THE MACRO ENVIRONMENT

The Macro Environment

1. EXTERNAL ENVIRONMENT External environment is closely related to the surrounding of the company. ELEMENTS: Competitors Suppliers Distributors Customers.

2. MACRO ENVIRONMENT Macro environment comprises the external factors over which the organization and the management has little control.

3. MACRO ENVIRONMENT PESTLE PEST STEEPLE DESTEP SPELIT

4. PESTLE ANALYSES PESTLE Analysis describes a framework of macro environmental factors used in environmental component of strategic management.

5. PESTLE ANALYSES

6. POLITICAL FACTORS It refers to the stability of the political environment and the attitudes of political parties or movements. Political factors include -government policy laws, and government agencies.

7. ECONOMIC FACTORS Economic factors have significant impact on organization. Economic factors affect the consumer purchasing power and spending patterns and their levels and distribution of income .

8. FACTORS AFFECTING ECONOMIC ENVIRON MENT Growth rate. Inflation Business cycle. Labour cost .

9. SOCIAL FACTORS The areas that involve the shared belief and attitudes of the population. social factors include- Characteristics of the population. Values and attitudes. Lifestyles and relationships. Health consciousness. Emphasis on safety. Income levels. Age distribution. Etc,

10. TECHNOLOGICAL FACTORS It refers to the development in the field of technologies which effects business by new inventions of production and other improvements in techniques to perform the business work. Factors affecting market: 1. Producing goods & services. 2. Distributing goods & services. 3. Communicating with target market.

11. LEGAL FACTORS Legal factors of the business means all factors relating to law and legal orders which affect business and its workings. Legal factors include- Organizational laws Employee laws Consumer protection law Health and safety law.

12. ENVIRONMENTAL FACTORS Environmental factors include those factors that influence or determine surrounding environment. Environmental factors include- Geographic boundaries. Climate change. Disposal of waste material. Energy availability and consumption. Recycling procedures. Limited natural resources. Attitude towards environment.

13. Launching a new product / service Entering a new region or country Considering a new route to your market Working as part of a strategic project team Uses of PESTLE analyses