd sentence. (Competitor 1). [– 1 quality sentence for this CSF]
4th sentence. (Competitor 2). [– 1 quality sentence for this CSF]

CSF 4. 1st sentence definition. [– 1 quality sentence for this explanation of the weight]




CSF 8. (minimum of 1st sentence definition. [– 1 quality sentence for this explanation of the weight]
8, maximum of 10
CSF) 2nd sentence. (Your Chosen Company) [– 1 quality sentence for this]
Further Explanation on this table of critical success factor. List minimum of 8 critical
success factors (CSFs) to maximum of 10 CSFs. CSFs are issues that determine the
current and expected success in the industry (check first paragraph of page __ of
textbook.). Critical success factor must come from operations, marketing and finance,
HR
Note: weight score: 0.0 (not important) to 1.0 (very important) based on its impact to the company and the
2 competitors.
4 = Major strength where the response is superior,

3 = Minor strength where the response is above average,
2 = Minor weakness where response is average,
4.10. Competitive Profile Matrix (CPM)
(Delete this instruction and reminder: The closest 2 competitors identified must be
written in the CPM matrix below. For review of creating CPM check pages _ _ to _ _ of
textbook; Note that this CPM. Note that this CPM is the simplification of table of Critical
success factor above.)
Table 6._ : CPM of (Company)
(Name of Your (Name of (Name of

Chosen Competitor 1) Competitor 2)
Company) (logo) (logo)
(logo)
Critical Success Factor (CSF) Weight Response Weighted Response Weighted Response Weighted
Importance Rating Score Rating Score Rating Score
CSF1. Branding
CSF2. Advertising
CSF3. Financial positioning
CSF4.
CSF5.
CSF6.
CSF7.
CSF8. (Minimum of 8, max of 10) ALL FONTS INSIDE THIS TABLE:
FONT TYPE: ARIAL
Total 1 FONT SIZE: 10
weight score: 0.0 (not important) to 1.0 (very important) SPACING: 1.0
BOARDER, SHADING, HEIGHT AND WIDTH OF
THIS TABLE SHOULD BE SMALL AND CANNOT
4 = Major strength where the response is superior,
(Delete this reminder) BE ADJUSTED
3 = Minor strength where the response is above average, (Delete this)
2 = Minor weakness where response is average, Ratings for every CSF must be avoided like this
Example, 4, 3, 4 or 3, 3, 3
Better 3, 2, 1
Interpretation of CPM: In the interpretation, the student must write the ranking based
on the total score. Does your company rank #1 or #2 or #3? After presenting the CPM
Matrix, the student should identify the relative competitive strength of your company and
of the 2 competitors based on the critical success factor. This is done by identifying the
CSF of the 2 competitors with the highest score. This highest score contribute greatly to
the attainment of this total weighted score. This CPM reveals not just the overall
competitive performance of competitors, but also the strong points. [– 3 quality
sentences for Interpretation of CPM]
4.11. Potential Opportunities and Threats Identified from PESTEL Analysis,

Porters Analysis and Competitive Analysis
In this part, the student must gather all the identified Opportunity factors and Threat
factors that emerged from Level 1 (PESTEL analysis) and Level 2 Analysis (Porter’s
and competitive analysis);
Section Potential Opportunities

4.1. Political O1. (copy-paste exactly the exact opportunity factor statement from the relevance table under political force
(PESTEL) category; do not rephrase this opportunity)
(Delete this Reminder)
By this time, the student must

realize that all opportunities
and threats must be simple 1
sentence or 1 phrase wit
complete thought only because
this will be copied in other
O2.
4.2. Environment O1.
(PESTEL)
O2.
4.3. Social O1.
(PESTEL)
O2.
4.4. Technological O1.
(PESTEL)
O2.
4.5. Environmental O1.
(PESTEL)
O2.
4.6. Legal O1.
(PESTEL)
O2.
4.7. Industry O1.
(Porters Analysis)
O2.
4.8. Competitive O1.
Analysis
O2.
Category Potential Threats

4.1. Political T1. (copy-paste exactly the exact threat factor statement from the relevance table; do not
(PESTEL) rephrase these threats)
T2.
4.2. Environment T1.
(PESTEL)
T2.
4.3. Social T1.
(PESTEL)
T2.
(Delete this Reminder)
4.4. Technological T1.
(PESTEL) By this time, the student must
T2. realize that all threats must be
simple 1 sentence or 1 phrase
4.5. Environmental T1. wit complete thought only
because this will be copied in
(PESTEL) other tables in other chapters of
T2. this strama paper.
4.6. Legal T1. Again the format of the

