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Macro-environment analysis - Coggle Diagram

- - - - Role of state
        
        customer, supplier, owner, regulator
        
        Defence companies, high state involvement, exposed to groups from civil society (campaigners against arms trade)
      - Exposure to civil society orgs.
        
        political lobbyists, campaign groups, social/traditional media
        
        Food companies, less state involvement, civil society (fair trade campaigners, labour rights)
    - - macro-micro dimension
        
        risks of whole countries, eg. Nigeria, Russia, Venuzuela
        
        Middle-east rank high, China medium, Western European low
      - internal-external dimension
        
        factors within countries
        
        Government change, pressure from local campaign groups
        
        Fall in oil prices in Saudi Arabia -> negative economic & political impact in Russia?
  - - - growth rates have a tendency to rise and fall every several years
        
        managers making long term decisions should assess where in cycle
      - some industries are particularly vulnerable
        
        Discretionary spend
        
        purchasers can put off spending for a few years (furniture, restaurants, cars)
        
        High fixed cost
        
        airlines, hotels, steel (high fixed costs encourage price-cutting when demand is low)
  - - - Demographics
        
        Ageing population in societies -> increased demand for services but diminishing supplies of labour to supply them
      - Distribution
        
        Wealth distribution -> rich, enlarge markets for certain luxury goods
      - Geography
        
        UK, economic growth in London. Clusters in areas, Silicon Valley
      - Culture
        
        Ethical attitudes, digital natives (born after 80's) change expectation about media, consumption and education
    - - Organisational field is a community of organisations that interact more frequently with one another than with those outside the field
        
        partly economic
        
        social interactions with other businesses, industry associations, sporting clubs, professors, trade unions, influential individuals
        
        Sociograms
        
        Network density
        
        number of interconnections between members. more connections = many people talking to each other
        
        Broker positions
        
        connect otherwise separate groups of orgs.
        
        central hub positions
        
        provide power, connects many orgs.
        
        Small worlds
        
        large majority of network closely connected
        
        social elite, hard for outsiders to get in
  - - - Patenting activity
        
        national patent registers
      - Citation Analysis
        
        impact of patents and scientific papers can be measured by how widely cited they are by other orgs.
      - New product announcements
        
        publicise new product plans
      - Media coverage
        
        cover stories of impending tech, social media/ tech/industry media
      - R&D budgets
        
        Innovative firms, sectors, countries identified by extent of spending on research, usually reported in annual report/gov stats
  - - - Product stewardship
        
        manage ecological issues throughout entire value chain
        
        end of life? Car manufacturers increasingly responsible for recycling and safe disposal of cars
      - Sustainable development
        
        whether product/service can be indefinitely produced into the future
        
        exploitation of raw materials
      - Direct pollution
        
        minimise pollutant production during production
      - Extent of importance, sources of pressure
        
        Ecological
        
        doubts reduced on global warming, pressure increases. More visible (aircraft pollutants vs shipping - aircraft more visible than pollution far at sea)
        
        Org field
        
        highly active regulators, field interconnectedness, peer pressure
        
        Internal org
        
        values of an org. leadership influence responses
  - - - Formal vs informal "rules of the game"
        
        informal, eg. respect for environment, orgs ignoring these would risk outrage from consumers/employees
        
        Varieties of capitalism -> rules vary between countries
        
        Liberal market economies
        
        favour compeition between companies. Raise funds from financial markets, entrepenurial. radical innovation. UK/USA
        
        Coordinated market economies
        
        encourage more competition, constraints on hostile acquisitions. rely on banks for funding, family ownership common. Germany, Japan.
        
        Developmental market economies
        
        strong roles for state, either own or heavily influence. labour relations may be strongly regulated. Banks, key source of funding. Brazil, China, India
  - - - Social/Legislative changes on car use -> greater impact on supermarkets than on retail banks
        
        Identifying key drivers for change help focus on PESTEL factors most important, address urgently