Macro Environment And Environmental Analysis Of The PESTLE Model

There are several different definitions of macro environment depending on what aspect we are referring. Macro environment could be defined as anything outside of business such as the economy, technology, and the power of natural and artificial. These factors are often uncontrollable. In Macro environment, many factors will affect the decision-making in any organization. To overcome and analyze these factors organization can categories it in to PESTLE model. The macro-environmental or external factors of KFC can be identified by using PESTLE analysis, which stands for economic, technology, legal and political, social - demographics and natural – environmental

a) Economic:

Economic factors represent the wider economy; it includes economic growth rates, levels of employment and unemployment, costs of raw materials such meat, petrol, energy, herbs, and steel, interest rates and monetary policies, exchange rates and inflation rates. These may also vary from one country to another. Hence, the economic factor depends on all these factors and upon a country as well. Thus, in a way the influences of economic factor are major and could be said as one of the most profound influences upon any industry. Industries, which depend on selling products, which are not a necessity, but rather depending on luxury, would rarely be able to profit

b) Technology:

What amount to technology is a question that depends upon two key factors firstly the adaptation capacity of an industry and secondly on availability of recent innovation. If we wish to place it in a vast arena, it involves changes in information and mobile technology, changes in internet and e-commerce or even mobile commerce and it include materials development and new methods of manufa...

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...Its basic economy principle that corporations would usually have certain target groups, thus any that takes place within this group would in turn affect the corporation significantly.

e) Natural- Environment: This factor usually involves availability of natural

Resources and procedures or policy with regards to management of waste and etc. While this factor is not a key issue in all form of business, it plays a major function or role when it comes to mass production industries which lie heavily upon availability of raw materials. A prominent example would be uranium mining; if the area of mining has, ceases in availability of such material then the existence of the mining company would be placed to halt. The remnants of multiple tin mining factories could be seen all over Malaysia, which is due to decreased availability of the raw material.