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Macro Environment Factors

Essay by   •  September 19, 2012  •  Essay  •  322 Words (2 Pages)  •  2,284 Views

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Macro Environment Factors are external forces or components that may affect the running of a business or organization. Despite being largely beyond the control of a business, macro environment factors often require changes and shifts in operating, management, production, and marketing. Macro environment changes include political change, social change, environmental changes, legal changes, Technological changes and economical changes. These all have major effect on businesses and these changes out of business control. So anything that change in macro environment businesses need to respond in order to stay competitive.

Political factors: Government policies may made change difficult to implement in the organisations. For example, if a government decide to reduce entry barriers to market then organisations may face competition from global firm by entering to market.

Economic factors: These factors include taxation changes, economic growth, interest rate and exchange rates. If any of these factors change may have major impacts on organisations and organisations have to respond to these changes in order to stay in business.

Social factors: Changes in social trends may affect demand for the companies' products. For example, in UK more people are concern about healthy eating and so companies such as Burger king and McDonald need to respond to these changes by introduce new healthy products rang.

Environment factors: Changes in environment factors may have affect on significant amount of companies because of global warming. Organisations may be required by law to respond to this change by make their products environmental friendly and this issue may make change difficult to implement because it may affect demand for products of the company. Making products environmental friendly may require company to replace a nice plastic packaging with a poor quality paper and customers may see this as reduces product quality and this may be very challenging for organisations to do.

Legal factors: Every organisation required to comply with laws and legislations. Any organisation avoids the law and legislation may result in panties.



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