Macroenvironmental Analysis

Question 1

What is the Macroenvironment?

Answer 1

“Everything and everyone outside of the organisation: customers, suppliers, and other influential institutions.”

Question 2

What is the PESTEL Framework for?

Answer 2

Providing a list of external influences on the possible success or failure of strategies.

Question 3

Why is the macroenvironment difficult to comprehend?

Answer 3

It is uncertain, turbulent, and dynamic.

Question 4

What are the six environmental influences outlined by the PESTEL Framework?

Answer 4

• Political
• Economic
• Social
• Technological
• Ecological
• Legal

Question 5

True or False: PESTEL factors are interlinked.

Answer 5

True - All factors outlined in PESTEL are interlinked to some degree.

Question 6

What are Political Factors?

Answer 6

• The role of the state
• Governmental Policies
• Taxation Changes
• Foreign Trade Regulations
• Changes in Trade Blocs

Question 7

What are Economic Factors?

Answer 7

• Business Cycles
• Interest Rates
• Inflation rates
• Personal Disposable Income
• Unemployment Rates

Question 8

What are Social Factors?

Answer 8

• Changing cultures and demographics
• Income distribution
• Lifestyle changes
• Consumerism
• Social networks within an organisation

Question 9

What are Technological Factors?

Answer 9

• Blockchain in transactions
• Nano-Technology
• New composite materials
• Increased speed of connectivity

Question 10

What are the primary indicators of innovative activity?

Answer 10

• Research and Development budgets
• Patenting activity
• Citation analysis
• New product announcements
• Media coverage

Question 11

What are Ecological Factors?

Answer 11

• Environmental Protection Regulations
• Energy shortages
• Global warming
• Circular Economy

Question 12

What are Direct Pollution Obligations?

Answer 12

Minimising the production of pollutants, cleaning up and disposing of waste.

Question 13

What is Product Stewardship?

Answer 13

Managing ecological issues throughout the organisation’s entire value chain and life cycle of their products.

Question 14

What is Sustainable Development?

Answer 14

Whether or not the product or service can be produced indefinitely into the future.

Question 15

What are Legal Factors?

Answer 15

• Labour, environmental, and consumer regulations
• Privacy Laws
• Taxation and Reporting requirements
• Rules on Ownership
• Competition Regulations

Question 16

Following formal rules, what are informal rules under the Legal factor?

Answer 16

Patterns of expected, proper behaviour.

Question 17

What are Liberal Market Economies?

Answer 17

Formal and Informal rules favour competition between companies.

Question 18

What are Coordinated Market Economies?

Answer 18

Coordination is encouraged between companies, supported by industry associations or similar frameworks.

Question 19

What are Developmental Market Economies?

Answer 19

Strong roles for the State, which own or influence companies that are important for economic development.

Question 20

Where can Liberal Market Economies be observed?

Answer 20

The United Kingdom and The United States.

Question 21

Where can Coordinated Market Economies be observed?

Answer 21

Germany and Japan.

Question 22

Where can Developmental Market Economies be observed?

Answer 22

China and India.

Question 23

What are Key Drivers for Change?

Answer 23

External factors that are likely to have an impact on industries and sectors, and impact the success or failure of strategies.