...Macro Environment Analysis Definition Macro environment analysis is a review of all the factors that a company is unable to control. Companies conduct this analysis to stay aware of the issue in the current business environment. A common tool for conducting a macro environment analysis is the PESTEL framework, which include factors from the political, economic, social, technological, environmental and legal aspects in the business environment. The ultimate purpose of this analysis is to create a strategy that will leverage as many of these external factors as possible to the company’s favor. The political factors of the PESTEL analysis include the current stability of the government, social welfare policies imposed upon companies, trade tariffs or regulations that restrict international business and tax policies on corporate profits. This information is quite important to businesses, as extremely difficult political situations often result in lower profits and a more inflexible business environment. A macro environment analysis may focus heavily on the political factors in countries with difficult business environments. The group of external factors for this analysis comes from the economic factors within a country. Companies are unable to control issues like the income of buyers in the market, available credit offered by banks, unemployment, interest rates and inflation found in the economic market. These factors can also affect the company, lowering purchasing power...
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...Importance of environmental analysis Introduction No single organization can exist in a vacuum. For a successful business operation, an organisation needs to interact with various other actors and players around it. These may range from political institutions to other business and financial institutions. These institutions are called environment of an organisation. In this assignment, we would try to illustrate the importance of environmental analysis for a business organisation. The conceptualisation of environment holds the central position in this discussion. Thompson uses the term ‘operating or task environment, or inner layer’ for immediate or internal environment (Thompson, 1997). It relates to that domain where staff from one organisation interacts with people from others in their day to day business relationships (Douglas Brownlie, 1994b). Brownlie employs the term ‘remote or general environment, or outer layer’ for external or macro environment (Douglas Brownlie, 1994b). This refers to those factors which are outside of company’s direct control but have significant direct and indirect influence on company’s operations. For a company to be successful, it needs to be fully aware of its environment as it allows an organisation to respond to the needs and requirements in its environment. ‘Whilst organisational decision makers may wish to believe that they are the masters/mistresses of their organisation’s destinies, in reality that destiny is shaped by governments, customers...
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...External Environment Analysis Kristy Sanchez MGT/488 September-Sunday 11, 2011 Jeannette Guignard External Environment Analysis Introduction This essay is written in regards to the Home Depot and the evaluation of their external environment. The Home Depot is a highly successful retail industry that has expanded globally. The Home Depot has a wide variety of supplies and materials for all home improvement projects. They even have tools, equipment, and trucks that can be rented out to assist with any larger home improvement needs. The Home Depot has made a continuity plan to assist with protection of the customers, associates, and the industry if a crisis or disaster occurs. A continuity plan is basically the instructional list or procedures for the company in the event that a crisis or natural disaster occurs and how they will handle that event. This essay will look at how the external environment affects that plan. This essay will also look at the affects of the environment in three other areas as well, including general, industry, and competitor. Finally, it will look into the business ethics and see how they play a role when gathering information for competitor intelligence. The Home Depot has a continuity plan that they follow that can be found in their code of conduct and ethics manual. That continuity plan is as follows: “We are committed to taking all reasonable steps to minimize risks to our associates, customers, facilities, information assets and supply chains...
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...Environmental Analysis An environmental analysis is an important tool when taking an in depth look into an organization such as Landslide Limousine. “The company performs an environmental analysis to identify the potential influence of particular aspects of the general and operating environments on business operations. This analysis identifies the opportunities and threats in a business environment in terms of a company's strengths and weaknesses. “(Nordmeyer, 2015) It would be in the best interest of landslide limousine to administer a swot analysis framework to help identify the Strength, Weakness, Opportunities and Threats of the organization. By also looking into legal, social and technological factors would also help Landslide Limousine develop strategies. Since Landslide is located in Austin, Texas it would be wise to look at what environmental factors can affect the company. Are laws different in Austin then they are everywhere else? Who are the competitors? What can Landslide offer customers that competitors are not offering? By looking into all those factors Landslide can help get an insight on how to train their personal. Organizational Analysis An organizational analysis is the “process of reviewing the development, work environment, personnel and operation of a business or another type of association.” ("Organizational Analysis", 2015)For Landslide Limousines it would be thoroughly important to develop strategies that will help employees transition into their roles...
