How to do the analysis of macro environment of a global region. North America, Latino America, Europe, Asia.

PESTEL analysis, porters diamond ...

 

To do a Macro Environmental Analysis, a thorough discussion or barnstorming is necessary. It would require research on the 6 topics that will provide a good structure pm the said analysis. Six important topics are as follow: 

Political: This is a process of identifying the important factors in policy environment and identifying it's influence towards the progress of the political goals, and developing strategies to interact with them to advance your goals.

Take for example a on global warming issues. During the campaign period before the election, there were various policies/ bills being passed. There were different political opinions that may arise and you have to assess the each parties viewpoint. 

Economic: The macro economic environment analysis will identify economic trends which is an indicator that shows how a region or country is doing financially.

For example are the interest rates, inflation, exchange rates and unemployment rates etc. 

Social/Cultural: Social and cultural trends are the activities in which society participates. It is important part of the analysis as this will identify the trends in societies, behaviors, values and norms that have a great impact the society.

Some of the examples are the use of facebook, instagram, online jobs, etc. 

Technological Trends: Simply say, it's technological change. This include principles of technology, changes in technology over the span of years and decades. Technology is constantly evolving in order to meet the needs of individuals.

Some examples are Artificial Intelligence (AI), Ecosystem Power Plays, Human-Based Design etc. 

Legal Trends: This is closely linked to the political environment since the politicians are the one making the laws, but also includes trends in court discretion. Example of which is the environmental laws. 

Environmental: The macro environment analysis will identify how changes in the environment will impact on your industry.

In order to complete the analysis, you should also identify the opportunities and threats in each factors. 

The final step of the macro environmental analysis is to summarize the identified opportunities and threats and determine if you should expect growth, stability or decline in the size of your industry.

Take for on technological trends, Artificial intelligence were usually connected to other technologies and it will tend to increase productivity that will resulted to a good customer service.

However, this will also cause job stealing since no more human work needs to be applied in the future.

NOTE: This is the PESTEL Analysis