Systems Dynamics and Complexity HS2019
Self-Study 4: PEST and SWOT Analysis
Gozde Duru Aksoy
Johan Ruetsch
Ege Tezerisener
Kemeng Zhang
System Dynamics and Complexity HS2019
Self-Study 4 - Group 25
|
19.10.2019
|
1
The PEST Analysis
P
E
S
T
Political
Economic
Social
Technological
Political
stability
Economic
growth, inflation
Language and
religion
R&D activity
Type of
government
Interest and
exchange rates
Population
growth
Technological
infrastructure
Extension : PESTELI
•
•
•
Ecological analysis
Legislative analysis
Industry analysis
Purpose
Trade
restrictions and
tariffs
Per capita
income
Age distribution
New
technologies
for distribution
Tax and
employment
laws
Unemployment
level
Life expectancy
Rate of
technological
change
System Dynamics and Complexity HS2019
Conduct PEST analysis to identify
external factors (threat and
opportunities) used in the SWOT
framework to help companies making
better business decisions!
Self-Study 4 - Group 25
|
19.10.2019
|
2
The SWOT Analysis
Internal
Factors
Helpful
Goal:
Harmful
Strength
Weakness
What do we do
very well?
What are our
competitive
advantages?
What could be
done better?
Where are we
vulnerable?
•
•
•
•
Focus on strength
Minimize weakness
Address threats
Take advantage of opportunities
External
Factors
Purpose
Opportunity
Threats
What are the
emerging trends
we can utilise?
What external
obstacles affect
our progress?
System Dynamics and Complexity HS2019
Combine the analysis of external and
internal factors to identify the overall
position and outlook of the firm!
Self-Study 4 - Group 25
|
19.10.2019
|
3
BCG Matrix
Generate high revenues
at large investments
Require cash and potential
growth
S
T&O
Generate high revenues
at small investments
Gain low market share with
less potential to grow
System Dynamics and Complexity HS2019
W
Self-Study 4 - Group 25
|
19.10.2019
|
4
The Portfolio Analysis
Purpose
Examples
Conduct Portfolio Analysis to formulate
strategies for a company. It is based on
the philosophy that organizations should
develop strategy much as they handle
investment portfolios.
Market Share vs. Market
Growth (BCG Matrix)
Competitive Strength vs.
Industry Attractiveness
(GE Nine Cell Matrix)
Supply Risk vs. Profit
Impact
System Dynamics and Complexity HS2019
Figure 1. Two Graphs for Portfolio Analysis
•
•
Left: Accommodation sector AirBnB
Right: Electrical and ICE cars BMW
Self-Study 4 - Group 25
|
19.10.2019
|
5
A Portfolio with Different Products at Different Stages
Star
high
Question Mark
Market Growth
Apple
•



low
Dog
low
4 different products
with each at different stages
in the BCG Matrix
categorized by the relative
market share and growth
Cash Cow
Market Share
System Dynamics and Complexity HS2019
high
Self-Study 4 - Group 25
|
19.10.2019
|
6