(PESTEL) opportunity and threat sentence
T2. must be “CAUSE”,
not “CAUSE-EFFECT”.
4.7. Industry T1.
(Porter’s Analysis)
T2.
4.8. Competitive T1.
Analysis
T2.
The student may adjust the font size in order to fit or modify the table size in one page.
After laying down all the opportunities and threats, the student must choose top 5
opportunities and top 5 threats. The choice must be highlighted by underline or putting it
into box. If the student is unable to establish 5 Threats, 4 Threats can be reflected. Also,
the student can establish 6 Opportunities.
In choosing the top 5 opportunities, the opportunities must be very important in terms of
attaining goals of the company. If the opportunities are exploited effectively, it helps the
company achieve strategic competitiveness.
In choosing the top 5 threats, the student must think that the threats to be chosen has
high negative impact in attaining goals of the company. These threats are providing the
greatest hindrance or obstacles to achieve competitiveness.
4.12. Summary of Key Opportunities and Threats
(Instruction: Select 5 Opportunities and 5 Threats. The identification of key opportunities

and threats must be meticulously done. Importance of the opportunity and threat
factors (in terms of the big impact or relevance to the company) must be considered
very well.)
Based on textbook pages _ _ to _ _ that discusses the prioritization of the factors, the
key external factors should be
(1) important to achieving long-term and annual objectives,

(2) measurable,
(3) applicable to all competing firms (It is affecting many company in an industry), and
(4) hierarchical in the sense that some will pertain to the overall company and others will be more
narrowly focused on functional or divisional areas.
List of Key Opportunities and Threats of the (Company Name)

(Delete this: Again the opportunities can be 6 or 7 factors depending on the analysis of
the student. Sometimes it is difficult to identify threats. So the Threats can be 4 factors,
in rare situation student have identified 6 threats)
Basis Weight Response Dimension and

Importance Rating Degree
(From what
category; e.g.
Economics Force (%) (in terms of (Classify if in Stability
under PESTEL, response of the Position or Industry
TOP KEY 5 OPPORTUNITY FACTORS AND EXPLANATIONS Rivalry under
Porter’s or
company to the
opportunities and
Position)
Competitive
analysis) threats) (This degree of Stability
positioning or degree of
Industry Positioning is a
number)
O1. (copy paste exactly based on summary of Key Opportunities) Possible Answer
Stability or
Economics Force
under PESTEL or Industry
1st paragraph must explain and write why this factor is important. Write here Rivalry under
Porter’s or
the % weight importance of the company and why have this %. Explain here Competitive If Stability, the
degree must be
how this factor can help the company attain the objective/s. Explain the analysis
from (-1 to -7)
potential impact of this factor. Then write also here the response rating (1 - 4),
If Industry degree
Explain how the company is responding to this factor. Mention also which has must be from ) +1
the highest weight importance. [– 3 quality sentences for this explanation] Delete this further instruction about to +7)
Dimension and Degree.
Example is this
2nd paragraph must explain and write why classify this Opportunity as under If classified as Stability position, degree will range Stability / -4
the “stability positioning” or “industry positioning”. The degree of stability from -1 (best), -2, -3, -4, -5, -6, -7(worst)
Industry / +7
positioning or industry positioning must be also explained here. [– 2 quality If classified as Industry Position, degree will range
from 1 (worst), 2, 3, 4, 5, 6, 7(best)
sentences for this explanation]
O2. (copy paste exactly based on summary of Key Opportunities) Political Force
under PESTEL or Stability or
Substitute under
Porter’s or Industry
1st paragraph must explain and write why this factor is important. Write here Competitive
analysis
the % weight importance of the company and why have this %. Explain here
how this factor can help the company attain the objective/s. Explain the
potential impact of this factor. Then write also here the response rating (1 - 4),Delete this further instruction about Response Rating
Explain how the company is responding to this factor. Mention also which hasThe RESPONSE RATING is about the current responses, or dealing or
the highest weight importance. [– 3 quality sentences for this explanation] existing strategy/ies of this company to this opportunity or threat. The rating
must mention or explain the rate or degree of responding, dealing or
strategizing of the company towards this external factor.
2nd paragraph must explain and write why classify this Opportunity as under The student must be observant on the response of companies, especially if
the “stability positioning” or “industry positioning”. The degree of stability the chosen company did not clearly explain their exact strategies or
responses. The student must realize the importance of having a connection
positioning or industry positioning must be also explained here. [– 2 quality to the company and/or interviewed the company.
O3. (copy paste exactly based on summary of Key Opportunities) Stability or

