1. SWOT, PEST+C, Porter’s 5 Forces, BCG Matrix
Analysis Tools
SWOT, PEST+C, Porter’s 5 Forces, BCG Matrix

2. SWOT Analysis Strengths and Weaknesses (internal)
Opportunities and Threats (external)

3. Strengths Company’s sustainable competitive advantage
Excellent employees
Strong market share
Reputation
New products and technologies
Good financing

4. Weaknesses Old equipment and technology Minimal R&D Poor planning
Reputation
Poor management

5. Opportunities New markets Economy Poor competition Growth strategy
Possible new technology

6. Threats New competitors Lack of resources Government regulations
Substitute products
Changing market preferences

7. Complete a SWOT Analysis for…
1) McDonalds
2) Apple
3) Amazon
4) Camera’s

8. PEST+C Analysis of the Environment

9. Politics Three levels of government—municipal, provincial and federal
Taxes
Crown corporations
Laws
International governments

10. Economic Stage in business cycle Interest rate Canadian $
Inflation rate
Unemployment rate
Supplier power
Buyer power
Stage in product life cycle

11. Social
Demographic changes
Lifestyle changes
Social values

12. Technology Available technology Creation of new technology
Use of information technology
Using technology to create new products or processes

13. Competition What is the competition doing?
State and evaluate each major competitor

14. Porter’s 5 Forces

15. Porter’s 5 Forces Threat of New Entrants Industry Rivalry
How easy is it to get into your market?
Industry Rivalry
Is there a lot of competition?
Threat of Substitutes
Is there an alternative to the product/service offered by you and your competitors?
Buyer Power
Do your customers absolutely need your product/service? Do they have other options? Do they have any negotiating power?
Supplier Power
How important is your business to your supplier(s)? Do you have any negotiating power?

16. The Boston Consulting Group Matrix
Used to analyze a company’s portfolio of different products/services
Goal is to have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash

17. The BCG Matrix 2 dimensions: market share and market growth
Basic idea: the bigger the market share a product has or the faster the product's market grows, the better it is for the company

19. Cash Cow
A business unit that has a large market share in a mature, slow growing industry
Cash cows require little investment and generate cash that can be used to invest in other business units
Examples?

20. Star
A business unit that has a large market share in a fast growing industry
Stars may generate cash, but because the market is growing rapidly they require investment to maintain their lead
If successful, a star will become a cash cow when its industry matures
Examples?

21. Question Mark AKA “Problem Child”
A business unit that has a small market share in a high growth market
These business units require resources to grow market share, but whether they will succeed and become stars is unknown
Examples?

22. Dog A business unit that has a small market share in a mature industry
A dog may not require substantial cash, but it ties up capital that could better be deployed elsewhere
Unless a dog has some other strategic purpose, it should be liquidated if there is little prospect for it to gain market share
Examples?

23. Assignment
Choose a business that you are going to complete an analysis on. You may NOT choose Apple, McDonalds, or Google. Then, choose either a PEST+C, Porter’s 5 Forces, or BCG Matrix analysis tool and perform an analysis on your company.
This should be detailed, and you should include a list of sources that you use.