It is important to have a good understanding of the macro-environmental context in which your business is evolving. Evaluating this context clarifies what society expects from businesses from a legal, an economic, or an environmental standpoint, among others. It also makes it possible to decode current major trends in society and to anticipate future changes that have the potential to disrupt your business operations. You can begin reflecting on the macro-environmental context by answering the following questions:
- What are the current and future economic policies promoted by the governments in power?
- Are there specific laws for the sector in which your business operates? And if such laws exist, are they being amended?
- What are the labor standards (labor law, work hours, wages, etc.)? Are they subject to modification?
- How important are environmental issues such as sustainable development in the sector in which the business operates? Are new regulations about to be introduced?
To improve your understanding of the main factors shaping the macro-environmental context, you can use the PESTEL tool. It will allow you to examine key political, economic, sociocultural, technological, environmental, and legal trends. You can also use it to determine the most important issues to take into consideration in the macro-environmental context and to identify the ones that have the potential to impact your business activities.
Diagram: Transfer and Succession Contexts
(Macro-Environmental Context)
References:
- Aguilar, F. J. (1967). Scanning the business environment. Macmillan.
- Le Breton‐Miller, I., Miller, D., & Steier, L. P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28(4), 305-328.