SENIOR

HIGH

SCHOOL

ORGANIZATION &

MANAGEMENT

Quarter 1

Self-Learning Module

8 PESTLE AND SWOT ANALYSIS

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Organization & Management – Grade 11 Quarter 1– Self-Learning Module 8: PESTLE AND SWOT ANALYSIS

First Edition, 2020 Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or office may, among other things, impose as a condition the payment of royalties. Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.) included in this module are owned by their respective copyright holders. Every effort has been exerted to locate and seek permission to use these materials from their respective copyright owners. The publisher and authors do not represent nor claim ownership over them. Published by the Department of Education Division of Pasig City

Printed in the Philippines by Department of Education – Schools Division of Pasig City

Development Team of the Self-Learning Module

Writer: Rizza V. Tamayo

Editors: Ronie B. Basinang,EdD/Edna D. Camarao,PhD

Reviewers: Content / Language: Ronie B. Basinang,EdD/Edna D. Camarao,PhD

Technical:

Illustrator:

Layout Artist:

Management Team: Ma. Evalou Concepcion A. Agustin

OIC-Schools Division Superintendent

Aurelio G. Alfonso EdD

OIC-Assistant Schools Division Superintendent

Victor M. Javena EdD

Chief, School Governance and Operations Division and

OIC-Chief, Curriculum Implementation Division

Education Program Supervisors

Librada L. Agon EdD (EPP/TLE/TVL/TVE) Liza A. Alvarez (Science/STEM/SSP) Bernard R. Balitao (AP/HUMSS) Joselito E. Calios (English/SPFL/GAS) Norlyn D. Conde EdD (MAPEH/SPA/SPS/HOPE/A&D/Sports) Wilma Q. Del Rosario (LRMS/ADM) Ma. Teresita E. Herrera EdD (Filipino/GAS/Piling Larang) Perlita M. Ignacio PhD (EsP) Dulce O. Santos PhD (Kindergarten/MTB-MLE) Teresita P. Tagulao EdD (Mathematics/ABM)

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PESTLE AND SWOT ANALYSIS

Organization & Management

SENIOR

HIGH

SCHOOL

Self-Learning Module 8

Quarter 1

4

Introductory Message

For the facilitator:

Welcome to the Organization & Management for Grad 11 Self-Learning

Module on PESTLE AND SWOT ANALYSIS

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its

Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.

Agustin, in partnership with the City Government of Pasig through its mayor,

Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K

to 12 Curriculum using the Most Essential Learning Competencies (MELC) in

developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims

to help learners acquire the needed 21st century skills especially the 5 Cs, namely:

Communication, Collaboration, Creativity, Critical Thinking, and Character while

taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the

body of the module:

As a facilitator you are expected to orient the learners on how to use this

module. You also need to keep track of the learners' progress while allowing them

to manage their own learning. Moreover, you are expected to encourage and assist

the learners as they do the tasks included in the module.

Notes to the Teacher

This contains helpful tips or strategies

that will help you in guiding the learners.

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For the learner:

Welcome to the Organization & Management Self-Learning Module on

PESTLE AND SWOT ANALYSIS

This Self-Learning Module was designed to provide you with fun and

meaningful opportunities for guided and independent learning at your own pace

and time. You will be enabled to process the contents of the learning material while

being an active learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measure how much you have learned from the

entire module.

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PESTEL AND SWOT ANALYSIS

EXPECTATIONS

At the end of the module, you are expected to:

1. identify what is PESTEL and SWOT Analysis;

2. analyze various forces using PESTEL and SWOT Analysis;

3. appreciate the importance of PESTEL and SWOT Analysis in

environmental scanning; and

4. apply SWOT analysis as a guide in making your own PERSONAL SWOT

Analysis worksheet.

PRETEST

Directions: Read the sentence carefully and choose the letter of the best

answer. Write your answer on the blank provided before the number.

___________ 1. It accounts for all the influences that a government may have upon the

business environment, including business cycles, the economy at large, and

individual business industries.

A. Political B. Socio-cultural

C. Environmental D. Technological

___________ 2. This charts the analysis of cultural trends, demographical determinants,

and age distribution.

A. Political B. Social

C. Environmental D. Technological

___________ 3. It represents the internal factors of the SWOT Analysis.

A. Strengths and Opportunities B. Strengths and Weaknesses

C. Strengths and Threats D. Opportunities and Weaknesses

__________ 4. It represents the external factors of the SWOT Analysis.

A. Opportunities and Strengths B. Opportunities and Weaknesses

C. Opportunities and Threats D. Strengths and Weaknesses

_________ 5. Inflation rates, interest rates, economic growth, demand and supply

trends are all analyzed under this head.

A. Economic B. Social

C. Environmental D. Technological

MODULE

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RECAP

Let’s take a review by answering the following questions:

1. What is cultural intelligence?

2. Differentiate between the local and international environment of the firm?

3. What are the benefits and challenges of globalization?

LESSON

Every company in a business has certain frameworks that they follow

to understand the market they are catering to. They usually keep on checking the

nerve of the market where they want to focus their products. If a company wants to

operate effectively and achieve their organizational goals, they need to study the

environment and analyze how to respond to the forces and elements that they

interact with. This process called environmental scanning, which includes careful

monitoring organization’s external and internal environments for detecting early

signs of opportunities and threats that may influence its current and future plans.

There are two ways on how to scan and analyze a firm’s environment. One is

by doing a PEST analysis and the other is by doing SWOT Analysis.

