Environmental Analysis Framework PDF
Environmental Analysis Framework PDF
Environmental Analysis Framework PDF
SUBSTITUTES
COMPANY
SUPPLIERS RIVALRY BUYERS
EXTERNAL
RIVALS BUYERS
NEW ENTRANTS
NEW ENTRANTS
General Economics
Macro Environments
Global Forces
POSITIVE INFLUENCES
Social forces
Technological factors
Political / Regulatory / Legal
Factors
ENVIRONMENTAL ANALYSIS Natural Environments NEGATIVE INFLUENCES
FRAMEWORK demographics
Seven Components of the macro-environment
Demographics Includes the size, growth rate, and age distribution of different sectors of the
population.
Geographic distribution of population, the distribution of income across the
population, and trends in these factors
Social forces Social values, attitudes, cultural factors, and lifestyle that impact businesses
Social forces vary by locale and change over time
Political, legal, and Political policies and processes, as well as the regulations and laws with
regulatory forces which companies must comply
Technological Pace of technological change and technical developments that have potential
factors for wide-range effect on society, such as genetic engineering, the rise of
internet, and changes in communication technology.
They include activities and institutions involved in creating new knowledge
and controlling the use of technology.
Technology change can encourage the birth of new industries.
Global forces Conditions and changes in global markets, political events and policies toward
international trade.
Sociocultural practices and the institutional environment in which global
markets operate.
Global forces influence the degree on international trade and investments
through such mechanisms as trade barriers, tariffs, import restrictions, and
trade sanctions.
General economic Economic factors at the local, state, national, or international level that affect
conditions firms and industries.
Rate of economic growth, unemployment rate, inflation rates, interest rates,
trade deficits or surpluses, saving rate, and per capita domestic product.
Condition in the market for stocks and bonds, which can affect consumer
confidence and discretionary income.
PORTER’S FIVE FORCES