Industry
1st paragraph must explain and write why this factor is important. Write here Positioning
the % weight importance of the company. Explain here how this factor can
help the company attain the objective/s. Explain the potential impact of this
factor. Then write also here the response rating (1 - 4), Explain how the
company is responding to this factor. Mention also which has the highest
weight importance. [– 3 quality sentences for this explanation]
2nd paragraph must explain and write why classify this Opportunity as under
the “stability positioning” or “industry positioning”. The degree of stability
positioning or industry positioning must be also explained here. [– 2 quality
O4.
1st paragraph must explain and write why this factor is important. Write here
O5.
1st paragraph must explain and write why this factor is important. Write here
Rating Legend: 4 = response is superior, 3 = the response is above average, 2 = response is average, 1 = the
response is poor.
Weight Legend: range weight from 0.00 (not important) to 1.0 (very important)
TOP KEY 5 THREAT FACTORS AND EXPLANATIONS Basis Weight

Importance
Response Dimension and
Rating Degree
(Again, 4 threats can be considered) (From what
category; e.g.
PESTEL, Porter’s (%) (in terms of (Classify if in Stability
or Competitive response of the Position or Industry
analysis) company to the Position)
opportunities and
threats) (This rating is based on
degree of Stability
positioning or Industry
Positioning)
T1. (copy paste exactly based on summary of Key Threats) Stability or

Industry
1st paragraph must explain and write why this threat factor is important. Write Positioning
here the % weight importance of this. Explain here how this factor can affect
the company as hindrance. Explain the potential impact of this factor. Then ALL FONTS INSIDE THIS EFE TABLE must be
write also here the response rating (1 - 4), Explain how the company is small in order to fit this in one page:
FONT TYPE: ARIAL
responding in terms of avoiding the negative impact or solving the problems FONT SIZE: 10
SPACING: 1.0
due to this threat. Mention also which has the highest weight importance. [– 3 BOARDER, SHADING, HEIGHT AND WIDTH OF
THIS TABLE SHOULD BE SMALL AND CANNOT
quality sentences for this explanation] BE ADJUSTED

(Delete this)
2nd paragraph must explain and write why classify this threat as under the
“stability positioning” or “industry positioning”. The degree of stability
Delete this further instruction about Response Rating
T2. (copy paste exactly based on summary of Key Threats) Stability or
The Response rating is about the current responses, or dealing or existing
Industry
strategy/ies of this company to this opportunity or threat. The rating must
1st paragraph must explain and write why this threat factor is important. Write Positioning
mention or explain the rate or degree of responding, dealing or strategizing
of the company towards this external factor.
The student must be observant on the response of companies, especially if
the company as hindrance. Explain the potential impact of this factor. Then
the chosen company did not clearly explain their exact strategies or
write also here the response rating (1 - 4), Explain how the company is responses. The student must realize the importance of having a connection
to the company and/or interviewed the company.
responding in terms of avoiding the negative impact or solving the problems
due to this threat. Mention also which has the highest weight importance. [– 3
quality sentences for this explanation]
Delete this further instruction about
2nd paragraph must explain and write why classify this threat as under the Dimension and Degree.
“stability positioning” or “industry positioning”. The degree of stability If classified as Stability position, degree will range
positioning or industry positioning must be also explained here. [– 2 quality from -1 (best), -2, -3, -4, -5, -6, -7(worst)
sentences for this explanation] If classified as Industry Position, degree will range
from 1 (worst), 2, 3, 4, 5, 6, 7(best)
T3. (copy paste exactly based on summary of Key Threats)
1st paragraph must explain and write why this threat factor is important. Write
write also here the response rating (1 - 4), Explain how the company is
Rating Legend: 4 = response is superior, 3 = the response is above average, 2 = response is average, 1 = the
response is poor.
Weight Legend: range weight from 0.00 (not important) or high % (very important)
Further Explanation in the Table of Key External Factors 1) Each factor has a weight
importance that ranges from 0.0 (not important) to 1.0 (very important) to gauge its
significance or impact for the current and future success of the company. Be careful in
assigning weight importance. In the Response rating column of EFE, the rating within 1
and 4 indicate how effectively the firm’s current dealing or response or strategies to that
external factor, wherein
4 = response is superior, (careful in putting score of 4, normally companies can respond to selected external factors only. )
3 = the response is above average,
2 = response is average,
1 = the response is poor.
Further Explanation in the Table of Key External Factors 2) The BASIS of the identified
factors must be specified (From what categories it came from. E.g. It came from
Economic Forces, or Technological or from Bargaining Power of Suppliers)
Ensure that each of these Opportunity and Threat factor must be traceable or has basis.
It’s impossible that an opportunity factor or threat factor suddenly appeared in the list
without assimilating information in the general environment, industry, or competitive
analysis
Further Explanation in the Table of Key External Factors 3) After gathering all the Key
factors, these must be classified based on the dimension of Stability Position and
Industry Position.
After classifying, rate each factor by assigning numerical value based on the dimension
on stability position or industry position (Check the PowerPoint slides for the lecture or
textbook pages 208 to 212 for the explanation of Stability Position and Industry
Position). The concept of Stability Position and Industry Position will be more useful in
Strategy Formulation in chapter 6.
(After creating the above tedious comprehensive table of Key Opportunities and
Threats, there is a need to simplify this table by creating External Factor Evaluation or
EFE as shown below. Same opportunities and threats must be copied here in EFE)
Delete this reminder:

