Macro Environment Analysis For Otto Marines

The purpose of this paper is to analyze the economic situation of the company Macedonian Shipping and give a recommendation whether the company should use the motor vessel Tashtego as a freight tender beween Dar-es-Salaam and Zanzibar in East Africa or as a tapioca ship between Balik Papan and Singapore in the East Indies.

(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).

Macro environment are the external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.

This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks

Macro environment is crucial to the development of a company. All the external factors can have huge positive or negative influences on Travis Perkins plc, therefore a better understanding of the environment of the company is of supreme significance (Peng & Nunes, 2007). Among all the analysis tools, PEST analysis is one of the most effective tools to analyze the external environment of a company (Riley, 2012). This part will demonstrate PESTLE analysis of Travis Perkins plc below. The result of PESTLE analysis can be demonstrated in the following table 1.

1. Macro environment analysis: the major externals which affect company’s decision making, marketing strategy and performance. It includes:

Macro environment comprises external forces that organisation cannot directly control, instead organisation need to manage their macro environment in a way that benefits them ("The Macro Environment & Pest Analysis", 2016). The PESTLE analysis is the most widely recognized approach for considering the external business environment (Gupta, 2013). PESTLE analysis stands for Political, Economic, Social, and Technological, Legal and environmental analysis and describe a framework of macro environmental factors utilized as a part of the environmental scanning component of strategic management. Generally, all the PESTLE factors might not important for all types of industry its depends up industry nature or size. This PESTLE analysis is based on Accor Hotels in Australia which is a famous and globally recognise hospitality brand.

A macro business environment is inclusive all elements, that are out of the business’ control, that has direct and relative influence on strategic planning and goals. The microenvironment, includes current and any changes in local, state, federal and international laws and regulations. Laws and regulations literally dictate how a business regardless, of its sector, the guidelines of its operations. The state of the economy, consumer market and spending trends are also a major factor in the macro environment equation. The purchasing power, of the consumer, is vital for any business sector to succeed. In today’s technology driven society, it is utmost importance, that a business is, within the established perimeters of technology for their industry, or on the cusp of the cutting edge of technology. If a business has effective and efficient technology, across the board, in force, it can potentially cut costs and drive consumers to them. A business’ demographics

Companies conduct this analysis to stay abreast of the issue in the current business environment. Here PEST framework will be used to analyze the macro environment which is divided into four parts-- political, economic, social and technological factors.

Macro environment or macro forces consists of the larger societal factors that have the potential to affect an organization’s strategies. According to Phillip Kotler, these variables include demographic, economic, natural, technological, political, and cultural outside forces. (“Josbd”, n.d, para. 7)

The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.

The operational environment is the framework the military uses to define a how we will create a concept to defeat an enemy. To help paint the picture of the operational environment the Army uses the acronym PMESSII-PT. PMESSII-PT stands for Politics, Military, Economic, Social, Information, Infrastructure, Physical Environment, and Time . I do not believe there are one or two areas that can be focused on and have a successful outcome in combat. GEN David Petraeus stated, “there are no purely military solutions in Afghanistan.”1

With this in mind, the PESTEL model was developed to give researchers and practitioners a framework in which to consider the broader business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Furthermore, a PESTEL analysis is a technique that evaluates the potential impact of political, economic, social, technological, environmental, legal factors on an organization. This set of factors represents a broad set of industry and environmental considerations that any organization should make when designing strategic goals

There are number of insurances, Marine insurance is one, which is a crucial part of letter-of-credit for exporting purposes. It has a wider range of responsibilities than the liability of ocean shipping. We should consider that the insurance is not responsible for any loss. General average and particular average both indicate partial and sectional losses that the insurance does not cover. If the partial damage has been occurred in a stranded, sunk, burnt or on fire vessel, the insurance is responsible to cover it. Therefore Marin insurance indicates to three types; free of particular average, with average, and all risks that each one demonstrates its conditions for partial losses. Under the condition of subrogation, the insurer has the right of pursuing for any loss instead the insured.

Pestel analysis consists of environmental factors that lead to the understanding weaknesses and strengths of the organization in an attempt to influence the organization’s success. The macro-environmental factors are political, economic, social, technological, environment and legal.