Analysis of the Factors in the Macro Environment That Have Major Impact to a Company
ORGANIZATION AND ENVIRONMENT
Analysis of the factors in the macro environment that have major impact to a company and assessment of the steps taken by the company to overcome the problems.
Case study : Maybank Malaysia
By AhmadRawi
The writer can be contacted at: scholars.assist@gmail.com By AhmadRawi
The writer can be contacted at: scholars.assist@gmail.com INTRODUCTION
Strategic management experts have stated that in order to achieve a competitive advantage, a company needs to pursue strategies that build on its existing resources and capabilities and formulate strategies that build additional resources and capabilities (develop new competencies) (Hill and Jones, 2010, p.103).
Strategies are formulated after considering various factors external and internal to the company. This paper will focus only on the external (macro) environments of the company that have major impacts to them. Towards this end a PEST analysis will be done to the macro environment of a chosen company. PEST analysis is an overview analysis of the environment that the business is in. In PEST analysis, four factors are considered namely Political factors, Economic factors, Social factors and Technological factors (thus the acronym PEST) (Turner, 2010,p.56). Recent trend in the field of strategic management advocates the inclusion of a further two factors namely, Environmental factors and Legal factors. All combined the macro environment factors analysis will be known as PESTEL.
Macro environment factors are beyond the control of an organization. This is because those factors are positioned outside the organisational system. Those forces are the prime factors in corporate strategization i.e. determining the objectives of an organisation, its drive for profits, its projection for future sales as well as a protection step in preventing any losses or problems. According to Lowe and Marriott (2006,p. 181),macro factors are the major trends and changes that affect all
Analysis of the factors in the macro environment that have major impact to a company and assessment of the steps taken by the company to overcome the problems.
Case study : Maybank Malaysia
By AhmadRawi
The writer can be contacted at: scholars.assist@gmail.com By AhmadRawi
The writer can be contacted at: scholars.assist@gmail.com INTRODUCTION
Strategic management experts have stated that in order to achieve a competitive advantage, a company needs to pursue strategies that build on its existing resources and capabilities and formulate strategies that build additional resources and capabilities (develop new competencies) (Hill and Jones, 2010, p.103).
Strategies are formulated after considering various factors external and internal to the company. This paper will focus only on the external (macro) environments of the company that have major impacts to them. Towards this end a PEST analysis will be done to the macro environment of a chosen company. PEST analysis is an overview analysis of the environment that the business is in. In PEST analysis, four factors are considered namely Political factors, Economic factors, Social factors and Technological factors (thus the acronym PEST) (Turner, 2010,p.56). Recent trend in the field of strategic management advocates the inclusion of a further two factors namely, Environmental factors and Legal factors. All combined the macro environment factors analysis will be known as PESTEL.
Macro environment factors are beyond the control of an organization. This is because those factors are positioned outside the organisational system. Those forces are the prime factors in corporate strategization i.e. determining the objectives of an organisation, its drive for profits, its projection for future sales as well as a protection step in preventing any losses or problems. According to Lowe and Marriott (2006,p. 181),macro factors are the major trends and changes that affect all
References: BBC(March 10,2010) Online banking fraud 'suffers increase. Retrieved from http://news.bbc.co.uk/2/hi/business/8558535.stm Hill, C.W.L Kruger,S.(2004)The management environment, In : Kroon,J. (ed.) General Management.4th Imprint. Cape Town : Kagiso Tertiary Lowe, R Raj, A.(Jan 08,2011)Thai Bank Next?The New Straits Times. Retrieved from http://www.btimes.com.my/Current_News/BTIMES/articles/maykim2/Article/index_html Reuters (Jan 26, 2010) Indonesia delays deadline for single bank ownership Turner, S.(2010) The Little Black Book of Management: Essential Tools for Getting Results NOW. New Jersey : McGraw-Hill Companies