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...Environmental Psychology Article Analysis Introduction to Article Analysis For the majority of the human population there has been an event or events that possibly produced an occurrence that had a large impact upon the persons’ overall perception and ability to function regularly. In some instances individuals are able to overcome the occurrence or event, but for some such events can trigger a potent impact that can create an eruption in their cognitive response, when this occurs it is usually diagnosed as being Post Traumatic Stress Disorder or PTSD. The following brief analysis was written from context to an article titled “Ecological Analysis of Early Adolescents’ Stress Responses to 9/11 in Washington, DC Area. The following analysis of the article in mention will include a brief description of the article and its contents as well as the 9/11 events. Lastly, a discussion on some of the influences that this specific event may or may not have had on the field of environmental psychology will be briefly looked into. Summarization of Article September 11, 2001 was a day that will be remembered here in America for many centuries to come. On that horrific day back in 2001 terrorists’ high jacked multiple airlines and began their rain of terror upon the U.S. Some of the planes were flown directly into the twin towers in New York City, while others were flown directly towards our nations capitol in Washington DC. Many individuals were greatly affected...
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...Running head: ENVIRONMENTAL ANALYSIS Environmental Analysis Allmise Vertinord University of Phoenix July 16, 2012 Environmental Analysis Macroeconomic Forecast The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Financial release, 2007). Starbucks Corporation has established by purchasing high quality coffee beans and sells the customers along with a variety a specialty drinks and food that has met with an ever-increasing amount of success. Starbucks have succeeded several economic factors as well as price elasticity of demand. Price elasticity of demand can be determined by the percentage change in the quantity demanded with the percentage change in price. They should consider household income that people are willing to spend more on food and beverages when household income increases. Starbucks innovation in joint ventures has opened new markets and opportunities increasing product use among different demographics. Starbucks has proven to be highly innovative in business culture that offers prepaid cards, priced from $5 to $500. Joint ventures...
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...Environmental Analysis Who hasn’t heard of the energy drink known as Red Bull? I’m sure just about everyone who goes to Valdosta State University sure has! Red Bull is a type of energy drink aimed to give individuals that extra boost of energy that they are lacking. Taking a closer look into this product, there are quite a few environmental forces that add up together to make this product a huge success. The first of these is the sociocultural forces, these forces focus on people’s demographic characteristics, cultural values, and consumerism. Red Bull’s marketing scheme is aimed at appealing to the extreme sports athletes, adrenaline junkies, and fast-paced individuals in today’s society. This drink is loaded with energy boosting caffeine to make anyone’s day go from boring to booming. Although Red Bull is mainly aimed towards marketing to the healthier individuals, it is actually full of sugar and/or chemicals depending on the type of Red Bull that is consumed. To put this into perspective a regular can of Red Bull has 27 grams of sugar which is about equal to six teaspoons of sugar in just one can (Healthy, 2010)! Looking at the political, legal, and regulatory aspects of this environmental analysis on Red Bull, we was discovered that throughout the past couple decades many countries and legislators have actually tried (and some have been successful) to ban not only Red Bull, but also energy drinks in general due to the adverse side effects, high amounts of caffeine...
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...1.0 Environmental Appraisal Analysis Environment refers to factors that can affect Harley Davidson’s directly or indirectly Kotlar and Armostrong (2011). For environmental analysis, Top-Down Approach will be followed. First, Harley should consider macro factor that can influence marketing plan. These will be evaluated with PESTEL analysis. Second, the company has to take insight on motorcycle industry of UK to examine competitiveness and long-term business prospects (Elliott, and Patton,1996). Porter’s Five Forces Model will analyze the industry. Finally, a SWOT analysis will be done to determine company’s suitability and vulnerability with UK market. So, the analytical framework will be as below. Figure 1: Framework for environmental Appraisal 1.1PESTEL Analysis The following factors will be considered as influential in PESTEL analysis. More factors will be included which management consider very important to take a strategic marketing decision. 1.1.1Economic Factors Economy of UK is rebounding after recession, which is again restoring consumers’ confidence for purchasing luxury product. Trading Economics (2013) stated The economy in second quarter of 2013 is growing .3% more than in 2012. The following chart will show the recovery of UK economy from fragile situation. Figure 1.2: GDP growth rate of UK Beyond economic parameter, the duty over foreign firm’s motorcycle export to UK is 6% where in addition to that VAT will be 20% on foreign...
