macro-environment of the company

8/2/2019 Macro-Environment of the Company

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Macro-Environment of the

company:


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The Economic environment is an amalgamation of various economic factors, such astotal employment, productivity, income, wealth, inflation and interest rates. Thesefactors influence the spending patterns of individuals and firms.

The economic environment comprises of: Income and wealth , Employment levels ,Productivity

Factors Affecting the Economic Environment::

Inflation and deflation:Inflationary and deflationary pressures alter the purchasingpower of money. This will directly impact on consumer spending, businessinvestment, employment rates, government programs and tax policies.

Interest rates: Interest rates determine the cost of borrowing and the flow of

money towards businesses.

Exchange rates: This impacts the price of imports, the profits made by exporters andinvestors and employment levels (also through the impact on the tourism industry).

Monetary and fiscal policy: This helps in attaining full employment, price stability andeconomic growth.


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The economic environment is also influenced by various political, social and

technological factors. These include a change in government and the

development of new technology and business tools.Economic Trends:It will concentrate on the understanding of the customersdisposable income, interest rates, inflation & unemployment rates

Political Trends: The macro political environment analysis will identify changes in theposition politicians take on issues. A current ex: is a shift towards the greener policiesin the developed world

TechnologicalTrends: The macro technological environment analysis will identifychanges in the application of technology. A current example is a shift towards onlinetransactions and in some areas a shift away from online transactions.

Legal Trends: The macro legal environment analysis is closely linked to the politicalenvironment (politicians tend to make the laws), but also includes trends in courtdecision such as liability compensation

Social/Cultural Trends: The macro social/cultural environment analysis will identifytrends in societies beliefs, behaviors, values and norms. Such as the number of part

time workers, attitudes towards global warming, make up of the family structure.


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Demographic Trends: The macro demographic analysis will identify trends inpopulation growth at relevant ages for your industry (There maybe zero populationgrowth in general but high growth in the number of people over 65), the populationlocation.

Political

EconomicSocial/cultural

Technological

Legal

Environmental (Environmental issues, global warming, pollution)


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P.E.S.T Analysis:

The P.E.S.T. analysis is the same as the macro environment analysis but used theacronym P.E.S.T

Political

Economic

Social/cultural

Technological


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PR activities for PSAAR watches :

macro-environment of the company

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