CHAPTER 2

The Organization and Its

Environment
Group 1
 TOPICS:
2.1 Macro Environment: PEST
-PEST Acronym
-PESTEL
-Selected National Government in the Philippines that is
essential to the CDS

2.2 Competitive Environment

-Porter Model
-Five Forces in the Porter Model
-SWOT Analysis
 2.1

Macro Environment:
PEST
Political,
Governmental,
And Legal
Economics
Socio,
Sociological,
Cultural,
Demographic
and
Environmental
Technological
and Technical
 PESTEL
POLITICAL,
ECONOMIC,
SOCIAL OR SOCIOLOGICAL,
TECHNICAL,

in the environment.
Environment or
Ecological
Factors
Legal Factors
Selected National Government in the Philippines that is Essential to
the City Development Strategy (CDS):
DEPARTMENT OF TRADE AND INDUSTRY

DTI
DEPARTMENT OF LABOR AND EMPLOYMENT

DOLE
DEPARTMENT OF INTERIOR AND LOCAL
GOVERNMENT

DILG
DEPARTMENT OF PUBLIC WORKS AND
HIGHWAYS

DPWH
DEPARTMENT OF EDUCATION

DEPED
DEPARTMENT OF HEALTH

DOH
 Commission on Higher Education

CHED
Technical Skills and Development Authority

TESDA
State of the Nation Address

SONA
 2.2

Competitive Environment
 New
PORTER MODEL Entrants

Rival
Suppliers Firms Customers

Substitutes
and
Compliments
 New
Entrants

Establishments Establishments ExistingEstablishments The

that SUPPLY a that ‘ENTER’ a with faster,
establishments population,
given given industry more accessible
in aRival
given whether
industry’s to compete industryand/or cheaper
Suppliers Firmsthat
Customers
products and
industrial or
requirements with existing COMPETE consumer, that
for machinery, firms. services that
with each PURCHASE a
manpower, may serve as
other; also
ALTERNATIVES
given
materials, called industry’s
money, and for the
Substitutes
industryproducts and products and
other and
participants. services.
resources. Compliments services of a
given industry.
Internal SWOT Analysis
Resources

Resource
Limitations

Emerging need
for products and
services
Emerging risks
and problems
SHORT QUIZ 

MM.DD.20XX
• 1. What is the meaning of PESTEL? (6 points)
• 2. Give atleast 2 selected National Government in the Philippines
that is essential to the City Development Strategy. (2 points)
• 3. Forces in the Porter Model:
• 3.1 These are establishments that ‘ENTER’ a given industry to compete
with existing firms. (1 point)
• 3.2 It is the population, whether industrial or consumer that purchase a
given industry’s products and services. (1 point)
• 3.3 These are establishments that supply a given industry’s requirements
for machinery, manpower, materials, money and other resources. (1 point)
• 4. What is the meaning of SWOT? (4 points)