Description of the Macro Environment Elements. free essay sample

Macro Environment Forces An organization’s macro environment consists of nonspecific aspects in the organization surrounding that have the potential to affect the organization’s strategies. When compared to a firm’s task environment, the impact of macro environment variables is less direct and the organization has a more limited impact on these elements of the environment. Macro environmental variable include socio-cultural, technological, political – legal, and economic.A firm considers there variable as part of its environment scanning to better understand the threats and opportunities created by the variable and how strategic plans need to be adjusted so the firm can obtain competitive advantage. 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. We will write a custom essay sample on Description of the Macro Environment Elements. or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 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. Technological Factors. Technology is another aspect of the environment a firm should consider in developing strategic plans.Changing technology may affect the demand for a firms products and services, its production processes, and raw materials. 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. 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.