Macro Economic Environment Part-2 By Tarun Das

Identifying and Responding to the Major Macro environment Forces 

Demographic Environment       

Worldwide Population Growth Population Age Mix Ethnic and Other Markets Educational Groups Household Patterns Geographical Shifts in Population From a Mass Market to Micro markets

Identifying and Responding to the Major Macro environment Forces  Economic

Environment

 Income

Distribution  Savings, Debt, and Credit Availability  Natural

Environment

 Shortage

of Raw Materials  Increased Energy Cost  Anti-Pollution Pressures  Changing Role of Governments

Identifying and Responding to the Major Macro environment Forces 

Technological Environment    



Accelerating Pace of Change Unlimited Opportunities for Innovation Varying R&D Budgets Increased Regulation of Technological Change

Political-Legal Environment  

Legislation Regulating Business Growth of Special-Interest Groups

Consumerist movement

Identifying and Responding to the Major Macro environment Forces

 Social-Cultural

Environment Views

of themselves Views of others Views of organizations Views of society Views of nature Views of universe

Identifying and Responding to the Major Macro Environment Forces  High

Persistence of Core Cultural Values  Existence of subcultures Subcultures

 Shifts

of Secondary Cultural Values Through Time

The Marketing Environment and Competitor Analysis SWOT

analysis PEST analysis Five forces analysis

SWOT analysis Strengths

(internal) Weaknesses (internal) Opportunities (external) Threats (external)

SWOT analysis

Pest Analysis Political

factors Economic factors Socio-cultural factors Technological factors

Political/Legal  Monopolies

legislation  Environmental protection laws  Taxation policy  Employment laws  Government policy  Legislation  Others?

Economic Factors Inflation Employment Disposable

income Business cycles Energy availability and cost Others?

Sociocultural Factors  Demographics  Distribution

of income  Social mobility  Lifestyle changes  Consumerism  Levels of education  Others?

Technological New

discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Information technology Others?

Five forces analysis Potential entrants Threat of entrants

Suppliers Bargaining power

COMPETITIVE RIVALRY

Buyers Bargaining power

Threat of substitutes

Substitutes

Source: Adapted from M. E. Porter, Competitive Strategy,