P - political - government policy, the degree of intervention in the economy. What goods and services does a government want to provide?
E - Economic - For example - higher interest rates may deter investment because it costs more to borrow.
S - social - In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer.
T - technological - MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances
E -environmental - the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance
L - legal/legislation - the legal environment in which firms operate, eg. age + disability discrimination, min wage = recent laws affecting business.
STRENGTHS - Strengths are INTERNAL FACTORS that a firm may build on to develop a strategy and are internal. For example, they may include: Marketing strengths, Financial strengths, Operations, HRM strengths
WEAKNESSES - are INTERNAL FACTORS that a firm may need to protect itself against such as: Marketing weaknesses, Financial weaknesses Operational weaknesses such as old, inefficient equipment and poor quality, HRM weaknesses
OPPORTUNITIES - these are AN EXTERNAL INFLUENCE and are thing that a business has an opportunity to do. Ask if strengths up hold oppertunities and if your weaknesses could offer oppertunities by eluminatinng them.
THREATS - these are also EXTERNAL INFLUENCES - A threat is a challenge created by an unfavourable trend or development that may lead to deteriorating revenues or profits. Competition, intolerable price increases by suppliers, governmental regulation, economic downturns, devastating media or press coverage or a shift in consumer behavior.
Analysing and informing decision making about possible marketing strategies Developed by the Boston Consulting Group in 1968. Links growth rate, market share and cash flow
Stars - products in a market with high growth and high market share
Cash cow - products in a market with high market share and low growth
Dogs - low market growth and low market share
Problem child - low market share and high growth