Macro Environment ---- PESTEL and Stakeholders

Apart from Porter's five forces of micro environment, I've also learned macro environment which involves PESTEL and stakeholder two main parts. Besides, when I searched some information, I touched another analysis method--SWOT, which connects both micro and macro. I suppose it will be covered in the future lessons.

Political & Technological ----- Government & Competitors ---- Chinese History

After the Revolution of 1911, leader Sun established the Republic of China (1912-1949). After that, he came up with the Principle of People's Livelihood and advocated to develop and protect national industry and commerce. Because of the policy, private enterprise emerged in a large number and at an alarming rate all over the whole country. However, at that time due to the invasion of foreign capital, political corruption of the new government, the Japanese invasion of china and the three years of Civil War, the conditions for business companies were negative. In addition, the structure of industries were unbalanced, most of them was textile industry, so Sun put forward a development of heavy industry policy to reinforce the government's power. Thus, many people began to importing machines and technologies from western countries. Indeed, the business was much stronger than before, however, facing many powerful competitors from advanced countries, Chinese companies were still vulnerable. 

So I think for all business, an initial and fatal condition is political stability. Government policies do influence business and frequent regime changes do destroy all efforts of local companies.

Economic & Socio-culture ----- Customers  ----- Current China

To be honest, the overseas studying becomes more and more prevailing in China. Many young generations like me come to abroad for further education. From social aspect, the sense of values are much more different from the ancestors', people increasingly focus on education and self-development. Thus, the universities of Australia, UK, USA, New Zealand set up branch schools in China or widen channels to absorb students. To some extent, Chinese "customers" stimulate economic in other countries and personally I think it is a big lose for Chinese government. As to exchange rate, I experienced in person. When I paid my first tuition in May, the exchange rate was 1:9.3 ( pounds:RMB), however, when I paid my second fee in August, it climbed at 1:9.6. Nowadays, the rate stays still in 1:9.8 which is really high. So, I'v decided to use cash rather than credit card recently. I forecast it won't go down until January, because the Christmas is coming, in other word, another consuming peak is coming. If the rate is still high next year, I suppose I may find a job and earn "₤":)

Environmental & Legal ---- Communities & Shareholders ---- all over the World

In 2009, the United Nations Climate Change conference was carried out in Copenhagen. More than 85 countries' heads attended the meeting and discussed the environmental problems. After that, COP16 in Cancun, COP17 in Durban, COP18 in Doha were convoked in sequence. During those period, many countries institute relevant laws to limit the behavior of enterprises. I acknowledge there is a dilemma between profits and environment. Companies need to improve their producing technology or invest wasting dispose to shrink carbon dioxide emission. For shareholders, it is absolutely a bad news, because it means increase expenditure. On the contrary, for communities, it's not only do something good to the social environment, but also strengthen people's environmental awarenesses.

UN Climate Change Conference 2009