Macro environment analysis

Pastel analysis and Opportunities and threats analysis for future

What is Macroenvironment analysis?

Why it is important?

Existing theory on macro environment analysis.

PESTEL:

I will draw a PESTEL analysis Diagram

For future whatr the threats and Opportunities:

Swot(Opportunities and threats) analysis:

What is Macro environment?

There are lots of factors in marketing environment among them the factors which called external and
has the effects on company’s strategic planning and performance are the marketing Macro
environment. These factors are beyond company’s control and change.

All the more, they should be known and recognized, in order to use them in one’s own interests.

macroenvironmental factors, that most of all can influence The marketing activities of enterprise in
the future.

Adaptation is very important for any organization as market and environments are changing continuously .Competition and
challenges are there. As the world becoming a global village there is always completion and challenges are there for any
market entrance .As much as the environment is wider company needs to more reimburse for the changes in politics,
economics culture and technology.

The purpose of the Macro Environment Analysis is to identify possible opportunities and threats
to your industry as a whole that are outside the control of your industry.

When completing a macro environment analyses you will be seeking to answer the questions
“what will affect the growth of our industry as a whole” and “What is the likely impact of all of
the things that affect the growth of your industry”

The Macro Environment Analysis is traditionally the first step of a strategic analysis; it is
sometimes referred to as an external analysis, a pest analysis or a pestle analysis.
Change and use the reference

In analyzing the macro-environment, it is important to identify the factors that might in turn
affect a number of vital variables that are likely to influence the organization’s supply and demand
levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993).

The "radical and ongoing changes occurring in society create an uncertain environment and have
an impact on the function of the whole organization" (Tsiakkiros, 2002).

The results can then be used to take advantage of opportunities and to make contingency plans for
threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000).

Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth
or decline, business position, potential and direction for operations. The headings of PEST are a
framework for reviewing a situation, and can in addition to SWOT and Porter’s Five Forces models,
be applied by companies to review a strategic directions, including marketing proposition. The use
of PEST analysis can be seen effective for business and strategic planning, marketing planning,
business and product development and research reports. PEST also ensures that company’s
performance is aligned positively with the powerful forces of change that are affecting business
environment (Porter, 1985). PEST is useful when a company decides to enter its business
operations into new markets and new countries. The use of PEST, in this case, helps to break free of
unconscious assumptions, and help to effectively adapt to the realities of the new environment.

References
Byars, L. (1991) Strategic Management, Formulation and Implementation – Concepts and Cases,
New York: HarperCollins.

Jan, Y. (2002) A three-step matrix method for strategic marketing management, Marketing
Intelligence and Planning, Vol. 20 Issue 5, pp.269-272.

Johnson, G. and Scholes, K. (1993) Exploring Corporate Strategy – Text and Cases, Hemel
Hempstead: Prentice-Hall.

Kotter, J. and Schlesinger, L. (1991) Choosing strategies for change, Harvard Business Review,
pp.24-29.

Capron, N. and Glazer, R. (1987) Marketing and technology: a strategic coalignment, Journal of
Marketing, Vol. 51 Issue 3, pp.10-21.

Cooper, L. (2000) Strategic marketing planning for radically new products, Journal of Marketing,
Vol. 64 Issue 1, pp.1-15.
Kotler, P. (1998) Marketing Management – Analysis, Planning, Implementation, and Control, 9th
Edition, Englewood Cliffs: Prentice-Hall.

Pearce, J. and Robinson, R (2005) Strategic Management, 9th Edition, New York: McGraw-Hill.

Porter, M. (1985) Competitive Advantage, New York: Free Press.

Robinson, S., Hichens, R. and Wade, D. (1978) The directional policy matrix-tool for strategic
planning, Long Range Planning Journal, Vol. 11, pp.8-15.

Thompson, J. (2002) Strategic Management, 4th Edition, London: Thomson.

Tsiakkiros A (2002) "Strategic planning and education: The case of Cyprus", The International
Journal of Educational Management Bradford 2002

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PEST analysis:
B. MARKETING MACRO ENVIRONMENT
Marketing Environment
The Company’s Macro environment

The company and all of the other actors operate in a larger macro environment of forces that shape
opportunities and pose threats to the company. There are six major forces (outlined below) in the
company’s macro environment.

b. Economic.
c. Natural.
d. Technological.
e. Political.
f. Cultural.
1.10 INDUSTRY ANALYSIS

1.10.1 Political & Legal, Economic, Social and Technological (PEST) Analysis

POLITICAL AND LEGAL FORCES

The focal country called Bangladesh, has undergone through several changes in
recent past. It is full of great cultural values and story of a nation with high self
esteem.

For all the telecommunication mobile operators policy and the priorities are set by the
government organization The Bangladesh telecommunication regulatory comminssion.

Political Instability and influence: Political instability is a big barrier in Bangladesh for any
business ventures. Frequent strike or siege activities can hamper the smooth running of
business in telecom industry. Liaison with particular political parties also might have a
dramatic influence in the start up and the continuation of this business. However, the
situation has improved a lot in recent times.

Government Policy: Government is encouraging more foreign direct investments and

hence, more and more multinational companies are coming to Bangladesh; creating a
potential base of corporate clients for mobile operators.

Political factors

How government’s policy leads its activities and priorities?

The Highways Agency works in the interests of the public and not for private financial gain –this is
the same for all publicly-funded bodies.

