UNIVERSIDAD PRIVIDA DEL NORTE

FACULTAD DE NEGOCIOS
ECONOMÍA Y NEGOCIOS INTERNACIONALES

INTERNATIONAL INVESTMENT PROJECT PROFESOR:

▪ Karol Susan Peralta Gutarra

INTEGRANTES

▪ David Alexis Espinoza Marrufo

▪ Lucero Vanessa Vilcarino Colunche

▪ Lissett Pamela Vidal Córdova

▪ Jassir Humberto de la Cruz

▪ Fiorella Araujo Huamán

2022
 Strategies to analyze the macro environment

1. Trend extrapolation method:

The method whose objective is the description of trends or conditions of a possible future
from a current and past situation.

The selection and use of this tool starts from the premise according to which, those factors
that in the past produced trends or changes in the organization are constant and will
continue to influence its future. The tool provides a reasonably clear picture of the
organization's goal and what it could do to achieve it, particularly in the near future.

The objective of this tool is to critically examine the impact of past trends on the
organization, look for trends at local, regional, national and global levels that are likely to
affect its future, extrapolate these trends and formulate a forecast.

The following are the steps of the trend extrapolation:

1. Establish the appropriate team to accomplish this task.

2. Identify key trends. Analyze the trends that in the past had the most profound
impact on the organization and were crucial to its success.
3. Map trends in the organization. The trend map reveals trend schemes whose
influence has been decisive and represents a base of information shared by all in
relation to the organization.
4. Perform an analysis of the environment. Both internally and externally, this step
identifies weaknesses and threats, strengths and opportunities (SWOT Analysis).
The team will study trends for each SWOT element related to the key trends
identified above.
5. Extrapolate trends. The team will select those trends that seem to have had a
significant impact on the organization and carry out a brainstorming exercise
extrapolating them to the future.
6. Analyze cause-effect relationships between trends. This step reveals the relative
power of each of them and how they interact and stimulate each other. It is
recommended that you use any diagram of interrelationships for this step.
7. Analyze future threats and opportunities. Once cause-and-effect relationships have
been determined, future threats and opportunities to the organization are clearly
observed. At this point, the team will need to develop tactical and long-range plans
to address negative trends that could prevent the organization from achieving its
quality future.
8. Based on this information, a written prediction of the future of the organization is
made.

2. Stakeholder analysis:

The analysis of the group or individual that may affect or be affected by the achievement
of the organization's objectives.
 A distinction is made between internal and external stakeholders:

1. Interns include shareholders, managers and workers (employees).

2. Those external to customers, suppliers, financial institutions, unions, local
community, social organizations, etc.

They can also be classified into primary and secondary:

3. Primary, they maintain contractual relations with the company.

4. Secondary, influence in a less formal way.

Rarely does influence manifest itself at the individual level, it is done collectively by sharing
common interests.

The same individual can belong to more than one stakeholder, and their interests will
depend on the moment.

A stakeholder map tries to identify the main stakeholders based on their importance and
possible impact on the objectives.

It depends on the presence or not of 3 relevant characteristics:

1. Power: Real possibility of imposing their own objectives on other groups. It can
derive both from the hierarchical position and from the ability to influence.
2. Legitimacy: The perception that a group's goals are desirable, conforming to
the norms, values, or beliefs of a social system.
3. The urgency: Interest of a group to influence to achieve its objectives, which in
turn depends on the importance it gives to such achievement.

Scenarios depending on the characteristics:

1. A group that brought together all 3 would be crucial and decisive.

2. A group that did not gather any, could not be considered stakeholder.
3. As intermediate situations: latent interest groups, of little relevance and
expectant.

3. PEST Analysis

the analysis used to analyze the political, economic, social, and technological factors that
affect the company.

PEST analysis helps businesses understand their position within the market and be more
strategic. As the phrase attributed to Francis Bacon says: "Knowledge is power". And
understanding all the particularities of the market and your target customers will mean a
campaign that has a high probability of success. In particular:

1. You will be able to apply your resources more effectively.

2. You will thoroughly understand your business environment.
 3. You will be aware of what may represent a risk.
4. You will have information to take advantage of your opportunities.

Look at each of the factors that are part of a PEST analysis, what they refer to and some
examples:

1. Political: are the political or derivative aspects that could impact the
organization (for example: government policies, procedures, stability or political
instability, tariffs, import and export restrictions, copyright protection laws and
others).
2. Economic: are the components of the economic environment that are related
to the company (for example: growth of the industry, increase in competition,
macroeconomic trends, purchasing power of consumers, inflation, interest
rates, etc.).
3. Sociocultural: encompasses social behaviors, trends and attitudes that have
some effect on the company or its consumers (for example: beliefs and
preferences about the value of money, customer service and goods; cultural
taboos, family structure and lifestyle).
4. Technological: are all those technological devices or systems that can affect the
production, distribution and publication of your products or services (for
example: transport infrastructure, emerging techniques and technologies,
automation, technology available to the competition, initiatives and
technological regulation).

4. ETOP analysis (Environmental Threats and Opportunities Profile in

English)

The analysis that constitutes a profile of threats and opportunities coming from the external
environment of the company.

With the implementation of ETOP analysis you will achieve the following advantages:

1. It is proactive, with it you manage to act before being affected by a problem

since you can detect it in time. In this way you make better use of the
opportunities you may have.
2. Simple, it is very easy to understand, you just have to focus on what influence
all these factors have on your business.
3. Adaptable, it can be used by any company, whether it is starting its operations,
or one that already has time operating in the market.
4. It is the unequivocal complement of other marketing alternatives that exist in
the market. This allows for better results and better conclusions.

The ETOP analysis should be performed every month or quarter if the business is very recent
and growing. If it is a company with more experience in the market, already established, this
analysis can be carried out semi-annually or annually.
The elaboration of the ETOP analysis serves as the unconditional informant of how the
situation is in your company and the environment that surrounds it. With the information
provided by the ETOP analysis, you have a clearer vision of the strategy to be drawn to direct
the course of the company.

By knowing how is the environment of your company you can react more safely and use in
your favor the advantages and disadvantages found. ETOP analysis is used when developing
a business, strategic, marketing, financial plan. All this without having estimated the
expenses, benefits, risks and resources you have.

The ETOP analysis bases its study on an approach:

1. Political, by studying how politics affects the actions of the company.

2. Economic, seeing how economic activity affects business.
3. Socio-cultural, all cultural trends affect the behavior of the company in some
way.
4. Technological, this is a factor that can affect the company quickly and
constantly.
5. Ecological, it has to do with everything related to the environment.
6. Legal, consists of knowing the laws and regulations that control the company
directly or indirectly.

To perform the ETOP analysis it is necessary to know how all external factors affect the
company, studying their influence independently. If you determine that this influence is
positive then it is an opportunity, otherwise it is a threat. Then you place these opportunities
or threats according to, as the case may be, in a table where each factor will be broken
down:

1. Political, whether before a change of government there is stability or not. if

there are policies that benefit the company, if there are changes in international
agreements, among others.

2. Economic, if after an economic cycle there is crisis or bonanza, if it attacks

inflation, the exchange rate, financing, among others.

3. Socio-cultural, as it affects the age of the population, cultural patterns, income

level, etc.

4. Technological, how fast innovations happen, if there is access to new

technologies, etc.

5. Ecological, if it affects climate change, shortages in raw materials, pollution, etc.

6. Legal, such as employment laws, job security, consumer protection, among

other factors.