Why Is It Important to Undertake Macroenvironmental Analysis When the Micro-

question 5

Multiple Choice

Why is it important to undertake macroenvironmental analysis when the micro- environment has more impact on day- to- day operations?

• A) Because the macro and micro analyses are two key parts of the overall analysis and you would have an incomplete analysis otherwise.
• B) Because understanding trends in PESTEL factors enables an organisation to anticipate changes, threats and opportunities arising in the operating environment.
• C) Because managers ought to be aware of the current affairs issues represented by PESTEL factors.
• D) Because changes in the macroenvironment are barriers to the daily operations of the organisation. That is why they are called PESTEL factors.

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Definitions:

Collective Bargaining

The process by which workers, through their unions, negotiate contracts with their employers to determine their terms of employment.

Union Shop

A workplace where employees are not required to join the union in order to be hired but must join shortly thereafter and remain members as a condition of employment.

Secondary Picketing

Picketing at other than the employer’s place of business.

Severance Pay

Compensation provided to an employee upon termination of employment, often depending on the length of service.