Chapter 1.7 - The external macro environment of a business Flashcards
What forces are at play in the external macro environment?
Political forces, economic forces, legal forces, technological forces and social forces.
Describe political forces.
Political forces occur when the government introduces new laws and rules into the country that affect how a business runs. One political influence is the policy of free trade. No barriers for trade.
Describe economic forces.
Economic forces affect the customers willingness to buy a businesses products. With the economy constantly changing, there are going to be times when business is booming and times when things start to recede.
Describe legal forces.
Legal forces are at play when the law is involved with business. New laws can be introduced which may affect a businesses tax, the way they run their business and health and safety.
Describe technological forces.
Technological forces are at play when changes to technology are occurring. The introduction of the iPad gave businesses an easy way to do everything. Businesses can set up online shopping sites so people can buy from home.
Describe social forces.
Social forces are things such as age in a society affecting who can work or not. Demographics are a way of finding the characteristics of a society. Workplace diversity is when people of different race and religion are able to work together without any fuss.
What is the external macro environment?
The external macro environment is the wider environment in which the organisation operates. The organisation has little if not no control over these factors.
