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. analysis example: an aging population is a demographic or social trend in many western counties which when combined with the trend of people living longer is resulting in an increase in the total number of retired persons. in the macro environment analysis your identified opportunities and threats may affect many industries, for example: a possible interest rate rise will affect the amount of disposable income people have. for example: 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.
the final step of the macro environmental analysis is to summarize the identified opportunities and threats and determine if you should expect growth, stability or decline in the size of your industry. you may find that you discover some trends with the potential to have a significant impact on your industry such as an interest rate rise may cause a drop in demand for the building industry. even if you forecast interest rates to remain low you should scenario planning or contingency planning just in case something unexpected happens to interest rates and then keep a close watchful eye on the progress of the trend. to help you remember the headings and the p.e.s.t.l.e analysis is same as the macro environment analysis but used the acronym p.e.s.t.l.e.
some variations of the pest analysis method add additional categories for the legal and ecological environments, and may be referred to by other acronyms such as steep or pestel. the following sources provide additional information on environmental scanning and a variety of analytical tools including the pest analysis technique. in addition to the general sources listed previously, you may need to consult additional or more domain-specific sources (listed below) to gather data on current events and trends. the economic environment includes factors related to the health of the economy such as fiscal or monetary policy, gdp growth rates, exchange rates, interest rates, inflation, employment rates, spending patterns, and other indicators. an analysis of the social environment at the general or macroenvironmental level will examine factors related to characteristics of a country’s population. these social factors may include information on: an analysis of the technological environment may involve gathering information on patent activity, research & development budgets, the pace of technological change, and telecommunications infrastructure (such as bandwidth capacity).
according to fleisher and bensoussan, “the analytical task is to identify monitor the effects of technological change as it affects competitive strategy…not only in the final goods market, but also in new product and process innovation, and even communication, human resource attraction, and marketing methods” (2007, p.90). business and competitive analysis: effective application of new and classic methods. many organizations monitor the technological environment on a regular basis including think tanks, consulting firms, stock market analysts, trade and industry associations. the ecological environment includes variables such as climate, sustainable development and recycling capacity as well as pollution (air and water quality), energy sources, etc. many organizations monitor the ecological environment on a regular basis including think tanks, watchdog groups, and news organizations. the legal environment includes laws, regulations, and public policy (at all levels of government) that may affect an organization’s ability to act. key factors or variables associated with this category often include: in addition to the general sources listed previously, you may need to consult additional or more domain-specific sources (listed below) to gather data on current events and trends in the legal environment.
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 this macro industry analysis should answer the question why some industries are more attractive – more profitable – than others. why, for example, are the one method used to analyze trends in the macro environment is the pest (political, economic, social, technological) analysis., macro industry analysis template, macro industry analysis template, macro environment analysis example pdf, macro analysis example, macro analysis tools.
in general, the macro environment includes trends in the gross domestic product (gdp), inflation, employment, spending, and monetary and fiscal policy. most of the variables that determine value for the security markets are macro variables such as interest rate, gdp, and corporate earnings. therefore, analysis industry analysis is a market assessment tool used by businesses and analysts to understand the complexity of an industry. there are three commonly used, macro environment examples, macro environment pdf, macro environment factors, macro environment opportunities and threats, macro environment pestel, demographic macro environment, importance of macro environment, what is macro environment in marketing, macroeconomic and industry analysis – ppt, micro and macro environment pdf. what is macro industry analysis? what is a macro industry? is industry analysis macro or micro? how do you perform a macro analysis?
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