The macro and micro environment analysis

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The macro and micro environment analysis

A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates.

Macro Environment — This contains external forces that an organisation can't directly control, instead organisations need to manage their macro environment in a way that benefits them. Micro Environment - This is made up of internal factors which means that the organisation is able to control their micro environment.

To learn more about the micro environment and marketing click on this link Micro Environment.

Micro and Macro Environment Factors | Oxford College of Marketing Blog

The diagram below shows the 4 components of PEST Analysis; political, economical, social and technological. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations.

Political factors include the following types of instrument: Legislation such as the minimum wage or anti discrimination laws. Voluntary codes and practices Trade agreements, tariffs or restrictions Tax levies and tax breaks Type of government regime e.

Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices. All businesses are affected by national and global economic factors. National and global interest rates and fiscal policy is set around economic conditions.

The macro and micro environment analysis

The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society. An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence.

The macro and micro environment analysis

A successful organisation will respond to economic conditions and stakeholder behaviour. Furthermore organisations will need to review the impact economic conditions are having on their competitors and respond accordingly. In the current business world, organisations are affected by economies throughout the world and not just the countries in which they are based or operate from.


Cheaper labour in developing countries affects the competitiveness of products from developed countries. A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world.

Social The third aspect of PEST focuses its attention on forces within society such as family, friends, colleagues, neighbours and the media.

Social forces affect our attitudes, interests and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase. For example within the UK people's attitudes are changing towards their diet and health.

As a result the UK is seeing an increase in the number of people joining fitness clubs and a massive growth for the demand of organic food. Products such as Fitbit attempt to deal with society's concern, about lack of exercise. Population changes also have a direct impact on organisations.

Changes in the structure of a population will affect the supply and demand of goods and services within an economy.

Falling birth rates will result in decreased demand and greater competition as the number of consumers fall.INFLUENCE OF MACRO-ENVIRONMENTAL FACTORS TO THE PROCESS called micro-economic factors about the macro-economic environment as well as cross-cultural differences. The FEMISE Policy Brief series MED BRIEF aspires to provide Forward Thinking for the EuroMediterranean region.

The briefs contain succinct, policy-oriented analysis of relevant EuroMed issues, presenting the views of FEMISE researchers [ ].

And Pest Analysis

Macro Environment Analysis How to Guide for your business. Develop your strategic leadership. Includes a useful free strategic planning template. INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 4, ISSUE 04, APRIL ISSN IJSTR© Internal And External Environment Analysis .

The primary difference between micro and macro environment is that the micro environmental factors are controllable by the business, however, the macroeconomic variables are uncontrollable.

Notes on micro-sociological approaches

Recent Examples on the Web: Adjective. Conflating macro and micro is an age-old theme easy to make into a trite hash, but Weingrod pulls it off thanks to his inventive, intensive process. — Cate Mcquaid,, "Seeing the heavens in a cut of wood," 11 July For pressures both macro and micro, the program’s built-in support system comes in handy.

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