This document discusses factors of a firm's internal and external environment that can influence its operations. It describes the internal environment as comprising of plans and policies, human resources, corporate image, financial resources, plant and machinery, labor and management relations, and the promoter's vision. The external environment includes political, economic, social and technological factors according to PEST analysis. It defines a PESTLE analysis as evaluating outside influences on a business like political, economic, social, technological, legal and environmental factors. A SWOT analysis examines both internal strengths and weaknesses as well as external opportunities and threats.

1. FORCE/ELEMENTS OF THE
FIRM'S
ENVIRONMENT

2. Business
Environment
- The combination of
internal and external
factors that influence
a company's operating
situation.

3. TWO BUSINESS ENVIRONMENTAL
FACTORS
Internal Environment- Is a component of the
business environment, which is composed of
various elements present inside the organization,
that can affect or can be affected with, the
choices, activities and decisions of the
organization.
External Environment- Are unpredictable
and uncontrollable they are beyond the
control of the company.

4. FACTORS OF
INTERNAL
ENVIRONMENT

5. FACTORS OF INTERNAL
ENVIRONMENT
Plans and Policies- The plans and policies of
the firm should be properly framed taking into
consideration the objectives and resources of the
firm.
Human Resource- the survival and success of
the firm largely depends on the quality of
resources.
Corporate Image- A firm should develop,
maintain and enhance a good corporate image in
the minds of employees, investors, customers
etc.

6. FACTORS OF INTERNAL
ENVIRONMENT
Financial Resource- Capital is the lifeblood
of every business.
Plant and Machinery- Plant and
Machinery is the internal part of the
business firm.
Labor and Management- Is the interaction of
employees, their exclusive representatives,
and management to resolve, bilaterally,
concerns affecting the working conditions of
bargaining unit employees.

7. FACTORS OF INTERNAL
ENVIRONMENT
Better Labor- Management relationship
helps in increasing the morale of the
employees and motivates them to put
efforts in the business.
Promote's Visions- The promoter should
have far sight vision to forecast
opportunities and threats in the business so
that the opportunities are properly grabbed
and threats are diffused off in time.

8. EXTERNAL ENVIRONMENT
- According to William Gluek and
Jauk
" In environment there are several
factors which constantly bring
opportunities and threats to the
business firm. It includes social,
economic, technological and political
conditions".

9. PEST ANALYSIS

11. Political Factor Economic Factor
According to to the labor code of
the Philippines (President Decree
No. 442), every employee shall be
paid a night shift differential of not
less than (10%) of his regular
wage for each hour of work
performed between ten o'clock in
the evening six o'clock in the
Imports will be more
expensive (any imported
good or raw material will
increase in price).

12. Social Factor
Technological Factor
The use of Facebook page to
increase the marketability of
the product.

13. S u m m a r i z e t h e
force/elements of firms
environment using the
pest and swot analysis

14. What is a PESTLE and
SWOT Analysis?
A PESTLE analysis is used to
evaluate the outside factors that
affect a business:
Political- governmental activities and
political conditions that may affect your
business.

15. Economic- economic factors affect the
purchasing power of customers; e.g.
economic growth, interest rates, exchange
rates, inflation rate.
Social- includes demographic and cultural
aspects of the external macro-environment;
e.g. health consciousness, population, age
distribution.
Technology- Evaluate your company's current
technology. Is it up-to date?

16. Legal- Anticipate any new laws and
regulations that can impact your
operations.
Environment- Identify the environmental
factors that should be considered.

17. Below is an example of a PESTLE Analysis of
Starbucks.

18. SWOT ANALYSIS - while PESTLE
Analysis only evaluates the outside
factors that can affect the business,
SWOT examines both the internal and
external business environment; where:
Strengths- refers to internal
competencies possessed by an
organization that will enable it to
achieve its objectives.

19. Weaknesses- refers to the areas that
limits the organization's overall
success.
Opportunities- refers to the external
trends and events that can benefit the
organization in the future.
Threats- refers to the trends and events
that are potentially harmful to the
organization's present and future
position.

20. Below is a SWOT Analysis of Starbucks.

21. T H A N K S