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Question: 4 Explain each following case of macro environment with

examples
in order to explore their import...

4 Explain each following case of macro environment with examples

in order to explore their importance for business
organizations?
For example, in case of Economic factors you have to give examples
pertinent to growth rates, unemployment etc.
One example relevant
to each subfactor indicated in following table. Ensure that
examples specifically clarify the importance of
factors for
business

Expert Answer

Anonymous
answered this

Answer

Macro-environment factors that affect a business

organisation-  

1. Economic factors- These are the factors that affect the

purchasing power of the consumer. Before expanding, a company
should consider how much can the people of that place spend. For
example, unemployment rates as more the unemployment rate
less the
spending power of the people.

2. Demographic factors- It refers to the factors that refer to

the human population, which helps business and provide to the
economy. For example- age affects the company as different age
groups have other requirements of products.

3. Ecological factors- It consists of the factors that consist

of natural resources and natural elements. For example, climatic
factors decide what products will have more demand.

4. Political factors- Political factors involve the laws and

government agencies. For example, laws related to environmental
protection will affect the production of the business.

5. Technological factors- These consist of technology,

innovation and creating new market opportunities. For example-
Internet
connectivity affects the internal and external
communication of business.

6. Socio-cultural factors- The socio-cultural factors refer to

the factors that affect the behaviour, societies essential value
and
preference. For example, education level decides the taste and
standards of people affecting buying decisions.

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