Identify Macro Analysis

  1. Macro analysis

Macro analysis is a review of all the factors that a company is unable to control. Business conduct analysis to stay away form issues in current business environment. And the common tools to conduct the Macro environment analysis are the pestle analysis, which includes PoliticalEconomicSocialTechnologicalEnvironmental and Legal aspect in the business environment. By which the company would be able to make a marketing planning, product development and strategic planning.

  • Political Factor

Political factor determines the extent to which a government may influence the economy. This is totally external to the organization, which indirectly make influence upon the company operations like Tax policy, environmental law, and political stability. However, political factor determines the revenue increase or decrease due to some tax policies and trade restrictions.

  • Economic Factor

Economic factor impact the operation of the business and the decisions where it is an external factor of business. Company should operate staying under the rules and regulations which includes:

-Economic growth

-Interest rates

-Exchange rate

-Inflation rate

These factors does major impact on the operation of the business.

  • Social Factor

It is included in the macro environmental analysis these all factors will determine how company will interact with costumers. Which includes:


-Wealth distribution

-Life style &

– Education of costumers. The tend in social factor effects the demand for company products.


  • Technological Factor

Technological change is more important factor in the market analysis. However, the business technology change frequently where company should be more aware so that to take advantage of them. The technological factor includes:


-Technology incentives &

-The rate of technological change

Technology is important for the competitive advantage and Further shift in technology can effect upon Cost and Quality. Moreover it is a Driver of globalization.

  • Environmental Factor

Basically environmental factor shows the natural environmental surrounding Like Energy consumption, maintaining a livable environment. A company must be mindful of changes to this law, which can change the interaction with the environment.

  • Legal Factor

Legal factor relate to the further change in law and regulations where legal factor includes

-Discrimination law

– Consumer law

– Employment law

-Health and safety law.

All there factors does effect on the operation of the company.

All these Factors are more likely to change in future or help the firm to change in different direction. Where Macro environment does impact on impact on benefit, cost and risk. Where by using different macro factors will help during market analysis.


PESTLE Analysis, (2014). PEST Analysis: What is PESTLE Analysis? [Online] Available at: [Accessed 27 Jul. 2014].

UK Essays, A. (2014). A PESTEL analysis of the cosmetics industry. [Online] Available at: [Accessed 27 Jul. 2014].

Wise GEEK, (2014). What Is PESTEL Analysis? [Online] Available at: [Accessed 27 Jul. 2014].

Wise GEEK, (2014). What Is Macro Environment Analysis? [Online] Available at: [Accessed 27 Jul. 2014].

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