This document provides an analysis of SWOT, Porter's 5 Forces, PEST, and value chain analysis models. It discusses the history, purpose, advantages, limitations, and utility of each model. For SWOT, it examines the components of the model and how to conduct a SWOT analysis. For Porter's 5 Forces, it compares and contrasts it with SWOT analysis. For PEST, it outlines the macroenvironmental factors analyzed. And for value chain analysis, it gives a brief introduction to the three-step process.

1. Assignment # 1
(Entrepreneurship)
Naveed Ahmed (BSEE13035)
Instructor
Mr. Nabeel Qadeer
(Electrical Engineering Department)
1

2. Assignment Statement
 SWOT analysis
 Porter's 5 forces
 PEST analysis (NOT PESTEL)
 Value Chain Analysis
2
Conduct a research on following analysis

3. SWOT Analysis
3
What is meant by SWOT?
“SWOT” represent following four factors;
 S stands for what things are Satisfactory for
organization at present.
 W means what are weakness in the organization that
can become source of hindrance in the performance
of organization.
 O denotes what Opportunities can be explored in the
future,
 T means Threats that could surface in the future
Finally, SWOT analysis is a method by which the
organization’s management do analysis about strengths,
weaknesses, opportunities and threats that can affect
performance of organization.

4. SWOT Analysis
4
History & Creation of Swat Model
 No, doubt! each organization wants to improve its
performance and increase revenue. It is a challenge for
organization . They use different methods like analysis,
examinations and evaluation methods etc.
to do this.
 “SWOT” Model is a source to fulfill challenge.
 Developed by “Albert Humphrey” at the Stanford University
 Albert S. Humphrey was an American business and
management consultant who specialized in organizational
management and cultural change. [1]
 SWOT became a analytical tool to find right strategy for
successful development of organization.
1- https://rapidbi.com/swotanalysis/#.Vo0mLvl97IU

5. SWOT Analysis
5
Purpose of Model
 Analyze Internal Factors
 Strengths or weakness and their impact on company’s
objectives.
 Analyze External Factors
 Make improvements in product/service by viewing
macroeconomic matters, technological change,
and socio-cultural changes, as well as changes in the
marketplace or competitive position.
http://www.free-management-ebooks.com/dldebk-pdf/fme-swot-analysis.pdf

6. SWOT Analysis
6
Advantages
 Problem Domain
 SWOT analysis can be applied to an organization,
organizational unit, individual or team.
 Universal Application
 Same analysis is used to support strategic planning,
opportunity analysis, competitive analysis, business
development or product development processes.
 Simplicity
 SWOT analysis requires neither technical skills nor
training.
SWOT Analysis - Idea, Methodology and a Practical Approach; Nadine Pahl and Anne Richter

7. SWOT Analysis
7
Limitations of Model
 SWOT model can generates too many ideas but can not
help you choose which one is best
 SWOT model can produce a lot of information, but not all
of it is useful.
http://preview.tinyurl.com/zj4ojhx

8. SWOT Analysis
8
Utility of SWOT
 Set objectives: what are intentions of organizations?
 Environmental Analysis: Assessment of performance of
employee.
 Product evaluation: Assessment of product.
 Competitor evaluation
 Preparation: Implementation of new strategies.
 Monitoring results, mapping against plans and taking
corrective actions.
References:
1- Book named as “The SWOT Analysis”
Written by Anja Bohm
Image Reference:
2-http://tinyurl.com/h4cz5gt

9. Porter's 5 forces
9

10. Porter’s Five Forces
10
What are Porter Five Forces
 Poster 5 forces include
 Barrier to new entrance
 Threat of substitute
 Suppliers Power
 Buyers Power
 Competitors
Source: http://www.kstoolkit.org/Porter%27s+Five+Forces+Analysis

11. Porter’s Five Forces
11
History & Creation of Porter’s Five Forces
Michael E. Porter introduced concepts of five forces during
working for the Harvard Business School and the Boston
Consulting group. Their work was about establish strategies
about competitors in market. They applied macroeconomics
principles and business strategies to develop these forces.
Developed as reaction to SWOT analysis
Linked with the value chain and other generic strategies
developed by porter
Based on structure conduct performance system in industrial
organization system
Applied to diverse range of problems.
Source: World Report Fall 2006: The Value Chain Approach; Strengthening Value Chains to Promote Economic
Opportunities. Available at: http://www.acdivoca.org/852571DC00681414/ ID/resources_worldreportfall06

12. Porter’s Five Forces
12
Purpose of Model
 What is industry structure and its competition level?
 Industry can find out its strength and position in market and
can produce ability to sustain profit by identifying these forces
 Maximize profit
 Compete with rival
 How to make strategies to hinder your customer to shift from
your product to your competitor's product.

13. Porter’s Five Forces
13
Advantages
 Maximize Revenue
 By applying this analysis we can increase profit of
industry.
 Competition Analysis
 We can affect competition of market just understanding
five forces.
 Macro-Economics Analysis
 You can analyze market at macro level.

