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Assessing the Balance of Power in a Business Situation:

The Porter’s 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you’re looking to move into.

Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations too.

How to use this model:

Five Forces Analysis assumes that there are five important forces that determine competitive power in a situation. These are:

1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers’ help, the more powerful your suppliers are.
2. Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, they are often able to dictate terms to you.
3. Competitive Rivalry: What is important here is the number and capability of your competitors – if you have many competitors, and they offer equally attractive products and services, then you’ll most likely have little power in the situation. If suppliers and buyers don’t get a good deal from you, they’ll go elsewhere. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.
4. Threat of Substitution: This is affected by the ability of your customers to find a different way of doing what you do – for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.
5. Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

These forces can be neatly brought together in a diagram like the one below:

To use the tool to understand your situation, look at each of these forces one-by-one.

Brainstorm the relevant factors for your market or situation, and then check against the factors listed for the force in the diagram above.

Then download the free worksheet, mark the key factors on the diagram, and summarize the size and scale of the force on the diagram. An easy way of doing this is to use, for example, a single “+” sign for a force moderately in your favor, or “–” for a force strongly against you (you can see this in the example below).

Then look at the situation you find using this analysis and think through how it affects you. Bear in mind that few situations are perfect; however use environmental scanning as a framework for thinking through what you could change to increase your power with respect to each force.

Example:

Martin Johnson is deciding whether to switch career and become a farmer – he’s always loved the countryside, and wants to switch to a career where he’s his own boss. He creates the following Five Forces Analysis as he thinks the situation through:

This worries him:

• The threat of new entry is quite high: if anyone looks as if they’re making a sustained profit, new competitors can come into the industry easily, reducing profits;
• Competitive rivalry is extremely high: if someone raises prices, they’ll be quickly undercut. Intense competition puts strong downward pressure on prices;
• Buyer Power is strong, again implying strong downward pressure on prices; and
• There is some threat of substitution.

Unless he is able to find some way of changing this situation, this looks like a very tough industry to survive in. Maybe he’ll need to specialize in a sector of the market that’s protected from some of these forces, or find a related business that’s in a stronger position.

Source:

http://www.mindtools.com/pages/article/newTMC_08.htm

If you enjoy visual representations and vivid descriptions of your business then you’ll love the Boston Matrix!

Also called the BCG Matrix, it provides a useful way of looking at the opportunities open to you, and helps you analyse which segments of your business are in a good position – and which ones aren’t. That way, you can decide on the most appropriate investment strategy for your business in the future, and where best to allocate your resources.

Understanding the model:

Market Share and Market Growth -

To understand the Boston Matrix you need to understand how market share and market growth interrelate.

Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms. The higher your market share, the higher proportion of the market you control.

The Boston Matrix assumes that if you enjoy a high market share you will normally be making money (this assumption is based on the idea that you will have been in the market long enough to have learned how to be profitable, and will be enjoying scale economies that give you an advantage).

The question it asks is, “Should you be investing your resources into that product line just because it is making you money?” The answer is, “not necessarily.”

This is where market growth comes into play. Market growth is used as a measure of a market’s attractiveness. Markets experiencing high growth are ones where the total market is expanding, which should provide the opportunity for businesses to make more money, even if their market share remains stable.

By contrast, competition in low growth markets is often bitter, and while you might have high market share now, what will the situation look like in a few months or a few years? This makes low growth markets less attractive.

The Matrix Itself

The Boston Matrix categorizes opportunities into four groups, shown on axes of Market Growth and Market Share:

These groups are explained below:

Dogs: Low Market Share / Low Market Growth
In these areas, your market presence is weak, so it’s going to take a lot of hard work to get noticed. Also, you won’t enjoy the scale economies of the larger players, so it’s going to be difficult to make a profit.

Cash Cows:
High Market Share / Low Market Growth
Here, you’re well-established, so it’s easy to get attention and exploit new opportunities. However it’s only worth expending a certain amount of effort, because the market isn’t growing and your opportunities are limited.

