Classroom Rules
Be on time and be
always prepared for
your class. Bring your
laptop in class.
Keep your mobile
phone switched off
or in a silent mode.
Ask only relevant
questions during
teaching time.
Do not interfere with
the teaching and
learning of your
colleagues.
Be polite and
respectful of the
teacher, yourself,
your classmates and
your institution.
Always do your best.
Foundation Year Project
Week 2 – Day 2: Strategy. PESTLE Analysis.
Planning
Session Overview
By the end of this session students will be able to:
1. Learn about difference between goals, objectives, strategy
and tactics
2. Discover how much control you want to have over your
business
3. Learn some useful planning techniques
But first, please leave a feedback
for MODULE 5
Business Strategy
• A goal is a general statement of desired direction or
improvement.
• Areas for improvement are identified through the
situational diagnosis, for example SWOT or PESTLE
analysis.
• Goals should be set for all areas of business.
• Goals should be set for each component of the
business proposal: management structure, employees,
suppliers, and finance.
Goals
Goals, Objectives and Strategies
(Griffin, 2015)
(Image: STI, 2023)
• A strategy is a method of achieving goals,
objectives, or both.
• A strategy usually includes inputs as well as
desired outcomes, a time frame, and milestones
and may include some overall assignments of
responsibility.
Tactics
• Specific actions within the strategy
Strategies
• An objective is a measurable statement of
accomplishment.
Objectives
Goals, Objectives and Strategies
(Griffin, 2015)
(Image: STI, 2023)
Examples
(Griffin, 2015)
Planning Process Flowchart
How to Develop Goals and Strategies
Market:
• Identify your target customers.
• What will be your Product/Service mix?
• How will you promote, distribute and
price your product/service?
Production/Operations:
– What will be your costs and where you
will buy supplies?
– Define the operating process: who does
what?
R&D:
– What new products are possible?
SWOT
Analysis
(Adapted from Griffin, 2015)
PESTLE
Analysis
Develop
Goals and
Strategies
Market
Production
Research &
Development
Management
Information
Technology
(Software)
Finance
Planning Process Flowchart
How to Develop Goals and Strategies
Management:
– What productivity do you expect?
– How much will you pay to your
employees?
– Number of employees and where to
get them?
Information Technology
– Software needed to operate your
business? Invoices, payment, etc?
Finance:
– Where do obtain the financing?
– How much of initial investment?
– Budgeting
SWOT
Analysis
(Adapted from Griffin, 2015)
PESTLE
Analysis
Develop
Goals and
Strategies
Market
Production
Research &
Development
Management
Information
Technology
(Software)
Finance
(Abrams & Kleiner, 2003)
• For smaller enterprises, sole
proprietorships, or businesses in
which one or two key members of
management have primary control,
issues of personal satisfaction can be
a central element in determining
long-term success.
• Some businesses fail, and others
flounder, because their founders,
owners, or key managers are
uncertain what they really want to
achieve or because they did not
structure the company and their
responsibilities in ways that satisfy
their personal needs and ambitions.
The Four Cs
Setting Goals – Personal Motivation
(Abrams & Kleiner, 2003)
C – Control
C – Challenge
C – Creativity
C – Cash
High share of
the profit – more
financial risks.
Share risk with a
partner – share
profits.
Outside
investors – less
control
Cash
Creativity comes in
many forms:
– Designing or
making new
things
– Coming up with a
new production
process
– Finding new ways
to make sales or
handle customers
Creativity
As you plan your
company,
establish
personal goals
that provide you
with sufficient
stimulation,
while also
advancing the
growth of your
business
Challenge
How much control
you need to
exercise on a dayto-day basis
influences how
large your
company can be.
More control –
your company
better stay small.
Less immediate
control – larger
companies.
Control
Setting Goals – Personal Motivation
PESTLE Analysis
What is a PESTEL Analysis?
A PESTEL (PESTLE) analysis is a PESTLE Analysis
strategic framework commonly used to
evaluate the business environment in
which a firm operates.
Traditionally, the framework was
referred to as a PEST analysis, which
was an acronym
for Political, Economic, Social,
and Technological; in more recent
history, the framework was extended to
include Environmental and Legal
factors as well.