14. Porter’s Five Forces
14
Limitations of Model
 Time Expensive
 Analyzing all five forces in complicated industries
requires too much time and resources to be practical.
 No Information About Joined or Partnership Business
 The model also does not consider that companies may
work together in alliances, pooling information and
other resources.
 Porter made the assumption when designing his model
that markets would stay fairly stable, not taking into
account technological advances or increasing competition
from international market entrants.
Source: http://preview.tinyurl.com/ha2ura5

15. Porter’s Five Forces
15
Utility
 It helps us to analyze our current industrial strength in market
and our competitor strength in market.
 It also helps us to strengthen out position in market.
 It can also be used in following type analysis;
 Statistical Analysis
 Dynamical Analysis
 Analysis of Option
 With proper understanding of porter forces we can take fair
advantage of strengthen portion of industry and can more
focus on its weak point to make progress.
Source: Article Named “Porter’s Five Forces Analysis” by Bilal Ahmed

16. 16
Difference between SWOT and
Porter’s Five Forces Analyses
From whole above discussion I found some difference;
 The major distinction is that Porter's five forces are used to
analyze the competitive environment within an industry, often
focusing on external forces,
SWOT analysis tends to look more deeply within an
organization to analyze its internal potential.
 Porter's five forces are also generally more of a micro tool,
while SWOT analysis is comparatively macro.

17. PEST Analysis
17

18. PEST Analysis
18
PEST Analysis Define
A PEST analysis is an analysis of the external
macro-environment that affects all firms.
PEST is mnemonic of following four words that
major factors of macro-environment.
P = Political
E = Economical
S = Social
T = Technological
Source: https://www.mindtools.com/pages/article/newTMC_09.htm

19. PEST Analysis
19
History & Creation of PEST Analysis
Francis J. Aguilar a business environment analyzer introduced
concept of ‘ETPS’ in 1967
E = Economic
T = Technological
P = Political
S = Social
Later on Arnold Brown for the Institute of Life Insurance
arranged it ‘STEP’ (Strategic Trend Evaluation Process).
In 1980 some other authors organized it as “PEST”.
Source: http://pestleanalysis.com/what-is-pestle-analysis/

20. PEST Analysis
20
Purpose of Model
 It is very important model because it deals with macro-
environment that is not in our control
 Its purpose is to aware organization to about following things;
 What will be effect on performance of organization if
government impose tax on raw material or import or
export of raw material etc?
 What will be effect on performance of organization if
economical condition of country changes .(i.e. inflation
increases) in such case what an organization will have to
do to handle situation).
 No doubt! These factors are not in our control we have 0%
control on it but we can take proper step to reduce failure rate
etc. And this is possible because of PEST analysis.
 To make strategies in case of ups and downs in macro-
environment.

21. PEST Analysis
21
Advantages
 It helps you to spot business or personal opportunities,
and it gives you advanced warning of significant threats.
 It reveals the direction of change within your business
environment. This helps you shape what you're doing, so
that you work with change, rather than against it.
 It helps you avoid starting projects that are likely to fail,
for reasons beyond your control.
 It can help you break free of unconscious assumptions
when you enter a new country, region, or market; because
it helps you develop an objective view of this new
environment.

22. PEST Analysis
22
Limitations of Model
 Uncertainty
 .The external factors considering during PEST
analysis are dynamic. They can vary at any time.
There is not any exact time for their changes. There
always exist some uncertainty.
 Time And Cost Expensive
 To do analysis we need a lots of data. To collect a lot
data we need a lot sources. In addition to this we also
have to contact external institutes for getting
information. That’s why it is a time and cost expensive
Source: http://preview.tinyurl.com/ha2ura5

23. PEST Analysis
23
Utility
 It helps us to analyze macro-environment.
 We can use it to make strategies to overcome loss of industry
due to effect on performance of organization due to effect of
political interference, economical declination, technological
improvements or any sociological problem.
 Produce new opportunities.
 For example, opportunities come by introducing new
technology.
Souirce: http://www.free-management-ebooks.com/faqst/pestle-09.htm

24. Value Chain Analysis
24

25. Value Chain Analysis
25
Introduction
 A tool to find out how you can produce great
possible value for the customer
 It is three step process
 Activity Analysis
 Which activity your are gong to do. (i.e.
which thing you are going to make)
 Value Analysis:
 Find out better way to produce great
value for your customer.
 Planning
 Working started
Source: https://www.mindtools.com/pages/article/newTMC_10.htm

26. Value Chain Analysis
26
History & Creation of Value Chain Analysis
Michael Porter introduced Value chain concept in1980s
 Gereffi (1990s) Chains Concept
Linking households, enterprise with one another and
world economy.
Morvan (1985s)
Mesco-economy; interdependence; technologies change
along chain
Three main type analysis
Technical or Physical
Economical
Organizational
Source: https://www.mindtools.com/pages/article/newTMC_10.htm

27. Value Chain Analysis
27
Purpose of Model
 To create great value for customer.
 Achieving maximum process effectiveness.
Understand how a portion of the economic system works and
could better work.
To make better service and marketing services to improve
produce and customer relations.
Enhance Revenue and Profit
Globalization supply and product
Source: Cite Man: What are the benefits of value chain management?

28. Value Chain Analysis
28
Advantages
 To create or strengthen comparative advantage in
market
Increase overall profit
Company find outs it specific values in which that is
expert
Company looks way for more efficiencies.
Source: http://preview.tinyurl.com/j9pmayf

29. Value Chain Analysis
29
Limitations of Model
 Difficulties in finding data about costs, assets, and
revenues of the value chain activities.
 Porter’s value chain model include its heavy orientation
towards the manufacturing business which makes it hard
for other types of business to understand.
 Since the model is not easy to understand and is used
nowadays by its own experts, it is more likely that it will
face resistance from managers in its implementation.
Source: http://preview.tinyurl.com/guz5wck /

30. Value Chain Analysis
30
Utility
 Marketing
 Increasing Customer Strength
 Maximize Profit
 Analysis of Competitor
Souirce: http://www.tutor2u.net/business/reference/value-chain-analysis