has generally not been perceived. This is obviously difficult especially as
many organisations fail to recognise major signals in the environment.■ Macro-environmental analysis
The macro-environment audit examines the broad range of environmental
issues that may affect the organisation. This will include the political/legal
issues, economic factors, social/cultural issues and technological develop-
ments. This is normally referred to as a PEST (Political, Economic, Social
and Technological) analysis, although some writers use the alternative
acronym of STEP analysis (see Figure 2.3). The aim of this analysis is to
identify the critical issues in the external environment that may affect the
organisation. Before moving on to judge the impact they may have on the
organisation.24 Strategic Marketing: Planning and ControlPolitical/legal issues Economic factors- Taxation policy • Interest rates
- Monopoly controls • Inflation rates
- Environmental protection measures • Money supply
- Employment law • Business cycles
- Environmental legislation • Unemployment
- Foreign trade agreements • GNP trends
- Stability of the governmental system
Social/cultural issues Technological factors- Age profiles • Focus of government research
- Social mobility • Rate of technology transfer
- Changes in lifestyles • Materials
- Family structures • Developing technological processes
- Levels of education
- Work behaviour
- Leisure activities
- Distribution of income
- Patterns of ownership
- Attitudes and values
Figure 2.3
The PEST analysis of
influences in the
external
environment
Political/legal issues
There is a range of political organisations that have to be considered when
looking at influences in this area of the audit. The structure of a political
system defines the centres of political influence. A state with a federal