Macro Environment Analysis HELPFUL FOR TOOLS

Macro environment analysis is part of a company's strategic management that enables it to analyze and identify potential opportunities and hazards that might impact the business. The goal is to prepare management in advance with information that assists them in making operational decisions.
What Is an Example of a Macro Environment?
Political factors are an example of a macro-environmental force that can impact a business. These include laws or government regulations governing companies or the industry in which they operate.

1. Immigration Age profile Diversity Education Population Living standards Housing trends Fashion and role Models Attitude to career What is the budget any position of department Is more money available? What is happening to the financial status? Interest rates & Inflation Salary trends in the sector What is the company Culture? What is the function? The views of other departments Shareholders’ views Who are the political champions? Staff morale Staff engagement Need to reduce storage needs Management attitudes Company culture What changes may be coming our way? What new technology systems? How do we record attendance performance? Use of and encourage home working? Communication technologies Tech changes affect needs for recruitment Changes to software What happened in our sector that will impact Minimum wage Occupational Industrial Training What changes will impact the service Under 18 working Time Working SOCIAL ECONOMIC POLITICAL ENVIRONMENTAL TECHNOLOGICAL LEGAL PESTEL MINDMAP

2. MARKET ANALYSIS MARKET FORCES Market segments Revenue attractiveness Needs and demand Switching costs Market issues INDUSTRY FORCES Suppliers and other value chain actors Substitute products and services Stakeholders New entrants (Insurgents) Competitors (Incumbents) KEY TRENDS Societal and cultural trends Socioeconomic trends Regulatory trends Technology trends MACRO-ECONOMIC FORCES Economic infrastructure Commodities and other resources Global market conditions Capital markets FORESIGHT MACROECONOMICS COMPETITIVE ANALYSIS KP CR VP KA CS CH KR CS RS

3. 1 st Tailwind 2 nd Tailwind 3 rd Tailwind 4 th Tailwind 5 th Tailwind 1 st Headwind 2 nd Headwind 3 rd Headwind 4 th Headwind Explosive growth in investment manager businesses – particularly alternatives, customized portfolios and hybrid products Regulatory and investor demands and costs increasing Growth of DC plans and move to low cost products helps fuel CIT growth New technologies solving industry issues Investment managers business model transforming/evolving rapidly Rise in passive investing causing increase in competition and fewer traditional active manager launches Active manager underperformance Significant fee pressure causing managers’ margin erosion; move to more manager/investor alignment Increase in fintech and non-financial service industry competitors HEADWIND TAILWIND

4. THE SCENARIO FUNNEL A B C D Scenario A Pivot to emerging markets: Leverage existing tech for new customer segments. Scenario B Focus on core products: Cut non-performing assets, double-down on flagship solutions. Scenario C Mergers and acquisitions: Acquire struggling competitors or complementary businesses. Scenario D Diversify offerings: Innovate outside tech, explore tangential sectors or services. HISTORIC DATA Today Trends emerging issue wild cards Future Option space (Scope of possible future developments)

5. Economic Environmental Geopolitical Societal Technological Extreme Weather Climate action failure Human environmental damage Infectious diseases Biodiversity loss 1st 2nd 3rd 4th 5th Digital power concentration Digital inequality Interstate rotations fracture Cybersecurity failure Livelihood crises 6th 7th 8th 9th 10th Infectious diseases Climate action failure Weapon of mass destruction Biodiversity loss Natural resource crises 1st 2nd 3rd 4th 5th Human environmental damage Livelihood crises Extreme weather Debt crises IT infrastructure breakdown 6th 7th 8th 9th 10th TOP BUSINESS RISKS BY LIKELIHOOD TOP BUSINESS RISKS BY IMPACT