Company Sustainability
PEST Analysis, Porter’s 5 Forces and Sustainability Strategies
Margarita Antonova
Volunteer Trainer @ Telerik Academyacademy.telerik.com
Business System AnalystTelerik Corporation
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Table of Contents
PEST Analysis Porter’s 5 Forces Growth Strategies Contingency Strategies The Project: your Business Plan
PESTLE AnalysisAnalysis of the external environment and more specifically the Political, Economic, Social, Technological, Legal and Environmental factors.
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PESTLE Questions
What is the political situation of the country and how can it affect the industry?
What are the prevalent economic factors?
How much importance does culture has in the market and what are its determinants?
What technological innovations are likely to pop up and affect the market structure?
Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry?
Intellectual property rights for software
What are the environmental concerns for the industry?
Porter’s 5 Forces ModelFramework for industry analysis and business strategy development that helps determine the competitive intensity and attractiveness of a market.
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Porter’s 5 Forces
1. Threat of new competition
2. Threat of substitute products or services
3. Bargaining power of customers (buyers)
4. Bargaining power of suppliers
5. Intensity of competitive rivalry – barriers of entry
Sustainability Strategies
Framework for industry analysis and business strategy development that helps determine the competitive intensity and attractiveness of a market.
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Growth Strategies Growth strategies:
Organic growth Research and development – the
cradle of innovation and staying in the business
Cost-Benefit Analysis
Outside sources: Mergers – combining companies
Acquisitions – acquiring companies
Strategic alliances – independent organizations that pursue the same goals together
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Growth Strategies
Contingency Strategies Definition – a risk management
strategy that aims to minimize the impact of a foreseeable events and to plan for how the business will resume normal operations after such events
Types: Preparing for predictable and
quantifiable crises
Preparing for unexpected and unwelcome events
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Software CompanyTypical Structure
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The Project – Business Plan
Operations Plan
HR and IT
Financial Plan
Financing and Expected Break Even Point
Risk Analysis
PESTLE 12
Executive Summary
Define Product
Business Environment
Describe Industry
Porter’s5 Forces Analysis
Marketing Plan
SWOT Analysis
7Ps for Product
Define Target Market
Sales Strategy
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