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ENVIRONMENTAL ANALYSIS
Environmental Analysis is the practice of scanning the
organization’s specific and general environments.
Typically, we use Porter’s Five Forces as a framework
for analyzing the firm’s specific or microenvironment,
while we use PESTEL as a framework for understanding
its general or macroenvironment.
MICRO AND MACROENVIRONMENTS
 Let’s talk about Starbucks.

Who are the key players in the retail coffee industry?

PORTER’S FIVE FORCES
PESTEL ANALYSIS
PESTEL differs from
Porter’s Five because
while your point of focus
is still the firm (e.g.,
Starbucks), you are
considering the political,
economic, social,
technological, Think: How does the
environmental, and legal Duterte Administration
factors that affect not only and its policies affect
Starbucks and the retail business in the
coffee industry, but most Philippines?
if not all industries in the
Philippines.
SWOT ANALYSIS
• Used in a business context, a SWOT Analysis helps
you carve a sustainable niche in your market.
• Used in a personal context, it helps you develop your
career in a way that takes best advantage of your
talents, abilities, and opportunities.
POTENTIAL STRENGTHS
 Strategy  R&D Skills and
 Product Line Leadership
 Market Coverage  HR Competencies
 Manufacturing  Brand Name
Competence  Management Style
 Marketing Skills
 Materials Management
Systems
POTENTIAL WEAKNESSES
 Strategy
 Product Line
 Manufacturing Costs
 Infighting Among Divisions
 High Conflict and Politics
 Growth Without Direction
POTENTIAL OPPORTUNITIES
 Expand Core Businesses
 New Market Segments
 Widen Product Range
 Diversify into New Growth Businesses
 Expand into Foreign Markets
 Enter New Related Businesses
POTENTIAL THREATS
 Increase in Domestic Competition
 Increase in Foreign Competition
 Change in Consumer Tastes
 Rise in New or Substitute Products
 Rising Labor Costs
 Downturn in the Economy
FINDING OPPORTUNITIES
• Networking events, educational classes, or conferences.
• A colleague going on an extended leave. Could you take on
some of this person's projects to gain experience?
• A new role or project that forces you to learn new skills,
like public speaking or international relations.
• A company expansion or acquisition. Do you have specific
skills (like a second language) that could help with the
process?
PORTER’S FIVE FORCES

PESTEL ANALYSIS
ASSIGNMENT

Create an Integrated SWOT Analysis, which uses

Porter’s Five and PESTEL frameworks for opportunities
and threats, for any major brand in the following
industries:
Group 1 – Food Group 5 – Lifestyle
Group 2 – Tech Group 6 – Services
Group 3 – Telecommunications
Group 4 - Finance