Macroenvironment is that part of external environment which is largely external to the enterprise and thus beyond the direct influence and control of the organization, but which exerts powerful influence over its functioning. The external environment of the enterprise consists of individuals, groups, agencies, organizations, events, conditions and forces with which the organization comes into frequent contact in the course of its functioning. It establishes interacting and interdependent relations, conducts transactions, designs and administers appropriate strategies and policies to cope with fluctuations there in and otherwise negotiates its way into the future.
Elements of Macro Environment :
Demographic Environment :
The term demographics denotes characteristics of population in a area, district, country or in the world. Data with respect to these factors within a demographic variable, and across households, are of interest, to businessmen in addition to economists. Marketers and other social scientists often group populations into categories based on demographic variables.
Economic Environment :
Economic environment refers to the nature and direction of the economy in which a company competes or may compete. Economic environment determines the strength and size of the market. The purchasing power in an economy depends on current income, prices, savings, circulation of money, debt and credit availability.
Political-Legal Environment :
This is partly general to all similar enterprises and partly specific to an individual enterprise. It includes such factors as the general state of political development, the degree of politicization of business and economic issues, the level of political morality, the law-and-order situation, political stability and soon.
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