Environmental

Scanning Techniques
Establishing a
business is a
rigorous task, and it
requires a lot of
effort and time.

3
In business, the
most challenging
part of every task
is knowing where
and how you start.

4
You may have all
the resources
needed to operate
a new venture or
implement a plan,
but it will never be
easy to start one.

5
Hence, it is vital for a
business owner to scan his
or her environment to
know the possible changes
and situations that may
happen.

6
How can SWOT and PEST analyses help
businesses in attaining their goals and
objectives?

13
Environmental Scanning Techniques
SWOT Analysis

This is vital tool used to identify

a business's strengths,
weaknesses, opportunities,
and threats.

14
 Environmental Scanning Techniques
SWOT Analysis
● Strengths and weaknesses pertain to the company's
internal environment. The company has control over
these factors.
● In contrast, opportunities and threats are part of the
company's external environment. The company does
not control these factors.

15
SWOT Analysis

16
SWOT Analysis
Strengths

These are the factors or

characteristics that give an
organization a competitive
advantage over its competitors.

17
 SWOT Analysis
Examples of Strengths

● Quality products and services

● Efficient manufacturing processes
● Positive brand image
● Good company reputation
● High technology used

18
 SWOT Analysis
Weaknesses
These are the areas of a
business that need to be
improved.
These can delay or hinder the
growth of a business and the
attainment of its objectives.

19
 SWOT Analysis
Examples of Weaknesses

● Lack of access to technology

● Limited customer reach
● Poor location
● Ineffective marketing strategies
● Low brand awareness

20
 SWOT Analysis
Opportunities
These pertain to the
different external factors
that can help businesses
obtain good performance
and competitive advantage.

21
 SWOT Analysis
Examples of Opportunities

● Better location
● New target markets
● New technologies and methods
● New products
● Possible business expansion

22
 SWOT Analysis
Threats
These refer to the different
external factors that can
potentially harm an
organization.

23
 SWOT Analysis
Examples of Threats

● Increased price of resources

● High inflation rate
● Entry of new competitors
● New trends and technologies that a business does
not currently have
● Unstable economic environment

24
 Process of Doing SWOT Analysis

1
Lorem 1 2
Lorem 2 3
Lorem 3 4
Lorem 4

Identify the Gather data Know your Know your

goal of your about your strengths. weaknesses.
SWOT business,
analysis. market, and
the industry
where you
belong.
25
 Process of Doing SWOT Analysis

5
Lorem 1 6
Lorem 2 7
Lorem 3 8
Lorem 4

List the List the Analyze the Formulate

potential potential data of your strategies
opportunities threats that SWOT based on the
for the can impede analysis. data.
business. your
performances.

26
 Environmental Scanning Techniques
PEST Analysis

● Managers use PEST analysis to determine and

assess four external factors from the macro
environment that can impact the business.
● These four factors are political and legal,
economic, sociocultural, and technological
forces.

28
PEST Analysis Process

29
 PEST Analysis
Political Factors

These factors refer to the

government's different
political influence and
legal and government
interventions that directly
affect business operations.

30
 PEST Analysis
Economic Factors

These factors refer to the

different economic
conditions and policies
that are important to
business stability.

31
 PEST Analysis
Sociocultural Factors

These pertain to the

characteristics of
customers in terms of
their demographics,
lifestyle, and culture.

32
 PEST Analysis
Technological Factors
These are the forces
resulting from the
advancement of
technology, science,
and research.

33
PEST Analysis
Political and Legal Economic

● Different laws such as ● Economic growth

labor law, minimum ● Economic stability
wage law ● Exchange rates
● Connections with ● Demand and supply
politicians ● Purchasing power of
● Financial reporting customers
standards
● Political orientations
34
 PEST Analysis
Sociocultural Technological

● Age and generation ● Internet

characteristics ● Software and hardware
● Sex and gender development
● Social status ● Licensing policies
● Income ● Patents
● Customs ● Outsourcing

35
● SWOT and PEST analyses aim to give business
owners, managers, and decision-makers a solid
understanding of the internal and external
factors and the impact these factors may have on a
business.

● SWOT analysis is a vital tool used to identify a

business's strengths, weaknesses, opportunities,
and threats.

37
 Strengths Weaknesses Opportunities Threats

This gives the These are the These are the These are the
organization a areas or external factors different
competitive characteristics favorable for external factors
advantage over of a business businesses to that can
its competitors. that need to be obtain good potentially harm
improved or performance an organization.
changed. and competitive
advantage.

38
● Managers use PEST analysis to determine and
assess four external factors from the macro
environment that can impact a business. These
four factors are political and legal, economic,
sociocultural, and technological forces.

39
 Political and
Economic Sociocultural Technological
Legal

This refers to This includes all This pertains to This includes

the of the different the advancement in
government's economic characteristics of technology,
different conditions and customers in science, and
political policies that are terms of their research.
influences and important to demographics,
legal business lifestyle, and
interventions. stability. culture.

40