Dimensions of the macro environment Traditionally the business macro environment has been divided into 7 dimensions to study and evaluate, that would be: The study of these environments will help to know the strength, weakness, opportunity and threat of business.
In the Indian context, we find that the state of technological development varies among different sectors of the industry. The natural environment consists of Geographical environment and ecological environment.
Employment Employment levels in the United States are measured by the Bureau of Labor Statistics, which releases a monthly report on increases in business payrolls and the status of the unemployment rate.
The rightist inclination of the ruling party will formulate liberal pro-business policies while its leftist inclination will accept measures like nationalisation and expansion of the public sector.
Demand for packaged food and readymade garments have increased in recent times. The nature of food and clothing pattern has also changed to a great extent.
Business activities are bond to suffer if enterprises do not adopt up-to-date technology as and when necessary. The Federal Reserve sets a federal funds rate for which federal banks borrow from each other, and this rate is used as a base rate for all credit rates in the broader market.
Generally it is felt that the technological aspect of competition varies with customer needs and government policy. In this calculation business must consider the physical environmental factors such as the quantity and quality of existing forest wealth, Possibility of artificial rain, the exploitation of sea products like fish, the health hazards out of pollution, social costs of rapid urbanisation and industrialisation etc.
The business sector has economic relations with the government, capital market, and household sector. No firm is immune to economic forces although some are less vulnerable than others. Business law is the complex system of regulation that forms the legal environment of business.
Emission of smoke dust and chemicals from manufacturing plants. Some historical megatrends might be the printing press, the incandescent light bulb and the telephone. They can influence the performance and day to day operations of the company, but for a short term only.
Anticipation of future economic conditions will enable the firm to devise appropriate strategies. It is because the world is about to face crisis on may counts if current rate of consumption of materials continues without check.
The management or managers generally to create, that will help to maintain a common behaviour. Emission of smoke from oil refineries, burning of trees and plants in forests, burning of coal, etc.
Demography refers to the study of human population especially with reference to age, sex, education, occupation, income size, density, geographic concentration and dispersion urban and rural population, etc.
Foreign technical collaborations are popular in India but subjected to strict regulation regarding indigenization, impact on local technological development and employment export commitments etc.
Key Differences Between Micro Environment and Macro Environment The following are the major difference between micro and macro environment: The skills and knowledge applied to the production, and the technology and materials needed for production of products and services can also impact the smooth running of the business and must be considered.
It means business should take all steps so that no further damage is done to the environment. Potential shortages of certain raw materials e. A recent example of this is the environment and how many sectors are being forced to review their products and services in order to become more environmentally friendly.
These different sectors together influence the trends and structure of the economy. The increasing domestic competition is compelling many companies to pursue International Trade. These variables generally affect not only the company but the whole society and its activities, and encompass matters relating to population, legal or technological issues.
Who the customers are B2B or B2C, local or international, etc. For example, planting of trees Afforestation programmes can substantially reduce air pollution near the industrial area. Role of Business in Environmental Pollution: In a modern business, social and cultural forces usually influence the welfare of a business concern in the long run.
The elements of the microenvironment affect directly and regularly to the firm which is just opposite in the case of the macro environment. Drainage of toxic substances like chemicals and fertilizers used in cultivation, into streams and rivers. Changes in these core beliefs affect consumer purchases.
Your organisation has a duty to satisfy the public. It is essential to conduct a good analysis of the macro environment of a company because knowing what environment surrounds our business enables us to protect ourselves from those issues that can be harmful, and take advantage of situations that allow us to increase sales.The Impact Of Micro and Macro Environment Factors on Marketing.
Based on these risks discussed above, the question to be answered is what are the possibilities of these very macro-environmental variables happen, and if they occur, how the company would be. (A) Economic Environment of Business: Economic environment of business has reference to the broad characteristics of the economic system in which the business firm operates.
The present day economic environment of business is a mixture of national and international environments. The macro environment of a company is the term used to encompass all those external variables that affect businesses.
These variables generally affect not only the company but the whole society and its activities, and encompass matters relating to population, legal or technological issues. INFLUENCE OF MACRO-ENVIRONMENTAL FACTORS TO THE PROCESS Macro-economic factors as well as intercultural dimensions have to be considered in The expansion of companies leads to changes of the business environment and the business behavior.
How such a change of business behavior can look like, demonstrates. Macro environmental factors that affect firms. Print Reference this. Disclaimer: These factors of macro environment also affects the factors within the organization i.e. factors of micro environment.
The growth of Asian countries like India and china, have had massive effects on Vodafone.Download