Some approaches will add in extra factors, such as International, or remove some to reduce it to PEST. However, these are all merely variations on a theme. The important principle is identifying the key factors from the wider, uncontrollable external environment that might affect the organization The PESTLE Factors We start with the Political forces. First of all, political factors refer to the stability of the political environment and the attitudes of political parties or movements.
Managing Change Macro Environment Analysis The Macro Environment Analysis is the first step of a strategic analysis which in turn kicks off the traditional; strategic planning cycle; it is sometimes referred to as an external analysis, a pest analysis or a pestle analysis.
The purpose of the Macro Environment Analysis is to identify possible opportunities and threats that will impact on your industry as a whole and that are outside the control of your industry. The goal of completing a macro environment analyses is to answer the following questions What environmental factors will affect the growth of our industry as a whole?
What is the likely cumulative impact of all of the things that affect the growth of our industry i. However, you will not always be correct as you are forecasting based only on what you currently know. An aging population is a demographic or social trend in many Macro environmental analysis of us market counties which when combined with the trend of people living longer is resulting in an increase in the total number of retired persons.
Retired persons are the largest segment who buys caravans.
This trend should result in an increase in the total number of caravans sold — so if you are in the caravan industry based on this one trend you should expect to see growth in the total size of your industry.
In the macro environment analysis your identified opportunities and threats may affect many industries, for example: A reduction in disposable income could affect the travel industry, pubs and clubs, moviegoers, restaurants, clothing, kids birthday party venues and the building and renovation industries alike.
However only industries impacted by an increase in interest rates should consider it in their analysis. If you are in the greeting card industry and fluctuations in interest rates will not affect the size of your industry then you do not need to consider interest rates in your macro environment analysis.
However if you are heavily geared or have large borrowings you will need to consider the impact of interest rates in your internal analysis Strategic Leadership and the Macro Environment Analysis Once you have grasped an understanding of the macro environmental analysis you will be continually scanning for information about macro factors activities such as watching or reading the news, reading management magazines and when in conversation with other industry leaders will all lead to a greater understanding of the macro environment.
In addition there are a number of things you can do to improve the depth of your understanding of the macro environment. Networking with senior leaders in your industry Networking with political parities Source strategic analysis information prepared for your industry typically by a third party provider Normally through subscription Read the financial papers Read management magazines Surf the Web for trends Note: How to do a Macro Environment Analysis A macro environmental analysis can be completed by yourself or in a brainstorming session, however you will need to do some research before starting your analysis.
To simplify the Macro Environment Analysis the following 6 broad heading will provide some structure, a good start is to list all of the trends you can think of or can find and indicate whether they will have a positive impact or negative impact on the size of your industry.
Download your free strategic planning template for the Macro Environment Analysis Political: The macro political environment analysis will identify changes in the position politicians take on issues.
A current example is a shift towards greener policies in the developed world. If an election is approaching you may look at the variation in policies from each party and assess the impacts on your industry of each parties viewpoint Economic Trends: The macro economic environment analysis will identify trends such as changes in personal disposable income, interest rates, inflation, exchange rates and unemployment rates.
Such as the number of part time workers, attitudes towards global warming, make up of the family structure as well as trends in population growth at relevant ages for your industry There maybe zero population growth in general but high growth in the number of people over Environmental Analysis for Potential Markets.
Economic Conditions - Economic Environment Gourmet Lovers will be venturing its olive oil brands to the potential overseas market in Italy. Gourmet lovers business enterprising in Italy is a great opportunity in enhancing the . Free Essay: Macro-Environmental Analysis of US Market Clothing & Fashion Industry Demographic Forces Current Population Size ,, Population.
The macro environment affects every business.
It consists of many factors that, if left unchecked, can destroy a business. To reduce the effects of negative factors, you must first understand what macro environment analysis is and how to do it yourself.
Jun 30, · Preparing a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect your small business.
Effects from some of the market’s key factors influencing the macro environment include the following: The Bureau of Economic Analysis releases a quarterly report on GDP growth that provides. Nike Macro Environmental Analysis Essay; Nike Macro Environmental Analysis Essay.
Words Apr 12th, 3 Pages. PA1: Nike - Environmental Marketing Analysis Mahendranath Gunti BUS - Marketing Management Macro-Environmental Analysis of Us Market Words | 16 Pages.