Applications of SWOT tools:
- SWOT analysis for the industry to find business solutions
- SWOT analysis for future strategy planning
- SWOT analysis in product marketing
...
SWOT is used by all companies to position brands, position products and is the most widely used tool in the world in general and Vietnam in particular.
SWOT analysis is to find out the strengths, weaknesses, opportunities and challenges of the Enterprise. This is a very popular tool and is widely applied in the activities of the Enterprise. It can be considered a versatile tool to find solutions to adapt to internal forces and external conditions.
However, with such simple content, most subjective enterprises do not understand and have not fully grasped the uses of this tool. Using SWOT analysis well can fully promote strengths, overcome weaknesses to help the Enterprise overcome challenges. This tool is not only for finding short-term solutions but can also help in planning a long-term plan.
And more than that, PEST Analysis is a useful tool for understanding the “big picture” of the environment in which you operate with the opportunities and threats within it.
By understanding this environment, you can take advantage of the opportunities and minimize the threats.
This tool provides a context in which a more detailed plan can take full advantage of the opportunities available.
Other forms of PEST: PESTLE, PESTLIED, STEEPLE, and SLEPT.
Some people like to use different “versions” of the PEST tool, using different factors for different situations. The variations are:
PESTLE/PESTEL: Political, Economic, Sociological, Technological, Legal, Environmental.
PESTLIED: Political, Economic, Social, Technological, Legal, International, Environmental, Demographic.
STEEPLE: Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical.
SLEPT: Social, Legal, Economic, Political, Technological.
With the aim of providing individuals and businesses with knowledge and methods of applying SWOT & PEST analysis tools, Business Resources organizes a training course on the topic:
“SWOT & PEST ANALYSIS FOR STRATEGIC PLANNING”
TARGET AUDIENCES:
(1) Business management;
(2) Management, training and strategy department staff;
(3) Managers at all levels;
(4) Those interested in researching and analyzing businesses and finding business solutions.
(5) Individuals who want to understand their own abilities and orient their future career.
LECTURER: HO HUU HUNG (MR.)
Work experience:
- More than 17 years of experience working in multinational companies and Vietnamese companies. Previously held positions such as Auditor at Hoa Sen Steel Corporation, Head of Circle K Management Accounting Group, Head of Planning - Management Department at KMart, CEO of Enterprise Resource Consulting Company Limited.
- Participated in teaching for prestigious enterprises in Vietnam such as Hoa Sen Steel, FPT, Circle K, Atad, T&E, Tai Nguyen Mechanical...
- Currently directly participating in managing financial restructuring projects, budget planning at the following companies: VinGroup, Novagroup, ATAD Company Limited, Nguyet Hoa Company Limited, T&E Company Limited, Tai Nguyen Mechanical Company Limited...
Consulting expertise: Accounting - finance, Strategic planning, Budget and budget control, Internal audit, Sales, Marketing, IT, Human resources.
What is PEST Analysis?
I/ Definition of PEST Analysis
The process of evaluating an organization’s environment is extremely important before initiating marketing activities. It is essential to continuously analyze the environment and cover all aspects of the plan. The marketing environment of an organization comprises:
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Internal environment: Includes employees, office technology, salaries, financial framework, etc.
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Microenvironment: Encompasses customers, agents, distributors, suppliers, and external competitors.
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Macroenvironment: Includes political (legal), economic, social, and technological forces. These are collectively referred to as PEST factors:
- Political factors (P)
- Economic factors (E)
- Social factors (S)
- Technological factors (T)
II/ How to Use the PEST Tool
a) Political Factors
The political arena has a significant impact on business regulations, consumer spending, and industries. Political factors include the following:
- How stable is the political environment?
- Will government policies influence regulations or impose taxes on your industry?
- What is the government’s attitude toward marketing ethics?
- What are the government’s economic policies?
- Does the government have views on cultural or religious issues?
- Is the government involved in trade agreements like WTO, ASEAN, etc.?
b) Economic Factors
Marketers need to understand both short-term and long-term economic conditions. This is especially true when planning international marketing strategies, where considerations include:
- Interest rates.
- Inflation/employment levels per capita.
- Long-term economic prospects and GDP per capita.
c) Social Factors
Cultural and societal influences on business vary by country. It is crucial to recognize factors such as:
- Which religion dominates?
- What are local attitudes toward foreign products and services?
- Does language affect the introduction of products into the market?
- How much leisure time do consumers have?
- What roles do men and women occupy in society?
- Are there clear or vague attitudes toward environmental issues?
d) Technological Factors
Technology is vital for competitive advantage and a key driver of globalization. Considerations include:
- Can technology make products and services cheaper and improve quality?
- Does technology provide consumers and industries with more advanced services and products (e.g., internet banking, new-generation mobile phones)?
- Is technology changing distribution methods (e.g., selling books online, auctions)?
- Does technology enable companies to communicate with customers in new ways, such as banners and CRM systems?
III/ Why is PEST Analysis Important?
Although simple, PEST Analysis is an important and widely used tool that helps us understand the broader environmental context by focusing on Political, Economic, Social, and Technological issues.
Businesses around the world use PEST to shape their vision of the future. Key reasons for its importance include:
- First, effective use of PEST Analysis ensures your actions align with the powerful forces of change shaping our world. By leveraging these changes, you are more likely to succeed than resist them.
- Second, proper application of the PEST tool helps you avoid decisions that may lead to failure due to external, uncontrollable factors.
- Third, PEST is particularly useful when starting a business in a new country or region. It helps you escape unconscious assumptions and quickly adapt to the realities of the new environment.
IV/ Conclusion
PEST Analysis is a valuable tool for understanding the “big picture” of the environment in which you operate, identifying opportunities and challenges.
By understanding this environment, you can capitalize on opportunities and minimize challenges. This tool provides the context within which detailed plans can fully exploit available opportunities.
Variants of PEST:
- PESTLE/PESTEL: Political, Economic, Sociological, Technological, Legal, Environmental.
- PESTLIED: Political, Economic, Social, Technological, Legal, International, Environmental, Demographic.
- STEEPLE: Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical.
- SLEPT: Social, Legal, Economic, Political, Technological.