ORGANIZATION & SENIOR

HIGH
MANAGEMENT SCHOOL

Self-
Learning
PESTLE AND SWOT ANALYSIS Module
8

Quarter 1
Organization & Management – Grade 11
Quarter 1– Self-Learning Module 8: PESTLE AND SWOT ANALYSIS

First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in
any work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this module are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to
use these materials from their respective copyright owners. The publisher and
authors do not represent nor claim ownership over them.

Published by the Department of Education Division of Pasig City

Development Team of the Self-Learning Module

Writer: Rizza V. Tamayo

Editors: Ronie B. Basinang,EdD/Edna D. Camarao,PhD
Reviewers: Content / Language: Ronie B. Basinang,EdD/Edna D. Camarao,PhD
Technical:
Illustrator:
Layout Artist:
Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
Aurelio G. Alfonso EdD
OIC-Assistant Schools Division Superintendent
Victor M. Javena EdD
Chief, School Governance and Operations Division and
OIC-Chief, Curriculum Implementation Division
Education Program Supervisors

Librada L. Agon EdD (EPP/TLE/TVL/TVE)

Liza A. Alvarez (Science/STEM/SSP)
Bernard R. Balitao (AP/HUMSS)
Joselito E. Calios (English/SPFL/GAS)
Norlyn D. Conde EdD (MAPEH/SPA/SPS/HOPE/A&D/Sports)
Wilma Q. Del Rosario (LRMS/ADM)
Ma. Teresita E. Herrera EdD (Filipino/GAS/Piling Larang)
Perlita M. Ignacio PhD (EsP)
Dulce O. Santos PhD (Kindergarten/MTB-MLE)
Teresita P. Tagulao EdD (Mathematics/ABM)

Printed in the Philippines by Department of Education – Schools Division of

Pasig City

2
Organization & SENIOR

Management HIGH
SCHOOL

Self-
Learning
Module 8

Quarter 1

PESTLE AND SWOT ANALYSIS

3
Introductory Message

For the facilitator:

Welcome to the Organization & Management for Grad 11 Self-Learning

Module on PESTLE AND SWOT ANALYSIS

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and

independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Moreover, you are expected to encourage and assist
the learners as they do the tasks included in the module.

4
For the learner:

Welcome to the Organization & Management Self-Learning Module on

PESTLE AND SWOT ANALYSIS

This Self-Learning Module was designed to provide you with fun and
meaningful opportunities for guided and independent learning at your own pace
and time. You will be enabled to process the contents of the learning material while
being an active learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measure how much you have learned from the
entire module.

5
MODULE
PESTEL AND SWOT ANALYSIS
8

EXPECTATIONS
At the end of the module, you are expected to:

1. identify what is PESTEL and SWOT Analysis;

2. analyze various forces using PESTEL and SWOT Analysis;
3. appreciate the importance of PESTEL and SWOT Analysis in
environmental scanning; and
4. apply SWOT analysis as a guide in making your own PERSONAL SWOT
Analysis worksheet.

PRETEST
Directions: Read the sentence carefully and choose the letter of the best
answer. Write your answer on the blank provided before the number.
___________ 1. It accounts for all the influences that a government may have upon the
business environment, including business cycles, the economy at large, and
individual business industries.
A. Political B. Socio-cultural
C. Environmental D. Technological
___________ 2. This charts the analysis of cultural trends, demographical determinants,
and age distribution.
A. Political B. Social
C. Environmental D. Technological
___________ 3. It represents the internal factors of the SWOT Analysis.
A. Strengths and Opportunities B. Strengths and Weaknesses
C. Strengths and Threats D. Opportunities and Weaknesses
__________ 4. It represents the external factors of the SWOT Analysis.
A. Opportunities and Strengths B. Opportunities and Weaknesses
C. Opportunities and Threats D. Strengths and Weaknesses
_________ 5. Inflation rates, interest rates, economic growth, demand and supply
trends are all analyzed under this head.
A. Economic B. Social
C. Environmental D. Technological

6
 RECAP

Let’s take a review by answering the following questions:

1. What is cultural intelligence?

2. Differentiate between the local and international environment of the firm?

3. What are the benefits and challenges of globalization?

LESSON

Every company in a business has certain frameworks that they follow

to understand the market they are catering to. They usually keep on checking the
nerve of the market where they want to focus their products. If a company wants to
operate effectively and achieve their organizational goals, they need to study the
environment and analyze how to respond to the forces and elements that they
interact with. This process called environmental scanning, which includes careful
monitoring organization’s external and internal environments for detecting early
signs of opportunities and threats that may influence its current and future plans.

There are two ways on how to scan and analyze a firm’s environment. One is
by doing a PEST analysis and the other is by doing SWOT Analysis.

PEST Analysis, or short for “Political, Economic, Social, Technological

Analysis” a tool that describes how macro-environmental factors influence the
operation, decisions, and directions of firms, businesses, or organizations. Aside
from environmental factors, modern management practitioners have added Legal
and Environmental as part of the analytical tool, thereby giving it an alternative
name of PESTLE Analysis.

 Political: It accounts for all the influences that a government may have upon
the business environment, including business cycles, the economy at large, and
individual business industries. Tax reforms, fiscal policies, and trade tariffs
form part of this analysis.