4.13. External Factor Evaluation (EFE)
Dito sa EFE, panelist will notice if kopya ang
strama. Kailangan alam ni student kung ano
pinka importanteng opportunity or threat. Be
Table 4._ : EFE Matrix of (Company) careful in weight importance assignement
Key External Factors Weight RatingDELETEWeighted

THIS INSTRUCTION.
Importanc (based on
ALL
response of the
Score
FONTS INSIDE THIS EFE TABLE must be
small in order to fit this in one page:
e (%) company) FONT TYPE: ARIAL
FONT SIZE: 10
OPPORTUNITIES SPACING: 1.0
BOARDER, SHADING, HEIGHT AND WIDTH OF
O1. (copy paste exactly based on summary of Key Opportunities and Threats ) THIS TABLE SHOULD BE SMALL AND CANNOT
BE ADJUSTED
O2. (Delete this)

O3.
O4.
O5.
THREATS
T1. (copy paste exactly based on summary of Key Opportunities and Threats )
T2.
T3.
T4.
T5.
TOTAL: 1.0 (Weighted
Score Total)
(wts of Os and Ts
overall must be
1.00)
Rating Legend: 4 = response is superior, 3 = the response is above average, 2 = response is
average, 1 = the response is poor.
Weight Legend: range weight from 0.00 (not important) to 1.0 (very important)
Interpretation of EFE:
After writing and constructing EFE Matrix, ANALYSIS or interpretation will proceed. In
the analysis, the student must write the interpretation of the EFE total score; This is
where the validity and accuracy of the research of the strama student in the industry
analysis and the company analysis are all integrated. The analysis here must discuss or
mention that the company passed or failed from the 2.5 score average midpoint.
Student should also analyze and give overall interpretations of this total score based on
this score interpretations of the ratings (1.0 = the response is poor, 2.0 = the response
is average, 2.5 = average midpoint, 3.0 = the response is above average, and 4.0 = the
response is superior). The interpretation must also explain the extent or degree of the
total weighted score from the 2.5 average midpoint or extent of the score if below 2.5
must be discuss here; Is the EFE score near to 4.0 or close to 4.0? Insights must be
added or mentioned here in the extent interpretation. The insights can be explanations
(major responses to key external factors) why the company attained that score. The
insights can be from a friend, relative or connection in the chosen company. [– 3 quality
sentences for Interpretation of EFE]
Example, if the EFE total score is 3.17, it means the external performance of starbucks passed the 2.5 midpoint average and is
close to above average response. Although the score is significantly above 2.5, Starbucks aims to be the leader by continuously
offering new coffee products and pastries and enhancing the services. With increasing coffee production and consumption,
starbucks is opening more stores to match this increasing demand. The EFE total score does not reach 3.5 maybe because of
several threats such as the presence of the instant coffee, vending machines and other beverage substitute in the market. Still,
starbucks enjoys its high brand equity, that is why consumers still prefer to dine in starbucks over its competitors. (According to the
validation interview) Starbucks finds it challenging now that the competitors (Coffee Bean and Bos Coffee) are now becoming
aggressive in offering coffee beverage.
Example, the EFE score of “convenient store X” is 2.58. Although, the company passed the 2.5 midpoint, however the company and
the managers is still aiming to further improve their external performance. The company has difficulty in solving the poor aircon
facilities and defective refrigerators inside their stores, which prevents customers from patronizing their products. The incidence of
spoilage and expired products, severely affects the image of the company.
Reminder to student: DO NOT WORRY IF THE SCORE OF EFE IS BELOW 2.5 OR