Stars:
High Market Share / High Market Growth
Here you’re well-established, and growth is exciting! These are fantastic opportunities, and you should work hard to realize them.

Question Marks (Problem Child):
Low Market Share / High Market Growth
These are the opportunities no one knows what to do with. They aren’t generating much revenue right now because you don’t have a large market share. But, they are in high growth markets so the potential to make money is there.

Question Marks might become Stars and eventual Cash Cows, but they could just as easily absorb effort with little return. These opportunities need serious thought as to whether increased investment is warranted.

To use the Boston Matrix to look at your opportunities, first download our free worksheet and then use the following steps:

Step One: Plot your opportunities in terms of their relative market presence, and market growth on the blank matrix provided on the worksheet.

Step Two: Classify them into one of the four categories. If a product seems to fall right on one of the lines, take a real hard look at the situation and rely on past performance to help you decide which side you will place it.

Step Three: Determine what you will do with each product/product line. There are typically four different strategies to apply:

• Build Market Share: Make further investments (for example, to maintain Star status, or turn a Question Mark into a Star)
• Hold: Maintain the status quo (do nothing)
• Harvest: Reduce the investment (enjoy positive cash flow and maximize profits from a Star or Cash Cow)
• Divest: For example, get rid of the Dogs, and use the capital to invest in Stars and some Question Marks.

Source:

http://www.mindtools.com/pages/article/newTED_97.htm

KUALA LUMPUR: The government will review the education system to produce talent needed for an advanced nation and also offer perks to lure home highly-skilled Malaysians and retain global talent to develop a quality workforce.

At the same time, it will reduce reliance on cheap unskilled foreign labour by imposing equal labour standards for local and foreign labour and a levy for unskilled foreigners in line with sector needs.

These are among measures outlined in Part One of the New Economic Model (NEM) unveiled by Prime Minister Datuk Seri Najib Tun Razak Tuesday.

Prime Minister Datuk Seri Najib Tun Razak delivering his keynote address at the Invest Malaysia 2010 conference at the Shangri-La Hotel in Kuala Lumpur today.

The NEM sounds a blunt warning that Malaysia’s human capital is reaching a “critical stage” because of a lack of talent development, rapidly rising migration of skilled Malaysians and declining numbers of expatriates coming here.

Stressing that people are the most valuable asset in a fiercely competitive globalised world, the NEM says Malaysia must retain and attract talent to compete on a regional and global scale.

“Malaysia must be seen by its people and others as a land of equal opportunity to earn a good living and provide a secure, happy life for each individual and the family,” it says.

It notes that 80% of the local workforce are only educated up to Sijil Pelajaran Malaysia and complaints of inadequate creativity and English proficiency are among the top obstacles faced by companies, according to a study on Malaysia’s investment climate.

Among the measures proposed by NEM are:

* review the education system to shift from rote learning to creative and critical thinking;

* increase emphasis on reintroducing technical and vocational training colleges;

* enhance English language proficiency;

* deliver high-quality education within reach of all localities;

* upgrade skills of the Malaysian workforce with continuing education and training;

* establish a safety net for displaced workers;

* formalise international quality standards and skills certification;

* allow wage levels to be reflective of skill level;

* review existing programmes to attract highly-skilled Malaysians to return home;

* offer permanent residence for ex-Malaysians and their families;

* centralised oversight of foreign labour and expatriates to enable coherent practice; and

* simpler work permit and immigration procedures.

The NEM says greater use of foreign talent will increase the demand for Malaysians to upgrade their skills, while the ensuing combination of global and domestic talent will generate higher production and lead to more robust wage raise.

“Another barrier that has to be addressed is the regulation of professional associations which prohibit domestic employment of foreign professionals.

“This is a critical issue since Malaysia’s policies are unusually restrictive compared with other East Asian countries.

“Without substantial inflows of foreign talent, firms do not have the incentive to move up the value chain but still have to cope with wage cost pressures,” it says.

To remove labour market distortions that hinder wage growth, the NEM suggests the revision of the legislation and institutional framework for hiring and firing practices.

