Analysis of Macro-environment and Industry-environment (PowerPoint PPTX Slide Deck)

Profitability is determined by how much value is created and how that value is divided over customers, competition and suppliers

The macro-environmental factors affect profitability via their impact on customers, competitors and suppliers

PEST-analysis is a widely used framework to assess macro-economical factors that influence an industry

The extended PEST analysis (STEEPLED) includes 4 additional macro-environmental factors

Effective environmental analysis requires focus on the KEY FACTORS that impact a firm's profitability

Example: Analysis of the restaurant industry

Example: Restaurant revenues assumed to grow in line with GDP