When discussing Macro Environment it is essential to state the definition of this terminology for its importance on the level of strategic planning and analysis. Therefore, many definitions are found in references with different words but it all leads to the same meaning. Marco environment is the major externals and uncontrollable factors that influence an organization’s decision making and affect its performance and strategies. These factors include the economic factors; demographics; legal, political and social conditions, technological changes, and natural forces. (Business dictionary).
It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. Political factors: how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. The political factors in the United Kingdom have a great influence on the performance of Sainsbury. Currently in UK, the government debts and the consumer debts are very high.
The PESTLE analysis helps a business know the six forces that have huge impacts on its business in a particular industry. A PEST analysis helps companies measure current and future markets. The importance of each part in PEST Analysis will change depending on the various industry segments. For instance, particular companies will emphasize certain elements that pertain more so to there industry than others. Political/Legal Factors -Concerning the legal and political factors, all categories of laws have to be respected in every area the business is operating in such as employment law, import/export law etc.
“If there’s one thing that’s certain in business, it’s uncertainty” - Stephen Covey Uncertainty impacts everything in the day-to-day life as well as the business world. The economy at large and the financial market are impacted in a way that determines consumption growth, macroeconomic growth, asset prices and equity risk premium, only to name a few. In the paper, “Good and Bad Uncertainty: Macroeconomic and Financial Market Implications” by Segal, Shaliastovich and Yaron, they make an effort to understand the impact of uncertainty by decomposing the aggregate uncertainty into ‘good uncertainty’ and ‘bad uncertainty’ which represents the innovation to macroeconomic growth rate – good and bad respectively. Through theoretical frameworks
The bank is fair and will give certain amounts of your money at a time. The more you take out/use up the less you have. Just like in freedom the more you disrespect your freedom the less you have. Just like in the real world where you can do and say what you want as long as it will not hurt or negatively affect the country in any way. My ideal government would one of the people for the people.
As a company that manufacture and sells physical goods, the tax and manufacturing laws are subject to change. Political conflicts can always make customs related processes
It is important to note that, the company operates under the influence of some laws to guide their operations in the countries where they operate. International business laws affect the operations of the company as they dictate the way that it does its businesses as well as determining the operations of the company’s supply chain. The distribution of the products made by the company also affect the organization greatly during its operations as different countries have different taxation mechanisms that are developed for purposes of guiding the amount of tax that the company pays to different governments in perfecting their
All the features of this technique are critical for any industry a business might be in. POLITICAL: These components decide the degree to which a government may impact the economy or a specific industry, bureaucracy, tax policy etc. these factors have a great impact on the growth of the business. Political factors include fiscal policy etc. Example: a government can execute a new tax due to which all the revenue generating structures of administrations might change.
Environment and industry analysis PESTLE factors The PESTLE analysis is a tool or framework for marketers to evaluate and observe the external marketing environment factors that affect bottom line of an organization. Political factors Since the Tesco Malaysia operate nationwide, political factors are mildly influence the performance of Tesco Malaysia including tax rates, acts of legislation and the stability of the state, government encourage retailers to create sufficient job opportunities for general population. Besides that, Tesco Malaysia increase demand for its products and diversifies its workforces as Tesco Malaysia run its role in providing job opportunities. Economic factors This factor is what Tesco Malaysia most closely working with all the time because with economic on their side, they could stabilize costs, demand, profits and prices. Thus, Tesco Malaysia always closely observe any changes in policies such as in GST or any other concerns that could affect the financial accessibility.
Pest Analysis PEST is an acronym for Political, Economical, Social and Technological factors which will affect the organizations outcome in the long run. It is an analytical business tool used in determining the organizations position with these external factors. P – POLITICAL Foreign Trade Regulations is a factor that is followed by Natures Secret when it comes to exporting goods to other countries. They have to have authority and clear all trade restrictions with the government to export. And they should be of standards of the countries they are distributing their products to.