Factors Of Macro Environment Samples †MyAssignmenthelp.com

Question: Discuss about the Factors Of Macro Environment. Answer: The macro environment is an uncontrollable factor that could impact on the decision making and strategies of organization (Sorensen, 2012). Consequently, it could directly impact on the growth of the organization. There are different factors that are considered in the macro environment like political, economic, legal, social, technical, and environmental factor. There are certain issues faced by the organization due to macro environmental factors. In this way, government instability could create the possibilities of risk in the business. Thus, it will decline opportunities of getting a favorable outcome for the company. Besides this, the organization could be aware to the current economic condition of the country because economic situation changes could impact on the employee income and behavior (Sorensen, 2012). Hence, higher inflation rate could decline the disposal income of employee as it would demand of product and service. The demand could affect the whole business cycle as it would be a major issue for the organization. The social culture factor enables the organization to understand preference and needs of consumers. But at the same time, determinates of goods and services demand and willingness of people to work could be a major problem for the organization. The technical changes could create obstacles for company to get the new opportunity due to the higher cost. Changes in weather and environmental understanding could decline the opportunity for business to get a favorable outcome. Laws related to sociality and health could also influence the behavior of people and organization (Sorensen, 2012). It can be concluded that organization could use PESTEL to analyse the country situation. Responses From this article, I have learned that the factors of macro environment could direct impact on the business. I have gained my understanding towards the political, social, economic, technical, and environmental factor as it would be crucial to the business success. I observed that this PESTEL could be imperative to critically analyze the profitability of investing money in the particular country. From this article, I have pointed that political and government stability, foreign trade, taxation, and tariffs could support to deal with the political issue and business success. I have also gained my understanding about different strategies, which could eliminate the macro environmental issue. References Sorensen, H. E. (2012). Business development: a market-oriented perspective. USA: Wiley.