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...Environmental Analysis Environmental Analysis La Shawn Baker ECO/501- The purpose of this paper is to do an environmental analysis of AT&T. The environment of the telecommunication industry has three components of the macroeconomic environment, the industry environment, and the operating environment within the organization. This paper will cover the history of AT&T and it affected the communication industry. It will also outline the three variables that affect the telecommunication industry. AT&T (American Telephone and Telegraph) establish in by Alexander Graham Bell. With the success of the telephone, Bell earned patents that also gained the interest of investors created a Bell Telephone Company. The telephone became the new found gadget of telecommunication; the service other exchange companies established across the United States. American Bell sought obtained Western Electric Company in 1882 making Bell Telephone Company into Bell System (History of AT&T, 2010). The telecommunication market, developed by AT&T, and expanded from one inventor, two investors by 1984 being 149 billion dollars, 1009,000 workers. Also in 1984, AT&T reduces long distance rates by 6.4%, as non-traffic sensitive costs begin moving from rates to local-company managed access charges. This was the first in a series of rate reductions over a six-year period (Milestone of AT&T, 2010). AT&T has several strengths, which, derives from their products wireless, landline, internet, and data...
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...Running Header: Environmental Analysis Environmental Analysis D University of Phoenix Forces Influencing Business in the 21st Century/MBA501 Dictaphone Corporation, the healthcare division of Nuance Communications, provides speech-driven clinical documentation systems. Dictaphone offers products and services designed to achieve two goals: to drive productivity and cost savings in medical transcription and patient information management, and to extract, structure, and use the rich clinical data embedded in patient narrative reports. Dictaphone’s solutions reduce operating costs by decreasing transcription expense, improving patient care via complete documentation and faster results delivery, and raising clinician satisfaction by making EMR systems easier to use and reducing time spent on documentation (Nuance Communications, n.d.). Industry classification The North American Industries Classification System (Naics) code for Dictaphone is 541512. Code 541512 encompasses businesses the plan and design computer systems that integrate computer hardware, software, and communication technologies, even though such establishments may provide customer software as an integral part of their services (covered under code 541511) (U.S. Census Bureau, 2007). Macroeconomic Variables There are numerous macroeconomic variables that can affect a business such as Gross Domestic Product (GDP), inflation, trade, interest rates, and unemployment. GDP is defined as...
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...Environmental Analysis Paper: StarbucksMacroeconomic ForecastThe importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Starbucks strategy is to expandglobally to provide high quality coffee in convenient and highly visible locations. Despite recent economic setbacks the companyis continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffeeofferings (Starbucks Financial release, 2007).Starbucks has succeeded due to several economic factors as well as price elasticity of demand. Price elasticity of demand can be determined by the percentage change in the quantity demanded with the percentage change in price. They should consider household income that people are willing to spend more on food and beverages when household income increases. Starbucksinnovation in joint ventures has opened new markets and opportunities increasing product use among different demographics. Joint ventures with Pepsi Company, Dreyer's Grand Ice Cream Inc and inspiring entertainment with the launch of “Hear Music” have developed Starbucks with great success. Starbucks has shown their values, leveraging market power, resources, andcapabilities to achieve returns higher than their competition (Investment Group, 2001).Social and CultureThe social factors that affect Starbucks involve the beliefs...
