Description of the macro environment elements

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Description of the macro environment elements

Description of the Macro Environment Elements. Macro environmental variable include socio-cultural, technological, political — legal, and economic. We will write a custom essay sample on Description of the Macro Environment Elements. Socio — Cultural Factors The socio-cultural dimensions of the environment consist of lifestyles, and values that characterize the society in which the firm operates.

Socio — cultural components of the environment influence the ability of the firm to obtain resources, make its goods and services, and function within the society.

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Socio — cultural factors include anything within the context of society that has the potential to affect an organization. Population demographics, rising educational levels, norms and values, and attitude toward social responsibility are examples socio — cultural variables.

Technology is another aspect of the environment a firm should consider in developing strategic plans.

Description of the macro environment elements

Technological changes may create new opportunities for the firm, or threaten the survival of a product, firm, or industry.

Technological innovation continues to move at an increasingly rapid rate. Political And Legal Factors. The political-legal dimension of the general environment also affects business activity.

The philosophy of the political parties in power influences business practices. The legal environment serves to define what organizations can and cannot do at a particular point in time. Economic factors refer to the character and direction of the economic system within which the firm operates.

Economic factors include the balance of payments, the state of the business cycle, the distribution of income within the population, and governmental monetary and fiscal policies. The impact of economic factors may also differ between industries.As a member, you'll also get unlimited access to over 75, lessons in math, English, science, history, and more.

Plus, get practice tests, quizzes, and personalized coaching to help you succeed. Socio-Cultural forces in the Macro Environment The Socio-Cultural forces link to factors that affect society’s basic values, preferences and behavior. The basis for these factors is formed by the fact that people are part of a society and cultural group that shape their beliefs and values.

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Micro-environment is the specific or the task environment of a business which affects its working or operations directly on a regular basis. While the changes in the macro-environment affect business in the long run, the effects of changes in the micro-environment are noticed immediately.

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Description of the macro environment elements
MyManagement: MacroEnvironment - Elements of General Environment and of Specific Environment