Activity # 3. Directions: Read each statement and classify
as to where it belongs. Write SWOT if it belongs to SWOT
Analysis, PEST for PEST Analysis and PORTER’S for
PORTER’s 5 Forces Model. Write your answers in your
answer sheet.
1. A firm faces risks from new entrants possible joining the
industry, especially if the industry offers attractive growth
prospects.
2. A factor in the external environment that is expected to
have a negative effect on company operations.
3. The risk faced by a firm due to its competitors is the most
obvious form of operational risk.
4. The opposite of strength. Something that a company lacks.
It is a quality that puts the company at a disadvantage.
5. The political aspect that focuses on the areas in which
government policy and/or changes in legislation affect the
economy, the specific industry and the organization.
6. The social factors are demographics and age distribution,
cultural attitudes, and workplace and lifestyle trends.
7. Something that a company is good at doing. It is a quality
that produces a competitive advantage for the company.
8. The technological component considers the specific role
and development of technologies within the sector and the
organization.
9. The firm’s own suppliers can pose a threat as well if the
firm is too dependent on these suppliers and the suppliers
know it.
10. An attractive industry is one with less intense
competition, few threats from new entrants or substitutes,
and low bargaining power among suppliers and buyers.
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