This is a short module discussing the impact of the macro-level environment on businesses. Knowing how to run this analysis is critical in planning a company's strategy. In fact, almost all of today's strategic planning models include this analysis as one of the very first steps in the planning process.

[Learning Objectives]

1. Getting familiar with the six major segments of the macro environment

2. Understanding the underlying factors in each of the six segments of the macro environment

3. Learning how different segments of the macro environment interact with businesses

4. Learning how to analyze the six main segments of the general environment

[Readings]

Narrated Slides (see below)

[Assignments]

1) Assignment: "Analysis of the General Environment"

Due date: Please see the course schedule.

This module contains one assignment. Please carefully review the sample assignment first before starting to work on the assignment. In this assignment, you should first choose one industry from the list below:

- Automotive Industry

- Software Industry

- Banking Industry

Then you should discuss important factors in the general environment that influence the industry you chose. You should explain how each of these factors affects the industry and support your claims with data and anecdotes, when necessary. Please list the items that you discuss under their corresponding segment (see below for a template).

Please note that you need to do some research online in order to find information about your industry. Below is the outline you should follow. The number of items in each section may vary. The following is only a sample and you should not constrain yourself to the exact number of items shown below.

Introduction

Demographic Segment

Economic Segment

Political/Legal Segment

Sociocultural Segment

Technological Segment

Physical Segment

Conclusion

You also need to elaborate on how each factor affects the industry. Please provide some explanation for each factor, and don't just name it. For each factor, explain how it is changing over time, how it affects the industry, and the implications of its effect for the industry's companies.

IMPORTANT NOTES:

- Any citation format is accepted, as long as it is consistent throughout the submission.

- Please listen to the narrated slides (the powerpoint file) before starting the assignment.

- The report should be typed using a 12-pt font, double-spaced, 1-inch margin all around, and should be no longer than 4 pages.

- Try not to miscategorize the factors. For example, tax laws should be discussed under the "Political/Legal Segment" and not the "Economic Segment".

- All "six" segments should be included in your answer.

- The purpose of the general environmental analysis is to study the effects of the macro-level environment (a.k.a. the general environment) on the industry; not the other way around. Please do not make statements such as "Coke and Pepsi have created many job opportunities in the Middle East countries". While this might be a true statement, it is not what we look for in this analysis. We look for the effect of the environment on the industry.

- You should also avoid giving the history of actions and events in the industry. For example, do not state how "PepsiCo sold $15 Billion worth of soda in Asia." Such statements do not contribute to the purpose of this analysis.