What does PESTEL stand for? - Political, Economic, Social, Technological, Ecological, Legal, Besides the market environment, PESTEL explicitly reminds managers to consider the: - Non-market environment, what is the non market environment? - NGOs, government, media, campaign groups, In the slide “Layers of the organisational environment,” which outer layer surrounds industry/sector? - Macro-environment, Political risk analysis has two dimensions. Name them. - Macro–micro; internal–external, list the economic factors in PESTEL? - Business cycles, interest rates, disposable income, exchange rates, unemployment, differential growth, Name the 3 types of economic cycles with their rough duration: - Kitchin 3–4 yrs; Juglar 7–11 yrs; Kuznets 15–25 yrs, Which industries are especially vulnerable to downturns - Discretionary spending (housing, cars) and high fixed-cost (airlines, hotels), Which social tool maps connections within an organisational field? - Sociogram, In sociograms, power and innovation increase with which trio? - Network density, hub centrality, broker positions, List 5 technological indicators - R&D budgets, Patent activity, citations, new product announcements, media coverage., What concerns ecological factors. - Green/environmental issues: pollution, waste, climate change, The three ecological challenges organisations may need to meet are: - Direct pollution control, product stewardship, sustainable development, List what concerns legal factors - Labour, environmental, consumer regulations; taxation & reporting; ownership rules; competition; corporate governance, Whats the idea of including informal norms in “L”? - Unwritten norms (e.g., environmental respect) can constrain behaviour like laws, List 3 varieties of capitalism - Liberal markets (US/UK) favour competition; Coordinated (Germany/Japan) encourage coordination; Developmental (China/India) strong state roles, Whats the best practice for using PESTEL? - Apply selectively; consider what matters now and in the next few years; use up-to-date data; identify opportunities & threats, Key drivers for change are - Environmental factors likely to have high impact on industries/sectors and on strategy success/failure, Name a forecasting approach that fits high certainty - Single-point forecast( when confidence is high), Name a forecasting approach that fits moderate uncertainty - Range forecast with central projection and bands(described as bands around a central projection.), Name a forecasting approach that fits deep uncertainty/discontinuity - Alternative futures / multiple-futures, Define Megatrends - Large-scale, slow-forming changes shaping other activities for decades (e.g., aging, global warming), An inflexion point is when: - A trend bends/shifts sharply, Weak signals are best described as: - Early, fragmentary hints of future shifts that can foreshadow inflexions, Scenario analysis is primarily for: - Learning and challenging assumptions by exploring plausible alternative macro-environments, Which is true about scenarios? - They are not strategies; strategies must cope with them, Give an example that shows non-market forces enabling adoption - Tesla in Norway benefiting from pro-EV policy, Name an example that shows non-market constraints - Shell’s South Africa exploration blocked by activists (activist campaigns can hinder projects.), In the DiDi PESTEL illustration which factors are highlighted threats? - Political crackdown on big tech, Slowing economic growth, Autonomous vehicles risk , a good PESTEL should ultimately: - Identify opportunities and threats, What defines the macro-environment? - It’s everything outside the industry that can still affect it — politics, economy, society, technology, ecology, and law., What is the PESTLE Framework used for? - A tool to scan the external environment and spot opportunities and threats., What is the difference between Market vs. Non-market environment  - Market = customers, suppliers, competitors., Non-market = governments, NGOs, activists, media., What defines forecasting? - How strategists think about the future, Name and define the 3 types of forecasting - Single-point forecast → one expected number (used when confident),Range forecast → a range of outcomes (medium uncertainty),Alternative futures → several distinct scenarios (deep uncertainty).  , Define what is a Scenario analysis - Building “what if” stories about different possible futures so your organisation won’t be caught off guard.(It’s not prediction — it’s preparation.), What is the purpose of macro analysis? - See beyond short-term competitors, Spot early risks and opportunities, Adjust strategy to fit the changing world ,

Week 2 Macro-environment Analysis

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