Objective:

Develop a SWOT analysis within a year and use findings to draft a business plan.

Goals:

1.Perform a PESTEL analysis on the macroenviroment

1.a - Identify scope of analysis e.g. global,regional or national depending on the area the venture operates or wishes to operate in.

1.b - Identify relevant sources of information and collect data.

1.c - Analyze data and record findings.

1.d - Identify areas of importance and create a system for continuous review to keep abreast with changes in the macroenvironment.


2.Perform an industry analysis on the microenvironment.

2.a - Identify scope of analysis e.g. local and/or foreign industry perspectives.

2.b - Identify relevant sources of information and collect data.

2.c - Analyze data and record findings.

2.d - Identify areas of importance and create a system for continuous review to keep abreast with changes in the microenvironment.

3.Perform an internal analysis of the venture.

3.a - Identify current and potential resources available to the venture both tangible and intangible.

3.b - Use the resource information to establish the venture's capabilities and record findings.

3.c - Identify areas of importance and create a system to monitor and evaluate the state of the venture.

4.Aggregate the three analyses

4.a - Utilize the areas of importance to identify areas opportunities and threats might arise from.

4.b - Assess the venture's capability to address the opportunities and threats.

4.c - Compare the venture's capabilities against the industry to identify strengths and weaknesses.

4.d - Compile the SWOT analysis.

Resources:

The resources needed to achieve the above goals depends on your situation.I'll assume there is no access to research firms and you are working alone,that way it will include everyone.

Bad news is the analysis required spans various fields and might require different expertise.Good news is,you have the internet.

You can access various datasets from the internet.A good amount of objective and subjective information is there from a myriad of websites.Once the data is found and you've familiarized yourself with the basic concepts you can begin analysis.

In the past,this too would have been hectic but you have a beautiful resource right in front of you,Wazua.Engage.Apart from Wazua which holds a lot of information and analysis concerning Kenya,there are plenty of online forums which cover just about every topic you can encounter.

If you need extra resources e.g. personnel or capital,remember to account for it in your goals.The aim is to personalize this framework to meet your needs.

Time:

The amount of time that is required for the different analysis will depend on the area of interest.Initially it is a daunting task but once accomplished the only task that will be left going forward is updating your findings.

To be frank,enterprises don't have to start with such an analysis but then again most fail because of lack of planning and proper management.

Sometimes its better to get into a game knowing who the players are and what the rules are.Remember,failing to plan is planning to fail.

Now we can begin on PESTEL.

@xtina - Thank you.What kind of example do you have in mind I try and use it.There is a reason it is a bit abstract.Situations are different and trying to accommodate everyone of them will be difficult.These are but tools an entrepreneur can use to further their goals but I'm open to questions and suggestions.

@symbol, solar powered cold storage facilities for fruits/vegetables

@symbols how do i post on wazua Google groups....i have got a few clips that would make a great watch for anyone interested in entrepreneurship...or i could email them to you and have you post them

Thanks but the clips are just too big and would take eons to upload if still interested search for series called 'The men who built America' it chronicles the lives of Americas early entrepreneurs such as Rockefeller,J.p Morgan, Carnegie and the likes i found it to be quite refreshing

Political Factors

When it comes to influence,political factors seems to take the lead but I'll argue out the case for socio-cultural factors when we reach there.Political factors are indeed powerful and do affect most aspects of our lives as well as the other components in the PESTEL framework and here are some important aspects that a venture can consider:

1.Government

At the heart of most nations is government.Since they hold a substantial amount of wealth,resources and authority,their actions have an impact on a nation's citizens,corporations as well as other nations.What should the enterprise look out for:

a.Government direction - What are the intentions,plans and actions of the government.This can either be locally or in foreign nations depending on the exposure of your venture.

A good broad example is Kenya vision 2030.It outlines the governments intentions,plans and accomplishments thus far in its development programme.How can this and other plans that a government has be useful to an enterprise?

To achieve its objectives, the government will have to collaborate with the private sector and therein lies the some of the opportunities and threats.It might also adopt/modify new policies,laws and even incentives to move the nation towards the intended direction.

On the surface a few opportunities present themselves.Firstly a venture can choose to capitalize on the governments interaction with the private sector i.e. position the venture to benefit from government spending.Secondly, industries will benefit from reforms enacted by the government which can lead to growth and avenues for diversification in addition to benefits derived from incentives.Even if a venture doesn't currently have the capacity to take advantage of the situation,it has time to acquire that capacity as the plan is implemented in stages.

Government plans can also bring about new threats through the same actions.A change in policy,laws or incentives can be a detrimental to whole industries while beneficial to others.For example if the government is focusing on shifting the reliance of the economy from one or more industries,those industries will be affected as resources might be diverted in support of other industries or projects.

An example of the effects of government actions can be found in this thread.There are vibrant discussions from the investor section to the politics section that one can tap for information.

Government communication and transparency in its plans and actions is not only good for its citizens but corporations as it gives them a chance to plan for their future and reduce uncertainty.Information can be found in the various government agencies websites.An interesting development is the Kenya Open Data Initiative

b.Government structure and governance - Kenya is beginning its path towards devolution.Each county will have its own agendas and consequently different priorities.This difference can be spotted in laws,policies and services offered by the county governments.Thus to a certain extent,doing business in one county might be different from doing business in another county.The same principle can be applied to understand how governance is achieved in foreign nations.

As government directly affects your venture,getting acquainted with its functioning and activities will help in avoiding conflicts.

c.Elections - With elections comes a change in leadership and/or a shift of power within the government.This change can lead to instability and uncertainty over the new governments direction.Will they continue with a previous regimes plans or introduce their own?

Due to the periodic nature of elections,cyclical opportunities and threats arise and in varying degrees.What works one time might not work the same way or to the same degree the next time.Some industries clearly benefit from electioneering periods such as advertising and media firms while the nation itself might experience a slowdown in business and investment,scarcity of products and fluctuation in currency rates.

The world is getting 'smaller'.We are getting more connected and interdependent.Elections and other developments in other nations can have an effect on your venture.In recent years this has been reaffirmed as developments in the Eurozone and US have been seen to affect the financial state of the globe.Being aware of developments in other nations is thus beneficial.

Although taxation falls under the government,it is better addressed under economical factors.This cannot begin to cover the extent of a government's influence on a venture but I hope it can offer a place to start or supplement your existing knowledge.

I appreciate the contribution @Museveni and others.As I continue to share what has worked for me,I also hope others might continue to share.Sometimes what we need the most is encouragement to take the first step.We all have unique circumstances and your experience and knowledge might just be the key to someone else's success.

The Secrets of Bezos: How Amazon Became the Everything Store



This one story on how the retail market was changed forever. Everyone should take some time to read this. No it is not a book. A long read though.

always admired Amancio Ortega, though he is a very shy character and not much is known about him - I think he has done a good job with his fashion empire.

entrepreneurship is all about risk, forget all the analysis and studies - you just jump off the cliff and start assembling your parachute on your way down.

meanwhile as we theorize ...

a young entrepreneur somewhere in Kitale...