ABSTRACT
The task of the strategic manager is to understand the reasons for the performance of the organization they are working with, and to reveal and create ways that this performance might be improved or sustained. Strategizing is therefore a many-sided thing, a reflection of differing attitudes of managers and the contingent nature of their contexts. The macro-environment refers to the political and legal features of business and competition, the societal aspects of the countries in which the firm operates or sells, the economic conditions shaping the costs of doing business, and the availability of investment and support of consumer demand, plus the effect of existing and new technologies. PESTEL analysis helps to scan the environment to identify trends that will affect how the companies in the sector operate and succeed. Conducting a five forces analysis reveals which actors in the industry occupy favourable bargaining positions relative to others in that industry.
