MACRO-ENVIRONMENT

 MICRO-ENVIRONMENT

The macro-environment of an organization is related to its general and external environment that impacts the working style, decision-making process, strategy, and performance of the business. The macro-environment is a dynamic environment that has a changing tendency. It has external factors that an organization can’t control.

The macro-environment study is termed as PESTLE analysis that includes different external environment factors or forces like:

Demography

It is characterized as the factual investigation of the human populace & its dissemination. This is a standout amongst the most impacting variables because it manages the individuals who structure the business. An organization ought to study the populace, its conveyance, age structure, and so forth before choosing its strategy of marketing. Each faction of the populace acts differently, relying on a range of factors, for example, age, status, and so on. If these variables are measured, a company can manufacture only those products which suit the necessity of the buyers. In this respect, it is said that ‘to comprehend the business sector you must comprehend its demography’.

ECONOMIC GROWTH. 

Economic components are general monetary value, investment rates, exchange rates, inflation rate, fiscal strategies, balance of payments and so forth. An organization can effectively offer its products just when individuals have enough cash to spend. The financial environment influences a customer’s buying behavior either by expanding his disposable income or by decreasing it. Eg: During inflation, the money value decreases. Thus, it is troublesome for them to buy more products. The income of the customer should likewise be considered. Eg: In a business sector where both wife & husband work, their acquiring power will be more. Consequently, organizations may offer their products effortlessly.

POLITICAL ENVIRONMENT

Political environment includes political conditions such as general stability and peace in the country and the attitude of elected government towards business. A stable political system can make business-friendly decisions that promote local businesses and attract foreign investors.

Discuss Technological Factors?

ANS:- Consider both the existing technology required to run business, and the new and emerging technologies that could positively or negatively affect business now or in the future.