KYLA J.
DELA CRUZ OCTOBER 31, 2022
BSCE -3A GEE12D – ENTREPRENEURIAL MINDSET
ACTIVITY 2
1. ENVIRONMENTAL SCREENING AND ITS IMPORTANCE
Marketing is an essential component of businesses in almost every industry. Marketers employ
various tools and techniques to appeal to a specific audience and evaluate potential customers' interests.
One technique that is usually used in the development of new marketing strategies is environmental
scanning.
Environmental scanning requires investigating external sources and factors that have an impact on
a company's internal operations. Its goal is to identify potential sources to consult with or think about when
making business decisions. It is used by those involved in the decision-making process, such as company
leaders and executives, to understand issues that may have an impact on the business as a whole. While
many business leaders focus on market conditions and their industries, it is also important to consider social
shifts, regulations, and emerging technologies. By performing regular environmental scanning and sharing
the results with the leadership team, marketing professionals can provide insights into the environment in
which a business operates.
Regular environmental scanning is essential for organizations of all sizes and industries. This
enables them to identify potential threats and opportunities, as well as the business's and its competitors'
strengths and weaknesses. Knowing more about these aspects of a business and the environment in which
it operates can assist leaders in making decisions as well as those involved in the business's strategy.
This approach is also beneficial to marketing departments because it allows marketers to learn more
about competitors' strategies. When marketing a product or service, it is often necessary to position that
offering as stronger or more appealing than anything available from competitors, so scanning the
environment can help you learn more about competitor actions and use that information in the positioning
strategy. Environmental scanning data can also play an important role in the long-term strategy of the
business, including any plans to scale or grow.
2. SWOT AND PESTLE ANALYSIS
SWOT Analysis
A SWOT analysis examines four areas in the business environment:
• Strengths: Identify the advantages that your business has over the competition.
⎯ Your marketing approaches
⎯ Your location or equipment
⎯ Your financial resources and investors
⎯ The strength of your internal team
⎯ The quality of your product or service
• Weaknesses: Be honest about the weaknesses in your operations.
⎯ Lack of funding
⎯ The size of your target audience
⎯ Production overhead
⎯ Customer churn
⎯ High employee turnover
• Opportunities: Identify the external trends that you can take advantage of.
• Threats: Assess the outside conditions that may be obstacles and have a negative impact on
business
⎯ Market trends
⎯ Economic trends
⎯ Funding/financial resources
⎯ Demographics of customers
⎯ Political, environmental, and economic regulations
SWOT analysis is best performed when your business is new, is having difficulty meeting
performance standards without a clear understanding of why, or is otherwise gearing up for a significant
change, such as:
o Launching a new initiative
o Revamping internal policies
o Pivoting business direction
o Changing a plan during its execution
A SWOT analysis will help you determine your business’s strengths and weaknesses while
allowing you to identify opportunities that your company can use to make bigger profits. Use a SWOT
analysis when are trying to determine how both internal and external factors that influence your
company’s performance.
Taking the time to do a SWOT analysis can help you identify and then improve your own internal
practices and processes before attempting a new venture.
PESTLE ANALYSIS
A PESTLE analysis is used to evaluate the outside factors that affect a business:
• Political: Determine how the current direction of the political parties may influence business
development and growth.
• Economic: Examine the effects of interest rates, taxes, the stock market, consumer confidence and
other economic metrics.
• Social: Acknowledge the changes in lifestyles, advertising targets, ethics, demographics and
culture.
• Technology: Evaluate your company's current technology. Is it up-to-date?
• Legal: Anticipate any new laws and regulations that can impact your operations.
• Environment: Identify the environmental factors that should be considered.
Use a PESTLE analysis to evaluate how the decisions your company makes or the direction in which
your company wants to move fits in within the very real influencing factors of the outside world. It can
identify threats before they impact your company and help you understand when to avoid starting projects
that are likely to fail based on external factors. Through a PEST analysis, you’ll be able to make an objective
decision about any new venture, especially if it is entering a new country, region, or market.
