2.4.The Company's Macro-environmentMacro-environment seldom impacts on day-to-day operations but shapes future actions andperceptions. Peter Drucker stated the impact as follows:“But tomorrow always arrives, it is different and then even the mightiest company is in trouble ifit has not worked on its future.” (Drucker in Oldroyd, 2007)The company and all of the other actors operate in a larger macro environmental forces thatshape opportunities and pose threats to the company. The macro environment consists of thelarger societal forces that affect the microenvironment. The number and nature of societal forceshave been described using different frameworks:STEP or PEST, which stands for Political, Economic, Social and Technological factors.SLEPT, which stands for Social, Legal, Economic, Political and Technological factors.STEEPLE, which stands for Social, Technological, Economic, Ecological, Political, Legaland Ethical factors.PESTEL or PESTLE, which stands for Political, Economic, Social, Technological, Legaland Environmental factors.In this section, six major forces in the company's macro environment are discussed as follows: a.demographic environmentb.economic environmentc.natural environmentd.technological environmente.political environmentf.cultural environmentWhen scanning the macro environment, it is important to be thorough in considering all thepotential influences. So, frameworks have been developed to aid this process. Over the years,additional areas for scanning have been added so that there is now a range of mnemonics oracronyms to consider. The following subsections discuss a framework that contains the above sixmajor force.
Activity 9Why is analyzing the macro environment important for firms?Activity 9Why is analyzing the macro environment important for firms?