MACRO

ENVIONMENTAL
SOURCE OF
OPPOURTUNITY

GROUP 8
OÑATE, MMJ

GATON, L

BADAJOS, K

SERDONCILLO, R

DE OSIO, T
MACRO ENVIRONMENT

The macro-environment refers to the “big or macro forces” that affect

the area, the industry, and the market, which the enterprise belongs to.
-They influence how business should be conducted, how consumers will
behave, how supply and demand will move, how different competitors
would position themselves, and how the cost of doing business will
proceed.

-The macro-environment forces can be divided into five categories

composed of the Social, Political, Economic, Ecological, and
Technological dimensions or SPEET.

-The macro-environment forces create their own opportunities for the

enterprise to exploit, and their own threats for the enterprise to
counteract.

SOCIO-CULTURAL ENVIRONMENT

-The socio-cultural environment includes the demographics and cultural

dimensions that govern the relevant entrepreneurial endeavor. Taking
this aspect into consideration helps the entrepreneur asses the trends
and dynamic of the bigger consumer population, their beliefs, tastes,
customs, and traditions. It looks at social structure and shifts in social
status and behavior.

POLITICAL ENVIRONMENT
-The political environment defines the governance system of the country
or the local area of business. It includes all the laws, rules, and
regulations that govern business practices as well as the permits,
approvals, and licenses necessary to operate the business.
-Specifically, it regulates the use of natural resources; the disposal of
wastes; the taxation of income; the importation of goods and services;
the accounting and reporting of business financial statement; public and
private education; health programs; use of public funds; and other such
concerns. It includes the establishment of vital infrastructures, logistical
access, and interventions that affect the cost of doing business. These
factors are important influencers in evaluating the attractiveness of any
political domain where the entrepreneur intends to locate and do
business in.

ECONOMIC ENVIRONMENT
-Supply and demand forces mainly drive the macroeconomic
environment. They are the same factors that drive the interest and
foreign exchange rates that fluctuate with the movement of the market
forces. In any country, the income levels and the purchasing power of its
people as well as the competitiveness(or uncompetitiveness) of its
industries and enterprises are sources of opportunities.
-However, in any opportunity, there is always a threat that lurks behind
it. In this case, the entrepreneur must be able to think critically through
each and every single economic event that impacts his or her enterprise.
For example, a very fast-growing demand for housing may lead to the
overbuilding of houses. This threat is what house financing institutions
are afraid of.

ECOLOGICAL ENVIRONMENT
-The ecological environment includes all-natural resources and the
ecosystem, habitat of men, animals, plants, and minerals. There is a
growing awareness in the world today that will make this factor more
and more important for countries, industries, and businesses. The
threats of ecological degradation have generated countless opportunities
such as smoke and spill detectors, filters and screens, pollution counters,
and energy-saving devices. Opportunities abound for greener, cleaner,
and healthier products, whose objectives are to save the planet and
prolong lives.

TECHNOLOGICAL ENVIRONMENT
-New scientific and technological discoveries, which often lead to the
launch and commercialization of new products with superior attributes
or to rendering the old ones obsolete, are the entrepreneur’s nightmares.
In such cases, the entrepreneur is left with no choice but to invest in new
technologies in order to keep up with competition. Technology does not
only come in the form of advanced machinery or equipment, but it can
also be in the form of new systems, new processes, or new products.

BUZZ SESSION
-A Buzz Session consist in dividing an audience into small groups to
discuss an issue or carryout a task.

Example: Use a buzz session to find ideas for a family vacation or to

make plan for getting family chores done or for saving money.

How many persons should a buzz session include?

- A buzz session is a type of brainstorming. The audience is divided into
small discussion groups (3-5 members each). All members are involved
in the discussion.

QUESTION AND ANSWER

-Q & A is a situation in which a person or groups of people asks
questions and another person or group of people answers them.

CLASS DISCUSSION
-Is a practice where the instructions and students share their views on a
particular topic that was previously lectured on.
-Every business affected by macroenvironmental forces. They can
increase or decrease the need for your product, or create entirely new
product needs.