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...Introduction: Environmental analysis is useful technique that could contribute to strategic planning aimed at profitability and growth of a company. An organization’s external environment has three components: the remote environment (macroeconomic), the industry environment, and the operating environment (in the organization itself). The macroeconomic impact on business operations has many variables. Among the more significant of these variables include the gross domestic product (GDP), unemployment, inflation, and interest rates. This paper will study the impact of environmental factors on the computer industry in general, with focus on Dell as a specific example. Industry Analysis: The computer industry falls under the “durable goods” classification. Most people do not normally replace their computers for 3-5 years. The computer industry tries to get around this by adding new features etc., but the overall market in the US has slowed. The PC industry faces one of toughest competitions in the world. The PC is a technologically sophisticated product with a very small profit margin. Dell, Gateway, IBM, Compaq-HP, and Apple are the main contenders in this industry. Dell has been very proactive with just-in-time manufacturing to meet customer needs. What set these companies apart are their price and their reputation. Dells direct to consumers sales approach has increased their sales each year. Because of this approach, Dell has entered into this highly competitive...
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...Abstract The purpose of this study is to analysis changes management in the RIM Company. The study investigated how well the external and internal changes in RIM and analysis the environment remote effects on the company transformation. The research design included literature review, data collection, data analysis and recommendation. It is no longer the era of BlackBerry, as one of famous company in Canada. Before the iPhone launched on, BlackBerry seems like a legendary brand in cell phone industry, since they create the convenience EMAIL push service. Likeness, just five years ago, “BlackBerry” was virtually synonymous with “Smartphone.” It was well on its way to becoming a generic trademark, like Kleenex or Band-Aid, that would seemingly forever be associated with its entire sector (Thierer, 2012). In order to research how the BlackBerry can be changed and manage the change, the paper as qualitative research to analysis the external and internal changeability. The process of writing paper is followed the Lincoln and Guba’ evaluative criteria (1985) that based on credibility, transferability, dependability and conformability. The data collections use searching journals, web source, and online library. The PEST analysis implement on data analysis. Background of the company BlackBerry Ltd (formerly known as Research In Motion Ltd) is telecommunication and wireless equipment company headquartered in Waterloo, Canada. It started operations in 1984 with a vision...
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...Environmental Analysis A careful review of the market shows that several forces are at play in analyzing the marketing environment Competitive forces include the draw of four year institutions. Students are enticed by programs offered at vocational training institutions where specific certifications are more attractive than degrees and by the larger community and technical colleges that surround our service district. Community colleges is somewhat attractive to students especially those from the outlying smaller communities. Students from these communities are drawn by social opportunities; therefore, through this medium we will effectively create awareness about our brand to the target market. Demographic, Sociocultural and Economic forces takes into prospective the view that with company’s seeking more qualified individuals to fill certain positions, people are now yearning for success and sense of accomplishment, therefore the economic prospect seems viable. The population of the surrounding communities is challenged by low incomes where social, economic and educational isolation is a concern. Many of the students commute distances of 3 and sometimes 7 miles one way to attend school and the rising fuel prices discourages attendance at the institution. In addition, tuition prices continue to increase and are out distancing financial aid re-imbursement. The university is currently experiencing lower enrollment which may be attributed to a change in economy and...
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...Running Head: ENVIRONMENTAL ANALYSIS PAPER Environmental Analysis Paper University of Phoenix June 29, 2009 Introduction: Environmental Analysis This paper intends to present an environmental scan that outlines the major issues that are important to the continued future of public education within a large local school district. The objective in using this scan is to use the data found in a manner where educational administrators as well as those stakeholders in education can strategically plan for the future. Environmental scanning is the process where internal interaction concerning external factors regarding an organization can have an impact on an organization’s decision making (Ringland, 2002). There are many benefits in using an environmental scan. First, it allows organizational members to determine the strengths and challenges affecting the organization. This process is useful for several reasons. Environmental scanning helps identify strengths and weaknesses; is an essential element of effective strategic planning; and more importantly, raises awareness about potential issues (Ringland, 2002). Environmental scanning is a strategy that organizations should use in order to identify opportunities and changes that may affect future success. The information obtained from an environmental analysis enables organizations to forecast events, plan for the future and predict changes. There are three external environmental components within an organization and they...
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