APPLIED ECONOMICS Grade 12 for QUARTER 2.pptx

AE Quarter 2

1. Applying business principles, tools, and techniques in participating in various types of industries in the locality SWOT Analysis TOWS Matrix PESTLE/PESTEL PORTER’s FIVE FORCES

2. SWOT Analysis It is a simple and practical framework for identifying strengths, weaknesses, opportunities, and threats that a company faces. It is essential to leverage strengths, minimize threats, and to take advantage of available opportunities. Conducting a SWOT analysis is useful for strategic planning and for determining the objectives of a company.

3. How to conduct the SWOT Analysis? Identify the Strengths of an internal and consumer perspective. Identify the Weaknesses of an internal and consumer perspective. Identify the Opportunity from an external perspective. Identify the Threats from an external perspective Establish the priorities form the SWOT INTERNAL FACTORS EXTERNAL FACTORS

4. INTERNAL FACTORS Financial resources Physical resources Human resources Access to natural resources, trademarks, patents, and copyrights Current processes

5. EXTERNAL FACTORS Market trends (new products, technology advancements and shifts in audience needs) Economic trends (local, national, and international financial trends) Funding (donations, legislature, and other sources) Demographics Relationships with suppliers and partners Political, environmental, and economic regulations

6. TOWS Analysis It is a way of taking a SWOT Analysis further, to provide actionable links between the different parts of your business and environment.

7. It's all about the four key factors, as follows: Strengths/opportunities (SO): how will you use your strengths to capitalize on your opportunities? Weaknesses/opportunities (WO): which weaknesses do you need to overcome to exploit your opportunities? How will you overcome these weaknesses? Strengths/threats (ST): how will you use your strengths to overcome external threats? Weaknesses/threats (WT): which weaknesses are especially vulnerable to threats and need attention?

8. PESTLE/PESTEL The acronym stands for Political, Economic, Social, Technology, Environment, and Legal PESTLE/ PESTEL reveals opportunities and threats better than SWOT, the direction of business change, projects that will fail beyond your control, and country, region, and market issues through helping you create an objective view.

9. POLITICAL FACTORS Is there any expected Elections on State and National Level and how it shifts government policies? Who are the upcoming contenders for power? What is their plan for Business policy and regulation? What is the current and impending legislative changes? What are the other political factors and when they might change?

10. ECONOMIC FACTORS What is the current disposable income of customer and how it can change it the upcoming years? Currently, the economy is stable or not. It is a growing economy, declining and a stagnating economy Whether the exchange rate is stable or not. What is the tendency of fluctuation? What are the prevailing criteria of credit availability, how the credit criteria affect the business? What the prevailing unemployment rate? Will it be easy to hire the desired staff required? You can consider many other factors according to the environment.

11. SOCIAL FACTORS Do you know about the overall population, there is a growth or contraction in the population you are operating? Know about social attitudes that might affect your business. Are there any noticeable socio-cultural changes in the environment? What is the level of education and health in the society you are operating in? Are there any changes in these external environment factors, and how it affects you? What are the religious beliefs and how it affects your business environment? What is the trend in overall society habits about saving, investments, and spending? Do you know any other social factors that might affect your business?

12. TECHNOLOGICAL FACTORS Are there any innovative technologies your business could use? If you access new technology, how it benefits you by redefining your product or cut costs, etc.? How changing technology affect your customer base? What technologies your competitor is using that positively affect their products and services? What other technological factors should you consider?

13. ENVIRONMENTAL FACTORS Ecological Environmental issues Staff attitudes Management style Environmental regulations Consumer values

14. LEGAL FACTORS Employment law Consumer protection Industry-specific regulations Competitive regulations Future legislation Environmental regulations

15. Two Content Layout with Table First bullet point here Second bullet point here Third bullet point here Class Group 1 Group 2 Class 1 82 95 Class 2 76 88 Class 3 84 90

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