Macro-Economic Analysis Using Pestel

Macro-economic analysis using PESTEL

The world makes the environment for the business. No business receives static operating environment because generally environment always remain uncertain and will consequently affect the company’s course of action. Thus only after determining the marketing environment nature, the organization can set its marketing strategies.

Typically the marketing environment is classified into three levels:

* External environment

* Performance environment

* Internal environment

These three levels have their own different degrees on which the organization influence and also have different impacts on organization itself.

For this paper, I have selected Macquarie Group for describing the PESTEL analysis.

External environment:

This is the level which is further differentiated in two ways. In the first case, the factors of the external environment do not affect the organizations performance and in the second case they have powers but the power is limited to control them. PESTEL is the most common analysis method to examine the external environment. PESTEL includes, political, economic, socio-cultural, technological ,legal and ecological environment. A PESTLE analysis will provide the external perspective, leading to an assessment of opportunities and threats. The internal perspective can be determined by a review of strengths and weaknesses. PESTEL analysis states that , “ Organisations don’t exist in a vacuum. They are intricately connected to an outside world with a constantly changing landscape. If you can analyse this landscape, and the features that impact on your organisation’s performance, then you can begin to make decisions and plans. Regardless of the uncertainties of the future.” (PESTLE Analysis)

PESTEL analysis of the macro-environment

Macro-environment has many factors that impacts the decisions of the managers operating globally in organization that consequently affect the world affairs. Various...