Idea...idea...idea...please comes to me.

First of all, I’m suppose to make a writing journal each week, but due to lack of idea and my mind comes to the end of the road, I didn’t accomplished the task within the time given. I’m sorry for my bad…

24092013… Today, we learned about evaluating a company’s external environment. “What is macro-environment???” that was the first question asked by Miss ummi when she started the lecturer. Then, she explains that it includes all the environmental factors that have an impact on all organizations and firms within the economy whether directly or indirectly. The strategically relevant factors in the macro-environment are PESTEL. It may sound like a species of flower, but it is not. PESTEL are stands for Politics, Environmental, Social, Technological, Economic, and Legal & regulatory. It is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. These factors can be classified as opportunities and threats in a SWOT analysis if combined with external micro-environmental factors and internal drivers.

·         Political: to what degree the government intervenes in the economy.

·         Economic: include economic growth, interest rates, exchange rates and the inflation rate.

·         Social: include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.

·         Technological: include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change.

·         Environmental: include ecological and environmental aspects which may especially affect industries.

·         Legal: include discrimination law, consumer law, health and safety law, and etc

Other than that, we also learnt about the Five Competitive Forces by Michael E. Porter, Harvard Business School professor. This tool was created to analyze the attractiveness and likely-profitability of an industry. This tool assumes that there are five important forces that determine competitive power in a business situation. The five competitive forces are substitute products, buyers, new entrants, rival firms and suppliers.

I have no idea what else to write here…I think, I should stop now…that’s all from me…PEACE NO WAR!!!