Macro environment analysis:

When it comes to environmental analysis, we usually refer to the macro environment, but also include industry and competition analysis, product innovation, consumer analysis, and the company’s internal environment. Macro environmental scanning involves analyzing:

1. Economy
i. GDP per capita
ii. Economic growth
iii. Unemployment Rate
iv. Inflation rate
v. Consumer and investor confidence
vi. Inventory levels
vii. Currency exchange rates
viii. Merchandise trade balance
ix. Financial and political health of business partners
x. Balance of payments
xi. Future trends

2. Government
i. Political climate – amount of government activity
ii. Political stability and risk
iii. Government debt
iv. Budget deficit or surplus
v. Corporate and personal tax rates
vi. Payroll taxes
vii. Import tariffs and fees
viii. Export restrictions
ix Restrictions on international financial flows

3. Legal
i. Minimum wage laws
ii. Environmental protection laws
iii. Worker safety laws
iv. Laws of the Union
v. Copyright and patent laws
vi. Antitrust laws Notes
vii. Sunday closing laws
viii. Municipal licenses
ix. Laws that favor business investment

4. Technology
i. Infrastructure efficiency, including- roads, ports, airports, rolling stock, hospitals, education, health, communication, etc.
ii. Industrial productivity
iii. New manufacturing processes
iv. New products and services of the competition
v. New products and services of supply chain partners
vi. Any new technology that may affect the company.
vii. Cost and accessibility of electric energy.

5. Ecology
i. Ecological concerns that affect the production processes of companies.
ii. Ecological concerns that affect customer buying habits.
iii. Ecological concerns that affect the perception of customers of the company or product

6. Socio-cultural

Demographic factors such as:
i. Population size and distribution
ii. Age distribution
iii. Education levels
iv. Income levels
v. Ethnic origins
vi. Religious affiliations

Attitudes towards:
i. Materialism, capitalism, free enterprise
ii. Individualism, family role, government role, collectivism
iii. Role of the church and religion.
iv. Consumerism
v. Environmentalism
vi. Importance of work, pride of accomplishment

Cultural structures that include:
i. Diet and nutrition
ii. Housing conditions

7. Potential suppliers

Job offer
i. Amount of available labor
ii. Quality of available labor
iii. Stability of the labor supply
iv. Salary Expectations
v. Employee turnover rate
vi. Strikes and labor relations
vii. Educational facilities

Material suppliers
i. Quality, quantity, price and stability of material inputs
ii. Delays in delivery
iii. Proximity of bulky or heavy material inputs
iv. Level of competition between suppliers

Service providers
i. Quantity, quality, price and stability of service facilitators
ii. Special requirements

Concerned parties
i. Lobbyists
ii. Shareholders
iii. Employees
iv. Partners

Although the analysis of these macro environmental variables in search of threats and opportunities requires that each problem be classified into two dimensions. It must be qualified according to its potential impact on the company and according to its probability of occurrence. Multiplying the potential impact parameter by the probability of occurrence parameter gives us a good indication of its importance to the organization.

Also read: Types of EnvironmentMicro EnvironmentMacro EnvironmentSocio-Cultural EnvironmentRecent developments in economic environmentEnvironmental AnalysisETOP (Environmental Technology Opportunities Portal)

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