Week 7- The physical, societal, and industry environment.pptx

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1. THE PHYSICAL , SOCIETAL , AND INDUSTRY ENVIRONMENT

2. The learner demonstrates understanding of concepts, underlying principles, and processes of developing a business plan LEARNING COMPETENCIES

3. The learner creates business plan. PERFORMANCE STANDARDS

4. describe the physical environment of the venture discuss the societal environment of the venture define the industry environment of the venture create PESTEL analysis of choosen business LEARNING OBJECTIVES

5. THE PHYSICAL , SOCIETAL , AND INDUSTRY ENVIRONMENT WEEK 7

6. THE PHYSICAL ENVIRONMENT

7. The first layer of the environment is the physical or natural environment. It is composed of the natural elements that are inherent in the Earth.

8. The Physical environment PHYSICAL RESOURCES WILDLIFE CLIMATE

9. CLIMATE The entrepreneur must consider the prevalent climatic condition of the area where he or she intends to open the business to determine whether it can withstand or is fit to the climatic condition in the local area.

10. PHYSICAL RESOURCES The entrepreneur must critically assess the availability of raw materials in the locality before opening a new business. He/she must evaluate if the available raw materials to be used for the proposed business are sufficient for a long-term business.

11. WILDLIFE The entrepreneur must ensure that his or her business contributes to the preservation and not the destruction of the ecological system of the local comunity and our country.

12. Does your business is appropriate to the climate of your chosen community? Take note these following question: Are the raw materials to be used for the proposed business are sufficient for a long-term business? How will your business contribute to the preservation of the environment?

13. THE SOCIETAL ENVIRONMENT

14. Studies reveal that there is a positive relationship between the evaluation of the societal environment and the favorable operating performance of the entrepreneurial venture. That is why it is highly advised that the entrepreneur should critically evaluate the effects of changes in all the forces of the societal environment.

15. The societal environment Technological force Legal forces Economic Forces Social Forces Political Forces Cultural Forces

16. Interest rates Inflation Fiscal Policies Monetary Policies Income Exchange rate Employment Consumer Confidence ECONOMIC FORCES

17. Religion Language Beliefs Customs Education CULTURAL FORCES

18. Values Traditions Literacy Level Consumer Psychology Time Orientation Lifestyle Pattern Professional Career Roles Social Media SOCIAL FORCES

19. Trade Regulations Taxation Government Stability Unemployment Worker's benefits Election practices POLITICAL FORCES

20. Product control, pricing, and labeling Health and safety of the workers Administration of election process Advertising and promotion Exercise of profession Education administration and fees LEGAL FORCES

21. Internet Social Media E-commerce Technological advancement Technological infrastructure TECHNOLOGICAL FORCES

22. ENVIRONMENTAL SCANNING It is the critical evaluation and thorough study of the environment where the business operates. It is also referring to the gathering, critical evaluation, and utilization of information on events and activities and their relationships with the physical, societal and industry environments.

23. SOCIETAL ENVIRONMENT SCANNING APPROACH The different layers of the external environment and all the forces are interrelated. They do not operate independently. In scanning the societal environment, the entrepreneur may use the following analytical approaches: PESTEL ENVIRONMENTAL FORCES MATRIX

24. The PESTEL analysis is a tabular framework of the trends and developments in the different forces in the external environment.

25. What is the first layer of the environment that consists of climate, wildlife, and physical resources?

26. Why do we need to consider the physical environment before we open up our business?

27. Enumerate the forces under the societal environment .

28. THE INDUSTRY ENVIRONMENT

29. The next environmental layer of the business is the industry environment. This is the environment where the business conducts its various entrepreneurial activities. The industry environment is considered the business's immediate environment where it conducts its various operational activities.

30. The industry environment Government Creditors Employees Suppliers Customers Competitors

31. GOVERNMENT Government has jurisdiction over the major activities happening within its territory, including international trade relations, the type of government system operating in a particular country highly influences the business.

32. SUPPLIERS The entrepreneur must define the criteria in the process of selecting the supplier, such as the quality of the goods or services, terms of payment, stability, ability to respond to urgent needs, and proximity of the location.

33. CUSTOMER The business realized profit from its transactions with the customers. It must constantly evaluate and study the behavior, tastes preferences, inclinations and even future activities of the customers. It must protect its customers in order to win their loyalty and to attract new patrons.

34. COMPETITORS The entrepreneur must critically evaluate and study, most especially the direct competitors, and find strategic ways to surpass them in the production and delivery of goods or sevices to the customers.

35. EMPLOYEES They are the backbone of the business.

36. CREDITORS The entrepreneur must know the different financial services provided by banks and other financial institutions. Maintaining favorable financial records and business image with them provides a favorable advantage to the entrepreneur in times of financial needs.