Workers, not jobs, should be protected through a stronger safety net and a labour market flexibility should be encouraged while pay rise should be based on productivity and not regulation. – Bernama

Source:

http://thestar.com.my/news/story.asp?file=/2010/3/30/neweconomicmodel/20100330122103&sec=neweconomic

WATER is the essence of life. All creatures evolved out of marine life. Even the creationist view of life does not exclude the importance of water. Our body is 55% to 75% water (depending on age and health, with decreasing percentage with increasing biological age), and our cells are 70% to 90% water. Dehydration is one major effect of ageing, and this can be clearly seen in the ageing skin.

Water is not only essential to the health of our bodies, but also to the health of our earth. The gaia concept views earth as a living organism which, like all living organisms, depends much on clean, health-giving water.

Unfortunately, our blatant neglect of the lakes, rivers, and oceans, and our persistent pollution of the environment has contaminated most of our water sources. Some of the rivers that flow through major cities around the world are so murky, only mutant fish can survive! As clean water sources are becoming scarce, in future, wars will be fought over water, and not just oil.

Water for health

In the past, all we needed to do to drink a glass of clean water was to turn on the tap. Nowadays, nobody drinks from the home tap anymore, and for good reasons. The quality of the domestic water supply is suspect, and often obviously deficient and dirty (depending on where you live). We only drink boiled, filtered, or bottled water.

With the realisation that filtration was necessary, we were then bombarded by a whole array of water filtration and treatments systems. Some fantastic claims are being made about the health and healing powers of the treated water, so it would be good if I explain to you some of the terms used.

Purity and sterility

The gold standard for water purification is the distillation process, which involves boiling the water and then condensing the steam as distillate. In this way, pure water is obtained due to its specific boiling point. Boiling also sterilises the water (kills viruses, bacteria, and parasites).

Modern technology has enabled reverse osmosis (RO) technology to be equally as good. The best filtration membrane is so fine that only water molecules pass through, excluding even viruses. Pure, sterile water is the result. It is so reliable that even urine can be recycled (e.g. Singapore’s Nuwater). However, you will not get the benefits of urine therapy by drinking it, since it is just pure water.

All other methods of filtration (e.g. layered sand, fibre filters) do not give the same purity as the above two, although it can come close if multiple filter systems are used.

Besides distillation and RO, other methods used to sterilise include UV light and nano-silver. Do note that you can have sterile water that is not pure – e.g. if impurities are not filtered out before boiling (unless you collect only the distillate) or UV-irradiation.

Note that if it is not safe for drinking, then it is not good for bathing too, since the skin absorbs water and whatever it contains easily. Be sure to have an outdoor filter system for your whole house if you are serious about your health. For added safety, have a table-top unit in your kitchen to re-filter (and alkalinise, energise, etc.) for drinking.

Acidity and alkalinity

The pH of pure water is seven (neutral). However, distilled and RO water tends to be slightly acidic due to its readiness to absorb the carbon dioxide in the air, turning it to carbonic acid.

Impure water is acidic, and is not good for health. Our blood is always alkaline (pH 7.35 to 7.45), and the body has to maintain this at all cost to ensure homeostasis (optimum physiological conditions around the cells and organs) is maintained, allowing all cellular functions to continue.

The body does this through acid and alkaline buffers which are outside the blood. Thus, if you drink or eat too much acid foods, or produce too much acids (e.g. starvation diet leading to ketoacidosis), then your alkaline buffers will be used to maintain the alkaline blood pH, at the expense of your cells and organs. These will be surrounded by acidic conditions and their functions may be impeded.

Once the body runs out of alkaline buffers, then the blood pH becomes more acidic, and organ failure follows. A body that cannot restore its alkaline blood pH will die.

All the natural healing water (e.g. Lourdes, Zam-Zam) are alkaline. From my explanation above, you will understand why this is so. Our unhealthy diets and lifestyles tend to increase the body’s acidity, and alkaline water will neutralise this tendency.

