Learning Objectives
     After reading this chapter, you should be able to:
     1. Recognize the factors in a company’s broad macro-
         environment that may have strategic significance.
     2. Use analytic tools to diagnose the competitive conditions in 
         a company’s industry.
     3. Map the market positions of key groups of industry rivals.
     4. Determine whether an industry’s outlook presents a 
         company with sufficiently attractive opportunities for growth 
         and profitability.
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        FIGURE 3.1 From Analyzing the Company’s Situation 
                         to Choosing a Strategy
      Chapter 3 discussed the External Environment, and Chapter 4 discusses the Internal Environment.
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       Analyzing the Company's Macro-Environment
     PESTEL Analysis.
     •  Focuses on principal components of strategic significance 
        in the macro-environment:
       • Political factors.
       • Economic conditions (local to worldwide).
       • Sociocultural forces.
       • Technological factors.
       • Environmental factors (the natural environment).
       • Legal and regulatory conditions.
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             Assessing the Company’s Industry and
                         Competitive Environment
     Thinking strategically about the competitive 
     environment requires managers to use some well 
     validated concepts and analytical tools.
              • Five forces framework.
              • The value net.
              • Driving forces.
              • Strategic groups.
              • Competitor analysis.
              • Key success factors.
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     FIGURE 3.2 The Components of a Company’s Macro-Environment
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