Macro Environment Assignment


Macro Environment Assignment

Class notes,(Author Mariyam Bibi Lyqyat, 2017)

  • Labour Law
  • Macro Environment Assignment
  • Current and future taxation policy
  • Tariffs
  • Environmental Law
  • Grants, Funding and Initiatives
  • International Trade
  • Consumer –good food should be healthy food, misnaming wage
  • Political is the key to political factors


  • Local economic growth
  • Interest rates (rates going high and going low)
  • Currency exchange rate (positive and negative
  • Government Spending (Government are not spending money, so that’s not good for the people)
  • Inflation rate (Value of money decreased) for eamample

Class notes,(Author Mariyam Bibi Lyqyat, 2017)


  • Health consciousness
  • Population
  • Demographics (Gender, ethnicity, income, education ,occupation)
  • Cultural aspects
  • Age distribution


  • Government research
  • New inventions and development
  • Construction costs
  • Outsourcing decisions


  • natural resources pollution and the effects of climate change on business, threats and opportunities
  • Climate change
  • Water resources
  • Weather
  • Energy suppliers
  • Risk of natural disaster (Flooding risk)

Macro Environment Assignment

Macro Environment AssignmentLegal:

  • Employment Law (Law and Order)
  • Company Law (Consumer Law)
  • Business Regulation
  • Anti Trust Law
  • Anti Discrimination law
  • Health and Safety Law


PESTEL analysis of the macro-environment

The following factors in the macro environment (tax changes, new laws, trade barriers, demographic change and government policy changes) will affect the decisions of the managers of Asda. To help analyse these factors, managers can categorise them using the PESTEL model.

Social factors. Changes in social trends can affect the demand for Asda’s food and non-food products and the availability and willingness of individuals to work for it. In the UK, for example, there is a growing pool of retired workers willing to work to supplement their pensions. Asda have started to recruit older employees to tap into this growing labour pool. The ageing population also has impact on the demand for both its food and non-food products such as medicines and glasses from its optical stores

Legal factors: Asda need to be aware of planning permission regulations and make sure that continued store expansions complies with planning regulations.  Planning permission is heavily regulated in the UK.  A PESTLE analysis would help Asda to identify relevant planning laws and comply with them to reduce any disruption to his store expansion programme by local people’s dissent or the local authority refusal.  The analysis would assess the potential success of opening a new store in an area.