Macro Environmental Factors
7.’’The business environment is said to affect organizational decisions, strategies, processes and performances ” with reference to a business organization of your choice and using macro environments factors only, comment on the validity of this statement.(25) INTRODUCTION
Lancaster (2011) defines the macro environment as ’those global elements over which the organization has no control over but which affect the organization’s ability to serve its customers profitably.’ There are six major macro environment forces: cultural, demographic, economic, natural, political, and technological. The cultural environment includes institutions and other forces that affect the basic values, behaviours, and preferences of the society-all of which have an effect on consumer marketing decisions. The demographic environment includes the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistical information. The economic environment consists of all factors-such as salary levels, credit trends, and pricing patterns-that affect consumer spending habits and purchasing power. The (ecological) natural environment involves all the natural resources, such as raw materials or energy sources, needed by or affected by marketers and marketing activities. The political environment includes all laws, government agencies, and lobbying groups that influence or restrict individuals or organizations in the society. The technological environment consists of those forces that affect the technology and which can create new products, new markets, and new marketing opportunities.
POLITICAL ENVIRONMENT
This is a way a country is governed, and they are usually more than one political party in a country thus bring in threats and opportunities to the businesses operating in such an environment. There two possible out comes from political environment are stability and changes in the ruling government. When a country has a multi-party system the
Lancaster (2011) defines the macro environment as ’those global elements over which the organization has no control over but which affect the organization’s ability to serve its customers profitably.’ There are six major macro environment forces: cultural, demographic, economic, natural, political, and technological. The cultural environment includes institutions and other forces that affect the basic values, behaviours, and preferences of the society-all of which have an effect on consumer marketing decisions. The demographic environment includes the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistical information. The economic environment consists of all factors-such as salary levels, credit trends, and pricing patterns-that affect consumer spending habits and purchasing power. The (ecological) natural environment involves all the natural resources, such as raw materials or energy sources, needed by or affected by marketers and marketing activities. The political environment includes all laws, government agencies, and lobbying groups that influence or restrict individuals or organizations in the society. The technological environment consists of those forces that affect the technology and which can create new products, new markets, and new marketing opportunities.
POLITICAL ENVIRONMENT
This is a way a country is governed, and they are usually more than one political party in a country thus bring in threats and opportunities to the businesses operating in such an environment. There two possible out comes from political environment are stability and changes in the ruling government. When a country has a multi-party system the