Basically, the very environment of the economy can have an effect on two essential aspects – your company’s levels of production and the decision-making process of your customers.Some examples of economic factors affecting business: 1. Welcome to the world of case studies that can bring you high grades! In other words, people are the driving force for the development of markets. So, they are more complementary rather than contradictory. This is a simple analysis of an organisation's Political, Economical, Social and Technological environment. Take the emerging market of cryptocurrencies. The Company's Macro environment The company and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company. Micro Environment 2. This includes a predominant portion of White Americans, as well as African, Hispanic, Native and Asian Americans. Now it’s time to dive into some real examples of macro environments. A PEST analysis is used to identify the external forces affecting an organisation/making up its Macro Environment. It helps the management to have a complete understanding of the external or bigger environment prevalent in the region.It further facilitates the decision-making bodies to plan and devise the most appropriate strategies and goals; all of which shall hit the target in the given market scenario.Such a… Macro Environment Micro environmental components are related specifically to the organization, whereas macro environmental components are broader in nature & affect the entire industry of the region or country. But what exactly is the macro environment, and why should you care? The macro environment in a single city or region, although being a very narrow tool, can help a lot for smaller business. For many firms, the macro environment is an important consideration in strategy planning, decision making and forecasting. 2364 words (9 pages) Essay. They work five to ten years more after sixty. The macro environment is a collection of economic, social and technological factors that impact a firm that are beyond a firm's control. China has a GDP of over $12 trillion, with a huge population of just under 1.4 billion people. A high gross domestic product signals a healthy economy (and a strong business environment) while a low gross domestic product signals a weak economy (and a poor business environment). The word demography refers to the statistical breakdown of a population. Because, on the whole, their needs is the reason for businesses to exist. Examples of macro environment influences include changes in cultural tastes, government regulations, competitors, disastrous weather and changes in interest rates. Aside from that, the United States has a registered population of about 325 million people. While it’s also an economic factor, consumer spending is partially a socio-cultural factor as far as the macro environment is concerned. The social values and culture of an environment play a huge role in the functioning of the company. The macro environment is the broader business environment across all markets and industries. A PESTEL analysis or PESTLE analysis (formerly known as PEST analysis) is a framework or tool used to analyse and monitor the macro-environmental factors that may have a profound impact on an organisation’s performance. As you can see, there are loads of potential factors which you could include in your own macro environment analysis. Taxes 6. Macro environment f actors include political, economic, social, technological, and … It will help to know the threats and opportunities and take precautionary measures as desired.ExampleMore str… Next up is employment, which is the fraction of the local or global population that is or isn’t employed. If your organization produces and distributes sun lotion, the breakdown of the target demographic — by skin color — might be a very important consideration in business analysis. What Is Macro Environment? But now, that isn’t the case. Download your free strategic planning template for the Macro Environment Analysis. Look how organic foods are exploding all over the country. Undoubtedly, the most significant factor on the world’s ecological playing field is global warming. ... Micro analysis or Michael Porter’s five forces analysis. The name refers to the term Demography. These factors can’t be controlled by firms directly. For example in recent time society has seen a shift, and people no longer retire at 60. There’s quite a disparity in regulation across the globe, so you might be surprised to hear what is or isn’t legal in some places. Needless to say, technology is a crucial factor in today’s macro environment. 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