This presentation focuses on organizational environments.Emphasis is on knowledge and understanding for the following: 1. Organizational environment 2. Macro vs. Micro environment 3. PESTEL Analysis 4. SWOT Analysis

1. THE ORGANIZATION AND
IT’S ENVIRONMENT
Marikriz M. Paulino, MBA
MANAGEMENT

2. Businesses operate in 3 different environments
Macro
Market
Micro
Analyzing the external and internal environment can help a
firm to formulate its strategy in order to gain competitive
advantage.
ORGANIZATIONAL ENVIRONMENT
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3. MICRO AND MACRO ENVIRONMENT
Customer
Competitor
Public
Marketing
Intermediaries
Supplier
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COMPONENTS
• Client
• Buyer
• Consumer
• Wholesaler
• Retailer
• Agent
• Broker
• Direct
• Indirect

4. PEST AND SWOT ANALYSIS
olitical environment /legal environment
conomic environment/natural environment
ocio/cultural environment demographics
echnological environment
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A PESTEL analysis or more recently named PESTELE is a framework or
tool used by marketers to analyze and monitor the macro-
environmental (external marketing environment) factors that have an
impact on an organization. The result of which is used to identify
threats and weaknesses which are used in a SWOT Analysis.

5. POLITICAL/LEGAL ENVIRONMENT
This environment is composed of laws, government agencies,
and pressure groups that influence and limit various
organizations and individuals in society.
Laws
Property
Rights
Patents Political
Stability
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6. ECONOMIC/NATURAL ENVIRONMENT
The deteriorating condition of the natural environment is
a major issue facing business and the public.
• Shortage of raw materials
The earth’s materials consist of the infinite (air and water),
the finite renewable (forest and foods) and the finite non-
renewable (oil, coil, platinum, zinc, silver)
• Increased cost of energy
• Increased levels of pollution
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7. SOCIO/CULTURAL VALUES DEMOGRAPHICS
The society that people grow up in shapes their basic beliefs,
values and norms.
As society and culture change, businesses must adapt to stay
ahead of their competitors and stay relevant in the minds of
their consumers.
Values Language
Religion
Human Rights
Demographics
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8. TECHNOLOGICAL ENVIRONMENT
One of the most dramatic forces shaping people’s lives is
technology. Every new technology is a force for “creative
destruction”.
The economy’s growth rate is affected by how many
major new technologies are discovered.
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9. A SWOT analysis guides to identify the positives and
negatives inside of an organization (Strength &
Weakness)
It also identify the positive and negative outside of an
organization (Opportunity & Threat)
It helps in strategic planning and decision making
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10. SWOT ANALYSIS
External Analysis
ThreatStrength Weakness Opportunities
Internal Analysis
Helpful Harmful Helpful Harmful
S-O
strategies pursue
opportunities that
are a good fit to
the company’s
strength
W-O
strategies
overcome
weaknesses to
pursue
opportunities
W-T
strategies establish a
defensive plan to
prevent the firm’s
weaknesses from
making it highly
susceptible to
external threats
S-T
strategies identify
ways that the firm
can use its strengths
to reduce its
vulnerability to
external threats
m
a
t
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11. References:
 Raw pictures by Google Image
 Wikipedia
 Series of presentation in management
END OF THE SLIDE
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