W3 Industry and Internal Environment

W3: Industry and Internal Environment
Industry Environment
having business competitors
6 Industry Forces
1. Government
alludes the entire framework that handles the undertaking of the action and has the word over the significant exercises within the territory.
the administration advances pioneering adventures through its foundation, projects and priorities.
2. Suppliers
providers of machinery and equipment
human resource(HR), Philippines’ best resources (OFW)
providers of contribution for gas, power, and crude materials
suppliers of manpower and expertise, and supplies of merchandise assume a vital job in the creation of merchandise and enterprises.
3. Customers
incorporates the purchasers of goods and administrations gave by the business.
Benefits are earned from each exchange
4. Competitors
rival firms that offer similar goods and services as the organization.
Classified either directly or indirectly:
Direct Competitor- produce and sell comparative items
Indirect Competitor- offer substitute products and services
5. Employees
genuine work power of the business who are liable for the creation of merchandise or conveyance of administrations to the clients.
backbone of business
6. Creditors
financial institutions, banks financial intermediaries engaged in lending money to the borrower usually for a fee in a form of interest.
5 Forces of Competition
Competition- process of trying to win something
1. Threats to the new Entrants
Potential new Entrants- organization that is willing and ready to enter a market given the correct condition.
Strict implementation on government strategy and policy e.g. capital requirement
Difficulty in the procedure of making a product or service accessible for the consumer or business user who needs it.
high cost of production
high cost of product differentiation which distinguishes a product or services from others.
2. Suppliers
Severity of the threat of the suppliers is solid if the following variables remain valid:
product/service is exclusive and special
cost of changing brands, suppliers, or products is very continuously high.
substitutes' items are not promptly accessible in the market.
3. Rivalry among firm
among existing firm in the industry is ascribed to the accompanying:
Diversity of competing industry
A great number of competing organizations
Characteristics of product offerings
Management styles and leadership
4. Buyers
have solid and amplified dealing power in the business.
buyer has the potential for backward integration.
few providers in the market
product represents a high percentage of the buyer's cost.
5. Substitute Products
present incredible dangers to the business condition if the accompanying variables are noticeable:
Lower cost of a substitute product
Changing customers buying behavior
Innovation of substitute products
switching cost is generally low
W3: Industry and Internal Environment 1

SWOT
S- Strengths
W- Weaknesses
O- Opportunities
T- Threats
SWOT Analysis
summing up the present status of an organization and assisting with conceiving an arrangement of what’s to come, one that utilizes the current qualities, reviews existing shortcomings,
misuses openings, and guards against dangers.
Strengths
strong attributes/capabilities of the business that provide an advantage in exploiting the business opportunity.
company’s valuable attribute that give it a competitive advantage
Weaknesses
need to be improved or enhanced such as inaccessibility of required technology, limited access to the channel of distribution, poor transportation system, poor leadership, incompetent
labor force, lack of capital or inefficient business process and operations.
Opportunities
business circumstances as products/services that must be maximized given their potential as far as benefit and development
state of the condition that will permit your business to acquire more income.
Threats
conditions in the environment that will have an adverse effect on the business activities.
increase inflation rate, entry of new competitors, stiff government regulations, terrorism, war, pandemic situations, a shift of customer’s preferences
Environmental Factors and Sources of Opportunities

How to start a business
1. External Environment
a. Physical environment
Climate
Physical Resources
Wildlife
b. Societal Environment
Social Forces which significantly impact business venture
Sociocultural
Environment
Political Environment
Economic Environment
Ecological Environment
Technological Environment
Legal environment
c. Wildlife
Nature of Environmental Scanning
main task: determine the trends and development existing in the business condition.
It is a process of gathering data, basic assessment of events, exercises and activities, utilization of pertinent information related to different environmental forces.
PESTEL analysis
This is a tabular framework commonly utilized in environmental scanning tools.
PESTEL represents Political, Economic, Sociocultural, Technological, Ecological, and Legal forces.
Political Forces Economic Resource Sociocultural Forces technological forces ecological forces legal forces
stability of the Philippine Government High inflation rate support for LGBTQ+ Gcash for payment transactions use of reusable shopping bags tax exemption for PWD
Environmental Forces Matrix
shortlist of the patterns, issues, and advancements in the distinctive environmental forces that add to any business dynamic.
It recognizes the level of its effect on the business


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W3: Industry and Internal Environment

having business competitors

providers of machinery and equipment

human resource(HR), Philippines’ best resources (OFW)

providers of contribution for gas, power, and crude materials

incorporates the purchasers of goods and administrations gave by the business.

Benefits are earned from each exchange

Classified either directly or indirectly:

Direct Competitor- produce and sell comparative items

Indirect Competitor- offer substitute products and services

1. Threats to the new Entrants

Strict implementation on government strategy and policy e.g. capital requirement

high cost of production

product/service is exclusive and special

cost of changing brands, suppliers, or products is very continuously high.

substitutes' items are not promptly accessible in the market.

3. Rivalry among firm

among existing firm in the industry is ascribed to the accompanying:

Diversity of competing industry

A great number of competing organizations

Characteristics of product offerings

Management styles and leadership

have solid and amplified dealing power in the business.

buyer has the potential for backward integration.

few providers in the market

product represents a high percentage of the buyer's cost.

Lower cost of a substitute product

Changing customers buying behavior

Innovation of substitute products

switching cost is generally low

W3: Industry and Internal Environment 1

company’s valuable attribute that give it a competitive advantage

Environmental Factors and Sources of Opportunities

Nature of Environmental Scanning

This is a tabular framework commonly utilized in environmental scanning tools.

Environmental Forces Matrix

It recognizes the level of its effect on the business

W3: Industry and Internal Environment 2

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