ECON REVIEWER

• Common Analysis Tools and Techniques

  1.       VMOST Analysis

  2.       SWOT Analysis

  3.       TOWS Analysis

  4.       Porter’s Five Forces

  5.       PESTLE Analysis
• VMOST Analysis focuses on the alignment of business activities in plan and strategies.
• ·       MISSION (Company’s activities to achieve the goal)
• ·       VISION (Future goals)
• ·       OBJECTIVE (Specific goal to achieve, should define and measurable)
• ·       STRATEGY (Methodology to achieve the goal)
• ·       TACTICS (Actions to use to comply with the strategy)
• SWOT Analysis (1960) framework that can help businesses to meet its challenges and identify new markets.
• SWOT Analysis -          Identifying the internal and external forces.
• SWOT Analysis -          Meet Challenges & identify new markets
• TOWS Analysis by Heinz Weihrich, matching internal factors to external factors to identify relevant strategic options.
• Porter’s Five Forces by Michael Porter in 1979. A framework that analyses that profitability of a marketplace. (Potential profitability)
• Five Forces

  ·       Bargaining power of Buyers

  ·       Bargaining power of Suppliers

  ·       Threat of Substitutes

  ·       Threat of New Entrants

  ·       Competitive Rivalry
• PESTLE Analysis a strategic management tool to identify macro-economic factors that it needs to consider.
• Political: law and government policies
• Economic: economic growth, income and disposable income and unemployment.
• Social: demographic profile of consumers
• Technological: technology advancement, research and development.
• Legal: more on specific laws compared to political.
• Environmental: weather, climate, that might affect some industries like tourism, farming, agriculture, and insurance.
• Agriculture is an industrial activity involving the processing, cleaning, packing or storage of the results from agriculture production. Examples: poultry, aquaculture, crop farming, livestock
• Manufacturing processing raw materials into finished products into something more useful through the use of tools and processes.
• Retail or Merchandising purchase products from other businesses to sell them to customers.
• Tourism plays important role in our economy. It is an activity that people go to another places for leisure time.
• International Trade (Import & Exports) is an exchange or products and services between countries.
• Exports produced in one country and sold to buyers in another
• Imports bring in products from another country for sale or use
• Banking/Financial Institutions accepting checking and savings deposits and make loans.
• ·       Trust companies typically tasked with the administration, management, and the eventual transfer of assets to beneficiaries.
• Insurance companies create insurance products to take on risks in return for the payment of premiums
• ·       Brokerage Firms a middleman who connects buyers and sellers to complete a transaction.
• ·       Investment Dealers providing investment advice to customers, focuses on investment activities.
• Outsourcing (BPO) Business Process Outsourcing is now the biggest contributor to the nation’s economic activity despite being only 25 years building.
• Construction constructs, alters, repairs, and demolishes buildings, civil engineering works, and other structures.
• Socioeconomics studies how economic activity affects and is shaped by social processes.
• Social economics intimate relationship between economic and social behaviours.
• Socioeconomic Factors

  ·       Employment

  ·       Education

  ·       Income
• Employment it is a job or what you do for a living.
• -          Higher rate of employment = higher purchasing power of the people
• Education provides every person the required skill and knowledge for employment in different jobs.