the macro environment includes all the forces, events and circumstances that affects the business and its market environment. The macro environment is also known as the external environment. The business cannot control the environment but can influence it.
physical/ natural environment [challenge]
The physical location of a business has a large affect on the sucess of the business. Unpredictable weather may cause significant disruption to businesses.
economic/environment
if interest rates increase, it means the business will pay more monthly installments to the bank for the loan taken. A high inflation will mean that consumers will have less money to spend on goods/services.
legal environment
an unstable government and poor relationship between the government and the business creates a negative political environment. Some political decisions such as government, levies, tax, interest rate, and inflation can influence business
International environment
businesses are unable to import and export goods during lockdown periods. Many businesses are unable to operate efficiently and faces liquidation.
institutional environment
changes in government often result in policy changes that may affect businesses. Strikes cause political instability and delays in productivity.
social environment
social and cultural diversity have the potential to create conflict in the workplace. employees from different cultural backgrounds may have different cultural norms or preferences.
technological environment
many businesses may not be able to succeed without internet connectivity. Businesses may not be able to keep up with the latest technology.
