Welcome to Week 2

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)

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.}