MGT 3659 Chapter Notes - Chapter 3: Pest Analysis, Market Power, Coopetition
Document Summary
This chapter demonstrated various approaches to analyzing the firm"s external environment, as summarized by the following learning objectives and related take-away concepts. 3-1 / generate a pestel analysis to evaluate the impact of external factors on the firm. A firm"s macroenvironment consists of a wide range of political, economic, sociocultural, technological, ecological, and legal (pestel) factors that can affect industry and firm performance. These external factors have both domestic and global aspects. Political factors describe the influence governmental bodies can have on firms. Economic factors to be considered are growth rates, interest rates, levels of employment, price stability (inflation and deflation), and currency exchange rates. Sociocultural factors capture a society"s cultures, norms, and values. Technological factors capture the application of knowledge to create new processes and products. Ecological factors concern a firm"s regards for environmental issues such as the natural environment, global warming, and sustainable economic growth.
