Stonehouse et al. (2004)

Management > Global Strategic Management > Lectures > Independent Research > Stonehouse et al. > The Drivers > Resource-based approach > The Resources > The macro-environment

The Macro-environment

The macro-environment is turbulent (unpredictable), complex (relationships) and dynamic (rate of change).

There are two types of change in the business environment:

1. Continuous - series of minor changes in the world
2. Discontinuous - major deviations arising at random times, which can cause businesses to completely change, such as a revolutionary product or a change in distribution channels

There are a variety of methods that can be used to analyse the macro-environment, including:

• STEP analysis (Social, Technological, Economic, Political)
• Porter's diamond (Factor conditions, Demand conditions, Related and supporting industries, Business structure and rivalry). This analysis also includes the additional roles of chance and the government.

The micro and macro-environment needs to be studied at both national and global level, as the global events can affect national situations.

Global and Transnational strategy

Global strategies

Strategies - Generic/Competitive positioning

Generic Strategies

Combination

Value System

Total global