Book
Macroenvironmental analysis for strategic management
1986
Abstract
Fahey and Narayanan (1986) describe three environmental levels. The task environment refers to a set of customers. The industry environment comprises all enterprises within a particular industry. At the broadest level is the macroenvironment, which includes the Social, Technological, Economic, Environmental, and Political (or STEEP) sectors. Changes in one sector at any level (local, national, or global) may lead to changes in another. A war in the Middle East may cause the price of oil to increase, thus stimulating a recession, in turn resulting in budget cuts. Technological developments in California that enable the conversion of wind power to low-cost energy may be introduced worldwide, thereby reducing the costs of fossil fuel energy, with concomitant economic ramifications. Thus, developments in the macroenvironment can affect developments in the task and industrial environments. This point underscores the necessity of scanning the macroenvironment, as well as the task and industrial environments, to pick up the early signals of change that may affect one's organization or activities. [description excerpted from George T. Kurian and Graham Molitor (Eds) Encyclopedia of the future. New York: Simon and Schuster, 814-816]
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Details
- Title
- Macroenvironmental analysis for strategic management
- Creators
- Liam Fahey - Northwestern UniversityV. K Narayanan - Drexel University
- Series
- The West series in strategic management
- Publisher
- West Publishing; St. Paul [Minn.]
- Number of pages
- 251
- Resource Type
- Book
- Language
- English
- Academic Unit
- Management
- Other Identifier
- 0314852336; 9780314852335; 991021883400904721