Answer to Question #257686 in Marketing for Gcina

Question

A discussion of the four variables in the macro‐environment providing theory and relevant application.

Answer 1

Answer

A macro environment comprises of elements that can influence the business but are commonly beyond its control. The Macro environment elements are variables which are based on the factors that affect the business outside its activities which include;

a)    Political factors- This is a variable in the macro environment which is resulted in taxation, tariffs, trade agreements, labor regulations, and environmental regulations

b)    Economic factors- All firms are impacted by the state of the national and global economies. The increased interdependence of individual country economies has made evaluating the economic factors in a firm’s macro environment more complex. Firms analyze economic indicators to make decisions about entering or exiting geographic markets, investing in expansion, and hiring or laying off employees. 

c)     Demographics- Demographics, a subset of sociocultural factors that affect the running of a business, includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.

d)     Technological factors- The rise of the Internet may be the most disruptive technological change of the last century. The globe has become more interconnected and interdependent because of the fast, low-cost communications the Internet provides.