1. How would you suggest an organisation proceed to measure and harness its macro environment?
An organistion should analyse and understand its external factors to remain competitive because these forces will clearly have an ambiguous impact on what transpires within.
Being able to analyse their inner strengths and weaknesses, understanding external factors like opportunities and threats and then formulate and implement strategies to counter them will help the organization to improve their performance.
One way of understanding these elements is by using the SWOT - Strength, Weaknesses, Opportunity and Threat approach.
By understanding, focussing and tackling these issues, the organisation should be able to identify their finer points, their bad practises and also study their competitor’s strategies and good practices which they can adopt and improve or make newer and better strategies to counter these external factors.
By doing this, the organisation should have a clear vision and mission of what and how they want to achieve these targets for the future. A good example of this approach is our former Prime Minister Tun Dr Mahathir’s vision to make Malaysia a fully developed nation by the year 2020 through his Vision2020 brainchild.
2. Is the organization affected in all situations by all components of the macro environment?
An organization does not exist in a vacuum, meaning it does not and cannot survive without the influences of its macro environment or external factors . These factors include amongst others, it’s social, political, technological and geographical factors.
Macro enviroment are beyond the control of an organization as they are led by bigger forces.
A thorough analysis of the external factors is an effort to understand the forces outside the organization which are influencing the shape of the organization.
For example, the political factors relate to the situation of politics in a country. This factor is of great importance because...