My advice is for you to get a water treatment system that produces alkaline water. The best ones allow you to select precisely the pH that you require (most natural alkaline water are around pH 9), and also discharges acidic water which you can use for skin health. While alkaline water is good for drinking, acidic water is excellent for skin health and beauty (skin pH is 5.5), and for feminine hygiene.

Molecular size

The terms micro-water, nano-water, clustered-water, structured-water and a host of other terms all describe the fact that pure, energised water molecules tend to form small clusters, and the water behaves better in dissolving, cleansing, and other functions, including healing. While all the physical actions of water can be proven in the laboratory, the healing effects of small water-molecule clusters have not been validated by scientific studies, although there are ample testimonies from those who have benefited.

It is not surprising at all that smaller water clusters should have better healing effects since all the functions are improved, and maintaining health (and healing) is a major function of water.

The smaller clusters result from the change in the angle between the two H (hydrogen) and O (oxygen) atoms that constitute the water molecule. This is possible through a change in its energy state, and is responsible for the improved properties and functions.

Mineral content

The best natural healing water is also rich in minerals. However, do not correlate this with all the mineral water that you drink. You must understand the difference between organic and inorganic minerals.

For example, the mineral water that contains minerals from dissolved rocks and stones (e.g. mineral pot) contains inorganic minerals that are not easily assimilated by the cells, and may be detrimental under certain conditions.

If there is dehydration, or changes in acidity, they tend to form stones in the body. Rock-derived minerals may form mini-rocks inside you!

Organic minerals are plant-derived. The natural water that contains organic minerals flow through earth layers that are rich in minerals formed from pre-historic plants, which have denatured.

When dissolved, these layer of organic minerals form colloidal minerals. The Hunza Valley water is especially rich in such minerals because the glaciers collect the organic minerals as they travel down the mountains.

It is best that you get your minerals from fruits, vegetables, and other foods and not worry if your water is sufficiently mineralised, unless you are sure that the minerals are organic. However, some mineral content is necessary if the water is to be ionised.

Ionised water

Charged or ionised H+ and OH- atoms and molecules can be obtained by splitting the water molecule, by passing an electrical current. However it is easier to charge the dissolved minerals. Since the body functions through subtle electrical currents, the availability of charged atoms and molecules can help in health and healing. For example, when you have an injury, the injured cells’ electrical charge is disturbed and this initiates the healing process.

Negatively-charged ions also act like antioxidants, neutralising free-radicals and thus help in fighting disease, ageing, and cancer. Thus ionised water is often called “antioxidant water”.

Energised water

You have seen how energised water can improve its healing power through a change of its molecular structure. But how is water energised? Most water-treatment systems do this though FIR (far infrared) obtained from treated ceramics or other materials. It can also be energised by scalar-energised volcanic minerals or metals.

Finally, it can also be energised by sending life-force (qi, reiki or prana, etc) to it. While FIR and other measurable energy-forms are easily understood, the effects of scalar and qi-enhanced water can only be shown through innovative means.

Secrets of water

Dr Masaru Emoto is the eminent water-scientist who revealed to the world the “Secret Life of Water”. He showed though scientific methods that water not only has memory, but also emotions.

When frozen under controlled conditions, pure and polluted water formed different crystal patterns. Water that had pleasant words and prayers recited formed beautiful patterns, while water that got negative words formed ugly patterns.

Scalar and qi-energised water also formed exquisite patterns. Watching the crystals slowly forming, with the accompaniment of music, is an unforgettable experience. Dr Emoto will be giving his much-awaited lecture on more secrets about water in Kuala Lumpur on 3rd April 2010. You should not miss this experience.

by Dr. Amir Farid Isahak.

http://thestar.com.my/health/story.asp?file=/2010/3/28/health/5943910&sec=health

Understanding the risks of different options :

(Also known as the Product / Market Expansion Grid)

For a whole variety of reasons, there are times when as an individual or in business you want or need to expand or change your field or market. In business, you might need to achieve economies of scale, make more money for investors, or gain national or even global recognition of their brand. As an individual, you may want to change company, or even career.

