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Description of Macro-Environment. Explanation.




Definition Macro-Environment. Description.

Macro-Environment includes the macro-economic, social, demographic, political, technological, legal, government and the competitive environmental factors that can influence an organization, but that are out of its direct control. However, firms may be able to develop Dynamic Capabilities to deal with (changing) environments.

Also referred to as external environment.

Components of the Macro-Environment. Elements.

We can divide a firm's external environment into 5 broad, overlapping areas:

  • The Political-Legal Environment
  • The Economic Environment
  • The Social-Cultural Environment
  • The Technological Environment
  • The Competitive Environment

Analyzing the External Environment of a Firm

An analysis of the macro-environment of any firm or organization can be performed with a PEST Analysis.

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Macro-Environment Special Interest Group

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Michael Porter on Competiveness of a NationSign up

Harvard Professor and Co-leader of the US Competiv...
Usage (application): Global Competition, Comparative Advantage, Competition Between Nations and Regions

External Environment In-depth: Sub-types and How to Manage ThemSign up

This presentation covers the topic of external env...
Usage (application): External Environment, Environmental Scanning, Environmental Management, Competitive Environment

Interview Porter: How to Apply the Five Forces Framework?Sign up

Interview Michael E. Porter, Professor at Harvard ...
Usage (application): Applying the 5 Forces for Fundamental Industry Analysis

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Compare with:  Five Forces (Porter)  |  Competitive Environment  |  Globalization  |  Industry Attractiveness  |  Shared Value  |  Strategic Management

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