7
 Economic: This analysis the economy as a whole and its performance owing to
global trends and long-term effects that may be evident. Inflation rates, interest
rates, economic growth, demand and supply trends are all analyzed under this
head.

 Social: This charts the analysis of cultural trends, demographical determinants,

age distribution, etc.

 Technological: This analysis of the technological trends of the business

environment. It accounts for the rate at which the innovations are occurring
and how directly and indirectly they’re influencing the business you’re in.

 Legal: Some many laws and policies that directly impact way your business is
run and the decisions that fuel its momentum. These laws can be social laws,
regulatory laws, certain standards that need to be met, and other such laws.

 Environmental: Your business has effects in the environment it operates in,

therefore you need to analyze in depth what implications your business might
be having on it. On the other hand, the environment also influences your
business directly or indirectly especially the tourism, farming, or agriculture
business. Therefore, these factors account for the geographical location,
weather, climate, etc. but are not just limited to the study of these only.

PESTLE Analysis is useful for four main reasons:

1. It helps spot business or personal opportunities and gives advanced

warnings of significant threats.

2. It reveals the direction of change within the business environment. This

helps businesses shape what they are doing so that they work with change
rather than resist it.

3. It helps avoid starting projects that are likely to fail for reasons beyond
control.

4. It can help businesses break free of unconscious assumptions when they

enter a new country, region, or market because it helps develop an objective
view of the new environment.

8
 Another useful tool used in environmental analysis is the SWOT Analysis,
which is short for “strengths, weaknesses, opportunities, and threat analysis.” It
involves specifying the objectives of the firm and identifying the internal and
external factors that are both favorable and unfavorable to achieve the objectives.
SWOT Analysis is important because it can help decision-makers determine
whether a particular objective must be selected and the analytical process is
repeated.

SWOT Analysis begins with a systematic evaluation of a firm’s resources and

capabilities, which are its basic strengths and weaknesses.

Strengths refer to characteristics of the business that give it an advantage

over others and enable it to do what it does exceptionally well over others.
Weaknesses, on the other hand, refer to characteristics that place the business at
disadvantage relative to others and that hold the organization back from fully
accomplishing its objectives.

The organization should also identify the external factors in its environments
that could potentially provide opportunities or threats to the firms.

Opportunities refer to the elements that the firm could use to its advantage.
Threats, in contrast, refer to elements in the environment that could cause trouble
or setbacks to the firm.

Strengths and Weaknesses represent the internal factors of the SWOT

Analysis, whereas Opportunities and Threats represent the external factors.

Figure 1 shows an illustrative framework of SWOT Analysis.

https://www.differencebetween.com/difference-between-swot-and-vs-
pestel-analysis/

9
 ACTIVITIES

Activity 1: PERSONAL SWOT ANALYSIS

Directions: Using yourself as an example of an entity, perform SWOT Analysis, and

fill out the Personal SWOT Analysis Worksheet below. Be honest in assessing your
strengths, weaknesses, and use introspection in performing the said analysis. You
may choose to use a separate piece of paper for your answers if necessary.

Once you are done, share your answer with the class.

PERSONAL SWOT ANALYSIS

STRENGTHS WEAKNESSES
What do you do well? What could you improve?
What unique resource can you draw on? Where do you have fewer resources than
What do others see as your strengths? others?
What are others likely to see as your
weaknesses?

OPPORTUNITIES THREATS
What opportunities are open to you? What threats could harm you?
What trends could you take advantage of? What is your competitor doing?
How can you turn your strengths into What threats do your weaknesses expose
opportunities? you too?

10
 WRAP UP

Let’s wrap up!!

Directions: Enumerate the following:

1. PESTLE stands for

______________________________ _____________________________

______________________________ _____________________________

______________________________ _____________________________

2. SWOT short for:

_______________________________ ____________________________

_______________________________ ____________________________

VALUING

Point of Reflection

SWOT and PESTLE analysis are useful tools for decision-makers when
evaluating the pros and cons of a project or initiative. The analysis can be applied
to a range of large and small projects to identify factors may that affect success.

How can you use the PESTLE and SWOT Analysis in your life as a student?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

POSTTEST

11
 Directions: Read the statement carefully and identify it. Write your
answer inside the box.

1. Characteristics of the business that give it an advantage over others and enable
it to do what it does exceptionally well over others.

2. The element in the environment that could cause trouble or setbacks to the firm.

3. It influences your business directly or indirectly especially the tourism, farming,

or agriculture business.

4. It accounts for the rate at which the innovations are occurring and how directly
and indirectly they’re influencing the business you’re in.

5. A tool that describes how macro-environmental factors influence the operation,

decisions, and directions of firms, businesses, or organizations.

*********

KEY TO CORRECTION

12
 R E F E R E N CE S
A. Books

Ng, Mark Francis G. “Organization and Management” Anvil Publishing, Inc,

2017; page 47-49

B. Website

https://pestleanalysis.com/pestle-and-swot-analysis/

https://www.linkedin.com/pulse/how-conduct-pestle-swot-analysis-byron-gray

https://www.differencebetween.com/difference-between-swot-and-vs-pestel-
analysis/

13