MACROENVIRONMENT AND

I N D U S T R Y A N A LY S I S

Presenter: Limheya Lester Glenn R.

LEARNING OBJECTIVES:
 Understand the Benefits of Macro Environment and Industry Analysis

 Understand then Purpose of External Factor Evaluation Matrix

 Understand the Purpose of Competitive Profile Matrix

 Learn about how to appropriately format an External Factor Evaluation Matrix

 Learn about how to appropriately format a Competitive Profile Matrix

M A C R O E N V I R O N M E N T A N D I N D U S T R Y A N A LY S I S

A macro environment is the condition that exists in the economy, rather than in a particular sector or
region. In general, the macro environment includes trends in the gross domestic product (GDP),
inflation, employment, spending, and monetary and fiscal policy. The macro-environment is closely
linked to the general business cycle as opposed to the performance of an individual business sector.

Source: www.Investopedia.com
PURPOSE: the purpose of the Macro Environment Analysis is to
identify possible opportunities and threats that will
impact on your industry as a whole and that are
outside the control of your industry.
 THE GOAL OF 1.) What environmental factors will affect the
COMPLETING A growth of our industry as a whole?
MACRO 2.) What is the likely cumulative impact of all the
ENVIRONMENT things that affect the growth of our industry i.e. will
A N A LY S E S I S T O our industry grow or shrink over the next 3-15
ANSWER THE years?
FOLLOWING
QUESTIONS
 FA C T O R S O F T H E M A C R O
ENVIRONMENT

1.) Political

2.) Economical Trend

3.) Social Cultural Trend

4.) Technological Trend

5.) Legal Trend

6.) Environmental
SAMPLE: MACRO
ENVIRONMENT
SAMPLE OF MACRO
ENVIRONMENT
A N A LY S I S
SAMPLE OF MACRO
ENVIRONMENT
A N A LY S I S
SAMPLE OF MACRO
ENVIRONMENT
A N A LY S I S
E X T E R N A L FA C T O R E VA L U AT I O N

Definition:External Factor Evaluation (EFE) Matrix is a strategic analysis tool used to evaluate
firm’s external environment and to reveal its strengths as well as weaknesses. The external and
internal factor analyses have been introduced by Fred R. David in his book, Strategic
Management. According to the author, both tools are used to summaries the information gained
from company’s external and internal environment analyses.
E X T E R N A L FA C T O R
E VA L U AT I O N
M AT R I X S A M P L E :
 KEY WEIGHTS
EXTERNAL
COMPONENTS FACTORS
OF EFE

RATINGS WEIGHTED
SCORE
 COMPETITIVE
P R O F I L E M AT R I X
 DEFINITION:

 Competitive profile matrix is an

essential strategic management tool to
compare the firm with the major
players of the industry. Competitive
profile matrix show the clear picture to
the firm about their strong points and
weak points relative to their
competitors.
S A M P L E TA B L E :
C O M P O N E N T S O F C O M P E T I T I V E M AT R I X

1.) Critical Success Factors

2.) Weight
3.) Rating
4.) Score
END THANK YOU FOR LISTENING