1. Macro-environmental analysis Generally speaking, there are four types of macro-environmental factors of enterprises, namely, political and legal environment, economic environment, social culture and natural environment, and technological environment. Political and legal environment refers to those political factors and legal systems that restrict and affect enterprises, as well as the operating conditions of enterprises. The political environment includes the country's political system, authority, promulgated principles and policies, political groups and political situation. The legal environment includes laws, regulations and decrees formulated by the state, as well as national law enforcement agencies. Political and legal factors are the basic conditions to ensure the production and business activities of enterprises. Economic environment refers to the social and economic conditions and national economic policies that constitute the survival and development of enterprises, including social and economic structure, economic system, development status, macroeconomic policies and other elements. Usually, indicators to measure the economic environment include gross domestic product, employment level, price level, distribution scale of consumption expenditure, balance of payments, interest rate, money supply, government expenditure, exchange rate and other national monetary and fiscal policies. The influence of economic environment on the production and operation of enterprises is more direct and concrete. Social and cultural environment refers to the formation and changes of social structure, social customs, beliefs and values, behavior norms, lifestyles, cultural traditions, population size, and geographical distribution of enterprises. The natural environment refers to the natural resources and ecological environment in which enterprises are located, including the development and changes of land, forests, rivers, oceans, biology, minerals, energy, water, environmental protection and ecological balance. These factors are related to major business decision-making issues such as determining investment direction, product improvement and innovation. Technological environment refers to the collection of scientific and technological elements in the environment where an enterprise is located and various social phenomena directly related to the elements, including national scientific and technological system, scientific and technological policy, scientific and technological level and scientific and technological development trend. The technological environment affects whether enterprises can adjust their strategic decisions in time to gain new competitive advantages. (Excerpted from Zou Zhu's Enterprise Strategy Analysis, Economic Management Press, pp. 20-22. 2. Micro-environment analysis The micro-environment of an enterprise mainly includes two aspects: the industry environment and the market environment. Analysis methods such as product life cycle, competitiveness of five industries, intra-industry strategic groups and key factors of success are important contents of micro-environment analysis. The economic analysis of market demand and competition can deepen the knowledge and understanding of micro-environment. The following is a brief introduction to life cycle, industrial structure analysis, market structure and competition, market demand, strategic groups in the industry and key factors of success. (1) industry life cycle. In an industry, the operation of an enterprise depends on the overall development of its industry and its competitive position in the industry. The common method to analyze industrial development is to understand the life cycle stage of the industry. The life cycle stage of an industry can be expressed by the product cycle stage, which is divided into four stages: development stage, growth stage, maturity stage and decline stage. Only by understanding the current life cycle stage of an industry can we decide whether an enterprise will advance, stay or retreat in an industry, make correct new investment decisions, reasonably combine the business of an enterprise in multiple industries and improve the overall profitability. (2) Analysis of industrial structure. According to the basic framework of industrial structure analysis put forward by Professor Porter from the perspective of industrial organization theory-five kinds of competitiveness analysis, the intensity of industrial competition and industrial profit rate can be analyzed from the competition among potential entrants, substitutes, buyers, suppliers and existing competitors. The entry threat of potential entrants lies in reducing market concentration, stimulating competition among existing enterprises and dividing up the original market share. As the product of new technology and new social demand, substitutes pose a serious threat to existing industries, but the long-term existence of several substitutes is also a common phenomenon. The competition law between substitutes is still that products with high value gain competitive advantage. The bargaining power of buyers and sellers depends on their respective strengths, such as the concentration of sellers (buyers), the degree of product differentiation and asset specificity, the degree of vertical integration and the degree of information mastery. The competition among existing enterprises in an industry, that is, the competition for market share among enterprises in an industry, is usually manifested in price competition, advertising war, the introduction of new products and the improvement of consumer service. Supplement: (3) Market structure and competition. The four classifications of market structure in economics: perfect competition, monopolistic competition, oligopoly and complete monopoly, are helpful to correctly estimate the nature of market competitors. Strictly defined perfect competitive market does not exist in real life, but the description that the fierce price competition in this market makes the price tend to marginal cost is very common in many consumer goods markets. In a monopolistic competitive market, product differences establish fixed customers for enterprises, and allow enterprises to enjoy some market forces with prices exceeding marginal costs for these fixed customers. In the oligopoly market, the decision-making of enterprises depends on the choice of other enterprises, and the problem of decision-making equilibrium under the condition of direct interaction between decision-makers is paid more and more attention. In a completely monopolized market, the behavior of monopoly manufacturers to control and manipulate prices and output is restricted by the anti-monopoly policy because it harms the interests of consumers. However, it is also reasonable for enterprises to gain monopoly rights and achieve high profits through innovation. In the long run, restricting monopoly is not good for consumers, because it restricts competition. (4) Market demand. We can analyze market demand from two angles: the decisive factors of market demand and the price elasticity of demand. Population, purchasing power and purchasing desire determine the scale of market demand, in which consumers' purchasing desire is a factor that manufacturers can grasp, while product price, degree of differentiation, promotion methods and consumer preferences affect purchasing desire. The main factors that affect the price elasticity of product demand are the substitutability of the product, the importance of the product to consumers, the proportion of the buyer's expenditure on the product to the total expenditure, the conversion cost of the buyer's conversion to substitutes, the buyer's cognition of the goods and the use of product supplements. (5) strategic groups in the industry. Determining the strategic characteristics of all major competitors in the industry is an important aspect of industry analysis. Strategic groups refers to an enterprise group in an industry that adopts the same or similar strategy in a certain strategy. Strategic groups's analysis is helpful for enterprises to understand their relative strategic position and the possible competitive impact of strategic changes, so that enterprises can better understand the competition between strategic groups, find competitors, understand the "mobility obstacles" between strategic groups, understand the main focus of internal enterprise competition in strategic groups, predict market changes and look for strategic opportunities. (6) Key factors of success. As the skills and assets that an enterprise must possess to gain profits in a specific market, the key factors of success may be price advantage, capital structure or consumption combination, or vertically integrated industrial structure. There are great differences in the key factors of success in different industries, and with the evolution of product life cycle, the key factors of success will also change. Even enterprises in the same industry may have different emphases on the key factors of success in this industry.