Business Principles, Tools, and

Techniques in Participating in
Various Types of Industries in
the Locality
REPORTER 5
 Table of contents

Industry and
01 Environmental 02 The SWOT Analysis
Analysis
 01
INDUSTRY AND
ENVIRONMENTAL ANALYSIS
 is a study or exercise done to assess the current industry
environment. This helps understand the various aspects and
predict trends of the industry better, and also in many other
ways. Generally, industry analysis is done by external research
agencies, consulting firms or businesses themselves.
 02
INDUSTRY ANALYSIS
 is a marketing process that provides statistics
about the market potential of your business
products and services. This section of your plan
needs to have specific information about the
current state of the industry, and its target
markets.
 03
ENVIRONMENTAL ANALYSIS
•Every business exists in an environment, and it’s important
to understand that environment to be successful.
Unfortunately, businesses sometimes tend to ignore this
importance, which can lead to failures in strategic planning.

•By getting to know the business environment and

conducting regular environmental analysis, businesses can
make the right decisions to stay ahead of the competition.
But what exactly is environmental analysis, and how do you
conduct one?
•Business environmental analysis is studying the external factors that affect a business.
This includes things like the political landscape, the economic conditions, the
technological environment, and more.
•By understanding these factors, a business can develop strategies to optimize its
performance within this context. 
•This environmental analysis examines industry and organizational factors that can
either positively or negatively affect the business. By determining short-term and long-
term impacts, organizations can readily respond to them when they appear. 
 Purpose of Environmental Analysis

•An environmental analysis helps organizations define factors that can

influence their business operations. By assessing and weighing these
factors, business leaders can make better decisions about moving forward.
Additionally, environmental analysis can help business leaders anticipate
changes in the market and adjust their strategies accordingly.
 Objectives of Environmental Analysis
1. Understand current and potential changes in the environment, including:

• Economic

Ex. Analyzing inflation rates and their impact on consumer purchasing power

• Technological

Ex. The adoption of new technologies and their effect on market competitiveness

• Political

Ex. Government regulations and policies that affect businesses

• Global factors

Ex. Cultural differences and their influence on marketing strategies

 2. Provide information for decision-making by
analyzing different options and selecting the best one.

3. Ensure the most effective use of resources for

business success.
 OTHER
OBJECTIVES
1. To identify the threats and opportunities of environment.
2. To identify the strengths and weakness of the business.
3. To diversify the business in new areas and to keep the
business dynamic.
 04
Process of Environment
Analysis
 MONITORING

Means to understand the various environments factors which affect

the business and to identify published or unpublished sources of
information which affect business. Eg. Newspaper, magazine and
journals
 SCANNING AND SEARCHING

Needed to manage the timely availability of required

information by scanning and searching.
 FORECASTING

Needed to manage the timely availability of

required information by scanning and
searching.
EVALUATION AND ASSESSMENT

Identify and evaluate as to how these

environmental changes will affect our
business so that appropriate counter
strategies can be made in time.
 MICHAEL PORTER

One of the most widely known industry

analysis is Porter's Forces or Competitive Forces
Model, was introduced by Michael Porter.
 PORTER'S FORCES OR COMPETITIVE
FORCES MODEL
1.INTENSITY OF INDUSTRY RIVALRY
2.THREAT OF POTENTIAL ENTRANTS
3.BARGAINING POWER OF SUPPLIERS
4.BARGAINING POWER OF BUYERS
5.THREAT OF SUBSTITUTE GOODS/SERVICES
 05
Porters 5 forces or competitive
forces model
 What are the Porters Five Forces
 A model that identifies and analyzes five competitive forces that shape
every industry and helps determine an industry weaknesses and
strengths.

 Five forces model is named after Harvard business school professor

Michael E. Porter in his 1980 book.

 One of the most widely known industry analysis is porter’s 5 forces or

competitive forces model
COMPETITVE FORCES MODEL

Factors and variables that threaten a

company profitability and prevent it
growth.
 PORTER’S 5 FORCES ARE:

1. intensity of industry rivalry

2. Threat of potential entrants
3. Bargaining Power of suppliers
4. Bargaining Power of buyers
5. Threat of substitute goods/services
 06
SWOT ANALYSIS
 What is swot analysis and Why you
should use one?
SWOT analysis is a strategic planning and strategic management technique used
to help a person or organization identify Strengths, Weaknesses, Opportunities,
and Threats related to business competition or project planning. It is sometimes
called situational assessment or situational analysis.

A SWOT analysis helps you assess internal factors that might affect your business
(strengths and weaknesses) and external factors (opportunities and threats). 
EXAMPLES OF SWOT ANALYSIS
STRENGTHS WEAKNESSES
• Small capital outlay • Location
• Place • Unexperienced owner

OPPORTUNITY THREATS
• Absence of similar product in • To many competitors
the market
• New technologies are
• New market being developed available and are used by your
competitors
 07
External and Internal
Factors of SWOT
 INTERNAL
FACTORS
- are the strength or as weaknesses depending upon their
effect on the organization's objectives. What may represent
strengths with their respect to one may be weaknesses
(distractions competition) for another objective. The factors may
include all of the 4P's - price, product, promotion and place: as
well as personnel, finance, manufacturing capabilities and so on.
 EXTERNAL FACTORS
- the results are often presented in the form of a matrix. The
factors may include macroeconomic matters, technological
change, legislation and socio-cultural changes, as well as changes
in the market - place or in competitive position.
HERE ARE TIPS THAT WILL
HELP YOU IN USING THE
SWOT TEMPLATE
There are seven tips that will help you to do the swot template:

Gather your team together.

Set up your quadrants—on a whiteboard or projector.
Start with strengths.
Follow suit with weaknesses, opportunities, and threats.
Organize the information collected into a neat and tidy document.
Send out to the team with notes.
1. Organize a second meeting to come up with action items and owners.
SWOT ANALYSIS OF YOUR
BUSINESS
(15 POINTS)