Macro Environment
Technological environment
Composition of the macro-environment
Wider environment has variables that directly or indirectly exert influence on a business and its market environment
Consists of the technological environment, the economic environment, the social environment, the physical environment, the institutional-political environment and the international environment
Have an effect on the market environment and on one another
Results in new machinery or products and in new processes, methods, services and even approaches to management, which brings about change in the environment
Affects the economic growth (GDP) and social change
Constitute the uncontrollable forces in the external environment that are also known as mega-trends.
Creates opportunities and threats
Accelerates the rate of change
Inventions and innovations are unlimited
Economic environment
Continued assessment should include
Identification of important technological trends
Analysis of the business’s technological strengths and weaknesses
Analysis of potential change in important current and future technology
Analysis of the impact of important technologies on competition
A list of priorities that should be included in a technological strategy for the organisation
Economic growth rate influences consumers’ purchasing power
Influences technology, politics and social and international environments
Cross-influences continuously cause changes in the economic growth rate, levels of employment, consumer income , rate of inflation, interest rates and the exchange rate.