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Strategic Analysis of Organizations

Strategic Analysis of Organizations. Macro environment: Macro environment consists of an organization’s external factors that affect its business indirectly. The organization has no or little control over the factors.

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Strategic Analysis of Organizations

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  1. Strategic Analysis of Organizations Macro environment: Macro environment consists of an organization’s external factors that affect its business indirectly. The organization has no or little control over the factors. General environment: The general environment are often called the remote external environment includes the distant factors in the external environment that are general or common in nature. The general environment consists of the following factors- www.AssignmentPoint.com

  2. Continued… • 1. Economic factors: The performance of business organization is affected by the healthy of a nation’s economy. The economy of a country may be in a situation of boom or recession or depression or recovery or it may be in a state of fluctuation. Managers must have the ability to predict the state of the economy. The performance of an organization is affected by the health if a nation’s economy. Purchasing power of customers depend on their income, prices, savings, debt and availability of credit. s www.AssignmentPoint.com

  3. Continued… • 2. Technological factor: The effect of technological changes occur primarily through new products, process and material. An entire industry may be transformed due to use of new technology. Quick and thorough study of technological changes helps managers achieve higher market share because of early adaptation of new technology. www.AssignmentPoint.com

  4. Continued… • 3. Sociocultural factor: Sociocultural factor dictate a particular set of values and attitudes with resultant lifestyle. They dictate product demand characteristics. A society’s value and attitude from the corner stone of a society, e.g., halal soap concept in Bangladesh. We find in some countries the increasing life span of population, trend towards fewer children, increasing rate of female education etc. All these have a primary effect on a country’s social character and health. www.AssignmentPoint.com

  5. Continued… • 4. Demographic factor: Demographic factor is related to a country’s population size, geographic distribution, ethnic mix and income distribution. In many countries, ural urban migration is rampant. This suggests numerous opportunities for firms to develop products and services to meet the needs diversified group of people of the society. www.AssignmentPoint.com

  6. Continued… • 5. Political legal factors: It consists of political laws, government agencies and pressure groups. The business managers must have thorough knowledge about the major laws that protect the society at large. • 6. Natural environment: Strategy makers need to analyse the trends in the natural environment of the country. Natural environment includes the availability of raw materials and other inputs, changes in the cost of energy, levels of environmental pollution, and the changing role of the environment pollution etc. www.AssignmentPoint.com

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