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Macro-Environmental Analysis

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The macro-environment audit examines the broad range of environmental issues that may affect the organisation. This will include the political/legal issues, economic factors, social/cultural issues and technological developments. This is referred to as a PEST (Political, Economic, Social and Technological) analysis.

The aim of this analysis is to identify the critical issues in the external environment that may affect the organisation before moving on to judge the impact they may have on the organisation.

Political/Legal Issues

  • Taxation policy
  • Monopoly control
  • Environmental protection measures
  • Employment law
  • Environmental legislation
  • Foreign trade agreements
  • Stability of governmental system

Economic Factors

  • Interest rates
  • Inflation rates
  • Money supply
  • Business cycles
  • Unemployment
  • GNP trends

Social/Cultural Issues

  • Age profiles
  • Social mobility
  • Changes in lifestyles
  • Family structures
  • Level of education
  • Work behaviour
  • Leisure activities
  • Distribution of income
  • Patterns of ownership
  • Attitude and values

Technological Factors

  • Rate of technology transfer
  • Materials
  • Developing technological processes