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Macro environmental Forces

.Demographic .TechnologicaloEconomic oPoliticaloNatural .Cultural

The Macro environment. Customer markets must be studied.

. Consumer, business, government, reseller andinternational markets exist.

o Successful companies provide bettercustomer value than the competition.. Size and industry position help to determine

the appropriate competitive strategy.o Various publics must also be considered.

The Macro environmento I(ey Demographic Trends

. World population growth

. Changing age structure. The U.S. population consists of seven

generational groups.. Baby boomers, Genention x, and

Cenerdlion \ are key groups.. Distinct segments ty?ically exist within

these generationaI groups.

The Macroenvironmento I(ey Demographic Trends

. Changing American household

. Geographic population shifts

. Better-educated, more white-collarworkforce

. Increasing Diversity

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The Macro environmento The Economic Environment

. Affects consumer purchasing powerand sPending Patterns'

. Two ryPes of national economies:subsiitence vs industrial'

. U.S. consumers now spend carefullyand desire greater value'

The Macroenvironmento I(ey Economic Trends

. U.S. income distribution is skewed'. Upper class, middle class, working class

and the underclass'. Rich are getting richer, the middle class is

shrinl

The MacroenvironmentoThe Natural Environment

. Concern for the natural environmenthas grown steadily, increasing theimportance of these trends:. Shortage of raw materials. Increased pollution. Increased governmentalintervention

The Macroenvironmento I(ey Technological Trends

. The technological environment ischaracterized by rapid change.

. New technologies create newopportunities and markets but makeold technologies obsolete.

. The U.S. leads the world in researchand development spending.

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The Macroenvironmento The Poiitical Environment

. Includes laws, governmental agencies, andpressure groups that impact organizations andindividuals. I(ey trends include:. Increased legislation to protect businesses

as well as consumers.. Changes in governmental agency enforcement.. Increased emphasis on ethical behavior and

social responsibility.

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