Macro Environment of Business: Read this article to know about classifications of Macro Environment, they are: Economic Environment and Non-Economic Environment!
They can increase or decrease the need for your product, or create entirely new product needs. Raw material costs might be driven up or down. New target markets might be created or old ones changed. Demographics Businesses need to be aware of changes in the general population.
Is the age distribution changing?
Are household patterns changing? Major changes in ethnicity are critical to identify. Watch population shifts to see if the populations in cities, suburbs or rural area are changing to determine if segments of the population are leaving one area for another.
The same holds true for geographic areas. Are people leaving one region of the country for another? Past demographic trends would include the shift from cities to suburbs in the 50s and 60s, the aging of the Baby Boomer generation currently, the growth of the Hispanic population over the last 20 years and the growing acceptance of the gay community recently.
Economics In a recession, people lose jobs, or worry about that happening to them.
This makes consumers less willing to spend their disposable income. However, in an economic expansion, job security makes people more willing to spend their disposable income. If your customers use disposable income to buy your product, knowing where you are in the economic cycle helps you plan production.
Look at income distribution to see if certain segments of the population are growing wealthier and acquiring new needs. For example, a major reason that China is seen as an attractive market is a rapidly growing Chinese middle class that desires an increasing range of consumer goods.
Social and Cultural Every nation has a set of core cultural beliefs that are passed from generation to generation. Changes in these core beliefs affect consumer purchases.
Once taboo, single-parent families are now considered mainstream and are growing, creating a whole new set of product needs. Preferences for music, entertainment, exercise, eating habits or leisure time activities change with time, creating new needs or lessening past needs.
Technological The development of new technology can dramatically affect needs and wants. For example, the Internet completely changed the way people communicate. If you walk into any electronics retailer or department store, you will literally see hundreds of new products that were directly tied to the growth of the Internet.
That shift to the Internet resulted in new consumer needs and wants, opening the door for smart companies to take advantage of that opportunity. Today, the pace of technological change constantly provides opportunities for new products.
Megatrends Most of the forces discussed here will only affect certain segments of consumers and businesses. Their effects will diminish over time.
A few forces, however, affect nearly every segment of our civilization, and their effects last generations.
We refer to these forces as megatrends. Some historical megatrends might be the printing press, the incandescent light bulb and the telephone. Today, the Internet appears to fall into that category as well.China is on its way to becoming the world’s foremost economic superpower, which is believed to surpass the United States of America (USA) in The Macro-Environment Analysis of China.
European Commissioner for Regional Policy Corina Crețu: "EuroAccess is a free online search tool to support the optimal use of existing funding opportunities to improve economic, social and territorial cohesion in the European Union Macro-Regions.
Rural society in the People's Republic of China occupies less than a half of China's population (roughly 45%) and has a varied range of standard of living and means of living.
Life in rural China differs from that of urban China. In southern and coastal China, rural areas are developing and, in some areas, statistically approaching urban economies.
In northwest and western regions, rural. Macro environmental factors that affect firms. Print Reference this. Disclaimer: These factors of macro environment also affects the factors within the organization i.e. factors of micro environment. The growth of Asian countries like India and china, have had massive effects on Vodafone.
Mar 11, · The latest statistics confirm that the weak end user demand for CAT’s mining products continues to offset the marginal growth in its construction and power systems businesses. Macro environment Our product and all of the other actors operate in a large macro environment of forces that shape opportunities and pose threats to the company is known as macro environment Six largely uncountable external forces influence our product’s marketing activities.