PEST Analysis, or short for “Political, Economic, Social, Technological

Analysis” a tool that describes how macro-environmental factors influence the

operation, decisions, and directions of firms, businesses, or organizations. Aside

from environmental factors, modern management practitioners have added Legal

and Environmental as part of the analytical tool, thereby giving it an alternative

name of PESTLE Analysis.

Political: It accounts for all the influences that a government may have upon

the business environment, including business cycles, the economy at large, and

individual business industries. Tax reforms, fiscal policies, and trade tariffs

form part of this analysis.

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Economic: This analysis the economy as a whole and its performance owing to

global trends and long-term effects that may be evident. Inflation rates, interest

rates, economic growth, demand and supply trends are all analyzed under this

head.

Social: This charts the analysis of cultural trends, demographical determinants,

age distribution, etc.

Technological: This analysis of the technological trends of the business

environment. It accounts for the rate at which the innovations are occurring

and how directly and indirectly they’re influencing the business you’re in.

Legal: Some many laws and policies that directly impact way your business is

run and the decisions that fuel its momentum. These laws can be social laws,

regulatory laws, certain standards that need to be met, and other such laws.

Environmental: Your business has effects in the environment it operates in,

therefore you need to analyze in depth what implications your business might

be having on it. On the other hand, the environment also influences your

business directly or indirectly especially the tourism, farming, or agriculture

business. Therefore, these factors account for the geographical location,

weather, climate, etc. but are not just limited to the study of these only.

PESTLE Analysis is useful for four main reasons:

1. It helps spot business or personal opportunities and gives advanced

warnings of significant threats.

2. It reveals the direction of change within the business environment. This

helps businesses shape what they are doing so that they work with change

rather than resist it.

3. It helps avoid starting projects that are likely to fail for reasons beyond

control.

4. It can help businesses break free of unconscious assumptions when they

enter a new country, region, or market because it helps develop an objective

view of the new environment.

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Another useful tool used in environmental analysis is the SWOT Analysis,

which is short for “strengths, weaknesses, opportunities, and threat analysis.” It

involves specifying the objectives of the firm and identifying the internal and

external factors that are both favorable and unfavorable to achieve the objectives.

SWOT Analysis is important because it can help decision-makers determine

whether a particular objective must be selected and the analytical process is

repeated.

SWOT Analysis begins with a systematic evaluation of a firm’s resources and capabilities, which are its basic strengths and weaknesses.

Strengths refer to characteristics of the business that give it an advantage over others and enable it to do what it does exceptionally well over others. Weaknesses, on the other hand, refer to characteristics that place the business at disadvantage relative to others and that hold the organization back from fully accomplishing its objectives.

The organization should also identify the external factors in its environments that could potentially provide opportunities or threats to the firms.

Opportunities refer to the elements that the firm could use to its advantage. Threats, in contrast, refer to elements in the environment that could cause trouble or setbacks to the firm.

Strengths and Weaknesses represent the internal factors of the SWOT Analysis, whereas Opportunities and Threats represent the external factors.

Figure 1 shows an illustrative framework of SWOT Analysis.

https://www.differencebetween.com/difference-between-swot-and-vs-

pestel-analysis/

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ACTIVITIES

Activity 1: PERSONAL SWOT ANALYSIS

Directions: Using yourself as an example of an entity, perform SWOT Analysis, and

fill out the Personal SWOT Analysis Worksheet below. Be honest in assessing your

strengths, weaknesses, and use introspection in performing the said analysis. You

may choose to use a separate piece of paper for your answers if necessary.

Once you are done, share your answer with the class.

PERSONAL SWOT ANALYSIS

STRENGTHS WEAKNESSES

What do you do well? What unique resource can you draw on? What do others see as your strengths?

What could you improve? Where do you have fewer resources than others? What are others likely to see as your weaknesses?

OPPORTUNITIES THREATS

What opportunities are open to you? What trends could you take advantage of? How can you turn your strengths into opportunities?

What threats could harm you? What is your competitor doing? What threats do your weaknesses expose you too?

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WRAP UP

Let’s wrap up!!

Directions: Enumerate the following:

1. PESTLE stands for

______________________________ _____________________________

______________________________ _____________________________

______________________________ _____________________________

2. SWOT short for:

_______________________________ ____________________________

_______________________________ ____________________________

VALUING

Point of Reflection

SWOT and PESTLE analysis are useful tools for decision-makers when

evaluating the pros and cons of a project or initiative. The analysis can be applied

to a range of large and small projects to identify factors may that affect success.

How can you use the PESTLE and SWOT Analysis in your life as a student?

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

POSTTEST

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Directions: Read the statement carefully and identify it. Write your

answer inside the box.

1. Characteristics of the business that give it an advantage over others and enable

it to do what it does exceptionally well over others.

2. The element in the environment that could cause trouble or setbacks to the firm.

3. It influences your business directly or indirectly especially the tourism, farming,

or agriculture business.

4. It accounts for the rate at which the innovations are occurring and how directly

and indirectly they’re influencing the business you’re in.

5. A tool that describes how macro-environmental factors influence the operation,

decisions, and directions of firms, businesses, or organizations.

*********

KEY TO CORRECTION

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R E F E R E N CE S

A. Books

Ng, Mark Francis G. “Organization and Management” Anvil Publishing, Inc,

2017; page 47-49

B. Website

https://pestleanalysis.com/pestle-and-swot-analysis/

https://www.linkedin.com/pulse/how-conduct-pestle-swot-analysis-byron-gray

https://www.differencebetween.com/difference-between-swot-and-vs-pestel-analysis/