Having decided that you want to grow your business or career, you’ll have hundreds of ideas about things you could do. For your business, this means new products, new markets, new channels, or new marketing campaigns. For your career, it means new skills, new roles, and even new industries.

That’s great! But which ones should you choose? And why?

Using a strategic approach, such as the Ansoff Model or Matrix, helps you evaluate your options and choose the one that suits your situation best, and gives you the best return on the potentially considerable investment that you’ll need to make.

Understanding the model:

The Ansoff Matrix was first published in the Harvard Business Review in 1957, and has given generations of marketers and small business leaders a quick and simple way to develop a strategic approach to growth.

Sometimes called the Product/Market Expansion Grid, it shows four growth options for business formed by matching up existing and new products and services with existing and new markets, as shown in Figure 1 below.

The Matrix essentially shows the risk that a particular strategy will expose you to, the idea being that each time you move into a new quadrant (horizontally or vertically) you increase risk.

The Corporate Ansoff Matrix

Looking at it from a business perspective, staying with your existing product in your existing market is a low risk option: You know the product works, and the market holds few surprises for you.

However, you expose yourself to a whole new level of risk either moving into a new market with an existing product, or developing a new product for an existing market. The market may turn out to have radically different needs and dynamics than you thought, or the new product may just not work or sell.

And by moving two quadrants and targeting a new market with a new product, you increase your risk to yet another level!

Personal Ansoff

Looking at it from a personal perspective, just staying where you are is (usually!) a low risk option.

Switching to a new role in the same company, or changing to a similar job with a company in the same industry is a higher risk option. And switching to a new role in a new industry has an even higher level of risk.

This is shown in figure 2, below.

Use of the model is straightforward:

1. Start by downloading either the free Corporate Ansoff or Personal Ansoff worksheet. Then plot the approaches you’re considering on the matrix. The table below shows how you might classify different approaches.

1. Manage risk appropriately. For example, if you’re switching from one quadrant to another, make sure:
   • That you research the move carefully;
   • That you build the capabilities needed to succeed in the new quadrant;
   • That you’ve got plenty of resources to cover a possible thin period while you’re developing and learning how to sell the new product, or are learning what makes the new market tick; and
   • That you have firstly thought through what you have to do if things don’t work out, and that failure won’t “break” you

Source:

http://www.mindtools.com/pages/article/newTMC_90.htm

Understanding how to position your market offering:

What is marketing? The definition that many marketers learn as they start out in the industry is:

Putting the right product in the right place, at the right price, at the right time.

It’s simple! You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you’ve got it made!

There’s a lot of truth in this idea. However, a lot of hard work needs to go into finding out what customers want, and identifying where they do their shopping. Then you need to figure out how to produce the item at a price that represents value to them, and get it all to come together at the critical time.

But if you get just one element wrong, it can spell disaster. You could be left promoting a car with amazing fuel-economy in a country where fuel is very cheap; or publishing a textbook after the start of the new school year, or selling an item at a price that’s too high – or too low – to attract the people you’re targeting.

The marketing mix is a good place to start when you are thinking through your plans for a product or service, and it helps you avoid these kinds of mistake.

Understanding the model:

The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing.

“Marketing mix” is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are:

• Product (or Service)
• Place
• Price
• Promotion

A good way to understand the 4 Ps is by the questions that you need to ask to define you marketing mix. Here are some questions that will help you understand and define each of the four elements:

Product/Service

• What does the customer want from the product/service? What needs does it satisfy?
• What features does it have to meet these needs?
  • Are there any features you’ve missed out?
  • Are you including costly features that the customer won’t actually use?
• How and where will the customer use it?
• What does it look like? How will customers experience it?
• What size(s), color(s), and so on, should it be?
• What is it to be called?
• How is it branded?
• How is it differentiated versus your competitors?
• What is the most it can cost to provide, and still be sold sufficiently profitably? (See also Price, below).

Place

• Where do buyers look for your product or service?
• If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue?
• How can you access the right distribution channels?
• Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?
• What do you competitors do, and how can you learn from that and/or differentiate?

