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Macro Level Factors on Global Framework

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The most important issue learned at the Macro level factors in a global structure is that macro-environment has numerous factors that affect the decisions of the managers of most organizations. New laws, tax changes, trade barriers, government policy changes, and demographic changes are all macro level factors that keep on changing and affecting the decision making process by managers (Menon et al, 1999). These factors affect the operations of the global business at higher stake and they have an impact on the global progress in terms of economy and development. However, the managers are obliged to use the PESTEL model to assist them in analyzing these factors. PESTEL model stands for Political, Economic, Social and Technological Analysis. The most compelling points in macro level factors are the PESTEL classification of factors:

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The factors stated above are some of the crucial components of PESTEL model that affect the macro level on the global structure. Other crucial factors include technological, environmental and legal factors.

The macro factors can be tackled using an alternative approach, which is the SWOT analysis. Note that SWOT analysis is a classification of the PESTEL factors combined with external macro-environmental factors and internal drivers. Therefore, it is clear that the SWOT analysis is the best alternative approach to macro factors. However, it mainly deals with economical, political and technological factors because it is all about the Strengths, weaknesses, Opportunities and Threats of a strategy (Hill & Westbrook, 1997).  The managers in all firms must consider the internal strengths and weaknesses of their organizations in order to determine what their strategy should be. They then have to compare them with the external opportunities and threats and this process is what forms the SWOT analysis. Strengths are internal factors that an enterprise may establish to build up a strategy.  

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Some examples of strengths in a firm may include financial strengths like high level of cash; marketing strengths such as a strong brand; operations strengths like high efficiency level and HRM strengths like a well-trained workforce. Weaknesses on the other hand refers to internal factors that have requires to protect itself and these include financial weaknesses like high levels of borrowing accompanied with low return rates; marketing weaknesses like poor product range; operational weaknesses like poor quality and old, insufficient equipment and HRM weaknesses such as industrial disputes. Opportunities come in when the enterprise contains several strengths than weakness meaning that it has a strong competitive advantage. Threats on the hand come in when the firm contains several weaknesses than strengths.

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