(Perera, 2017)
Broadly speaking, political factors are
those driven by government actions
and policies. They include, but are not
limited to, considerations like:
• Corporate taxation
• Bureaucracy and Corruption level
• Regulation/de-regulation
• Import restrictions/Tariffs
• Wars and conflicts
Political Factors
(Christodoulou & Culliane, 2019
Image: Consulterce.com)
Economic factors relate to the broader
economy and tend to be expressly
financial in nature. They include:
• Interest rates
• Employment rates
• Inflation
• Exchange rates
• Disposable income – what is left to
spend after all the bills are paid
Economic Factors
(Kolios and Read, 2013)
Social factors to shifts or evolutions in the ways that
stakeholders approach life and leisure, which in turn can
impact commercial activity.
• Demographic considerations
• Lifestyle trends
• Consumer beliefs
• Attitudes around working conditions
Social factors may have a shockingly outsized impact on
entire industries as we know them:
Trends towards healthier and more active lifestyles have
ushered in the evolution of connected fitness technologies
Changes to the nature of food products we consume and
how these food products are packaged and marketed.
Social Factors
Kolios and Read, 2013
Technological Factors
In today’s business landscape, technology is everywhere – and
it’s changing rapidly.
•Automation
•How research and development (R&D) may impact both costs
and competitive advantage
•Technology infrastructure (like 5G, IoT, etc.)
•Cyber security
The speed and scale of technological disruption in the present
business environment are unprecedented, and it has had a
devastating impact on many traditional businesses and
sectors, for example Uber upending the transportation
industry or the advent of e-commerce revolutionizing retail
trade as we know it (Kolios and Read, 2013)
Environmental Factors
Environmental factors emerged as a sensible
addition to the original PEST framework as the
business community began to recognize that
changes to our physical environment can present
material risks and opportunities for organizations.
Examples of environmental considerations are:
•Carbon footprint
•Climate change impacts
•Increased incidences of extreme weather events
•Stewardship of natural resources (like fresh water).
(Kolios and Read, 2013)
Legal Factors
Legal factors are those that emerge from changes to the
regulatory environment, which may affect the broader
economy, certain industries, or even individual businesses
within a specific sector.
•Industry regulation
•Licenses and permits required to operate
•Employment and consumer protection laws
•Protection of IP (Intellectual Property)
For example, advertising bans for certain product
categories or special requirements for product design must
be considered and considered on a country-by-country
basis (Kolios and Read, 2013; Heubel, 2022)
Planning a Business
Research Project
Gantt chart
There are many
ways to plan a
project: on
paper, using
sticky notes,
creating a timeline or a Gantt
chart.
Planning Activities
• It enables you to see the entire
project at a glance.
• It shows:
• Task start and end dates
• The team members assigned
to task (for group projects)
• Any dependencies (for
example, you need to finish
one task to start the other)
• Project milestones (most
important achievements or
quick wins) (Keefe, 2022).
Benefits
Gantt chart
Image: TemplateLab (2022)
• Step 1: Identify and list the tasks
• Step 2: Estimate how long each
task will last
• Step 3: Place it on the timeline.
(Adapted from Keefe, 2022)
Reminder: Gantt chart is optional for
your business proposal
How to Create a Gantt Chart
Image: WikiHow, 2022
• Griffin, M.P. (2015) How to Write a Business Plan: A Step-by-Step Guide to Creating a Plan
That Gets Results: AMA Self-Study.
• Christodoulou, A., Cullinane, K. 2019. “Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE Analysis.”
Sustainability 11(21): 1-15.
• Kolios, A., Read, G. 2013. “A Political, Economic, Social, Technology, Legal and
Environmental (PESTLE) Approach for Risk Identification of the Tidal Industry in the United
Kingdom.” Energies 6(10): 5023- 5045.
• Heubel, M. (2022) PESTLE Analysis. Available at: https://consulterce.com/pestle-analysis/.
(Accessed: 11 January 2023).
• Keefe, R. (2022) What is a Gantt Chart? (And How It Made Me A Better Manager). Available at:
https://toggl.com/blog/what-is-a-gantt-chart. (Accessed: 11 January 2023).
• Perera, R., 2017. The PESTLE analysis. Nerdynaut.
References