Understanding Macro and Micro Environments

The Macro Environment

• The macro environment includes social, political, economic, ecological, and technological (SPEET) forces.
• The people's beliefs, tastes, mores, customs, and traditions influence market behavior.

The Political Environment

• The political environment defines the governance system of a country or a local area.
• It includes all the laws, rules, and regulations on allowable and disallowable business practices.

The Economic Environment

• The economic environment is driven by supply and demand forces.
• It influences interest rates and foreign exchange rates.

The Ecological Environment

• The ecological environment includes natural resources, the ecosystem, and habitats.

The Technological Environment

• The technological environment is influenced by discoveries and advancements that can lead to new product launches and the obsolescence of old products.

Product/Service Offering: Description, Evolution, and Justification

• The product/service offerings section of a business plan includes a description, evolution, and justification of the products or services.
• This section must highlight the features and attributes that appeal to target customers.
• The business plan should also address how the products/services will be accepted and carried by the distribution channels.

Enterprise Strategy and Enterprise Delivery System

• The Enterprise Strategy (ES) maps the competitive landscape and positions the enterprise and its competitors.
• The Enterprise Delivery System (EDS) outlines how the business will implement its strategy.
• The EDS includes input (resources), throughput (transformation process), output (products/services), and outcomes (customer satisfaction, profits, performance).

The Target Customers and the Main Value Proposition

• The Target Customers and the Main Value Proposition section identifies the target audience and the unique selling proposition of the enterprise.
• The business plan should pinpoint what, how, when, where, and why target customers buy, justifying the chosen locations and marketing channels.

Market Demand and Supply, Industry Dynamics, and Macro-Environmental Factors

• The business plan should estimate the total market supply and demand for the enterprise's product offerings.
• It should identify critical factors influencing market demand and supply, and forecast future demand and supply based on these factors.
• The analysis should quantify the current and prospective market size and dissect consumption patterns.
• The relevant industry dynamics include identifying competitors, their advantages/disadvantages, strategies, suppliers, capabilities, bargaining power, and distribution channels.

The Business Proponents

• Stakeholders include resource mobilizers, financial backers, technology providers, governance and top management, and the operating and support team.

The Executive Summary

• The executive summary contains essential information for the business audience.
• It synthesizes the entire plan and provides arguments for why the business will succeed.
• It highlights the strengths of the business proponents, partners, enterprise organization, and capabilities.

Objectives

• Objectives should be specific, measurable, achievable, and time-bound (SMART).
• Objectives should be translated into Key Result Areas (KRAs) for qualitative measurement.
• KRAs, in turn, are rendered into quantified performance indicators (PIs), which serve as an aspirational scorecard and motivational result for investors.

The Business Goals: Vision, Mission, Objectives, and Performance Targets

• Business goals communicate the enterprise's future and long-term prospects.
• They include the vision, mission, objectives, key result areas, and performance indicators.
• The vision articulates the enterprise's long-term aspirations.
• The mission statement communicates the enterprise's purpose and values.

Product, Market, and Home

• Product refers to the goods and services created.
• Market refers to consumers and businesses that buy the products.
• Home refers to the business location(s).

This quiz covers the essential aspects of the macro environment, including social, political, economic, ecological, and technological forces. It also delves into how these factors influence market behavior and product/service offerings. Test your knowledge on the relationships between these environments and their impact on business practices.