Business Strategy

Macro environment or macro forces consists of the larger societal factors that have the potential to affect an organization’s strategies. According to Phillip Kotler, these variables include demographic, economic, natural, technological, political, and cultural outside forces. (“Josbd”, n.d, para. 7)

Macro environment are the external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.

7. Which one of the following generic types of competitive strategy is typically the best strategy for a company to employ?

There are several elements of macro environments that will effects the decisions of managers in any organization. The general environment consists of all the background conditions in the external environment of an organization. The primary elements of the general environment are discussed further.

PEST analysis is used to evaluate how the long term performance of a business can be affected by four key external factors (Political, Economic, Social and Technological)

c. Allow people to run the planning process whichever way they want regardless of its effectiveness.

Amazon began in 1995 as strictly an online bookstore. While this may not seem like an achievement, at the time, this was an innovative endeavor that was an indication of how the company would continue to challenge their abilities, and their competition. Now Amazon can be used by customers to buy booker, e-books, groceries, Amazon made products (such as the kindle, and Alexa), and an entertainment streaming service, and music streaming service.

By PEST analysis we can estimate the external environment of the company. PEST analysis is used to make out the business growth, positions, size, economics, politics and the development or decline drift of the market.

(c) Yes. The average cost (AC) decrease from 3 to 2.5 when output increase from 20 to 40.

PEST analysis assumes carrying out the strategic analysis of political (Р – political), economic (Е – economic), social (S – social), technological (T – technological), ecological (Ecology), legislative (Legal) factors of external environment of the organization. PESTEL analysis is a tool of historically created four-element strategic analysis.

Macro environment includes basic forces acting not only on the company itself , but also on its competitors, as well as elements of the micro environment . Usually its harder to influence on the macro environment then on micro , but it does not mean that firms should remain passive ; inability to control does not imply inability to influence . Often at the macro can be influenced by well- organized activities on public relations.

Business and corporate strategies can be very important in a firm if used effectively. With many different strategies on offer, a business will most definitely find one that suits them best, enabling them to utilise it to their best ability. According to Lynch (2006) “a corporate strategy can be described as the identification of the purpose of the organisation and the plans and actions to achieve that purpose”. Essentially, strategy is all about where an organisation would like to be long-term, in addition to the markets and activities they would like to compete in and how they can perform more effectively than their competition. According to Porter, (1985) ”Sometimes companies such as Microsoft get so far ahead that they seem to avoid the need for strategic choices, but this becomes their ultimate vulnerability”. Therefore, it is clear that having a strategy is important for a business long-term. There are three main types of strategies depending on what level an organisation is at; these include, corporate level strategy, business level strategy, and operational strategy. According to Lynch (2006) corporate level strategy encompasses major objectives, goals or purposes with essential policies and plans in order for a company to achieve those goals. They would state this in a way that would define what the business is in and what the business is, followed by what the business aims to be in and where they intend to be. A business level strategy tends to focus more on

I choose the Hospitality Industry in the line of Accommodation. As we all know, there are many rivals in this industry line, and many of them are the large companies that have many chains along the line. Therefore, I would like to focus on one big company, and categorize its chains in each competitive strategy, Marriott.

In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization 's supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The "radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization" (Tsiakkiros, 2002). A number of checklists have been developed as ways of cataloguing the vast number of possible issues that might affect an industry. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. Sometimes two

The PEST analysis determines the macro environmental factors affecting the industry over the upcoming years. The analysis includes Political, Economic, Social and Technological factors affecting the industry. PEST analysis will determine the trends, developments, events that will improve or hinder the growth of the firms and also it attempts to reduce the gap between present and future aspirations of the firm.