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
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Source: Analysis of Macro-environment and Industry-environment PowerPoint (PPTX) Presentation, AnyStrategy
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