Its overall remit is set by Parliament with transport policy the responsibility of the Department for
Transport.

Political factors therefore play a key role in shaping its activities and priorities. Ministers are held
to account in Parliament for the performance of the Department and its agencies, including the
Highways Agency. The Agency has a duty to spend money wisely and cost-effectively and through
Parliament, the Agency is ultimately accountable for its work to the public. Taxpayers’ money
maintains the road network and taxpayers have a right to know how their money is spent. The
government sets the policy framework for the Highways Agency; therefore the Agency can be
affected by political changes of direction. For instance, a change of government policy could switch
some resources away from roads to rail transport.

The Highways Agency implements and informs government policy:

• One key priority is tackling traffic congestion.

How they tackle it? What are the improvements they have done and the success impacts?

This affects the part of the Agency’s aim to deliver ‘reliable journeys’ and is an issue that affects
both private road users and the economy as a whole. The Highways Agency is working to increase
the capacity of the existing motorway network. It has tested a system called Active Traffic
Management (ATM) on the M42 near Birmingham. ATM uses modern technology to allow motorists
to drive on the hard shoulder during peak periods. This improves the flow of traffic and increases
capacity when the road is at its busiest. The results have been good and drivers can predict with
more confidence how long their journeys will take. For example, someone commuting to work
every day can be sure they arrive on time. Businesses can improve the productivity of their
commercial vehicle fleets. For example, a national distributor needs to be able to promise its
customers such as major supermarkets, that products will arrive in time. A vehicle is not being
‘productive’ when it is sitting in a traffic jam. The fact this system has proved effective has
influenced the government to use it on more motorways.

Improving road safety is another priority.

The Department for Transport has national targets to reduce the number of people injured or killed
on roads.

They have done this as politics said them to do this because political government is liable to
the public’s that’s why they set the priorities.
ECONOMIC FORCES

Income growth and GDP: the GDP growth has been calculated to grow by 6%
(approximately) in the recent future. The income level of the middle to upper class
population of the country is also in the growing trend, and so as the standard of living. This
is one of the major reasons, why telecom industry is booming in Bangladesh today.
Infrastructural Development: Significant infrastructural developments have been taking
place in Bangladesh in recent years. Transportation and telecommunication system are
developing at a significant pace, implying a positive impact on mobile industry.

Industrialization: More and more foreign companies are making investments in

Bangladesh, which indicates a greater source of corporate clients for mobile operators. Any
new mobile operator should be capable enough to match with the dynamic changes taking
place in the telecom industry of Bangladesh today

SOCIAL FORCES

Positive Attitude towards Mobile: People of our country have grown a positive attitude of
experiencing new products and services provided by mobile operators. Various services
provided by existing mobile companies like providing internet services, helping to take
part in various shows, games, quizzes have been a revaluation in this industry. Symbol of
Status: Mobile phone is treated as not only a need, but also a symbol of status. Especially, to
young generation, brand, model number etc of mobile sets are very important. Teenagers
are quite keen to get their own mobile as early as possible, which is a very positive sign for
mobile operators.

TECHNOLOGICAL FORCES

Use of Internet: the use of internet has been increasing at an exponential rate in
Bangladesh. Moreover, with the emergence of optical fiber, this usage and other related
facilities has been growing potentially. Internet is helping the mobile companies in
promotional activities, providing information and guideline to endusers, maintaining
coordination within internal departments and other related activities as well. The
networking and follow-up with the customers is also getting done within favorable cost via
internet.

Telecommunication: In recent years. People of Bangladesh have grown the habit of using
cell phones to a huge extent. People are responding to the various promotional activities
that are being done via this mode. The increasing number of cell phone users and the need
of more dynamic and corporate friendly telecommunication service providers can be a
great opportunity for any new mobile company to emerge in this market. Media
Revolution: the revolutionary advancement in television, print, visual and other media has
made the promotional activities of mobile operators to be more intense, creative and easily
available; as well as to promote and create the need amongst the target market of the
business venture.
Opportunities

Booming Telecommunication sector in Bangladesh: Warid Telecom has planned to

establish itself as a Market leader in this booming sector within next 5 years, and increase
the overall market size through broader coverage of all income groups. Warid Telecom's
superior Technology, products, high quality of service, affordability, and customer support
can enable it to not only capture market share from existing players, but also acquire the so
far untapped market. More experienced people in the local telecommunication field could
be included in the team for a better understanding in the market Emerging new business
sectors (especially MNCs) in the country are creating new customer groups Growing
middle class population is becoming the most prospective customer base for Warid
Telecom. The buying power of buyers is also increasing, so as their usage of mobiles
Functional market (EDGE, GPRS users) is quite potential for Warid If Warid Telecom can
make efficient promotion and utilization its latest GSM technology, it can take market
shares from existing operators as these competitors have congested network structure
because of the unplanned customer growth

Threats

Competition among existing mobile operators is getting fierce. It is very difficult for any
new mobile company to take share from this market. If Warid fails to meet the customer
expectations, company’s future would be at stake. Lack of transparency in the Licensing
Agreement with previous Government can be a major threat for the existing business of
Warid Telecom. Moreover, it is really bad blow on the company’s brand image. Both an
unstable political environment and recession in the economy are obstacles to a smooth
running of business Lack of support from Telecommunication Regulatory Body Possible
Health Hazards from using mobile phones can act as a negative factor for mobile operators.