Skip main navigation

New lower prices! Get up to 50% off 1000s of courses. 

Explore courses

Welcome to Week 2

In strategy, the environment means everything and everyone outside the organisation (Lynch, 2012).
This week, we will look in detail at the following:

  • The PEST model
  • Drivers of globalisation
  • The two types of institutions; informal and formal

Let’s begin by defining exactly what we mean by the term ‘macro environment’.

…the part of the environment over which the business can rarely exert any direct influence but to which it must respond.
(Stonehouse et al. 2000: p.104)
" "
Globalisation is creating a complex and dynamic macro environment in which organisations must operate, but at the same time it generates risk and uncertainty within the environment.
Globalisation can be defined as the integration of economies, industries, markets, cultures and policy-making around the world. It describes a process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation.
The article by Mike Collins, ‘The Pros And Cons Of Globalization’ (2015), will help you complete the task below.

Your task

Answer the following questions and share your thoughts and comments in the discussion area.
  • Does globalisation create a standardised rule of doing business?
  • What do you think are the main risks in taking a globalised strategy?

References

Collins, M. (2015). The Pros And Cons Of Globalization. https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-globalization/#745430a1ccce

Stonehouse, G., Hamill, J., Campbell, D. and Purdie, T. (2000). Global and Transnational Business: Strategy and Management. Wiley.

© Coventry University. CC BY-NC 4.0
This article is from the free online

An Introduction to Macro Environmental Analysis and Business Strategy

Created by
FutureLearn - Learning For Life

Reach your personal and professional goals

Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.

Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.

Start Learning now