Price

• What is the value of the product or service to the buyer?
• Are there established price points for products or services in this area?
• Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin?
• What discounts should be offered to trade customers, or to other specific segments of your market?
• How will your price compare with your competitors?

Promotion

• Where and when can you get across your marketing messages to your target market?
• Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet?
• When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?
• How do your competitors do their promotions? And how does that influence your choice of promotional activity?

The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions we have listed above are key, they are just a subset of the detailed probing that may be required to optimize your marketing mix.

Amongst the other marketing mix models have been developed over the years is Boom and Bitner’s 7Ps, sometimes called the extended marketing mix, which include the first 4 Ps, plus people, processes and physical layout decisions.

Another marketing mix approach is Lauterborn’s 4Cs, which presents the elements of the marketing mix from the buyer’s, rather than the seller’s, perspective. It is made up of Customer needs and wants (the equivalent of product), Cost (price), Convenience (place) and Communication (promotion). In this article, we focus on the 4Ps model as it is the most well-recognized, and contains the core elements of a good marketing mix.

Using the 4Ps Marketing Mix Model:

The marketing mix model can be used to help you decide how to take a new offer to market. It can also be used to test your existing marketing strategy. Whether you are considering a new or existing offer, follow the steps below help you define and improve your marketing mix.

1. Start by identifying the product or service that you want to analyze.
2. Now go through and answers the 4Ps questions – as defined in detail above.
3. Try asking “why” and “what if” questions too, to challenge your offer. For example, ask why your target audience needs a particular feature. What if you drop your price by 5%? What if you offer more colors? Why sell through wholesalers rather than direct channels? What if you improve PR rather than rely on TV advertising?
4. Once you have a well-defined marketing mix, try “testing” the overall offer from the customer’s perspective, by asking customer focused questions:
   1. Does it meet their needs? (product)
   2. Will they find it where they shop? (place)
   3. Will they consider it’s priced favorably? (price)
   4. And will the marketing communications reach them? (promotion)
5. Keep on asking questions and making changes to your mix until you are satisfied that you have optimized your marketing mix, given the information and facts and figures you have available.
6. Review you marketing mix regularly, as some elements will need to change as the product or service, and its market, grow, mature and adapt in an ever-changing competitive environment.

Source:

http://www.mindtools.com/pages/article/newSTR_94.htm

PEST Analysis is a simple, useful and widely-used tool that helps you understand the “big picture” of your Political, Economic, Socio-Cultural and Technological environment. As such, it is used by business leaders worldwide to build their vision of the future.

It is important for these reasons:

• First, by making effective use of PEST Analysis, you ensure that what you are doing is aligned positively with the powerful forces of change that are affecting our world. By taking advantage of change, you are much more likely to be successful than if your activities oppose it;

• Second, good use of PEST Analysis helps you avoid taking action that is doomed to failure from the outset, for reasons beyond your control; and

• Third, PEST is useful when you start operating in a new country or region. Use of PEST helps you break free of unconscious assumptions, and helps you quickly adapt to the realities of the new environment.

How to use it:

PEST is a simple mnemonic standing for Political, Economic, Socio-Cultural and Technological.

To use this tool, follow this three stage process:

1. Brainstorm the relevant factors that apply to you;
2. Identify the information that applies to these factors; and
3. Draw conclusions from this information.

The following factors may help as a starting point for brainstorming (but make sure you include other factors that may be appropriate to your situation):

Political:

• Government type and stability

• Freedom of press, rule of law and levels of bureaucracy and corruption

• Regulation and de-regulation trends

• Social and employment legislation

• Tax policy, and trade and tariff controls

• Environmental and consumer-protection legislation

• Likely changes in the political environment

Economic:

• Stage of business cycle

• Current and project economic growth, inflation and interest rates

• Unemployment and labor supply

• Labor costs

• Levels of disposable income and income distribution

• Impact of globalization

• Likely impact of technological or other change on the economy

• Likely changes in the economic environment

Socio-Cultural:

