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Macro and Market Environments cont

As can be noted from (Fig 1) the relationships of the business [Micro Environment], to the Macro and Market Environments, places opportunities/constraints that may directly affect the market segments where your company trades. This schematic diagram is intended to illustrate the Reactive and Responsive interfaces that exist between the Micro Environment [your Business] and the other two environments [Macro and Market Environments] that dominate and influence the trading platform.Reactive Interface 1 connects the Strategic Relationships between the Macro and Market Environments. For instance, should the Market Environment [customers and suppliers] react to changes in the Macro environment, these may also affect the established patterns of trading with the Micro Environment. And, the effect of these reactions is also likely to impact across the Strategic Relationships that exist between the Market environment and your business [Micro Environment], through Responsive Interface 3. Inversely, these and/or other changes in the Macro Environment, may also impact directly through the Strategic Relationships that exist between the Micro Environment [your business], without consequence to the Market Environment.

The significance of Company Strategy in relating to the Macro and Market Environments (continued)

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When formally managed, strategy can be considered the core intellect driving company Value.

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By illustrating these rather complex relationships in a two-dimensional graphic [fig 1], it becomes obvious that a company is not an island and that the success or failure of a business is highly dependent on monitoring and translating the perpetually moving horizon which can alert investors to new opportunities or, if ignored, severely impact on an otherwise successful investment and render it a liability to shareholders and creditors alike.

Further reference to fig 1 shows the tactical position afforded to company strategy. It is so positioned to have equal exposure to all three principal environments within the business arena so as to continually monitor change and provide timely direction as to where opportunities and potential threats may call for rapid or long term responsive action [Responsive Interface 3]. You will also note the equal proportions, depicting the balanced rationale applied to illustrate equal priority given to all three Environments, and the Strategic Relationships connecting them.

Fig 1

Having a great Strategy won't benefit the Company if it is kept a secret. Induct and train staff about how the stakeholders stand to benefit when it is properly implemented.

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