THE CHOSEN COMPANY IS NOT DOING WELL. THE GRADE IN STRAMA
SUBJECT WILL NOT BE AFFECTED BY THE PERFORMANCE OR SITUATION OF
THE COMPANY. So, the student must not adjust the score. Soon in chapter 7, you can
recommend appropriate strategies for the company in order to save the company or
improve its performance externally.
CONGRATS!!! Nakatapos ka ng Chapter 4.

Speaking of opportunity, more opportunities and
blessings are coming to you. Papasa ka sa mga
mahihirap na subjects, jowa malapit na, and other
wish granted.
(Delete this)

All - Template Chap4 - External Analysis As of January 20 2022

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

All - Template Chap4 - External Analysis As of January 20 2022

Uploaded by

Copyright:

Available Formats

Name of Student/SECTION: (LAST NAME, FIRST NAME / _ OM)

4.1. Political Forces

1st paragraph [– 3 quality sentences]

(Min of 3 political variables as section, Max of 5 sections)

4.1.2 (Government Style, Corruption and Bureaucracy in the Country or other

charts &/or figure, if necessary. .)

charts &/or figure, if necessary. .)

charts &/or figure, if necessary. .)

(site the source of information gathered for Political Forces)

Relevance of Political Forces

monitored that can affect the chosen company of the student.

potential O1. (1 sentence)

4.2. Economic Forces

1st paragraph [– 3 quality sentences]

(Min of 4 sections as economic variable, Max of 6 sections)

tables, charts &/or figure)

(site the source of information based on gathered for Economic Forces)

4.3. Social Forces

1st paragraph [– 3 quality sentences]

(Min of 4 sections as social variable, Max of 6 sections)

charts &/or figure)

Relevance of the Social Forces

Relevance of Social Forces

1 or 2 sentence/ phrase of bulleted format of information

4.4. Technological Forces

1st paragraph [– 3 quality sentences]

(Min of 3 sections, Max of 6 sections)

(site the source of information)

1 or 2 sentence/ phrase of bulleted format of information

4.5. Environmental Forces

1st paragraph [– 3 quality sentences]

(Min of 2 sections, Max of 6 sections)

(site the source of information)

Relevance of Technology Variables

1 or 2 sentence/ phrase of bulleted format of information

4.6. Legal Forces

1st paragraph [– 3 quality sentences]

(Min of 3 legal variable as section, Max of 6 sections)

&/or figure, if necessary. .)

&/or figure, if necessary. .)

&/or figure, if necessary. .)

&/or figure, if necessary. .)

&/or figure, if necessary. .)

tables, charts &/or figure)

(site the source of information)

Relevance of Legal Forces

Relevance of Legal Forces

1 or 2 sentence/ phrase of bulleted format of information

4.7. Industry Analysis (Porters Analysis)

4.7.1. Rivalry among Competing Firms

3 Variables Industry Description and Intensity re Rivalry Among Competing Firms

(site the source of information)

4.7.2. Potential Entry of New Competitors

1. Capital Requirement [– 3 quality sentences]

(site the source of information)

4.7.4. Bargaining Power of Suppliers

4.7.5. Bargaining Power of Consumers

(site the source of information)

Summary of Porter’s Five Forces

Interpreting Industry Analyses: [– 3 quality sentences for Interpretation]

1 or 2 sentence/ phrase of bulleted format of information

4.8. Competitive Analysis