Macro Environment and How Businesses Respond to Change

The macro environment refers to the broad, (a)   external factors that influence a company's operations and strategic decisions.

Categorise these macro environmental factors

Groups:

(a) Socio-cultural

,

(b) Technological

,

(c) Economic

,

(d) Environmental

• changes in consumer preferences

• attitudes in society

• artificial intellegence

• use of robotics

• population lifestyle changes

• the move away from plastic

• unemployment

• sustainable manufacturing

• inflation

• tap and go payments

• interest rates

• exchange rates

• ecofriendly packaging

Categorise these macro environment factors

Groups:

(a) Political

,

(b) Legal

,

(c) Ethical

• consumer protection legislation

• bribery

• government grants

• corruption

• anti-discrimination laws

• confidentiality

• copyright laws

• government regulations

• taxation

• employment legislation

Socio-cultural factors exclusively consider social influences and their effects on a business.

• True

• False

Technological factors are the influence of (a)   in technology that can affect a business.

Economic factors are

• how governmental actions and policies impact business operations, strategies, and overall performance

• laws or legal actions that impact a business’s rights, responsibilities and operations

• the combined influence of factors such as inflation, unemployment, interest rates, wages, exchange rates and consumer confidence on a business

• the positive or negative outcomes from following or ignoring moral values in decisions and actions.

Environmental factors are the influence of environmental and (a)   issues on the way businesses operate.

Political factors are how governmental actions and (a)   impact business operations, strategies and overall performance.

Legal factors are laws or legal actions that impact a business's rights, (a)   and operations.

Ethical factors consider the positive or negative outcomes from following or ignoring (a)   values in decisions and actions