Pestel, swot, tools for st
formulation--
ABHAY
Overview---
1)Environmental scanning
External & internal
(PESTEL) ( SWOT)
2)Strategy formulation
Mission, objectives, strategies, policies
Overview----
3)strategy implementation---
Programmes, budgets, procedures
4)Evaluation----measuring performance
Overview---
External environmental scanning---
Societal, technological, economic, regulatory,
competitive environment
a)PEST/PESTEL analysis b) ETOP analysis
Industry analysis---Porters model, strategic
groups
Overview---
PEST Analysis-
political,Economic,Social &Technological F
PESTEL analysis—
political,
Economic,
Social,
Technological,
Environmental,
Legal
Overview--
Political-----1) Tax policies
2)Employment Laws
3)Environmental regulations
4)Trade restrictions, tariffs
5)Political Stability
Overview---
Economic factors---
1)purchasing power of potential customers
2)Economic growth
3)Interest rates
4)Exchange rates
5) Inflation rate
6) Unemployment rate
Overview---
Social factors—
1)Health consciousness
2)Population growth rate
3)Age distribution
4)Employment orientation
5)Emphasis on security, safety
6)Lifestyle Attitudes
7)Cultural Barriers
Overview--
Technological factors—
1)R&D Activity
2)Automation
3)Rate of technological change & awareness
overview
Environmental—
pollution prevention
preserving ecological balance
efficient recycling of waste material
Legal-------national laws, international laws
------patents, laws of WTO
Overview
Legal----
IPR & patent laws
Health &Safety Laws
Employment laws--laws on labor
reforms,Minimum wages
Consumer protection Laws
Anti trust laws
Overview---
ETOP Analysis—
Environmental threats & opportunity analysis
Opportunity analysis in India------
Environmental threats in India-----
Overview---
Opportunities----Power sector, healthcare,
pharmaceuticals, affordable housing, aviation,
infrastructure, farming, entertainment, media,
foods, beverages, spirituality, defense
equipments, mining, oil/ gas.
Consistent growth, foreigners can invest,
relatively stable economy
Existing capacity—unable to meet demand
Overview---
Porters model—
-It determines competitive intensity or rivalry
&
therefore determines attractiveness of the market.
Overview---
Porter---- --Bargaining power of customers
--Bargaining power of suppliers
--Threat of new entrants
---Threat of substitute products
COMPETITIVE RIVALARY IN THE INDUSTRY
OVERVIEW----
Porter---bargaining power of customers
The ability of customers to put the firm
under pressure.
Overview--
Porter—Bargaining power of suppliers
Supply—raw material, intermediates, semi
finished products, labor, expertise
They may either refuse to work with the firm
or charge excessively high prices for the
service
Overview--
Porter– Threat of new entrants
Eg—solar powered lamps, pumps, cookers, solar powered
motor, Bio fuel, Electric vechicles
Profitable markets that yield high returns will
attract new firms. This will eventually decrease
profitability for all the firms in the industry.
The most attractive segment is one where entry barriers are
high and exit barriers are low.—eg products with unique
technology
Eg – Industries of defense equipment, aircrafts
Overview--
Porter– Threat of substitute products
Oral antidiabetic drug – will shake up the market of
diabetic injectables of 500 crores.
Eg Biocon
Electric cars, Bio fuel cars will gradually substitute
petrol & diesel cars.
Fruit based juices are substituting carbonated cold
drinks
Overview--
Porter—Intensity of competitive rivalry always
comes with huge advertisement expenditure
and powerful competitive strategy.
For any company which intends to diversify,
the first fundamental issue is a selection of
industry in which the company should
compete and the company should develop
the model for each line of business.
Overview--
Strategic groups--- Group companies within
an industry have similar business models or
similar combination of strategies
Eg Airline industry
Group companies will have similar business
models or similar strategies based on
variables like----- on time performance ,
economy,safety,customer comfort etc
Overview---
Strategic groups help identify who the most
direct competitors are and on what basis they
compete.
Raises the question of how likely or possible
it is for another organization to move from
one strategic group to another
Overview-
Organizational SWOT
How do u
---- make the most of ur strengths?
---- circumvent ur weakness?
----capitalize on ur opportunities?
-----mitigate ur threats?
Overview-
SWOT analysis enables organizations to
identify both internal and external influences.
SWOT's primary objective is to help
organizations develop a full awareness of all
the factors involved in a business decision
Overview--
SWOT analysis is often used during
strategic planning. It can serve as a basis
to company actions eg---- exploring new
initiatives, making decisions about new
policies, identifying possible areas for
change, or refining and redirecting efforts
towards the goal.
Performing a SWOT analysis is also great way
to improve business operations
Overview—SWOT for the Start up
online business-selling Valey's vintage hats
Start up venture--
Online business that sells unique & affordable
replica of vintage designer hats.
Strengths
Founder has 15 yrs experience in creating &
selling hats.
Low capital requirements– Low overheads & high
customer reach
Founder owns a rare collection of vintage hats to
replicate.
Overview--
Weakness-
Founder has virtually no assistance.
Founder is slogging herself.
Founder has no marketing background
Overview--
opportunities
1) co-promote with other vintage fashion
sellers
2)Can hire few sales people if it reaches
break even.
3)Maximize partnership with alumni of Art
institute of Philadelphia.
Overview--
Threats
Supplier dependent business
Fabric supplier of unique vintage fabric could
go out of business or stop supplying.
A competitor could knock them off from the
market.
Overview--
PFIZER -- Established company
strengths
1)state of the art manufacturing plants
2)Great image in the society, industry
3)well trained, well motivated field force.
4)Excellent team of brand management
5)Huge reserves
6)following all the modern practices, processes,
technology for drug manufacturing
7)Vaccine on Covid gave a big boost
Overview--
weakness
1)does not have strong presence in long
term therapy—eg psychotropic, neuroleptics
category
2)Block buster molecules have not come for a
long time.
3)Products are expensive
Overview--
opportunity
1) scope for more acquisitions & mergers
2)Enter anti cancer therapy
3) can get into nutraceuticals which is a
upcoming field
4) Getting into more vaccines
Overview--
Threats
1)More pressures from governments for
price reduction—the margins will suffer
2)Will meet huge competition from Bio –
similar—will affect MS
Overview--
SWOT for Spicejet---
strengths--
Seasoned professionals
Dynamic Leadership--Ajit Singh
Well trained cabin crew
Dynamic fares
Good spread in the country
Intercative website
SWOT--
weakness-
low cost model so margins are under
pressure
High airfuel cost affects margins.
More rise in fares results in passsengers
going to the competitors
SWOT
Opportunities--
Expansion of Domestic routes
International partnerships
Growing interest of people in tourism
Government supports tourism
SWOT-
Threats--
Change in Government policies
Rise in the fuel cost
Intense competition
