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Macro Environment The Macroenvironment includes all factors that influence an organization but are out of its direct control. Your market or environment is continuously
Submitted by bpayton on March 10, 2008
Category: Business
Words: 274 | Pages: 2
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The Macroenvironment includes all factors that influence an organization but are out of its direct control. Your market or environment is continuously changing, and the company must be able to adapt. There may be aggressive competition or rivalries in a market. The trend towards globalization means that there is always the threat of substitute products and new entrants. The wider the environment is for your product, the more you need to compensate for changes in culture, politics, economics and technology.
Cultural changes account for people's core beliefs or values. How people view themselves, others, organizations, society, nature, and the universe all play a part in shaping one's culture. Companies need to take these principles into consideration when working in the market place.
The Political environment consists of laws, regulations, and government policies that may influence or limit various companies or organizations in the market. The government puts limits and regulations on companies for the good of society; ensuring that we have a free and fair market.
Economic factors have always influenced consumer purchasing. From the time of the "Great Depression" to the time of September 11th, America has seen how drastically the economy can be affected. It is important for companies to watch trends in the economy to prevent losses in profits and to stay at the top of the market.
New technology creates new markets and new opportunities for businesses. It is important for businesses, old and young, to stay on top new technology. Companies that do not stay up to date will soon find their products and services outdated. They will miss all of the great opportunities and markets that technology brings.
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