Module 4

Environmental Analysis

By: Dr Shahinaz Abdellatif

 Macro Trend Analysis

• Examining each of the six macroenvironmental

components in terms of how the dynamics of
change affect the following:
• Attractiveness of particular markets
• Marketing strategies and
• Marketing programmes.
 Macro Trend Analysis

• Demographic environment
• Sociocultural environment
• Economic environment
• Regulatory environment
• Technological environment
• Natural environment
 Major Global Demographic Trends
- aging of the world’s population
- the Aids plague
- imbalance in population growth, rich v’s poorer
countries
- increased levels of immigration
- decline in married households in developed
countries
 Sociocultural Trends

- business ethics
- fitness & nutrition
 Economic Indicators

- GDP
- economic growth
- employment
- interest rates
- inflation
 The Regulatory Environment

- government laws & regulations

- deregulation
- exchange controls
- taxes
 The Technological Environment

- major innovations expected in biology &

electronics/ telecommunications
- convergence of the telecommunications,
computing and entertainment industries
 Opportunity/Threat Matrix for a
Telecommunications Company in the UK in 2005
Probability of Occurrence (2010)
Level of Impact
on Company* High Low

High 4 1
Low 2 3
1. Wireless communications technology will make networks based on
fiber and copper wires redundant.
2. Technology will provide for the storage and accessing of vast
quantities of data at affordable prices
3. The price of large screen (over 36 inch) digitalized TV sets will reach
mass market prices
4. Internet telephony will emerge as the dominant force in the
telecommunications industry.

*Profits or market share or both.