• Population growth rate and age profile

• Population health, education and social mobility, and attitudes to these

• Population employment patterns, job market freedom and attitudes to work

• Press attitudes, public opinion, social attitudes and social taboos

• Lifestyle choices and attitudes to these

• Socio-Cultural changes

Technological Environment:

• Impact of emerging technologies

• Impact of Internet, reduction in communications costs and increased remote working

• Research and Development activity

• Impact of technology transfer

Figure 1 below shows this in diagrammatic format:

Figure 1: PEST Analysis in Diagrammatic Format

Key Points:

PEST Analysis is a useful tool for understanding the “big picture” of the environment in which you are operating, and the opportunities and threats that lie within it. By understanding your environment, you can take advantage of the opportunities and minimize the threats.

PEST is a mnemonic standing for Political, Economic, Social and Technological. These headings are used firstly to brainstorm the characteristics of a country or region and, from this, draw conclusions as to the significant forces of change operating within it.

This provides the context within which more detailed planning can take place to take full advantage of the opportunities that present themselves.

Source:http://www.mindtools.com/pages/article/newTMC_09.htm

MUCH has been written over the last couple of days as to whether grammar or phonetics is more important in teaching and learning the English language.

This really isn’t the issue when it comes to why the usage of English has deteriorated so drastically in Malaysia.

I hold a Certificate in Teaching English as a Second Language and have been teaching students and working with English teachers in Nepal, China, Mongolia and Africa.

No matter what setting a teacher is in, the main duty of an English teacher is to teach skills that will enable students to communicate effectively in English.

This includes teaching grammar and writing, reading, speaking and listening skills.

It also includes teaching pronunciation and phonetics.

Hence, there is not one component that is more important than the other.

If grammar is lacking, the student will not be able to formulate a sentence correctly, much less speak it.

The same goes for phonetics – what’s the point of being able to pronounce a word correctly if the student is unable to string a sentence together? Hence, the issue is not whether there is a need to enlist help in the area of phonetics.

The issue is the confused state we are in when it comes to promoting the use of English, and our own attitudes toward learning the language.

I graduated 17 years ago. At that time, schools did not allow us to speak English in class.

Later on, Maths and Science were taught in English, and then, it was back to Malay and then to English.

We seem like victims of a hit-and-miss system and our children became guinea pigs as the Government deliberated on whether they liked English or Bahasa Malaysia better at any given time.

Our grave deterioration in the language is the result of our Government’s inability to take a stand on English.

Perhaps if they can sit down and clear the confusion, we may be able to finally embark on an effective system of teaching that will achieve the desired effects of improving the English speaking skills of Malaysians.

Another problem is our Malaysian attitude towards learning.

We learn enough just to get by and many of us do not see a need to strive to be the best.

We profess to speak at least two or three languages but the Chinese in China do no understand us, nor do citizens in English-speaking nations.

We take pride in the creation of our very own “Manglish,” which is fine if we never leave Malaysian soil, but once outside of Malaysia, we are lacking in so many ways.

Hence, the key to achieving a society that speaks English well is two-fold.

Firstly, there needs to be a clear indication from the Government on the importance of the language.

Once that is established, opportunities must be created for effective use of the language.

A language is dead if not utilised. Secondly, there must be a driving desire to learn among students.

If the desire to learn is not there, the Government can force all subjects to be taught in English and bring in one million teachers from Britain, and we will still not speak English with the dignity it should be accorded.

Elaine Wong.

http://thestar.com.my/news/story.asp?file=/2010/3/29/focus/5954271&sec=focus

GENTING HIGHLANDS: Parent-Teacher Associations (PTAs) may soon be allowed to operate pre-school classes, said Education Minister Tan Sri Muhyiddin Yassin.

“Under this initiative, there will be allocations and training for the teachers. The full details of the initiative will be announced once they are ready,” he said when closing the National PTA Convention at Institut Aminuddin Baki here yesterday.

Muhyiddin, who is Deputy Prime Minister, said he was all for the initiative since the Government was emphasising pre-school education under the National Key Result Areas (NKRAs).

Source:

http://thestar.com.my/news/story.asp?file=/2010/3/29/nation/5953336&sec=nation